Best Arbitration FAQs – 100 Common Questions Answered Lawyer

A private way of deciding a dispute, in which a neutral arbitrator or panel hears both sides and gives a binding decision called an award. See what is arbitration.

When the parties have agreed in writing to arbitrate, usually through an arbitration clause in their contract, or by a separate agreement after the dispute arises.

Generally yes. If you sue in court and the other side applies under Section 8 before its first statement on the merits, the court must send the dispute to arbitration.

Not always. It is often faster and private, and avoids value-based court fees, but it has its own costs. See arbitration vs court case.

The Arbitration and Conciliation Act, 1996, as amended in 2015, 2019 and 2021.

Most commercial disputes can. Some cannot, such as criminal matters, matrimonial disputes, insolvency proceedings and certain statutory claims.

An arbitrator decides; a mediator only helps the parties reach their own settlement. See mediation.

The legal home of the arbitration, which decides which courts supervise it. It can differ from the place where hearings happen. See seat vs venue.

Arbitration administered by an institution, such as DIAC, IIAC, MCIA or SIAC, under its rules and fee schedule. See ad hoc vs institutional.

No. Arbitral proceedings are confidential under Section 42A, though court proceedings challenging an award are generally public.

By sending a notice to the other side asking it to refer the dispute to arbitration, under Section 21. See arbitration notice.

On the date the other side receives the notice, unless the parties agreed otherwise.

For most money claims, three years from when the money fell due, under the Limitation Act, which applies to arbitration through Section 43.

A written acknowledgement of the debt, or a part payment, made before the three years end, gives a fresh period.

Not necessarily. An arbitration notice is what matters for arbitration. A legal notice for payment can be sent as well.

Courts usually treat such steps as directory, but it is safer to attempt them or record why they failed, especially if limitation is not close.

After 30 days, you can apply to the High Court under Section 11 for an arbitrator to be appointed.

Only if the other side agrees in writing after the dispute arises.

Possibly not. The Supreme Court held in Nagreeka Indcon (2026) that "can be settled by arbitration" with further consent is not an arbitration agreement.

Read the clause, check the claim and limitation, object to any arbitrator you did not agree to, and reply in writing within about 30 days. See reply to arbitration notice.

Any person the parties agree on, subject to independence and impartiality. Retired judges, senior lawyers and industry experts are common. See who can be an arbitrator.

Not if it has an interest in the dispute. After Perkins Eastman (2019) and CORE (2024), unilateral appointments by an interested party are open to challenge.

As the clause says. If it is silent, a sole arbitrator. Three-member tribunals are common in large disputes.

The High Court under Section 11 in domestic cases, or the Supreme Court in international cases. See appointment of arbitrator.

Only whether an arbitration agreement exists, as the Supreme Court held in Krish Spinning (2024).

A list of relationships, such as being an employee or adviser of a party, that make a person ineligible to act as arbitrator under Section 12(5).

Only by an express agreement in writing made after the dispute has arisen. Simply taking part is not enough.

By a written statement of reasons to the tribunal within 15 days of learning the grounds, under Section 13. See challenge to arbitrator.

The arbitration continues, and you can raise the point in a Section 34 challenge to the award. For legal ineligibility, you can apply to court under Section 14.

Yes, if the mandate ends because of withdrawal, removal, death, or by court order under Section 29A, a substitute is appointed.

Usually one to two years for a contested domestic case. See how long arbitration takes.

For domestic cases, 12 months from completion of pleadings, extendable by six months with consent and further only by the court, under Section 29A.

The arbitrator's mandate ends unless the court extends it. An application can be made even after expiry. See time extension.

The "Court" under Section 2(1)(e), not the Section 11 court, as held in Jagdeep Chowgule (2026).

A documents-only procedure under Section 29B, by agreement, with the award due within six months. See fast-track arbitration.

Arbitrators' fees, institution fees if any, lawyers' fees and running costs. See arbitration cost and the fee calculator.

By agreement, by the institution's schedule, or by reference to the Fourth Schedule to the Act. The Fourth Schedule is not mandatory, as held in ONGC v Afcons (2024).

Usually both sides equally during the case. The award decides who finally bears the costs.

No court fee is payable on the claim before the arbitrator. Court fees apply to court petitions such as Section 34.

Yes. Under Section 31A, the tribunal can order the losing party to pay costs, considering the parties' conduct.

Yes, from a court under Section 9, if you then start the arbitration within 90 days. See urgent court protection.

Freezing or deposit of money, injunctions against sale or transfer, preservation of goods, and other protective measures.

Only in limited cases, such as fraud known to the bank or special equities. See bank guarantee disputes.

Yes, under Section 17, enforceable like court orders. See interim measures by the arbitrator.

Only if the arbitrator's remedy would not be efficacious, under Section 9(3).

A temporary arbitrator under institutional rules who decides urgent applications before the main tribunal is formed. See emergency arbitration.

