Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
Arbitration can only take place if both parties have agreed to it. In the case of future disputes arising under a contract, the parties can insert an arbitration clause in the relevant contract. An existing dispute can be referred to arbitration by means of a submission agreement between the parties. In contrast to mediation, a party cannot unilaterally withdraw from arbitration.
The 'Arbitration and Conciliation Act 1996' is an Act that regulates domestic arbitration in India. It was amended in 2015 and 2019. The Government of India decided to amend the Arbitration and Conciliation Act, 1996 by introducing the Arbitration and Conciliation Bill, 2015 in the Parliament.