Commercial Arbitration Services in Pakistan

COMMERCIAL ARBITRATION

Arbitration, a form of alternative dispute resolution (ADR), is a way to resolve disputes outside the courts. Arbitration is often used for the resolution of commercial disputes, particularly in the context of international commercial transactions.

Any company may, by written agreement or otherwise, refer any existing or future dispute between the company and any other company or person to arbitration, in accordance with the Arbitration Act, 1940. In arbitration parties to the arbitration delegate power to the arbitrator and agree to accept the award of the arbitrator as being lawfully settled or determined by the companies themselves, or by the board or other managing body.

Disputes resolution through arbitration has certain advantages over litigation in courts of law.

In arbitration, the parties are free to choose the judge, arbitrator, or tribunal for their dispute, which is very useful when the subject matter of the dispute is highly technical and needs arbitrators with an appropriate degree of expertise.

All the records and information presented during any litigation, become the public document and public information instantaneously while the same is not in case of arbitration, as proceedings of an arbitration, remains confidential between the parties, and arbitration award also remains with the parties only.

Time and cost-saving is also an important advantage of arbitration as compared to litigation. Arbitration proceedings do not require expensive attorneys and other formalities, hence substantially save time and cost for the dispute resolution.

The arbitration can also offer a single award or decision effective for various interested parties and covering various issues of different nature.

Another advantage is that in arbitration parties usually do not go for further proceedings or appeals and decide all issues connected with a dispute in a single proceeding.

In certain cases, arbitration awards or compromise agreed among stakeholders needs the sanction of the court. IBI-Remedium provides full legal support and assistance toward the resolution of corporate disputes through arbitration and giving effect to such awards amicably.