Arbitration & ADR Services in Delhi

Overview

Alternative Dispute Resolution refers to a set of processes through which disputes are resolved without going through the formal court system. ADR mechanisms are designed to be faster, less expensive, more flexible, and more confidential than traditional litigation. They also allow the parties greater control over the dispute resolution process and the outcome, and in many cases help preserve the relationship between the parties.

In India, ADR is governed by a robust legal framework. The Arbitration and Conciliation Act, 1996 is the primary legislation governing arbitration and conciliation proceedings in India. It is based on the UNCITRAL Model Law on International Commercial Arbitration and has been amended in 2015, 2019 and 2021 to make the arbitration process faster, more efficient, and more aligned with international standards. A further Arbitration and Conciliation (Amendment) Bill, 2024 was released by the Department of Legal Affairs for public consultation, but it is still a draft and the 1996 Act as amended in 2015, 2019 and 2021 continues to govern arbitrations in India. Other key legislations include the Mediation Act, 2023, which provides a statutory framework for mediation in India, the Commercial Courts Act, 2015, which makes pre-institution mediation mandatory for most commercial suits, and the Legal Services Authorities Act, 1987, which governs Lok Adalats.

ADR is particularly well suited for commercial disputes, family disputes, property disputes, employment disputes, and consumer disputes. Many commercial contracts today include ADR clauses requiring the parties to attempt resolution through negotiation, mediation, or arbitration before approaching a court. Courts in India also actively encourage parties to explore ADR mechanisms and, under Section 89 of the Code of Civil Procedure, 1908, can refer disputes to arbitration, conciliation, mediation or Lok Adalat at any stage of the proceedings.

Legaltax's Delhi-based arbitration and ADR team will help you understand the most appropriate ADR mechanism for your dispute, draft ADR clauses for your contracts, and represent you effectively in arbitration, mediation, or conciliation proceedings. If your dispute is about unpaid dues, our money recovery and commercial and corporate litigation teams can also assist alongside ADR.

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Types of Alternative Dispute Resolution Mechanisms

1. Arbitration

Arbitration is a private dispute resolution process in which the parties agree to submit their dispute to one or more neutral third parties called arbitrators. The arbitrators hear both sides, examine the evidence, and pass a binding decision called an arbitral award. The arbitral award is enforceable as a decree of a civil court. Arbitration is particularly popular in commercial, construction, and international disputes where the parties want a binding resolution by an expert in the subject matter rather than a generalist judge.

2. Mediation

Mediation is a voluntary and confidential process in which a neutral third party called a mediator facilitates communication between the disputing parties and helps them reach a mutually acceptable settlement. Unlike an arbitrator, the mediator does not impose a decision on the parties. The outcome of mediation is a settlement agreement signed by both parties, which under the Mediation Act, 2023 is final, binding and enforceable in the same manner as a judgment or decree of a court. Mediation is particularly effective in family disputes, commercial disputes, and employment disputes where preserving the ongoing relationship between the parties is important.

3. Conciliation

Conciliation is similar to mediation but is a slightly more proactive process. A conciliator not only facilitates communication between the parties but also actively suggests terms of settlement and may draw up a settlement agreement. Under Part III of the Arbitration and Conciliation Act, 1996, a conciliation settlement agreement signed by the parties has the same status and effect as an arbitral award on agreed terms and is enforceable as a decree of a civil court.

4. Negotiation

Negotiation is the simplest and most informal form of dispute resolution. It involves the parties themselves, with or without the assistance of their lawyers, communicating directly with each other to reach a mutually agreeable solution. Negotiation has no formal rules or procedures and is entirely controlled by the parties. While it does not involve any third party, a well-structured negotiation facilitated by experienced lawyers can quickly and cost-effectively resolve many disputes. A properly drafted settlement can be recorded through our legal documentation and drafting service.

