The Indian Council of Arbitration (ICA) is one of the oldest arbitral institutions in India. It was established in 1965 with the support of the Federation of Indian Chambers of Commerce and Industry (FICCI) and the government, to promote arbitration as a way of resolving commercial disputes, especially in trade and exports. Many older Indian contracts, including standard export contracts and some public sector agreements, contain ICA clauses, and the institution continues to administer domestic, international and maritime arbitrations.
This page is for parties with ICA clauses in their contracts, or considering an ICA clause. In short: ICA administers arbitrations under its own rules, with separate rules for domestic, international and maritime cases; it maintains a panel and appoints arbitrators if the parties do not agree; its fees follow a published schedule; and an ICA arbitration seated in India produces an Indian award, supervised by the court of the seat.
Because many ICA clauses are in older contracts, check which version of the rules applies, and whether the clause's appointment provisions are still valid after recent Supreme Court decisions.
हिंदी में सारांश
इंडियन काउंसिल ऑफ़ आर्बिट्रेशन (आईसीए) भारत की सबसे पुरानी आर्बिट्रेशन संस्थाओं में से है। इसकी स्थापना 1965 में फ़िक्की और सरकार के सहयोग से की गई थी, ताकि व्यापार और निर्यात से जुड़े विवादों का निपटारा आर्बिट्रेशन से हो सके। आईसीए घरेलू, अंतरराष्ट्रीय और समुद्री (मैरीटाइम) आर्बिट्रेशन अपने नियमों के तहत चलाता है, आर्बिट्रेटरों का पैनल रखता है, और पक्षों के सहमत न होने पर नियुक्ति करता है। पुराने अनुबंधों में आईसीए क्लॉज़ आम हैं, इसलिए देखें कि नियमों का कौन-सा संस्करण लागू है।
Is this your situation?
- Your contract has an ICA or FICCI arbitration clause
- You have received a notice from the Indian Council of Arbitration
- Your export contract refers to ICA rules
- Your charter party or shipping contract refers to ICA maritime arbitration
- The other side is not cooperating in appointing an arbitrator
- You are unsure which version of the ICA rules applies
- An ICA award has been made and needs to be enforced or challenged
Key features of ICA
Long history
Set up in 1965; extensive experience with trade and commercial disputes.
Separate rules
For domestic, international and maritime arbitrations.
Panel
Arbitrators from law, industry, engineering, shipping and finance.
Appointments
The council appoints if the parties do not agree.
Fees
Administrative and arbitrator fees under a published schedule.
Base
New Delhi, with hearings possible elsewhere and online.
When parties choose ICA
ICA has long been associated with trade and export disputes. Indian exporters' standard contracts, and some contracts with foreign buyers, specify ICA arbitration. Shipping parties use its maritime rules for charter party and freight disputes. Public sector undertakings have used ICA clauses in commercial contracts. For these parties, ICA offers an Indian institution with experience in their sectors.
For new contracts, ICA is one of several Indian institutions available, alongside IIAC, DIAC and MCIA. The choice often depends on the parties' familiarity, the panel members, the fee schedule and the institution's capacity. What matters most is that the clause is clear about the institution, the rules, the seat and the number of arbitrators.
How an ICA arbitration runs
Request for arbitration
Filed with the ICA, with the required fees, and copied to the respondent.
Response
The respondent replies within the time allowed and may counter-claim.
Appointment of the tribunal
By the parties' nominations or by ICA from its panel.
Directions
The tribunal fixes the procedure and timetable.
Pleadings and evidence
Statements, documents, witness evidence and expert reports.
Hearing
In New Delhi, elsewhere or online.
Award
Issued through the ICA; subject to Section 34 if seated in India.
Time and typical cost range
Our fees are agreed in writing at the start, stage by stage, and are not linked to the outcome. ICA's own fees follow its current schedule.
| Step | Usual time | Cost |
|---|---|---|
| Request and response | Weeks | Registration and administrative fees per ICA schedule |
| Appointment | 1 to 2 months | Part of administration |
| Pleadings and hearings | 9 to 18 months | Arbitrator fees per schedule |
| Award | Within Section 29A limits for domestic cases | Our fee |
| Challenge or enforcement | 3 months to file challenge | Court fee; our fee |
Documents for an ICA case
For filing
- Contract with the ICA clause
- Correspondence showing the dispute
- Corporate authorisations
For the case
- Documents supporting the claim
- Calculation of amounts claimed
- Witness and expert evidence
For maritime cases
- Charter party or bill of lading
- Voyage records, statements of facts and laytime calculations
Common ICA clause problems and how they are handled
| Problem | Usual approach |
|---|---|
| Clause names "FICCI arbitration" without rules | Read as a whole for the parties' intended institution; seek agreement or a court ruling if unclear |
| Clause refers to old rules | Check the rules' transitional provisions |
| Clause lets one party appoint the sole arbitrator | Open to challenge after CORE (2024); seek ICA or court appointment |
| No seat stated | Venue or other indicators may decide the seat (BGS SGS Soma, 2019) |
| Respondent ignores the request | ICA can appoint; arbitration proceeds |
| Clause names an ICA arbitrator who has since died | ICA or the court appoints a substitute under Section 15 |
Older clauses and the rules that apply
ICA has revised its rules over time. A clause in an older contract may refer to the rules "for the time being in force", which usually means the rules in force when the arbitration starts, or to a specific version. Institutional rules often contain transitional provisions saying which version applies to arbitrations started after a revision. Check the clause and the rules' transitional provisions before filing.
