What to do before and during an arbitration in India — reading your clause, choosing an arbitrator, preparing your case, and understanding the stages from notice to award.
Arbitration is more formal than mediation and less formal than court. It has a defined procedure, and how well you prepare at the outset shapes both the timeline and the outcome. This guide covers the practical steps, from reading your clause to the award.
Everything starts with the clause in your contract. Before doing anything else, identify what it actually says about:
If the clause is ambiguous — a common problem — resolving that ambiguity may itself require a preliminary application, so identify the issue early.
Arbitration begins with a written notice invoking the clause. Under Section 21 of the Arbitration and Conciliation Act, 1996, proceedings commence on the date the respondent receives that request, unless the parties agreed otherwise. That date matters for limitation purposes.
A notice should identify the parties and the contract, invoke the arbitration agreement, describe the dispute and the relief sought, and propose an arbitrator or the appointment mechanism.
Where the clause names an institution, the institution's rules govern appointment. Where it does not, the parties appoint by agreement, or each appoints one arbitrator with the two appointees selecting a presiding arbitrator.
If appointment stalls — a common delay tactic — Section 11 provides the fallback. Since the 2019 amendment, designated arbitral institutions can make appointments in place of the courts, which is usually faster than a court application.
When an arbitrator is proposed, check for disclosure. The Fifth and Seventh Schedules to the Act set out circumstances affecting independence and impartiality; the Seventh Schedule circumstances disqualify an arbitrator unless both parties waive them after disclosure.
Arbitration is largely a documents-driven process. Assemble:
Organise chronologically and be selective. A tribunal reading a focused bundle is more likely to follow your case than one working through everything you possess.
Early in the arbitration the tribunal will hold a procedural hearing to fix the timetable — dates for statements of claim and defence, document production, evidence and hearings. Engage seriously with this. The timetable set here largely determines how long the arbitration takes, and Section 29A requires the award within 12 months of the tribunal's constitution.
If you need urgent protection — preserving property, restraining a payment — the tribunal can grant interim measures under Section 17, enforceable as orders of the court. Before the tribunal exists, a party can apply to court under Section 9.
Arbitration and settlement are not mutually exclusive. Parties frequently settle during arbitration, and where they do, the tribunal can record the settlement as an award on agreed terms under Section 30 — which carries the same enforceability as any other award. If a negotiated outcome would serve you better than a contested one, that route stays open throughout.
The award is binding and enforceable as a court decree under Section 36 once the challenge window closes. See the guide on what happens after settlement for the enforcement process, and the arbitral award glossary entry for the types of award and the narrow grounds of challenge.
General information only — not legal advice and not a solicitation.
Arbitration is a binding process where an arbitrator decides the dispute after hearing both sides, similar to a private court. Learn how it works, when it fits, and how awards are enforced in India.
A practical guide to drafting an arbitration clause in an Indian contract — what to include, common mistakes, institutional versus ad hoc, and sample language.
The seat of arbitration is the legal domicile of the arbitral proceedings — it determines which country's courts have supervisory jurisdiction and which procedural law governs.
Ad hoc arbitration is arbitration conducted directly under the Arbitration and Conciliation Act, 1996 without an administering institution — the parties manage the process themselves.
An arbitral award is the binding decision issued by an arbitral tribunal at the conclusion of arbitration proceedings, enforceable as a civil court decree under the Arbitration and Conciliation Act, 1996.