Many commercial agreements, loan documents, builder-buyer agreements and partnership deeds contain an arbitration clause. This means disputes are decided by an arbitrator instead of a regular court, under the Arbitration and Conciliation Act, 1996. The process can be faster, but it has its own strict rules and time limits.
Key stages
- Notice invoking arbitration (Section 21): formally starts the arbitration.
- Appointment of the arbitrator: by agreement, or by the High Court under Section 11 if the other side does not cooperate.
- Interim protection: from the court under Section 9 (before, during or after arbitration) or from the arbitral tribunal under Section 17, for example to secure money or stop assets being sold.
- Proceedings and award: pleadings, evidence and arguments; the award is generally to be made within the time set by Section 29A.
After the award
- Challenge: an award can be challenged on limited grounds under Section 34, within three months of receiving it (extendable by only 30 days for sufficient cause).
- Enforcement: once the challenge period is over, or the challenge fails, the award is enforced like a court decree under Section 36.
- Appeal: limited appeals lie under Section 37.
If a case was filed in court despite the clause
If the other side files a suit even though there is an arbitration clause, an application can be made under Section 8 asking the court to refer the parties to arbitration. This must be done before filing the first statement on the substance of the dispute.
How we can help
We advise on the arbitration clause and strategy, invoke arbitration, seek urgent interim relief, represent you before the arbitral tribunal, and handle challenges to and enforcement of awards.