International arbitration is a leading method for resolving disputes arising from international commercial agreements and other international relationships. Arbitration is a flexible, consensual process for resolving business disputes in a binding, enforceable manner.
Advantages of arbitration in Export Import dispute compared to Litigation:
·
Quickness:
Definitely, arbitration is quicker than litigation. Process of arbitration can
be completed as fast as the concerned parties desire. Under Arbitration Act,
the arbitrators have to make the award within four months from the date of
completion of all proceedings. Usually, arbitration is settled within a period
of four months to one year.
·
Inexpensiveness:
Total incidental expenditure in arbitration is always much lower than
litigation. Arbitration fees is around 2% of the claim value or less in
institutional arbitration.
·
Promotes
Goodwill: As the arbitrator is chosen by both the parties, based on their
faith and his competence, arbitration becomes a normal process of goodwill.
Arbitration proceedings and its outcome do not disturb the existing friendly
relations between the exporter and importer.
·
Choice of
Appropriate Arbitrator: As the arbitrator is chosen by both the parties and
name incorporated in contract, who has the knowledge of customs and procedures
of international trade, so separate expert witness for educating the judge does
not arise.
·
Privacy:
Arbitration proceedings are not open to public. Arbitrator’s award is not
published in any newspapers. This preserves privacy of the parties. So, trade
secrets as well as disputes arising from the contracts do not become public.
Arbitration
procedure:
·
Request for Arbitration, Answer to Request,
Emergency Arbitrator, Provisional Advance, Joinder of Additional Parties
·
Setting up the arbitral tribunal, fixing the
advance on costs
·
Transmission of File, Terms of Reference, Case
Management Conference
·
Arbitral Proceedings
·
Award and Award Scrutiny