5. Lok Adalat

Lok Adalat, which means People's Court, is a unique ADR mechanism established under the Legal Services Authorities Act, 1987. Lok Adalats are organized by the National Legal Services Authority (NALSA), State Legal Services Authorities (in Delhi, the Delhi State Legal Services Authority) and district and taluk level committees, and provide a platform for amicable settlement of disputes, either pending before a court or at the pre-litigation stage. Cases settled through Lok Adalat result in an award that is final and binding on the parties and is deemed to be a decree of a civil court. There is no court fee for filing a case in Lok Adalat, and if the case is settled, any court fees already paid are refunded to the parties. Lok Adalats are particularly effective in resolving motor accident claims, matrimonial disputes, labour disputes, and disputes relating to public utilities. For disputes relating to public utility services such as transport, postal, telephone, electricity and water supply, Permanent Lok Adalats are also available under Section 22B of the Act, with jurisdiction up to ₹1 crore in value.

6. Online Dispute Resolution (ODR)

Online Dispute Resolution is an emerging form of ADR that uses technology to resolve disputes online through digital platforms, without requiring the physical presence of the parties. The Mediation Act, 2023 expressly recognises online mediation, and the Arbitration and Conciliation Act, 1996 allows hearings by video conferencing. ODR is particularly suitable for low-value consumer disputes, e-commerce disputes, and cross-border disputes. With the rapid growth of digital transactions in India, ODR is gaining increasing importance as a fast, accessible, and cost-effective dispute resolution mechanism.

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Arbitration in Detail

Types of Arbitration

• Ad Hoc Arbitration: Arbitration conducted without the administration of an arbitral institution. The parties themselves agree on the procedure, the appointment of arbitrators, and the conduct of the proceedings. Ad hoc arbitration is more flexible and generally less expensive than institutional arbitration but requires greater cooperation between the parties.
• Institutional Arbitration: Arbitration administered by a recognized arbitral institution such as the India International Arbitration Centre (IIAC) in New Delhi, the Delhi International Arbitration Centre (DIAC) of the Delhi High Court, the Indian Council of Arbitration (ICA), the Mumbai Centre for International Arbitration (MCIA), or international institutions such as the International Chamber of Commerce (ICC), the Singapore International Arbitration Centre (SIAC), or the London Court of International Arbitration (LCIA). The institution provides administrative support and applies its own set of rules to govern the proceedings.
• Domestic Arbitration: Arbitration where both parties are Indian and the dispute is governed by Indian law. Domestic arbitration is governed by Part I of the Arbitration and Conciliation Act, 1996.
• International Commercial Arbitration: Arbitration where at least one party is a foreign national, a body corporate incorporated in a foreign country, or an association or body of individuals whose central management is exercised in a foreign country. International commercial arbitration can be seated in India or abroad.
• Fast Track Arbitration: A streamlined arbitration process under Section 29B of the Arbitration and Conciliation Act, 1996 where the parties agree to resolve their dispute through a sole arbitrator on the basis of written pleadings and documents without oral hearings, unless the parties request or the arbitrator considers a hearing necessary. The award must be passed within six months of the arbitrator entering upon the reference.

Key Features of Arbitration

• Party Autonomy: The parties have the freedom to choose their arbitrators, the seat and venue of arbitration, the language of proceedings, and the procedural rules applicable to the arbitration.
• Confidentiality: Arbitration proceedings are private. Unlike court proceedings, the evidence presented is not part of the public record, and the Act specifically requires confidentiality of the proceedings, subject to limited exceptions such as disclosure needed for enforcement or challenge of an award.
• Finality: An arbitral award is final and binding on the parties. The grounds for challenging an award in court are very limited and are set out in Section 34 of the Arbitration and Conciliation Act, 1996.
• Enforceability: A domestic arbitral award is enforceable as a decree of a civil court. A foreign arbitral award made in a New York Convention or Geneva Convention country notified by the Government of India is also enforceable in India under Part II of the Arbitration and Conciliation Act, 1996.
• Expert Adjudication: The parties can choose arbitrators who are experts in the relevant field, such as construction engineers, financial experts, or industry specialists, ensuring that the dispute is decided by someone with the necessary technical knowledge.
• Independence of Arbitrators: An arbitrator must disclose any circumstances that may give rise to justifiable doubts about independence or impartiality. A person who has a relationship with the parties or the dispute listed in the Seventh Schedule, such as being an employee of a party, is ineligible to act as arbitrator.

