Arbitration is a private way of deciding a dispute. Instead of a judge in a public court, one arbitrator or a panel of three hears both sides and gives a decision called an award. If your contract has an arbitration clause, this is usually where your dispute will end up, whether you are the one owed money or the one being asked to pay.
This page is for business owners, contractors, suppliers, borrowers, founders and companies who have a dispute under a contract and want to know where they stand. In short: a contested arbitration in India usually takes one to two years, the award can be enforced like a court decree, and the time limits are strict. If you have received a notice, or you are about to send one, the first two weeks matter more than people think.
We handle arbitration from the first notice to the last rupee recovered, for claimants and respondents, in Delhi, Ghaziabad, Noida, Gurugram and before High Courts and arbitral institutions across India. Below you will find what arbitration involves, which service fits your situation, how long it takes, what it costs and what papers to gather.
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Is this your situation?
- Your contract, purchase order or loan agreement has a clause saying disputes will go to arbitration
- Someone owes you money under a contract and is not paying or replying
- You have received an arbitration notice, or a letter naming an arbitrator you never agreed to
- A bank or NBFC has started arbitration over a loan, or an award has been passed without you
- The other side is about to sell assets, encash a bank guarantee or terminate your contract
- You have an award in your favour but the other side will not pay
- You lost in arbitration and believe the award is unfair or the arbitrator was biased
- You are a foreign company or NRI with a dispute against an Indian party
Arbitration in plain words
Who decides
A neutral arbitrator, often a retired judge, a senior lawyer or an industry expert. You and the other side can agree on who it is. If you cannot agree, the High Court appoints one.
Where it happens
Hearings take place in an office, at an arbitration centre, or by video. Nothing is heard in open court, and the papers are not public in the way court files are.
How long it takes
The law expects the award within 12 months after written pleadings are complete, extendable by 6 months with consent, and beyond that only by a court. Most contested cases take one to two years in all.
What it costs
You pay the arbitrator's fee, any institution's fee, your own lawyer and some running costs. There is no court fee on the claim amount, which helps on large claims.
What you get
An award that is final and binding. If it is not paid, you can file for execution in court as if it were a decree.
Can it be undone
Only on narrow grounds, by filing in court within 3 months of receiving the award. A court will not simply re-decide the case because it would have seen the facts differently.
When arbitration is the right road, and when it is not
Arbitration is not automatically better than a court case. It suits disputes where there is a valid arbitration clause, where the amount is large enough that a court fee would be heavy, where you want a decision-maker who understands the trade, or where confidentiality matters. Construction claims, supply and distribution disputes, shareholder fights and cross-border contracts are common examples.
It suits you less when the amount is small, when the other side has no assets worth chasing, or when your claim is simple and documentary. For an unpaid invoice of a few lakh rupees, a legal notice for payment or a summary suit can be quicker and cheaper. Registered micro and small suppliers have a separate route through the state MSME Facilitation Council, which can override an arbitration clause in the contract.
If there is no arbitration clause at all, both sides can still agree in writing to arbitrate after the dispute arises. Without that agreement, the dispute goes to the ordinary courts. Business claims of ₹3 lakh or more are heard by special commercial courts, usually after a compulsory attempt at pre-litigation mediation.
One question we ask early is whether the clause actually works. A clause that says disputes "can be" referred to arbitration, or that needs both sides to agree again later, may not be an arbitration agreement at all. The Supreme Court said so in April 2026 in Nagreeka Indcon Products v Cargocare Logistics. Reading the clause properly at the start saves months of argument later.
How an arbitration case runs from start to finish
Read the contract and fix the facts
We read the arbitration clause, the contract and the correspondence. We check who the parties are, which law applies, where the "seat" of arbitration is, whether an institution is named, and whether your claim is within time. Most claims for money must be started within three years.
Send the arbitration notice
Under Section 21, arbitration formally begins on the date the other side receives your request to refer the dispute. The notice sets out the claim and usually proposes an arbitrator. See arbitration notice.
Get the arbitrator in place
If the other side agrees on a name, the arbitrator gives a written disclosure of independence and the case begins. If they ignore the notice for 30 days, or insist on an arbitrator of their own choice, we apply to the High Court under Section 11. See appointment of arbitrator.
Ask for protection if money or assets are at risk
If there is a real risk that the other side will move funds, sell property or encash a bank guarantee, we apply to court under Section 9 or to the arbitrator under Section 17. See urgent court protection.
File the claim and the defence
The claimant files a statement of claim with documents. The respondent files a defence and may add a counter-claim. Under Section 23(4), this exchange should finish within six months of the arbitrator's appointment.
Evidence and hearings
Witnesses file affidavits and are cross-examined. Then both sides argue, usually with written notes. Many arbitrations now hold some or all hearings by video.
The award
The arbitrator signs a reasoned award and sends signed copies to both sides. The time to challenge it starts from the date you receive it.
