Arbitration in ancient India

  ARBITRATION IN ANCIENT INDIA 

Arbitration is one of the popular means of alternate dispute resolution system in India. There are basically three main types they are Arbitration, Conciliation and Mediation. In this article I am going to give a short note on the Arbitration in ancient India and British India. Nowadays we have a special law for Arbitration called Arbitration and Conciliation Act, 1996. After this act there is sudden boom in this field and became a corporate culture. Arbitration existed in ancient India in the form of Panchayats. Every village will have separate arbitration setup. There will be one arbitrator who is defined as the head of the village. His position will be considered as very sacred and everyone give high respect. He is known as the ‘Panchas’ (Arbitrator). Even in those days they have different levels of juries they are Puga, Sreni and Kula. The decisions by Kula can be further taken before Sreni like appeal and if there need more clear decision it can be taken to Puga. An appeal from the decision of Puga was preferred to Pradivaca and the final revision was left to the Ruler or the King of the province. According to Justice Martin, Arbitration was a striking feature of Indian life and prevailed in all ranks if life. This kind of Arbitration is more famous than the Arbitration in the British period, we can see this types of panchayats still in some places of India. 

Panchayats are the first and main types of methods for deciding the disputes among people. Unlike Courts there need not any legal proceedings, procedure to be followed or any contract or agreement.  Then British rule started in India, even after that this system of panchayat is followed in India. Then the British Government enacted the Bengal Regulations Act 1772. This provided solutions to all cases and is considered as the decree of Court. Since the Arbitration was an original and ancient Hindu system, the Arbitration was considered as a ‘Tribunal of the parties of their own choice’ and in the absence of misconduct in conducting the arbitration, the parties were bound by the decision given by such Arbitrator. 

The Indian Arbitration Act 1889 was applicable to matters which were not pending before the Court of Law for adjudication. In 1940, the Indian Law on Arbitration was consolidated and drafted in the form of Arbitration Act 1940. This act was based on English Arbitration Act, 1934. The Arbitration Act, 1940 continued to remain in force till 1996 when it was substituted by the present Arbitration and Conciliation Act, 1996. The present Arbitration law can decide disputes on different commercial matters. It includes banking, insurance, building construction, engineering, shipping, sale and purchase, lease and rent, technical assistance, scientific know-how patents, trademarks, copyrights, intellectual properties, management consultancy, commercial agency, labour law etc., 

This is an evidence that the system of Arbitration was existed in ancient India in the form of Panchayats and during British period. This system of speaking of things outside the court made the procedure easy, simple, speedy and less expensive.