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Disputes That Can and Cannot Be Referred to Arbitration

Most commercial and contractual disputes, which are rights between the parties themselves, can be referred to arbitration. Examples include disputes about sale of goods, supply and service contracts, construction and infrastructure contracts, joint ventures and shareholders' agreements, partnership and LLP disputes, distribution and franchise agreements, banking and finance disputes, lease and licence disputes, and many intellectual property disputes such as copyright infringement and patent infringement claims between contracting parties.

Some matters are not capable of settlement by arbitration under Indian law, because they involve criminal liability, public rights or the status of a person. These include criminal offences (such as a cheque dishonour prosecution, for which see cheque bounce cases), matrimonial matters such as divorce and child custody (for which see divorce and family law), insolvency and winding up, guardianship and testamentary matters, and rights that operate against the whole world, such as the validity of a patent or trademark grant. Whether a particular dispute is arbitrable depends on its facts, so take legal advice before invoking arbitration.

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ADR Institutions in Delhi

• India International Arbitration Centre (IIAC): An institution of national importance in New Delhi, set up under the New Delhi International Arbitration Centre Act, 2019 (the name was changed to IIAC in 2022) to conduct arbitration, mediation and conciliation.
• Delhi International Arbitration Centre (DIAC): The arbitration centre of the Delhi High Court, which administers arbitrations under its own rules.
• Delhi High Court Mediation and Conciliation Centre (Samadhan): A court-annexed centre that handles mediation of cases referred by the courts in Delhi.
• Delhi State Legal Services Authority and District Legal Services Authorities: Organise Lok Adalats and conduct pre-institution mediation for commercial disputes.
• Indian Council of Arbitration (ICA): A national institution located in New Delhi that administers domestic and international arbitrations.

Appointment of arbitrators where parties fail to agree is made by the High Court in domestic arbitrations (the Delhi High Court for Delhi) and by the Supreme Court in international commercial arbitrations, on an application under Section 11 of the Act. Court proceedings in aid of arbitration, such as interim relief under Section 9, are filed in the court which has jurisdiction over the seat of arbitration.

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Steps Involved in Arbitration Proceedings

1. Existence of an Arbitration Agreement: The first requirement for initiating arbitration is a valid arbitration agreement between the parties. This can be a clause in the main contract or a separate arbitration agreement. The agreement must be in writing and must clearly show that disputes will be resolved through arbitration. The contract should also be properly stamped as per the applicable stamp law.
2. Notice of Arbitration: The party wishing to initiate arbitration sends a Notice of Arbitration to the other party, specifying the nature of the dispute, the relief sought, and the appointment of the arbitrator (in the case of a sole arbitrator) or the nomination of their arbitrator (in the case of a panel). Under Section 21, arbitral proceedings commence on the date on which the respondent receives the notice.
3. Appointment of Arbitrator: The parties mutually agree on the appointment of a sole arbitrator or, in the case of a three-member panel, each party nominates one arbitrator and the two nominated arbitrators jointly appoint the presiding arbitrator. The number of arbitrators cannot be even. If the parties fail to agree, either party can apply to the High Court or the Supreme Court (as applicable) or to the arbitral institution designated by them for appointment. One party cannot unilaterally appoint the sole arbitrator.
4. Statement of Claim and Defence: The claimant files a Statement of Claim setting out the facts, legal grounds, and relief sought. The respondent files a Statement of Defence responding to the claim, and may also file a counter-claim or set-off. The pleadings are to be completed within six months of the tribunal entering upon the reference.
5. Hearing: The arbitral tribunal conducts hearings at which both parties present their evidence, examine witnesses, and make oral arguments. In fast track arbitration, the proceedings may be conducted entirely on the basis of written submissions.
6. Interim Measures: At any point before, during or after the arbitration proceedings (but before enforcement), a party can apply to the court under Section 9, or to the arbitral tribunal under Section 17, for interim measures such as injunctions, appointment of a receiver, attachment of assets, securing the amount in dispute, or preservation of evidence to protect its interests pending the final award. If the court grants interim relief before arbitration starts, arbitration must be commenced within 90 days.
7. Arbitral Award: After examining the evidence and hearing arguments, the arbitral tribunal passes the arbitral award, which must be in writing, signed by the arbitrators and give reasons unless the parties agree otherwise. The award must be made within the time limit specified in the Act or agreed upon by the parties. The tribunal can also award interest and costs.
8. Challenge to the Award: A party aggrieved by the arbitral award can challenge it before the court under Section 34 of the Arbitration and Conciliation Act, 1996, within three months of receipt of the award (extendable by up to thirty days on sufficient cause), on limited grounds such as incapacity of the parties, invalidity of the arbitration agreement, violation of natural justice, or conflict with public policy.
9. Enforcement of the Award: If the award is not challenged or the challenge is rejected, the successful party can apply for enforcement of the award as a decree of a civil court under Section 36 of the Arbitration and Conciliation Act, 1996. Mere filing of a Section 34 challenge does not automatically stay the award; the court has to grant a stay on an application.

