Question

State the features of ad-hoc arbitration.

Hint:

Ad-hoc arbitration offers flexibility and party control but lacks institutional support and standardized procedures.

Answer 1

Ad-hoc arbitration is a dispute resolution method where parties resolve their disagreements without the involvement of a formal arbitration institution. Its defining characteristics are:
Independent Procedure: It operates outside the administration of any established arbitration body.
Party Control: Parties retain full authority over procedural matters, arbitrator selection, and other critical elements.
Adaptable Process: Procedures are customized by the parties, enabling a more informal approach.
Economical: Typically more cost-efficient due to the omission of institutional service charges.
Legal Recognition: Rendered awards are legally binding and enforceable under legislation like the Arbitration and Conciliation Act, 1996.
Potential Challenges: The absence of institutional guidance may introduce risks of procedural complications or extended timelines.