Editorial
Knowledge, Plainly Written
Long-form notes on the questions our individual and NRI clients ask most often. Written so you can decide whether you need a lawyer at all, and what to ask if you do.
Can shareholders' disputes be resolved through arbitration?
Understanding Shareholder Disputes Arbitration When two business partners who once trusted each other find themselves locked in bitter disagreement over profit sharing, management control, or breach of commitments, the company doesn't just suffer—it often collapses. A Mumbai-based technology startup recently faced near-bankruptcy when two 50-50 shareholders went to court for three years over equity dilution and voting rights. The litigation cost them not just money, but…
Read article · 19 min →What is ad hoc arbitration and how is it different from institutional arbitration?
What Is Ad Hoc Arbitration Under Indian Law? Ad hoc arbitration allows parties to resolve disputes through arbitrators they directly appoint, without relying on any institutional machinery. The parties design and control the entire arbitration procedure, from appointing arbitrators to determining the rules, timelines, venue, and hearing structure. This makes ad hoc arbitration one of the most flexible dispute resolution mechanisms available under Indian law. Under the…
22 min read →What is the difference between arbitration and litigation in India?
When a business deal collapses or a commercial contract is breached in India, you face a critical decision: should you go to court or choose arbitration ? This question affects not just time and money, but the entire trajectory of how your dispute will be resolved. Imagine you're a small business owner in Mumbai who hasn't received payment for services rendered worth ₹20 lakhs. Your contract has an arbitration clause, but your lawyer mentions litigation as well. What's the…
22 min read →How is an arbitrator appointed under Indian law?
Why the Appointment of Arbitrator Is Critical in India When a business deal sours or a contract dispute arises, many parties choose arbitration over lengthy court battles. But who decides the dispute? How is the arbitrator actually appointed? Can one party pick someone biased? What happens if both sides cannot agree? The appointment of arbitrator under Indian law is not merely a procedural formality. It forms the foundation of fair arbitration proceedings . If the arbitrator…
15 min read →Can foreign arbitral awards be enforced in India?
What Is a Foreign Arbitral Award? A foreign arbitral award is a decision passed by an arbitral tribunal seated outside India, or an award that qualifies as foreign under Indian law. Under Section 44 of the Arbitration and Conciliation Act, 1996 , India recognizes and enforces foreign awards from countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 . India ratified the New York Convention in 1960. As of…
16 min read →What is the limitation period for filing arbitration claims?
Understanding the Legal Framework Limitation in arbitration is governed by two primary statutes in India: Arbitration and Conciliation Act, 1996 (particularly Sections 7, 8, 11, 21, 34, and 36) Limitation Act, 1963 (particularly Sections 3, 5, and Articles 65, 113, 115, and 137) The Supreme Court has consistently held that arbitration proceedings are subject to the same limitation in arbitration rules that apply to civil suits. The key principle is clear: time limits…
15 min read →What happens if one party refuses to participate in arbitration?
Imagine this: you've filed for arbitration to resolve a business dispute. The notice has been served, the arbitral tribunal is constituted, but the other party refuses to show up. They ignore notices, skip hearings, and remain completely silent. Does that mean your entire arbitration collapses? Can you still get relief? This is not an uncommon scenario in India. Non-participation in arbitration is a real tactical problem that can disrupt proceedings. However, under Indian…
16 min read →What is the difference between domestic and international arbitration?
What Is Domestic Arbitration in India? Domestic arbitration refers to arbitration proceedings where both parties are Indian nationals or Indian-based entities, the dispute arises from a contract performed in India, and the seat of arbitration is located within India. Indian law governs the entire process. Under Section 2(7) of the Arbitration and Conciliation Act, 1996 , if the arbitration is not international, it is treated as domestic. Indian courts supervise the…
17 min read →Can parties seek interim injunctions before arbitration begins?
Introduction: When Urgent Protection Cannot Wait for Arbitration Imagine you are a Mumbai-based exporter whose international buyer suddenly stops payment midway through a shipment contract. Your goods are stuck at the port, and you suspect the buyer might divert funds or assets before arbitration proceedings even begin. You have an arbitration clause in your contract, but arbitration takes time: weeks to constitute a tribunal, months to conduct hearings. By then, your…
17 min read →Can courts intervene in arbitration proceedings?
Understanding Court Intervention in Arbitration When parties agree to resolve their disputes through arbitration, they expect a private, efficient process free from the delays and formalities of court litigation. However, a critical question often arises: can courts actually intervene in arbitration proceedings? For anyone involved in commercial disputes in India, understanding this intersection between arbitration autonomy and judicial oversight is essential. Court…
20 min read →What makes an arbitration agreement legally valid?