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Steps Involved in Mediation Proceedings

1. Agreement to Mediate: The parties agree to attempt mediation, either voluntarily, pursuant to a mediation clause in their contract, or on the direction of a court. Under the Mediation Act, 2023, pre-litigation mediation is voluntary for most civil and commercial disputes, but for commercial disputes of Specified Value, pre-institution mediation under Section 12A of the Commercial Courts Act, 2015 is mandatory before filing a suit that does not contemplate urgent interim relief.
2. Selection of Mediator: The parties jointly select a mediator from a panel of accredited mediators maintained by mediation institutions, a court-annexed mediation centre or a Legal Services Authority. The mediator must be neutral and must disclose any conflict of interest before accepting the appointment.
3. Opening Session: The mediator holds an opening session with both parties together to explain the mediation process, set the ground rules, and allow each party to briefly state its position and interests.
4. Joint and Private Sessions: The mediator conducts both joint sessions where all parties are present and private sessions (called caucuses) where the mediator meets with each party separately to understand their underlying interests and explore settlement options.
5. Negotiation and Settlement: The mediator facilitates negotiations between the parties, helping them identify common ground, explore creative solutions, and move towards a mutually acceptable settlement. The mediator does not impose any solution but guides the parties in reaching their own agreement. Under the Mediation Act, 2023 mediation is to be completed within 180 days, which the parties can extend by up to a further 180 days.
6. Settlement Agreement: If the parties reach a settlement, the mediator assists in drafting a settlement agreement that clearly sets out the terms agreed upon. The settlement agreement is signed by both parties and is final, binding and enforceable as a judgment or decree of the court.
7. Failed Mediation: If the mediation does not result in a settlement, the parties are free to pursue other legal remedies including arbitration or court proceedings. The confidentiality of the mediation process ensures that statements made during mediation cannot be used as evidence in subsequent proceedings.

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Steps Involved in Lok Adalat Proceedings

1. Application: A party applies to the concerned Legal Services Authority for the dispute to be taken up in a Lok Adalat, or the court refers a pending case to it with the consent of the parties.
2. Notice and Hearing: The Lok Adalat issues notice to the other side and holds a conciliation meeting where a panel of a judicial officer and social workers or lawyers helps the parties reach a compromise.
3. Award: If a settlement is reached, an award is passed, which is final and binding on the parties, cannot be appealed, and is executable as a decree of a civil court. If no settlement is reached, a pending case goes back to the court and a pre-litigation matter can be taken to court by the party.

