Arbitration is a crucial method of Alternative Dispute Resolution (ADR) where parties voluntarily agree to submit their disputes to one or more neutral persons ( Arbitrators or Arbitral Tribunal ), whose decision (the Arbitral Award ) is legally binding and enforceable like a court decree. In India, arbitration is governed by the Arbitration and Conciliation Act, 1996 (the Act), which is modeled on the UNCITRAL (UN Commission on International Trade Law) Model Law. 1. Statutory Definition and Core Characteristics A. Definition (Section 2(1)(a)) The Act defines arbitration broadly, emphasizing its consensual and adjudicatory nature: it is a process where parties refer their disputes to an impartial tribunal for a binding decision . B. Essential Elements Arbitration Agreement (Section 7): Arbitration is fundamentally consensual . It cannot take place without a prior agreement in writing between the parties to sub...