Kinds of Arbitration

Arbitration takes several forms depending on how it is structured, where it is seated, and whether it is voluntary or statutory.

Classification

By Procedure

(a) Ad-hoc Arbitration

• Parties manage the entire arbitration themselves.
• Cheaper, but potentially disorganised.
• Parties draft their own rules of procedure.

(b) Institutional Arbitration

• Managed by a recognised arbitral institution with ready-made rules.
• Examples: ICA (India), ICADR, MCIA, SIAC (Singapore), LCIA (London), ICC (Paris).
• More expensive but more efficient and structured.

By Geography

(c) Domestic Arbitration

• Both parties are Indian + seat of arbitration is in India.
• Governed entirely by Part I, Arbitration & Conciliation Act, 1996.

(d) International Commercial Arbitration

• Section 2(1)(f): At least one party is a foreign national, body, or government.
• Part I applies if the seat is in India.
• Part II applies if it is a foreign award under the New York Convention.

(e) Foreign Award

• Award made outside India under New York Convention or Geneva Convention.
• Enforced under Part II of the 1996 Act.

By Mode

(f) Voluntary Arbitration

• Parties mutually agree to refer a dispute to arbitration.
• Most common form.

(g) Statutory / Compulsory Arbitration

• Compelled by statute.
• Examples: NHAI Act, Electricity Act, Railways Act.
• Parties cannot opt out.

By Form

(h) Contractual Arbitration

• Arising from an arbitration clause in a contract.
• Most disputes are resolved this way.

(i) Court-Referred Arbitration

• Court refers parties to arbitration under Section 8 (pending suit) or Section 89 CPC.

Special Forms

(j) Fast-Track Arbitration — Section 29B

• Award within 6 months; only written submissions, no oral hearing unless tribunal decides.
• Opted by written consent of parties.

(k) Online Dispute Resolution (ODR)

• Arbitration conducted through digital platforms.
• Recognised and encouraged post-COVID.

(l) Look-Sniff Arbitration

• Used in commodity trade (cotton, grain, oil).
• Arbitrator decides quality by inspection without formal hearing.

(m) Pendulum / Final-Offer Arbitration

• Each party submits one final offer.
• Tribunal picks one offer as-is — no compromise award.
• Creates incentive for realistic offers.

Quick Summary Table