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Advantages of ADR over Traditional Court Litigation

• Speed: ADR proceedings are significantly faster than court litigation. An arbitration is generally expected to conclude within twelve to eighteen months under the statutory time limits, and mediation can often result in a settlement within a few sessions, compared to years of court proceedings.
• Cost-Effectiveness: ADR is generally less expensive than court litigation due to shorter proceedings, fewer procedural steps, and the avoidance of prolonged court hearings and appeals.
• Confidentiality: Unlike court proceedings which are public, ADR proceedings are conducted in private. The parties can keep the existence of the dispute, the evidence presented, and the outcome confidential.
• Flexibility: ADR proceedings are more flexible than court proceedings. The parties can agree on the procedure, the timing, the venue, and the language of the proceedings to suit their convenience and needs.
• Expert Decision-Making: In arbitration, the parties can choose arbitrators who are experts in the relevant field, ensuring a more informed and technically accurate decision than a generalist court judge might provide.
• Preservation of Relationships: Mediation and conciliation focus on finding a mutually acceptable solution, which helps preserve the ongoing business or personal relationship between the parties, unlike adversarial court proceedings.
• Finality: An arbitral award is final and binding with very limited grounds for challenge, providing the parties with certainty and closure far sooner than the lengthy appellate process in court proceedings.
• International Enforceability: Arbitral awards are internationally enforceable under the New York Convention, which has been adopted by over 170 countries, making arbitration the preferred dispute resolution mechanism for cross-border commercial disputes.

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Required Documents for Arbitration and ADR Proceedings

• Original contract or agreement containing the arbitration or ADR clause
• All correspondence between the parties including letters, emails, and notices exchanged in relation to the dispute
• Notice of Arbitration or demand notice sent to the opposite party
• All invoices, purchase orders, delivery receipts, and payment records relevant to the dispute
• Financial statements, bank statements, and audit reports (where applicable)
• Technical reports, expert opinions, or inspection reports (in construction or technical disputes)
• Company or firm documents, such as certificate of incorporation, company or partnership firm documents, and board resolutions or authority letters (in corporate disputes)
• Any prior court orders, arbitral awards, or settlement agreements in related matters
• Identity proof and address proof of the claimant or the authorized representative
• Any other document relevant to the facts and merits of the specific dispute

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Limitation Period

The limitation period for initiating arbitration proceedings in India is governed by the Limitation Act, 1963, in the same manner as it applies to court proceedings (Section 43 of the Arbitration and Conciliation Act, 1996). Key limitation periods relevant to arbitration include:

• Disputes arising from a contract: 3 years from the date of breach or the date when the right to arbitrate accrues.
• Disputes relating to recovery of money: 3 years from the date the money became due.
• Disputes relating to immovable property: 12 years in certain cases.
• Application to court for appointment of an arbitrator under Section 11: generally 3 years from the date of refusal or failure to appoint.

Note: The limitation period for arbitration runs from the date the cause of action arose, and arbitration is treated as commenced only when the notice invoking arbitration is received by the other party. It is therefore important to initiate arbitration proceedings promptly and not wait until the limitation period has expired.

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Arbitration Clause Drafting

A well-drafted arbitration clause is essential to ensure that disputes arising from a contract are resolved efficiently through arbitration. A good arbitration clause should clearly specify the following:

• The disputes or categories of disputes that are subject to arbitration.
• The number of arbitrators (sole arbitrator or a panel of three).
• The method of appointment of arbitrators, which should be fair to both sides.
• The seat and venue of arbitration, for example New Delhi, which also decides which court has supervisory jurisdiction.
• The language in which the arbitration shall be conducted.
• The rules of arbitration to be followed (ad hoc or institutional).
• The governing law of the arbitration agreement and the substantive law applicable to the dispute.
• A pre-arbitration step of negotiation or mediation, if the parties wish.

A simple model clause reads: "Any dispute arising out of or in connection with this agreement shall be referred to and finally resolved by arbitration under the Arbitration and Conciliation Act, 1996, by a sole arbitrator appointed by mutual consent of the parties. The seat and venue of arbitration shall be New Delhi and the language of arbitration shall be English." This should be adapted to your contract.

A poorly drafted arbitration clause can lead to disputes about the scope of the clause, the appointment of arbitrators, or the jurisdiction of the arbitral tribunal, resulting in unnecessary delays and costs. Legaltax's Delhi-based legal team can help you draft clear, comprehensive, and enforceable arbitration clauses for all your contracts through our legal documentation and drafting service.

