Arbitration, mediation and conciliation lawyers

Law

Arbitration and Conciliation Act 1996

Award time

12 months from pleadings, +6 by consent

Challenge window

3 months + 30 days, s.34

Mediation

Mediation Act 2023

How an arbitration runs, step by step

1. Arbitration agreement. Section 7 requires a written agreement, usually a clause in the contract. It can also be found in an exchange of letters or emails. An unstamped agreement is not void; following the 2023 seven-judge decision on stamping, the defect is curable and does not stop the court from referring the dispute.
2. Notice invoking arbitration. Under section 21 the proceedings commence on the date the respondent receives the request to refer the dispute. This date matters for limitation, which is the same three years as for a suit for most money claims.
3. Constitution of the tribunal. The parties appoint as the clause provides. If they fail, a party applies to the High Court under section 11 (the Supreme Court in international commercial arbitration). The court's examination at this stage is limited to whether an arbitration agreement prima facie exists.
4. Pleadings. The statement of claim and defence are to be completed within six months of the arbitrator receiving notice of appointment, under section 23(4).
5. Hearing and award. Evidence and arguments follow, and the award is made within the section 29A timeline.
6. Challenge or enforcement. The losing party may apply under section 34; otherwise the award is executed.

If one side files a civil suit despite the clause, the other must apply under section 8 before filing its first statement on the merits, or it may lose the right to insist on arbitration.

Urgent protection: section 9 and section 17

Before, during or after the arbitration (until the award is enforced), a party can ask the court under section 9 for interim measures: an injunction against selling property, securing the amount in dispute, preserving goods, appointing a receiver or restraining encashment of a bank guarantee in limited cases. If the court grants relief before arbitration begins, arbitral proceedings must start within 90 days.

Once the tribunal is constituted, the court will ordinarily not entertain a section 9 application unless the remedy before the tribunal would be ineffective. The tribunal itself can grant similar measures under section 17, and its orders are enforceable as if they were orders of the court.

Timelines that govern every arbitration

If the mandate under section 29A expires without an extension, the arbitrator cannot proceed, and a court application for extension becomes necessary. We track these dates from day one.

Challenging and enforcing awards

Section 34 is not an appeal. A court will not re-examine the evidence or substitute its own view. An award can be set aside only on limited grounds: incapacity of a party, an invalid agreement, lack of proper notice or opportunity, matters beyond the scope of the reference, improper composition of the tribunal, non-arbitrability, conflict with the public policy of India, and for domestic awards, patent illegality appearing on the face of the award. In 2025 a Constitution Bench in Gayatri Balasamy recognised a limited power of courts to modify awards, for example to correct clear errors or sever an invalid part, but not to rewrite them.

Filing a section 34 petition does not automatically stay the award. The court may grant a stay on conditions, commonly a deposit or security for the awarded amount. Once the challenge period ends or the challenge fails, the award is executed under section 36 like a civil court decree, through attachment of bank accounts, property or receivables. Foreign awards from New York Convention countries are enforced under Part II of the Act.

Institutional or ad hoc arbitration

In ad hoc arbitration the parties and the tribunal run the case themselves, with fees fixed by agreement or with reference to the Fourth Schedule. In institutional arbitration a centre such as the India International Arbitration Centre, a High Court arbitration centre or a private institution administers the case under its rules, with set fee scales, emergency arbitrator provisions and a secretariat.

Institutional arbitration costs more at the start but is usually quicker and more predictable. Whatever you choose, the clause should name the seat, the number of arbitrators, the appointment method and the language. Clauses allowing one party alone to appoint a sole arbitrator have been held invalid by the Supreme Court, and a person with a relationship listed in the Seventh Schedule is ineligible under section 12(5). Our contract drafting team writes clauses that avoid these traps.

What arbitration costs and how it is calculated

The cost of an arbitration has three parts. The arbitrator's fee is fixed by agreement, by the institution's schedule, or in ad hoc cases often with reference to the Fourth Schedule, which scales with the amount in dispute; it is usually shared equally while the case runs. Administrative costs cover the venue, stenography and, in institutional cases, the centre's fee. Legal fees depend on the size of the claim, the number of hearings and any court applications under sections 9, 11, 34 or 37.

Under section 31A the tribunal can order the losing party to pay costs, taking into account conduct, partial success and any reasonable settlement offer that was refused. We give a stage-wise estimate in writing at the start, and we tell you plainly when the amount at stake does not justify a full arbitration.

Mediation, conciliation and Lok Adalat

The Mediation Act, 2023 provides a framework for pre-litigation and institutional mediation. Only parts of it have been brought into force so far, so its machinery is being rolled out in stages. Under it, a mediated settlement signed by the parties is final and enforceable like a court judgment, subject to limited challenge. Separately, section 12A of the Commercial Courts Act requires pre-institution mediation before most commercial suits that do not seek urgent interim relief.

Conciliation under Part III of the Arbitration Act remains available where both parties agree. Lok Adalats under the Legal Services Authorities Act, 1987 settle pending and pre-litigation cases by compromise; the award is deemed a decree, no appeal lies, and court fee paid is refunded. For unpaid invoices, these routes sit alongside money recovery proceedings.

Documents you need

For a dispute, bring the contract and the paper trail. For drafting, bring the deal terms.

• The contract containing the arbitration clause, with all amendments
• Invoices, purchase orders, statements of account
• Correspondence and notices exchanged with the other party
• Any notice invoking arbitration or reply received
• The arbitral award, if one has been passed, with the date of receipt
• Board resolution or authority letter if you act for a company
• Details of assets of the other party, for interim relief or enforcement

How we handle it for you

1. Read the clause

   We check the seat, appointment procedure, limitation and whether urgent court relief is needed.

2. Protect the claim

   Where assets are at risk, we move a section 9 application before or alongside the notice.

3. Invoke and constitute

   We send the section 21 notice and, if needed, file the section 11 petition for appointment.

4. Plead and prove

   We prepare the claim or defence, witness statements and arguments within the statutory timelines.

5. Challenge or enforce

   We file or oppose section 34 petitions and execute the award against the other side's assets.

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Frequently asked questions