For India-seated arbitrations, yes, as held in Amazon v Future Retail (2021).

Yes, under Section 9, before the award is enforced. Even a losing party can apply, though the threshold is high (Home Care Retail Marts, 2026).

Yes, under Section 9 for assets in India, unless the parties agreed otherwise.

No. You need to show a real risk that the award will be frustrated, such as asset diversion.

The arbitrator's final decision, signed and reasoned, deciding the claims. It is binding on the parties.

Yes, subject to a limited challenge under Section 34. See is an award final.

Three months from receiving the signed award, plus up to 30 days for sufficient cause, and no more. See time limit to challenge.

In the court of the seat. In Delhi, the High Court above ₹2 crore and the district commercial court below. See challenge an award.

Incapacity, invalid agreement, no proper notice, inability to present your case, decisions beyond the reference, wrong tribunal composition, conflict with public policy, and, for domestic awards, patent illegality.

No. It does not re-decide facts or substitute its own view of the contract.

In limited ways after Gayatri Balasamy (2025): separating invalid parts, correcting clerical or arithmetic errors, or adjusting post-award interest.

No. A separate stay must be sought, often on condition of deposit. See stay of award.

Yes, under Section 37, within 60 days for commercial disputes. See arbitration appeal.

Clerical, computational and typographical errors can be corrected by the arbitrator within 30 days under Section 33. See correction of award.

By filing an execution petition, which treats the award as a court decree. See enforce an award.

After the challenge period ends with no challenge, or if a challenge is filed but no stay is granted.

Wherever the losing party has assets in India (Sundaram Finance v Abdul Samad, 2018).

Bank accounts, property, receivables, vehicles, shares and, for individuals, part of salary.

Yes, at the award's rate, or 2% above the current rate if the award is silent.

Courts generally treat a domestic award like a decree, with 12 years under the Limitation Act. Do not wait; assets disappear.

If it is a company admitted into insolvency, enforcement stops because of the moratorium. File a claim in the process instead.

Yes, against a company, if the amount is ₹1 crore or more and the conditions are met. See insolvency petition.

Courts have refused to enforce awards by ineligible, unilaterally appointed arbitrators.

Yes. An award on agreed terms under Section 30 is enforced like any other award.

Yes, if the loan agreement has an arbitration clause. See loan arbitration.

Not alone. A lender cannot unilaterally appoint a sole arbitrator.

Reply in writing, object to the arbitrator, ask for the loan documents, and take advice before attending. See NBFC loan arbitration notice.

Yes, under Section 34, especially if notice was improper or the arbitrator was one-sided. See one-sided award remedies.

Apply to the court for release, usually against reasonable security, and challenge the underlying award or order.

RBI rules since 2024 require penal charges, not compounded penal interest, disclosed in the loan documents.

Under an enforceable award, part of a salary can be attached within limits. See award execution against salary.

Only if your guarantee contains or clearly incorporates the arbitration clause.

Yes, at any stage. Get the terms in writing, and pay only to the lender's account.

Yes, about unfair charges or harassment, through the lender's grievance process and then the RBI Integrated Ombudsman.

Buyers must pay within 45 days at most, and late payments carry compound interest at three times the bank rate. See MSME delayed payment.

Udyam-registered micro and small enterprises. Medium enterprises are not covered by the delayed payment chapter.

Three times the RBI bank rate, compounded monthly. With the bank rate at 5.75% from 7 October 2026, that is 17.25% a year. See the calculator.

Before the Facilitation Council of your state, through the MSME ODR portal. See Samadhaan and ODR filing.

Yes, as held in Mahakali Foods (2022).

The law is unsettled; the Supreme Court has referred the question to a larger bench.

The Act targets 90 days from the reference; many cases take several months.

Yes, but only after depositing 75% of the award. See challenge an MSME award.

From 15 October 2026, registration is free and voluntary, but the benefits depend on it. See Udyam registration.

Buyers must pay within the agreed period, up to 45 days, and late payments are deductible for tax only when paid. See 45-day rule.

An arbitration where at least one party is foreign. See international arbitration.

The Supreme Court, if the parties cannot agree.

No. Only the courts of the seat can. Indian courts can only refuse enforcement on limited grounds.

By a petition in the High Court where the debtor's assets are, under Sections 47 to 49. See foreign award enforcement.

Three years, as held in Government of India v Vedanta (2020).

No. Indian courts do not review the merits, and findings made by the seat court cannot be reopened (Nagaraj Mylandla, 2026).

SIAC is the most used; ICC, LCIA and HKIAC are also common. See SIAC and ICC.

Yes, after PASL Wind Solutions (2021), though the award is then enforced as a foreign award.

No. For international commercial arbitrations, it is only an endeavour.

Yes. An NRI habitually resident abroad is a foreign party for this purpose. See NRI and foreign clients.