What Makes an Arbitration Agreement Legally Valid in India? Imagine signing a business contract worth crores, only to discover later that the dispute resolution clause meant to protect you from drawn-out court battles is unenforceable. You invoke arbitration, but the other party refuses to participate, claiming the arbitration agreement is invalid. Suddenly, you face years of litigation with no efficient path to resolution. This scenario occurs frequently in India. Thousands…
19 min read →Can an arbitral award be challenged under Section 34?
You won your arbitration case. The tribunal passed an award in your favour. The other party owes you money or must perform a contractual obligation. But then, instead of complying, they file an application in court to challenge the arbitral award . Suddenly, what seemed like a concluded matter turns into another round of legal proceedings. This scenario plays out regularly across India. Arbitration is meant to be faster and final, but the reality is that many losing parties…
20 min read →What are the grounds for setting aside an arbitral award?
Legal Framework: Arbitration and Conciliation Act, 1996 The Arbitration and Conciliation Act, 1996 governs domestic and international commercial arbitration in India. Based on the UNCITRAL Model Law, it balances party autonomy with minimal judicial intervention while ensuring fundamental procedural safeguards remain intact. Section 34 of the Act provides the exclusive statutory remedy to challenge an arbitral award in India. This is not an appeal on merits. Courts cannot…
17 min read →What is emergency arbitration and is it recognized in India?
What Is Emergency Arbitration? Emergency arbitration is a pre-tribunal mechanism that allows parties to obtain urgent interim measures before the regular arbitral tribunal is constituted. It addresses time-sensitive situations where waiting for tribunal formation would cause irreparable harm, such as asset dissipation, evidence destruction, breach continuation, or confidential information misuse. Under emergency arbitration in India , parties approach the arbitral…
20 min read →Can interim relief be obtained during arbitration proceedings?
What Is Interim Relief in Arbitration? Interim relief in arbitration refers to temporary or provisional orders that protect your rights, assets, or the subject matter of a dispute during pending arbitration proceedings. Unlike final relief, which comes through an arbitral award after the full hearing, interim relief in arbitration addresses urgent situations where waiting for the final award would render the arbitration meaningless. Consider this scenario: You are a…
16 min read →What are the costs involved in arbitration proceedings in India?
Why Understanding Arbitration Costs Matters in India When commercial disputes arise, parties often turn to arbitration as an alternative to lengthy court litigation. Before a supplier invoking arbitration against a buyer for ₹80 lakh unpaid invoices learns the hard way, or before an infrastructure company commits to a ₹5 crore construction dispute arbitration, understanding the complete financial picture is critical. Arbitration costs in India are not standardized like court…
19 min read →What is institutional arbitration and how does it work?
What Is Institutional Arbitration? Institutional arbitration is a form of arbitration where the arbitral process is administered by a recognized arbitration institution rather than being managed solely by the parties or arbitrators themselves. These arbitration institutions provide procedural frameworks, administrative support, panel lists of qualified arbitrators, infrastructure for hearings, and supervision of arbitration proceedings under their own institutional rules.…
21 min read →How can an arbitral award be enforced in India?
What Is an Arbitral Award? An arbitral award is the final decision issued by an arbitral tribunal resolving disputes submitted to arbitration under the Arbitration and Conciliation Act, 1996 . After examining evidence, hearing arguments, and applying the governing law, the tribunal renders an award that determines the rights and obligations of the parties. Under Section 31 of the Arbitration and Conciliation Act, 1996, the award must be in writing and signed by the members…
16 min read →How are commercial disputes resolved through arbitration?
What is Commercial Arbitration in India? Commercial arbitration in India is a private, legally recognized process for resolving business disputes without approaching traditional courts. Governed primarily by the Arbitration and Conciliation Act, 1996 , arbitration allows parties to submit their contract disputes to one or more neutral arbitrators who examine evidence, hear arguments, and deliver a binding decision. Unlike informal negotiation or mediation, arbitration is a…
19 min read →Can an arbitration clause be challenged in court?
What Is an Arbitration Clause and Why Does It Matter? An arbitration clause is a contractual provision where parties agree to resolve future disputes through arbitration instead of court litigation. These clauses appear commonly in commercial contracts, construction agreements, employment contracts, shareholder agreements, international trade contracts, and service provider agreements. Once you sign a contract containing an arbitration clause, you generally cannot approach…
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