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Timeline and Cost of Arbitration and ADR

Mediation can often be completed in a few weeks to a few months, and a Lok Adalat settlement can be reached in one or a few sittings. Arbitration is expected to be completed within twelve months from completion of pleadings, extendable by six months with the consent of the parties (Section 29A), while fast track arbitration is to be completed within six months.

The cost of arbitration generally includes arbitrators' fees, institutional or venue charges, and lawyers' fees. For ad hoc arbitrations, the Fourth Schedule to the Arbitration and Conciliation Act, 1996 provides a model sliding scale of arbitrators' fees based on the claim amount, and institutions have their own fee schedules. The costs of the arbitration, including the arbitrators' fees, are ultimately decided by the tribunal, which can direct that the losing party pays them. Mediation and Lok Adalat are generally much less expensive than arbitration or litigation.

Our fees depend on the complexity and value of the dispute. See our packages or contact LegalTax for a clear quote.

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How to Initiate Arbitration or ADR with Legaltax?

At Legaltax, we provide end-to-end assistance in all forms of arbitration and alternative dispute resolution, backed by an experienced team based in Delhi. Our experienced ADR lawyers will guide you through every step of the process, from reviewing the arbitration clause and sending the notice of arbitration to representing you at hearings and enforcing the award. Just follow our 3 simple steps:

1. Fill our simple form and receive a call back from our team of experienced arbitration and ADR lawyers.
2. Provide us with all necessary details and documents related to your dispute.
3. Our team of legal experts will assess your case, advise you on the most appropriate ADR mechanism, and handle the entire process on your behalf.

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Why Choose Legaltax for Arbitration & ADR in Delhi?

• Free Legal Advice
• Expert and Verified Arbitration and ADR Lawyers in Delhi
• Lowest Fee
• Quick and Transparent Process
• Dedicated Case Manager
• 100% Confidentiality
• Pan-India Legal Network
• Experience in Domestic and International Arbitration

Learn more about LegalTax or reach us through our contact page.

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Payment Structure

1. You are required to pay 50% of the fee to start the work.
2. 25% is payable after the arbitral tribunal is constituted or the ADR proceedings commence.
3. Remaining 25% is to be paid before the final hearing of the proceedings.

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FAQ's on Arbitration and ADR in Delhi, India

Q1. What is the difference between arbitration and court litigation?

Arbitration is a private process in which a neutral arbitrator or tribunal gives a binding award, while court litigation is a public process before a judge. Arbitration is generally faster, confidential and flexible, but court litigation offers wider appeals and procedural remedies.

Q2. Is an arbitration agreement mandatory to initiate arbitration?

Yes. A valid written arbitration agreement, either as a clause in the contract or as a separate agreement, is required. Without it, neither party can compel the other to arbitrate.

Q3. Can a party withdraw from arbitration or mediation proceedings?

In mediation, a party can generally withdraw at any time because it is voluntary. In arbitration, a party cannot withdraw unilaterally once proceedings have begun, and the tribunal can proceed and pass an ex-parte award if a party stays away.

Q4. On what grounds can an arbitral award be challenged in India?

An award can be challenged under Section 34 of the Arbitration and Conciliation Act, 1996 on limited grounds such as incapacity of a party, invalid arbitration agreement, lack of proper notice, award beyond the scope of the agreement, improper composition of the tribunal, non-arbitrable subject matter, conflict with the public policy of India, or patent illegality in domestic arbitrations. The application must be filed within three months of receiving the award, extendable by up to 30 days on sufficient cause.

Q5. What is the time limit for completing arbitration proceedings in India?

Under Section 29A, the tribunal must make its award within 12 months from completion of pleadings, extendable by up to 6 months with the consent of the parties and beyond that only by the court. In international commercial arbitration the tribunal should endeavour to decide within 12 months. Fast track arbitration under Section 29B must be completed within 6 months.

Q6. What is a Lok Adalat and who can approach it?