Challenge, defend or enforce
The losing side may file under Section 34 within three months. The winning side can file for execution once the challenge period ends or if no stay is granted. See challenge an award and enforce an award.
Time and typical cost range
Arbitrators' fees vary widely. For ad hoc cases many High Courts use the Fourth Schedule to the Act as a guide, which links the fee to the claim amount. For example, a ₹50 lakh claim works out to about ₹1.87 lakh per arbitrator under that schedule, and a ₹5 crore claim to about ₹7.37 lakh. The Supreme Court held in ONGC v Afcons (2024) that parties and arbitrators can agree their own fee instead. Institutions such as DIAC publish their own fee schedules. Our own fees are agreed in writing at the start, stage by stage, and are never linked to the result.
| Stage | Usual time | Main costs |
|---|---|---|
| First review and advice | 2 to 5 working days | Our consultation fee |
| Arbitration notice and reply period | About 30 days | Our drafting fee |
| Court appointment of arbitrator (Section 11) | 2 to 9 months, depending on the court | Court fee is small; our fee |
| Pleadings (claim, defence, counter-claim) | Up to 6 months after appointment | Arbitrator's fee instalments; our fee |
| Evidence and final hearing | 4 to 12 months | Arbitrator's fee, venue or centre charges, stenographer |
| Award | Within 12 months of pleadings, extendable | Balance of arbitrator's fee |
| Section 34 challenge in court | 1 to 3 years | Court fee as per state rules; our fee |
Documents to gather before you call
The contract
- The signed agreement, work order, purchase order or loan agreement
- Any annexures, general conditions or terms printed on the back
- Amendments, extensions and side letters
The money trail
- Invoices, running bills, ledgers and statements of account
- Bank statements showing payments made or received
- Bank guarantees, security deposits and retention records
The dispute
- Emails, WhatsApp messages and letters about the problem
- Notices sent or received, with postal and courier proof
- Minutes of meetings, measurement sheets, delivery challans
If an award or order exists
- The award, with the date you received the signed copy
- Any orders of the arbitrator or court
- The envelope, email or tracking record showing delivery
Courts and forums where arbitration matters are filed
In Delhi, smaller arbitration petitions go to the district commercial courts at Saket, Patiala House, Tis Hazari, Karkardooma, Rohini and Dwarka, and larger ones to the Delhi High Court. For Ghaziabad and Noida, the district commercial courts hear Section 9 and 34 matters, while appointments go to the Allahabad High Court.
| Matter | Usually filed in |
|---|---|
| Appointment of arbitrator, domestic case | High Court with jurisdiction over the seat or the parties |
| Appointment of arbitrator, international case | Supreme Court of India |
| Urgent orders (Section 9) and challenge to award (Section 34) | The "Court" under Section 2(1)(e): the principal civil court of the district, or the High Court where it has original jurisdiction (in Delhi, claims above ₹2 crore) |
| Time extension of the arbitrator (Section 29A) | The same "Court" as for Section 34, not the High Court that appointed the arbitrator |
| Appeal against Section 9 or 34 orders (Section 37) | Commercial appellate division of the High Court, or the next appellate court |
| Execution of an award | Any court where the losing party's assets are |
| MSME delayed payment claims | State Micro and Small Enterprises Facilitation Council |
Which service fits your problem
If you are owed money and want to start, begin with the arbitration notice. If the other side has gone silent after your notice, you need an appointment of arbitrator. If they have sued you in court even though the contract has an arbitration clause, ask the court to refer the case to arbitration before you file your defence.
If you have received a notice, read how to reply to an arbitration notice. If the notice names an arbitrator chosen only by the other side, often seen in loan cases, see challenging the arbitrator and bank or NBFC loan arbitration. If an award has already been passed and you never took part, read remedies against an award passed without you.
Once there is an award, the paths split. The winner can recover the money through execution. The loser can file a challenge and ask for a stay of the award. Awards from Singapore, London or other foreign seats are enforced through a different chapter of the Act, covered on foreign award enforcement.
For disputes in particular industries, see construction, government contracts, shareholder and founder disputes and international arbitration. If you are still drafting a contract, a carefully written arbitration clause costs little now and saves a great deal later.
What has changed recently
Arbitration law in India keeps moving, mostly through Supreme Court judgments. A few changes affect almost every case.
One-sided appointments. In November 2024, a five-judge bench in Central Organisation for Railway Electrification v ECI-SPIC-SMO-MCML held that a clause letting one side control who sits as arbitrator offends equal treatment. Earlier decisions had already stopped an interested party from appointing a sole arbitrator. In September 2026, in Arth Micro Finance v Shivalik Small Finance Bank, the Court set aside freezing orders and declared an arbitration of no legal effect where the lender claimed the borrower had consented to its chosen tribunal but could not prove it.
Limited power to modify awards. In April 2025, in Gayatri Balasamy v ISG Novasoft, a Constitution Bench said courts hearing a Section 34 challenge may modify an award in limited ways, such as separating a bad part from a good part, correcting arithmetic errors, or adjusting post-award interest. They still cannot rewrite the award on the merits.
