Date:May 27, 2022
How arbitration is beneficial?
We take example of filing a suit and will see how arbitration is beneficial
|Suit in District Court / High court||Arbitration|
|Court fee is payable for filing suit (Ranging from 1 % to 7 % of valuation)||Initially, no fee is payable. On Award Rs. 100 per Rs. 1 Lac stamp duty is payable which is much less than the court fee payable|
|Jurisdiction of the court is fixed as per the provisions of Civil Procedure Code||Parties can agree the seat of arbitration|
|Normally it leads to a lengthy trial, and this is time taking. In metro cities, it takes average 2-3 years to conclude the case.||Normally the procedure is summary. On average arbitration proceedings can conclude in 4- 6 months.|
|Normally simple interest is awarded in money suit||Fixed interest as per the provisions of Arbitration & Conciliation Act, 1996 is awarded which is higher than the court award.|
|Execution of the decree or judgement can be filed in the same court which passed the decree. In case Defendant is residing outside the jurisdiction of court, it is time consuming and execution takes time.||Execution can be directly filed where Defendant resides.|
|Judgement or decree is normally challenged and it takes time to decide.||Objection against award can be filed on narrow grounds available as per the provisions of section 34 of Arbitration & Conciliation Act, 1996|
There are also other benefits of the arbitration proceedings.