Arbitration & Alternative Dispute Resolution (ADR)

Arbitration and Alternative Dispute Resolution (ADR) provide efficient, confidential, and legally recognised mechanisms for resolving commercial disputes outside traditional court litigation.

Arbitration Under Indian Law

India is also a signatory to the New York Convention, ensuring enforceability of foreign awards across jurisdictions.

Judicial developments have strengthened the pro-arbitration approach of Indian courts, limiting unnecessary judicial interference and encouraging expeditious resolution of disputes.

Role of Arbitration Counsel

Mediation and Conciliation Processes

Ad Hoc and Institutional Arbitration

Our Arbitration Services

Drafting & Advisory

  • Drafting and reviewing arbitration agreements
  • Structuring dispute resolution clauses
  • Seat and venue advisory
  • Institutional vs ad hoc arbitration guidance

Representation in Proceedings

  • Section 9 interim relief petitions
  • Section 11 arbitrator appointment proceedings
  • Section 17 interim applications
  • Conduct of arbitral hearings
  • Written submissions and arguments

Post-Award Proceedings

  • Section 34 challenge proceedings
  • Section 36 enforcement proceedings
  • Execution-related proceedings

Unilateral Appointment of Arbitrator – Legal Position

Indian jurisprudence has established that unilateral appointment of a sole arbitrator by one party in a bilateral commercial dispute may be legally unsustainable.

The Supreme Court in:

  • TRF Ltd v. Energo Engineering Projects Ltd
  • Perkins Eastman Architects DPC v. HSCC (India) Ltd
  • Bharat Broadband Network Ltd v. United Telecoms Ltd

has clarified the requirement of neutrality and independence of arbitrators under Section 12(5) read with the Seventh Schedule of the Act.

Assistance is provided in matters relating to appointment disputes and drafting of arbitration clauses consistent with current legal principles.

Evolution of Indian Arbitration Law

1996

Foundation of Modern Arbitration in India

Arbitration and Conciliation Act, 1996

The 1996 Act replaced the earlier fragmented arbitration regime and was enacted based on the UNCITRAL Model Law on International Commercial Arbitration.

Key Features:

  • Recognition of party autonomy
  • Minimal judicial intervention (Section 5)
  • Recognition of domestic and international commercial arbitration
  • Separate enforcement framework for foreign awards
  • Recognition of conciliation proceedings

This statute marked India’s transition toward a globally harmonised arbitration framework.

2014

Clarification of “Public Policy”

Associate Builders v. Delhi Development Authority

The Supreme Court expanded and structured the concept of “public policy” under Section 34. While this initially broadened judicial review, it laid the foundation for later restriction.

2015

Major Reform & Pro-Arbitration Shift

Arbitration and Conciliation (Amendment) Act, 2015

This amendment was a turning point in Indian arbitration law.

Key Reforms:

  • Introduction of strict time limits for arbitration (Section 29A)
  • Narrowing of “public policy” grounds for setting aside awards
  • Recognition of “patent illegality” as limited domestic ground
  • Strengthening of interim relief under Sections 9 and 17
  • Limiting judicial scrutiny at Section 11 stage to existence of arbitration agreement

Reinforcing Judgment:

Ssangyong Engineering & Construction Co. Ltd. v. NHAI

The Court clarified that post-2015 amendment, courts cannot reappreciate evidence under Section 34.

This phase marked India’s serious commitment toward reducing court interference.

2017–2019

Neutrality & Unilateral Appointment Jurisprudence

This period transformed arbitrator appointment law in India.

TRF Ltd v. Energo Engineering Projects Ltd

Held that if a named arbitrator (e.g., Managing Director) is ineligible under Section 12(5), he cannot nominate another arbitrator.

Principle: “Once ineligible, always ineligible — including power to appoint.”

Perkins Eastman Architects DPC v. HSCC (India) Ltd

Expanded TRF principle. Held that a party interested in the dispute cannot unilaterally appoint a sole arbitrator.

Even if contract permits unilateral appointment, such clause becomes legally vulnerable.

This judgment effectively ended unilateral appointment clauses in bilateral disputes.

Bharat Broadband Network Ltd v. United Telecoms Ltd

Clarified that:

  • Section 12(5) ineligibility is mandatory
  • Waiver must be express and post-dispute
  • Pre-dispute waiver is invalid

This ensured neutrality and independence of arbitrators as a non-negotiable principle.

2019

Institutionalisation & Structural Reform

Arbitration and Conciliation (Amendment) Act, 2019

Key Objectives:

  • Establishment of Arbitration Council of India
  • Promotion of institutional arbitration
  • Introduction of confidentiality (Section 42A)
  • Clarification of timelines for international arbitration

This amendment aimed to move India from ad hoc culture toward institutional framework.

2020

Arbitrability & Referral Scope

Vidya Drolia v. Durga Trading Corporation

Clarified:

  • Scope of arbitrability
  • Limited judicial review at referral stage
  • Doctrine of kompetenz-kompetenz
  • Courts should refer matters unless non-arbitrability is manifest

Strengthened pro-arbitration referral policy.

2021

Enforcement Protection Phase

Arbitration and Conciliation (Amendment) Act, 2021

  • Clarified limited circumstances for automatic stay of awards
  • Addressed fraud and corruption-based challenges
  • Reinforced enforceability of awards
2021

Emergency Arbitration Recognition

Amazon.com NV Investment Holdings LLC v. Future Retail Ltd

Recognised enforceability of emergency arbitrator awards under Indian law, strengthening institutional arbitration credibility.

2023

Stamping Defect Clarification

In Re: Interplay Between Arbitration Agreements and the Indian Stamp Act

Held that:

  • Arbitration agreement does not become void for stamping defect
  • Stamping defect is curable
  • Courts should not block arbitration at referral stage on technical stamping objections

This significantly reduced procedural obstruction.

Why Choose Arbitration?

Arbitration provides a commercially efficient mechanism for resolving domestic and cross-border disputes while ensuring legal finality.

Consultation

For further information regarding arbitration advisory, appointment disputes, or arbitral representation, the office may be contacted for scheduling a consultation.