An award given by the Arbitrator is not always final and binding upon the parties.

Arbitration is a means devised to quick and economical settlement of a dispute between two contracting parties, who also agree as part of the main agreement to refer dispute or difference arising out of or touching upon the terms and conditions of the agreement to a third person to give his judgement, which shall be binding on both the parties. Where the decision of a person is binding on only one of the parties and not on all the parties to the dispute, it cannot be said that the function, which the person giving the decision is exercising, is arbitral in character. Normally, the decision of the arbitrator is binding upon the parties. However, if the same is not acceptable to either of the parties, then an appeal can be made under section 34 of the Arbitration and Conciliation Act, 1996.