The term ”Arbitration” is a form of Alternative Dispute Resolution i.e. ADR. But, the question is for what purpose the Arbitration is opted? Hence, we need to know in details about different stages of Arbitration Proceedings. Arbitration Proceeding is a way to resolve any dispute that is submitted by the parties through an agreement to one or more Arbitrator(s) so that it can be dealt outside the court. The decision is binding upon both the parties which means that the parties after reaching the decision cannot back out. So, the Arbitration is a system that authorizes a third party to decide how a dispute can be resolved.
Thus, both the parties are bound to follow even if they disagree with the outcome of the judgement passed by an arbitrator. On the contrary, it is similar in nature with the Litigation as the solution has to be followed by respective parties. Infact, the demand for Alternative Dispute Resolutions significantly in the commercial sector began to grow as a part of an effort to find more efficient and effective alternatives to litigations. In the Business World and in particular, the use of ADR has therefore, risen dramatically because of the continuous demand by the business owners, associations and entrepreneurs who were complaining of the highly lengthy, deadly slow and extremely complicated procedure and proceeding of law. Thus, ADR has grown out of the need to find effective alternatives to litigations. The ways which are opted other than litigation are – Negotiation, Mediation, Conciliation and Arbitration which are also the types of ADR.
Now, to understand the role of Arbitration in other countries we must know a little about International Arbitration. From China to Arab Countries, Men and Women are involved in Trade and Commerce. This inevitably brought conflicts. In order to resolve them, the traders have always preferred Arbitration even before the State Justice. International Arbitration has boomed since 1945. Arbitration can be found in every country today and also experienced in every sector of economy; resolving disputes arising out of sale of goods, real estate sector deals or hotel industry related disputes, entertainment and oil and gas sector issues including healthcare as well as other major international brands etc. Arbitration is a way to resolve their disputes.