Institutional Arbitration

An institutional arbitration is one in which a specialised institution intervenes and administers the arbitration procedure on behalf of the parties. Each institution has its own set of rules that serve as a foundation for the arbitration, as well as its own administrative structure to aid in the process.

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. Institutional arbitration may be referred to as administered arbitration.

Generally, the arbitral institution’s role in an institutional arbitration includes (but is not limited to):

1. Receiving the request for arbitration and distributing it to the respondent
2. Appointing the tribunal where the arbitration agreement provides for them to do so or in default of the parties’ ability to do so
3. Setting and administering the financial arrangements for the arbitration
4. Assisting the tribunal to deal with any issues that arise relating to the conduct of the arbitration

Institutional arbitration is considered to have an edge over ad-hoc arbitration, as it provides efficient administration, reputed arbitrators, specified rules, fixed remuneration, etc. All these benefits make institutional arbitration a prime choice for commercial arbitration. Due to the increasing trend towards them, various premiere arbitration institutions have been set up across the world.