Seat and court. In April 2026, in J&K Economic Reconstruction Agency v Rash Builders, the Court repeated that once a seat is chosen, only the courts of that seat hear challenges. Holding hearings somewhere else for convenience does not move the seat.
Time extensions. In January 2026, in Jagdeep Chowgule v Sheela Chowgule, the Court said applications to extend the arbitrator's time under Section 29A go to the ordinary "Court" under the Act, not to the High Court that appointed the arbitrator.
A draft bill to amend the Act was published for consultation in October 2024. As of this review it had not been passed, so the law described on this site is the Act as it currently stands.
Laws that apply
The main law. Part I covers arbitrations seated in India; Part II covers enforcement of foreign awards.
Decides which court hears arbitration petitions arising from commercial disputes, and sets the 60-day appeal period.
Applies to arbitration through Section 43 of the Act. Most money claims must be started within three years.
Gives registered micro and small suppliers a separate route to the Facilitation Council, with compound interest on delayed payments.
Used for executing awards: attachment of bank accounts, property and other assets.
A supplier who waited too long to act
Here's a made-up example to show how timing works. A Noida manufacturer supplied machine parts to a Gurugram buyer under a purchase order with an arbitration clause seated in Delhi. The buyer stopped paying in 2023, citing quality problems it had never raised before. The manufacturer kept sending reminders for two years.
When the manufacturer came for advice, the first job was the limitation check. The last payment and the buyer's last written acknowledgement of the balance were both in early 2024, so the claim was still within three years. A notice under Section 21 went out the same week. The buyer named its own director's friend as arbitrator. We objected and applied to the Delhi High Court under Section 11, which appointed an independent arbitrator.
The buyer's quality defence failed on the evidence, because the goods had been accepted and used for months without complaint. The award came about 14 months after pleadings closed. Had the manufacturer waited a few more months, a large part of the claim could have been out of time.
How we work
We are a litigation and advisory practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad), working across Delhi NCR and with associate counsel in other High Courts. This is what you can expect:
- A straight first answer: whether arbitration is the right route, and what it will likely involve in time and money.
- Deadlines first: we check limitation, the Section 34 clock and any court dates before anything else.
- Both sides of the table: we act for claimants and respondents, lenders' borrowers and contractors, so we know how the other side thinks.
- Plain explanations: you will understand every document we file in your name.
- Written fee terms: agreed stage by stage, never linked to the outcome.
Mistakes that cost people their case
- Ignoring an arbitration notice because "it is not a court case"
- Letting the other side choose the arbitrator without objection
- Missing the 3-month window to challenge an award
- Sending documents to the arbitrator without keeping proof of delivery
- Waiting for the other side's promises while limitation runs out
- Filing a court suit when the contract clearly sends the dispute to arbitration
Frequently Asked Questions
Is an arbitration award as good as a court decree?
Yes. Under Section 36, once the time to challenge it has passed, or a challenge has been dismissed, or no stay is granted, the award can be enforced in the same way as a court decree.
Can I go to court even though my contract has an arbitration clause?
You can file, but if the other side applies under Section 8 before its first statement on the merits, the court must normally send the matter to arbitration. Urgent protective orders under Section 9 are still available from court.
How long does arbitration take in India?
For a contested domestic case, usually one to two years from the arbitrator's appointment. The Act expects the award within 12 months after pleadings close, extendable by 6 months with consent, and further only by court order.
Who pays the arbitrator?
Usually both sides share the fee equally while the case runs. At the end, the arbitrator can order the losing side to bear some or all of the costs.
What if the other side refuses to appoint an arbitrator?
If they do not respond within 30 days of your request, or the agreed procedure fails, you apply to the High Court under Section 11, or to the Supreme Court in an international case.
Can a lender appoint its own arbitrator?
A party with an interest in the dispute cannot appoint a sole arbitrator on its own. If a bank, NBFC or company has done so without your written agreement after the dispute arose, you should object at once and take advice.
Can an arbitration award be appealed?
There is no ordinary appeal on the merits. You can apply to set the award aside under Section 34 on limited grounds, and appeal from that decision under Section 37.
Can arbitration be done online?
Yes. Hearings by video are common, and notices and pleadings can be exchanged by email if the arbitrator directs. See online arbitration.
Do I need a lawyer for arbitration?
The Act does not require one, but the procedure, the time limits and the court applications around it make representation sensible in most cases.
What does a first consultation cover?
We read your contract and papers, check the deadlines, tell you the realistic options and costs, and give you a written note of the next steps.
Have an arbitration clause and a problem?
Send us the contract and the latest correspondence on WhatsApp. We will check the clause, the deadlines and the best route, and tell you plainly what it involves.
This page gives general information about arbitration and dispute law in India as it stood when it was last reviewed. It is not legal advice on your case and does not promise any result. Time limits, fees and court rules change, and the right step depends on your own contract, dates and documents, so take advice before acting.
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