• Arbitration procedure

I run a trust based in Ahmedabad. The trust has signed 3 contracts with a Delhi based company and we are having problems with recovering money from the company. Negotiations have failed. We wish to go in for arbitration. The contracts contain a clause for arbitration. Relevant points: sole arbitrator, appointed by mutual discussion, governed by Arbitration and Conciliation Act, 1996, place of arbitration New Delhi, 30 days notice for appointment of arbitrator. Looks like Kaanoon does not allow upload of docs or images, that is why I have summarized the clause.
Q: What is the exact procedure to be followed by us now? I understand we have to send notice, but how do we find an arbitrator?
Asked 17 days ago in Business Law

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10 Answers

1) you have to invoke the said clause invoking arbitration 

 

2) suggest that x person be appointed as sole arbitrator 

 

3) if parties do not agree you have to apply to Delhi high court for appointing sole arbitrator 

Ajay Sethi
Advocate, Mumbai
98109 Answers
7970 Consultations

Things can be managed and aim can be achieved by strategic moves. As per law, you have to sent notice demanding your dues and thereafter, if dues are not paid by other party then you have to issue another notice raising dispute and in the light of arbitration clause you have to call opposite party for appointment of arbitrator and for reference of matter to arbitrator. You can appoint any person of your choice as arbitrator. You can take assistance of court also.

Siddharth Srivastava
Advocate, Delhi
1534 Answers

The clauses mentioned in the contract itself is a clear guidance to follow the steps to be taken in this regard.

Even if the steps are suggested here you may not be able to implement them properly which would result into an unsuccessful attempt.

Therefore you may better consult an advocate either from this forum or outside having expertise in this field to guide you properly and effectively.

T Kalaiselvan
Advocate, Vellore
88311 Answers
2388 Consultations

Issue notice to other party intimating in detail the dispute seeking reference  to of dispute to arbitrator  named. This notice will be the  basis for adjudication by the arbitrator so it should contain all the  points. It is like plaint in civil suit. Suggest a name of arbitrator. If the  opposite party did not agreement  for suggested arbitrator within thirty days of receipt of notice or suggest a counter arbitrator, you need to approach Chief Justice seeking appointment of arbitrator. The arbitrator appointed by Chief Justice will be final. As the  place of arbitration is New Delhi you need to approach Chief Justice of Delhi High Court.

Ravi Shinde
Advocate, Hyderabad
4766 Answers
42 Consultations

You can find any advocate or arbitrator from the panel of arbitrators. You can also apply to court for appointment of arbitrator.

Prashant Nayak
Advocate, Mumbai
33295 Answers
219 Consultations

  1. Send Arbitration Notice – Issue a formal notice to the Delhi-based company, invoking the arbitration clause. Specify the disputes, request them to mutually appoint an arbitrator, and give 30 days as per the contract.

  2. Proposal for Arbitrator – In the same notice, you can propose names of one or more arbitrators for their consent or request them to suggest a name.

  3. Mutual Appointment – If the other party agrees, finalize and appoint the arbitrator mutually.

  4. Failure to Agree – If the company does not respond within 30 days or refuses to appoint an arbitrator, you can approach the Delhi High Court under Section 11 of the Arbitration and Conciliation Act, 1996 for the court to appoint an arbitrator.

  5. Initiation of Proceedings – Once the arbitrator is appointed, they will set procedural rules, schedule hearings, and start arbitration proceedings in New Delhi.

For selecting an arbitrator, you can refer to:

  • Bar Council of India lists
  • Delhi High Court’s panel of arbitrators
  • Professional arbitrators from ICA (Indian Council of Arbitration)

For detailed, personalized advice, consider a phone consultancy. Hope you find the information helpful. You are free to contact me for further discussion. If you could spare two minutes of your time to write a review, it would be greatly appreciated and bring immense happiness to read it. Thank you. Shubham Goyal.

Shubham Goyal
Advocate, Delhi
910 Answers
4 Consultations

Hi,

 

you need to send them a notice under section 21 for appointment of arbitrator. If they don’t respond or raise dispute then you will approach the High Court for appointment of arbitrator. 

once the arbitrator is appointed, you will file your statement of claim and thereafter arbitration process will start. 

let me know if I can help.

 

Regards

Anilesh Tewari
Advocate, New Delhi
18095 Answers
377 Consultations

Dear Client,

The first step would be sending a formal written notice to the company in Delhi invoking the arbitration clause. Be specific as to the fact of the dispute, refer to the clause and the 30-day notice period, and indicate your wish to appoint a sole arbitrator under the Arbitration and Conciliation Act, 1996 as followed. Put forward potential names of persons who may serve as arbitrators, preferring one who possesses relevant experience in that area as part of a shortlist. This notice may also invite the other party to mutually agree on one from that shortlisting. In case you both cannot agree on one during the stipulated time, you may either refer to any fallback mechanism mentioned in the contract or approach either an arbitral institution or a court for an appointment under Section 11 of the Act.  After the arbitrator is appointed, he/she will progress the proceedings in New Delhi according to the right terms. It may, however, be prudent to consult with an arbitration expert to ensure that all procedural requirements may be fulfilled within the timeframe and in speeding up the process. 

Hope this helps. Feel free to inquire for any legal queries.

 

Anik Miu
Advocate, Bangalore
10547 Answers
122 Consultations

Send a notice for appointment of arbitrator, wherein you propose the name of an independent and impartial arbitrator and seek their concurrence on the proposed name. Ideally this should be drafted by a lawyer. Give them 30 days time to revert. In case they fail to response, approach the concerned High Court for appointment of arbitrator.

 

 

Vibhanshu Srivastava
Advocate, Lucknow
9712 Answers
315 Consultations

You have to first send a notice under section 21 of the Arbitration and Conciliation Act, 1996 raising the dispute and mentioning the name of an arbitrator.

If it is not done then you have to apply in court for appointment of ana arbitrator.

 

Devajyoti Barman
Advocate, Kolkata
23452 Answers
529 Consultations

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