By Chaitra Vallala

Editor Yashika Malik

Disputes are inextricably linked to international relations. Increasingly these disputes are not any longer just mostly between states but also between states and other parties like international organizations and other non-state actors, and between these actors mutually. In this context the Charter of the United Nations (UN) plays a serious role, especially, regarding disputes between states. Article 2(3) of the UN Charter states that each one Member States need to settle their international disputes by peaceful means in such a fashion that international peace and security, and justice, are not endangered. This view was again confirmed in 1982 during a resolution (Res. 37/10) of the UN General Assembly, from Manila Declaration on the Peaceful settlement of international disputes.

As the UN Charter doesn't prescribe any way or by what means disputes got to be resolved, the parties are liberal to choose their dispute settlement mechanism. In the framework of international peace and security Article 33 of the UN Charter provides variety of alternatives to decide from in resolving disputes, e.g., negotiation, enquiry, mediation, conciliation, arbitration, and judicial settlement. Though the free choice of means the Manila Declaration underlines the legal obligation of parties to seek out a peaceful solution to their dispute and refrain from action which may aggravate the situation. The methods and procedures of dispute settlement for states also mostly apply to non-state actors. These various sorts of peaceful dispute settlement are the topic of this general research guide. In addition, there are research guides available on International (Commercial) Arbitration, the Permanent Court of Arbitration, and the International Court of Justice.


Arbitration is a sort of alternative dispute resolution method where the parties to a dispute act in accordance to arbitrate or operate under a contract that specifies that arbitration is that the remedy, an out of court settlement technique. Disputes are heard outside of the courts, before one or more arbitrators. Parties comply with abide by the arbitrators’ decision. Arbitration is typically a more informal process than litigation, with the parties choosing the arbitrator and lots of of the procedural aspects. International arbitration is usually faster and more efficient than international litigation. In other words, it also can be explained as "In arbitration, a dispute is settled by one or more arbitrators. Arbitration enables the parties to present the facts before trained experts conversant in the industry practices which will affect the character and therefore the outcome of the dispute. Arbitration first reached extensive use within the field of economic contracts and is inspired as a way of avoiding expensive litigation and easing the workload of courts.”

Arbitration, a sort of alternative dispute resolution (ADR), may be a technique for the resolution of disputes outside the courts, where the parties to a dispute refer it to at least one or more persons; by whose decision (the "award") they comply with be bound. It is a resolution technique during which a 3rd party reviews the evidence within the case and imposes a choice that's legally binding for each side and enforceable. Arbitration is usually used for the resolution of economic disputes, particularly within the context of international commercial transactions. The use of arbitration is additionally frequently employed in consumer and employment matters, where arbitration could also be mandated by the terms of employment or commercial contracts. Arbitration are often either voluntary or mandatory (although mandatory arbitration can only come from a statute or from a contract that's voluntarily entered into, where the parties agree to hold all existing or future disputes to arbitration, without necessarily knowing, specifically, what disputes will ever occur) and may be either binding or non-binding. Non-binding arbitration is analogous to mediation therein a choice can't be imposed on the parties. However, the principal distinction is that whereas a mediator will try to help the parties find a middle ground on which to compromise, the (non-binding) arbitrator remains totally removed from the settlement process and can only provide a determination of liability and, if appropriate, a sign of the quantum of damages payable. By one definition arbitration is binding then non-binding arbitration is technically not arbitration. Arbitration may be a proceeding during which a dispute is resolved by an impartial adjudicator whose decision the parties to the dispute have agreed, or legislation has decreed, will be final and binding. There are limited rights of review and appeal of arbitration awards."

The International Court for Dispute Resolution [INCODIR]:

The INCODIR provides arbitration facilities at country level and international level For settlement of all kinds of economic disputes concerning sale-purchase, building construction, engineering, transfer of technology, property, maritime, international investment, disputes amongst different countrymen or companies between parties domestically and Internationally. Arbitration procedures of the INCODIR are framed at par with usual international standard. The INCODIR maintain comprehensive international panels of arbitrators from different countries with eminent and experienced persons from different disciplines, trade and professions for facilitating the choice of arbitrators. Apart from the arbitration facilities, the INCODIR provides its good office for amicable and quick settlement of domestic also as international trade complaints and disputes through alternative dispute methods.

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