Test: Arbitration, Tribunal Adjudication and Alternative Dispute Resolution - 1 - Humanities/Arts MCQ

Section 89 of the Code of Civil Procedure, 1908 embodies the legislative mandate to the court to refer sub judice disputes to various ADR mechanisms enunciated therein where it finds it appropriate to do so, in order to enable the parties to finally resolve their pending cases through well established dispute resolution methods other than litigation. It states that where it appears to the Court that there exist elements of a settlement which may be acceptable to the parties, the Court shall formulate the terms of settlement and give them to the parties for their observations and after receiving the observations of the parties, the Court may re-formulate the terms of a possible settlement and refer the same for
(a) arbitration;
(b) conciliation;
(c) judicial settlement including settlement through Lok Adalat; or
(d) mediation.

The Lokayukta is an anti-corruption ombudsman organization in the Indian states. Once appointed, Lokayukta can not be dismissed nor transferred by the government, and can only be removed by passing an impeachment motion by the state assembly. The term Lokayukta comes from a Sanskrit term which means "appointed by the people". 

Moot court is an extracurricular activity in law schools where the students are given legal problems and they play a role of a counsel in a mock hearing, preparing and arguing cases.

Arbitration is a legal technique for the resolution of disputes outside the courts, wherein the parties to a dispute refer it to one or more persons (the "arbitrators", or "arbitral tribunal"), by whose decision the "award" they agree to be bound. An arbitrator serves as the decision-maker and referee in an arbitration proceeding, much like a judge during a court case.

Cost escalation is an increase or decrease in the cost of an product, service or commodity over time. Cost escalation is specific to a particular type of cost as opposed to the economy as a whole. In case if escalation cost is subject matter of the arbitration, the arbitrator has jurisdiction to proceed inherently.

If we go through section 8585 of the Arbitration and Conciliation Act, 1996, we will find that old act of 1940 has been repealed and all the provisions of the 1996 act shall be enforceable on and after the act is enforced and also the provisions of 1940 act shall apply in relation to arbitral proceedings which commenced before the $$1996$$ Act came into force unless otherwise agreed by the parties. Hence, any award passed before the 1996 act came into force shall be dealt with provisions of 1940 act.

The Arbitration and Conciliation Act, 1996 has repealed the Arbitration Act, 1940 and also the Acts of 1937 and 1961, consolidated and amended the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards and also defines the law relating to conciliation, providing matters connected therewith and incidental thereto on the basis of the Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1985.

The Administrative Tribunals Act, 1985 provides for adjudication or trial of disputes and complaints with respect to recruitment and conditions of service of public servants. The act has made provisions for the Central Administrative Tribunal for the Centre and a State Administrative Tribunal for a particular State.

The Arbitration and Conciliation Act, 1996 has repealed the Arbitration Act, 1940 and also the Acts of 1937 and 1961, consolidated and amended the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards and also defines the law relating to conciliation, providing matters connected therewith and incidental thereto on the basis of the Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1985.

Conciliation is one of the non-binding and informal procedures where an impartial third party, known as the conciliator, assist the parties to a dispute in reaching a mutually agreed settlement of the dispute without any litigation. And as conciliation is non-binding in nature, there is no compulsion on the party to reach a settlement only after award made by the Conciliator. Hence, C is the correct option.