A Comparative Analysis of the Principle of Arbitration Under the English Common Law and Islamic Law

Abstract

An alternative to incurring the expense of court or tribunal proceedings is for the parties to a dispute to take their case to arbitration. Arbitration involves referring a dispute to a third party for settlement. The decision reached by the settlement of this dispute is binding on the parties. Arbitration is the resolution of dispute outside the courts wherein the parties to a dispute refer it to one or more persons by whose decision they agree to be bound. In modern history, arbitration is considered one of the most important means for the settlement of commercial disputes, particularly the dispute of international trade and investment. Arbitration which is known as “Takhim” under Islamic law is recognized under the Islamic law as a method for the settlement of disputes.