An arbitration lawyer in Chandigarh deals with disputes that parties have agreed to resolve before a private tribunal instead of a civil court. The firm's advocates appear in arbitration-related matters before the Punjab and Haryana High Court in Sector 1, Chandigarh, and the courts at Panchkula and Chandigarh. This page describes the process under the Arbitration and Conciliation Act 1996 ("the Act").
When arbitration applies
Arbitration is consensual. It applies where the parties have an arbitration agreement in writing, most often a clause in a works contract, supply order, lease, partnership deed, shareholders' agreement or builder-buyer agreement. The clause normally says what disputes are covered, how many arbitrators there will be, the seat or venue, and sometimes the institution or rules.
Some points that commonly decide whether a dispute can go to arbitration:
- whether the clause covers the dispute in question (a narrow clause may cover only "disputes regarding payment");
- whether the subject matter is capable of arbitration (criminal matters, matrimonial status and certain statutory disputes are not);
- whether the claim is within the limitation period, since the Limitation Act 1963 applies to arbitrations.
Stages of an arbitration
Notice invoking arbitration (Section 21)
Arbitral proceedings commence on the date the respondent receives a request for the dispute to be referred to arbitration. In practice this is a written notice that describes the dispute, quotes the clause, and proposes or asks for the appointment of an arbitrator.
Appointment of the tribunal (Section 11)
The parties may agree on the procedure for appointment. If the procedure fails, or one side does not appoint within the time allowed (generally 30 days), a party can apply to the court under Section 11. For domestic arbitration, the application is made to the High Court, which for this region is the Punjab and Haryana High Court. Under Section 11(6A), the court's enquiry at this stage is confined to the examination of the existence of an arbitration agreement. Objections on merits are left to the tribunal.
The Act also restricts who may act. Under Section 12(5) read with the Seventh Schedule, a person whose relationship with the parties or the dispute falls in the Schedule is ineligible, unless the parties waive this by an express written agreement made after the dispute has arisen. The Supreme Court has examined clauses under which one party appoints the sole arbitrator, in TRF Ltd. v. Energo Engineering Projects Ltd. and Perkins Eastman Architects DPC v. HSCC (India) Ltd.
Interim measures (Sections 9 and 17)
A party may apply to the court under Section 9 for interim relief, such as preserving property, securing the amount in dispute or restraining a party from alienating an asset. This can be done before the proceedings, during them or after the award but before enforcement. If interim relief is granted before arbitration begins, proceedings must commence within 90 days. Once the tribunal has been constituted, the court ordinarily does not entertain a Section 9 application unless the remedy before the tribunal under Section 17 would not be efficacious.
Pleadings, hearings and award
The tribunal fixes the procedure within the Act and the agreement: claim, defence, any counter-claim, evidence and arguments. Section 29A requires the award in a domestic arbitration to be made within 12 months from the date the pleadings are completed. The parties may extend this by consent for up to six months. Beyond that, an extension has to be sought from the court, which may impose conditions.
Challenge, enforcement and appeal
A Section 34 challenge to an award is an application to set it aside on the limited grounds in that Section, such as incapacity, invalid agreement, lack of proper notice, an award beyond the scope of the reference, or conflict with the public policy of India. It is not an appeal on merits. The application must be made within three months from receipt of the award; the court may condone a further 30 days if sufficient cause is shown, and not beyond that. The application is filed in the court with jurisdiction, which is the principal civil court or, for a commercial dispute, the Commercial Court.
Under Section 36, an award is enforceable like a decree of the court once the time for challenge has expired or the challenge is rejected. Filing a Section 34 application does not by itself stay the award; a separate application for stay is required, and the court may require a deposit. Section 37 provides appeals from certain orders, including those under Sections 9 and 34. For commercial disputes, appeals are channelled under the Commercial Courts Act 2015.
MSME Facilitation Council references
Under Section 18 of the Micro, Small and Medium Enterprises Development Act 2006, a party to a dispute with a supplier covered by the Act may refer it to the Micro and Small Enterprises Facilitation Council. The Council first attempts conciliation, applying Sections 65 to 81 of the 1996 Act; if that fails, the dispute goes to arbitration by the Council or an institution it names. Section 16 provides for compound interest on delayed payment at three times the bank rate notified by the Reserve Bank of India. Section 19 requires a party applying to set aside an award to deposit 75 per cent of the awarded amount.
Conciliation
Part III of the Act provides for conciliation, in which a conciliator helps the parties reach a settlement. A settlement agreement signed by the parties has the same status as an arbitral award on agreed terms under Section 74.
Frequently asked questions
Which court appoints an arbitrator in Chandigarh or Panchkula?
For domestic arbitration, a Section 11 application goes to the Punjab and Haryana High Court. For international commercial arbitration, it goes to the Supreme Court.
What is the time limit to challenge an award?
Section 34(3) allows three months from receipt of the award, extendable by up to 30 days if sufficient cause is shown. The court has no power to extend beyond that.
Does the 12-month limit under Section 29A apply to every arbitration?
It applies to domestic arbitrations, running from completion of pleadings. For international commercial arbitration the Act says only that the tribunal may endeavour to decide within 12 months. Extension beyond 18 months in total requires an application to the court.
Is a contract dispute with HSVP or HSIIDC always arbitrable?
Where the contract has an arbitration clause and the dispute is a contractual money or performance dispute, it usually is. Matters involving statutory powers may be dealt with by writ or statutory remedy instead.
The office address and telephone numbers are on the contact page.
This page is general information, not legal advice. Laws and procedures change; the position in your matter depends on its facts.