Older clauses may also contain features that are now problematic, such as a provision allowing one party to choose the arbitrator from a list it controls. After Perkins Eastman (2019) and CORE (2024), such provisions are open to challenge. Where the clause names ICA, the institution's own appointment process provides a neutral route.
Maritime arbitration under ICA
ICA's maritime arbitration rules cover disputes under charter parties, bills of lading, shipbuilding and ship sale contracts, and related agreements. Typical disputes involve demurrage, laytime, freight, cargo damage and off-hire. These disputes often need arbitrators with shipping knowledge, which ICA's maritime panel is designed to provide.
Where a maritime claim needs security, a ship can be arrested in an Indian port under the Admiralty (Jurisdiction and Settlement of Maritime Claims) Act, 2017, through the High Courts with admiralty jurisdiction. An arbitration can proceed alongside the arrest, with the security held for the award.
Laws and rules that apply
Domestic, international and maritime arbitration rules.
Part I for India-seated arbitrations; Sections 11, 29A and 34.
Arrest of ships and maritime claims.
Arbitrator independence and substitution.
Parties may authorise an institution to determine issues.
An export contract with an old ICA clause
Here's a made-up example. A Moradabad brassware exporter had a ten-year-old contract with a Delhi buying house, containing a clause for arbitration "under the rules of the Indian Council of Arbitration" with the buyer's managing director as sole arbitrator. When the buyer withheld ₹68 lakh for alleged quality defects, the exporter wanted to arbitrate but objected to the named arbitrator.
We filed the request with ICA, objecting to the named arbitrator under Section 12(5) read with the Seventh Schedule, since he was the buyer's managing director. The buyer agreed to an ICA appointment from its panel. The arbitrator, after inspection of samples and the buyer's acceptance records, found that most of the goods had been accepted and resold, and awarded ₹57 lakh with interest.
How we work
We are a litigation and advisory practice led by Advocate BK Singh, with offices in Dwarka (New Delhi) and Vaishali (Ghaziabad). This is what you can expect:
- Clause review: the right rules version and valid appointment route.
- Institutional filings: handled correctly and on time.
- Sector knowledge: trade, export and shipping disputes.
- Focused hearings: documents first, oral evidence only where needed.
- Written fee terms: agreed stage by stage, never linked to the outcome.
Mistakes in ICA cases
- Accepting an arbitrator connected to the other side
- Filing a Section 11 petition when the institution can appoint
- Ignoring the version of the rules that applies
- Not stating the seat in a new ICA clause
- Missing the Section 29A timeline in domestic cases
- Not securing maritime claims by arrest when possible
Choosing ICA arbitrators
ICA's panel includes retired judges, senior lawyers, chartered accountants, engineers, shipping professionals and business people. When nominating, look for experience with the type of dispute, availability, and a record of timely awards. Every arbitrator must disclose any circumstances that could give rise to justifiable doubts about their independence or impartiality, in the form of the Sixth Schedule. Review the disclosure and raise objections promptly.
For trade disputes, an arbitrator with commercial or industry experience can understand quality, inspection and market practice issues quickly. For legal questions, such as limitation or the validity of a clause, a legally trained arbitrator may be preferable. In a three-member tribunal, a mix often works well.
Fees and deposits
ICA's fee schedule sets the administrative fee and the arbitrators' fees by reference to the amount in dispute, with deposits payable by the parties, usually in equal shares, at stages of the case. If one party does not pay, the other may pay to keep the case going and recover it in the award. Counter-claims may attract separate deposits.
Compared with foreign institutions, ICA's costs are moderate and payable in rupees. Compared with ad hoc arbitration under the Fourth Schedule, institutional fees can be similar or slightly higher, but include administrative support and an appointment process that avoids court proceedings.
Domestic cases and Section 29A
For domestic arbitrations seated in India, Section 29A requires the award within 12 months of the completion of pleadings, which themselves should be completed within six months of the tribunal's appointment under Section 23(4). The parties can extend by six months by consent, and further extensions need the court. ICA arbitrations are subject to these limits.
