An institutional arbitration is one that is administered by an institution agreed upon by the parties and conducted in accordance with that institution’s arbitration rules. Generally, the arbitral institution’s role in an institutional arbitration includes (but is not limited to): receiving the request for arbitration and distributing it to the respondent; appointing the tribunal where the arbitration agreement provides for them to do so or in default of the parties’ ability to do so; setting and administering the financial arrangements for the arbitration (Eg.: setting a deposit or an advance on fees, and paying the tribunal’s fees); assisting the tribunal to deal with any issues that arise relating to the conduct of the arbitration (Eg.: a challenge to a tribunal member). Institutional arbitration has several advantages over ad-hoc arbitration, such as providing procedural rules for conduct of the arbitration, assistance with the appointment of arbitrators, and general administrative assistance. Indian parties are increasingly opting for institutional arbitration to resolve their disputes. Arbitration may be defined as a process in which two or more parties settle their disputes as to their legal rights and liabilities by referring the dispute to a particular person (arbitrator), who decide the dispute with a binding effect and by applying the law, instead of the parties going to the Court of law. Arbitration is an alternative process of solving disputes, and hence, it coexists with the system of litigation. The main objective of having an arbitration proceeding is to solve the dispute as fast as possible, which also has a binding effect, without going to the Court of law and getting engaged in the long-drawn judicial procedure. In India, the alternative method of solving disputes have been present from a long time, since trade and commerce started to grow outside the country.
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