Arbitration is a private adjudication system, and the parties are entitled to solve the disputes out of any judicial court. The enforcement of the award will involve a binding and final decision which leads to the award in any national court. In Australia, the parties pick the arbitrators and decide on the mode of administration, whether ad hoc or by the international arbitral institution. The parties will also be required to choose the language and place of arbitration. This empowers the parties with control over the process of resolving disputes. During the process, it is believed there will be a neutral ground hence each side trusting in the fair hearing.
Flexibility to model the dispute resolution process is another way of enforcing an arbitral award in Australia. In this case, the parties have an opportunity to choose arbitrators who are well versed in the area of the dispute. If there is no consent between the parties, the award may be challenged. This is because the consent forms the underpinning basis for the arbitrators to deliberate on the dispute. It is also a limiting factor since the arbitrators only make decisions within the scope of the agreement amongst the parties.
Public interest is also a condition under which the arbitral award may be challenged. If the issue at hand involves the public, it may involve other stakeholders. This is because most arbitrators are private citizen’s hence non-governmental decision-makers who will not rule effectively in matters of public interest or public policy. Lack of a final and binding award may lead to an appeal at a higher level court, thus challenging the award. This will be termed as a defect in the process and may necessitate changes of appeal in some jurisdictions.
Another condition under which the award may be challenged is when a party may try to give up the award in the court, in this case, in the country where the arbitration was conducted. An award can also be challenged in instances where the arbitrators exceeded their powers and maybe resolved an issue that was not in the subject matter. Also, in the enforcing court, the losing party stands a chance of challenging the award.