Keep track of the dates from the start. If the case is likely to take longer, agree a consent extension in writing before the 12 months end, and apply to the court in time if more is needed. See arbitration time limit.
International cases under ICA
Where one party is foreign, an ICA arbitration seated in India is an international commercial arbitration under Section 2(1)(f). The 12-month limit in Section 29A is only a target, the court for supervisory matters is the High Court under Section 2(1)(e)(ii), and the tribunal must apply the substantive law chosen by the parties under Section 28(1)(b).
Foreign parties often want a neutral presiding arbitrator. ICA's international rules allow for this. The award is an Indian award, enforceable in India under Section 36 and abroad under the New York Convention, since India is a party.
Settlement and conciliation
ICA also offers conciliation, and parties can agree to try conciliation before or during the arbitration. Under Part III of the Arbitration Act, a settlement agreement reached in conciliation and signed by the parties has the same status and effect as an arbitral award on agreed terms (Section 74). A settlement during the arbitration can be recorded as an award under Section 30. See conciliation.
Converting old clauses for new contracts
Businesses that have used ICA clauses for decades should review their standard contracts. Update the clause to name the current rules, state the seat clearly, provide for appointment by the institution if the parties do not agree, remove any unilateral appointment rights, and specify the number of arbitrators and the language. Consider whether the emergency and expedited provisions should apply. A clear clause prevents the preliminary disputes that slow down many arbitrations under older contracts.
Responding to an ICA request
A respondent that receives a request for arbitration from the ICA should respond within the time allowed, even if it considers the claim baseless. The response should raise any objection to jurisdiction, any limitation defence, and any counter-claim, and nominate an arbitrator if the clause requires. Section 16(2) requires a jurisdiction plea to be raised no later than the statement of defence.
If the clause allows the claimant to choose the arbitrator alone, or names a person connected to the claimant, object in writing at once and ask for an institutional appointment. A respondent that participates without objection may be treated as having accepted the procedure, except for ineligibility under Section 12(5), which can only be waived by an express written agreement after the dispute arises.
Trade disputes: inspection and quality evidence
Many ICA cases concern the quality of goods supplied under trade and export contracts. Tribunals look for the contract's quality specification, any agreed inspection regime, inspection certificates, the timing of complaints, and whether the buyer accepted, used or resold the goods. Joint inspection reports, laboratory test certificates from accredited labs, and photographs taken at delivery carry weight.
Buyers should raise complaints promptly and preserve samples. Sellers should keep dispatch records, pre-shipment inspection certificates and delivery acknowledgments. Where the goods have been resold, the buyer's resale invoices may show that the goods were of acceptable quality.
Limitation in ICA claims
The Limitation Act applies to arbitrations as it applies to court proceedings, under Section 43 of the Arbitration Act. For most commercial claims, the period is three years from when the cause of action arose, and the arbitration is treated as commenced on the date the respondent receives the request to refer the dispute to arbitration under Section 21. A claimant whose claim is close to the three-year limit should serve the notice invoking arbitration promptly, even before all the documents are ready.
Where there has been a written acknowledgment of liability, such as a balance confirmation or an email accepting dues, signed before limitation expired, a fresh period starts under Section 18 of the Limitation Act. See limitation in arbitration claims.
Awards and execution
An ICA award seated in India is enforceable as a decree under Section 36 once the time for challenge has passed, or earlier if no stay is granted on a pending challenge. Execution can be filed in any court where the award debtor has assets (Sundaram Finance v Abdul Samad, 2018). For awards against foreign parties, enforcement abroad under the New York Convention is possible in the countries that recognise Indian awards. See enforcement of awards.
Frequently Asked Questions
What is the Indian Council of Arbitration?
An arbitral institution set up in 1965 with FICCI's support, based in New Delhi.
Does ICA handle international disputes?
Yes, under its international rules, as well as domestic and maritime ones.
My clause names a person as arbitrator. Is that valid?
If that person is ineligible under Section 12(5), the appointment can be challenged.
Which ICA rules apply to my case?
Usually those in force when the arbitration starts, subject to the clause and transitional provisions.
Who appoints the arbitrator?
The parties, or ICA if they do not agree.
Can ICA hearings be online?
Yes, and at venues outside Delhi.
How is an ICA award challenged?
Under Section 34 in the court of the seat, if seated in India.
Does ICA handle shipping disputes?
Yes, under its maritime arbitration rules.
Are ICA fees fixed?
They follow the ICA's published schedule.
Is ICA a government body?
It is an institution set up with FICCI's support; it is not a court or government department.
ICA clause in your contract?
Send us the contract. We will check the clause and the rules, and start the case the right way.
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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