Arbitration means alternative dispute resolution and this is a legal way to resolve various types of disputes outside the courts it can technically be said out of the court settlement. In this type of way the parties having dispute refer to arbitrators or arbiters and the parties agree that the decision of the arbitrator would be the final resolution to the dispute. It is a settlement technique in which a third party reviews the case and imposes a decision that is legally binding for both sides. This form known as arbitration is different from litigation in courts, negotiation and mediation because they are non-binding ways for the parties.

The Types of Arbitrations

The arbitration has vatious types and several laws are enected for its validy and special agreements needs to be drafted for it. The Indian Arbitration and Conciliation Act of 1996 applies to domestic and international arbitration. "International Commercial Arbitration" as arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India where at least one of the parties is an individual identity who is also a national of the country or countries other than India or a body corporate which is incorporated in any country other than India or a company or an association or a body of individuals whose central management and control is exercised in any country other than India or the Government of a foreign country.