A Lok Adalat is a forum under the Legal Services Authorities Act, 1987 for amicable settlement of disputes, either pending in court or at the pre-litigation stage. Any party to such a dispute can approach it. There is no court fee, and the award is final, binding and executable as a decree of a civil court.

Q7. What is the difference between mediation and conciliation?

Both are voluntary and confidential. A mediator only facilitates the parties' own settlement, while a conciliator also proposes terms of settlement. A conciliation settlement has the same status as an arbitral award on agreed terms, and a mediated settlement agreement is enforceable under the Mediation Act, 2023.

Q8. Can foreign arbitral awards be enforced in India?

Yes. Foreign awards made in countries notified by the Government of India as reciprocating territories under the New York Convention or the Geneva Convention can be enforced under Part II of the Arbitration and Conciliation Act, 1996, by applying to the High Court with the original award and the arbitration agreement.

Q9. Is pre-institution mediation mandatory for commercial disputes?

Yes, for commercial disputes of Specified Value (not less than Rs. 3 lakh), a suit that does not contemplate urgent interim relief cannot be filed unless the plaintiff first exhausts pre-institution mediation under Section 12A of the Commercial Courts Act, 2015. The Supreme Court has held this requirement to be mandatory.

Q10. What happens if one party refuses to comply with an arbitral award?

The award can be enforced as a decree of a civil court under Section 36 of the Arbitration and Conciliation Act, 1996, including by attachment and sale of assets and attachment of bank accounts.

Q11. Can an arbitral award be appealed?

An award cannot be appealed on merits. The remedy is an application to set it aside under Section 34. An order on that application can be appealed under Section 37, and the limited further remedy lies before the Supreme Court.

Q12. Can a court case continue if there is an arbitration clause?

If a party files a suit on a matter covered by a valid arbitration agreement, the other party can apply under Section 8 of the Arbitration and Conciliation Act, 1996 before submitting its first statement on the substance of the dispute, and the court must refer the parties to arbitration.

Q13. Which disputes cannot be referred to arbitration?

Disputes that are not capable of settlement by arbitration include criminal offences, matrimonial matters such as divorce and child custody, insolvency and winding up, guardianship and testamentary matters, and rights that operate against the world at large. Most commercial and contractual disputes can be arbitrated.

Q14. How much does arbitration cost in India?

The cost depends on the claim value, number of arbitrators, the institution (if any) and the length of the proceedings. It generally includes arbitrators' fees, institutional or venue charges and lawyers' fees. For ad hoc arbitrations the Fourth Schedule to the Arbitration and Conciliation Act, 1996 provides a model sliding scale for arbitrators' fees.

Q15. What is emergency arbitration and is it available in India?

Emergency arbitration lets a party seek urgent interim relief from an emergency arbitrator before the main tribunal is constituted. Institutions such as the ICC, SIAC and LCIA offer it. In Amazon.com NV Investment Holdings v. Future Retail (2021), the Supreme Court held that an emergency arbitrator's order in an India-seated arbitration is enforceable under Section 17(2) of the Act. The 2024 draft Bill proposes to give emergency arbitration express statutory recognition, but it is not yet law.

Q16. What is the role of Indian courts in arbitration proceedings?

Indian courts play a supportive but limited role. They can appoint arbitrators where parties fail to agree, grant interim measures, refer parties to arbitration under Section 8, set aside an award on the limited grounds under Section 34, and enforce an award as a decree. Courts generally follow a policy of minimal intervention, and the 2015 amendment reduced court intervention by narrowing the grounds for challenge and removing the automatic stay on awards.

Q17. How can Legaltax help me with arbitration and ADR matters in Delhi?

Legaltax offers comprehensive legal assistance in all aspects of arbitration and alternative dispute resolution to clients in Delhi and across India. Our ADR lawyers can advise you on effective arbitration and ADR clauses in your contracts, initiate or respond to arbitration proceedings on your behalf, represent you before arbitral tribunals and mediation centres, apply for interim measures and injunctions, challenge or enforce arbitral awards in court, and represent you in Lok Adalat proceedings. Whether your dispute is domestic or international, simple or complex, you can rely on our team for the most efficient dispute resolution process.