Arbitration Lawyer in Delhi

Arbitration lawyers in Delhi: what we do

Many supply, service, construction and partnership contracts send disputes to arbitration rather than a civil court. The Arbitration and Conciliation Act, 1996 then sets the procedure, and the courts step in only at fixed points.

We act at every one of those points. We send or answer the notice invoking arbitration, apply for interim protection, petition the Delhi High Court to appoint an arbitrator when the other side will not cooperate, present claims and defences before the tribunal, and then challenge or enforce the award. We are a litigation firm. We do not draft transactions or form companies.

If your dispute has no arbitration clause, or the debt is better pursued through a suit, our commercial dispute lawyers in Delhi handle commercial suits and summary suits, and our civil lawyers in Delhi handle other civil claims. For court work in arbitrations connected to Central and West Delhi at the district level, see our page on arbitration matters at Tis Hazari Court.

Which court deals with a Delhi arbitration

The seat of the arbitration decides which courts supervise it. Where the seat is Delhi, the courts are:

The ₹2 crore line follows from the Delhi High Court’s original pecuniary jurisdiction and the Commercial Courts Act, 2015. In an international commercial arbitration seated in India, Section 9, 34 and 36 applications go to the High Court whatever the value. If the seat is outside Delhi, the courts of that seat have supervisory jurisdiction, and a Section 11 petition goes to the High Court for that place.

Starting an arbitration: notice, interim relief and appointment

The notice invoking arbitration

Under Section 21, an arbitration commences on the date the other side receives a request to refer the dispute to arbitration. The notice should identify the clause, describe the claims and propose an arbitrator as the clause requires, and it should be sent by a method that proves delivery, since the date of receipt also matters for limitation on the claims.

Interim relief under Section 9

When assets may be moved or a contract right may be defeated before the tribunal is in place, a party can apply to the court under Section 9 to secure the amount in dispute, preserve property or evidence, or restrain a breach. If the court grants relief before arbitration has begun, the arbitration must commence within ninety days of the order, or any further time the court allows. Once the tribunal is constituted, the application should ordinarily go to the tribunal under Section 17, whose orders are enforceable like a court’s.

Appointment under Section 11

If the other side does not appoint its arbitrator, or the parties do not agree on a sole arbitrator, within thirty days of the request, a petition under Section 11 asks the Delhi High Court to make the appointment. The court’s examination is now narrow. Following the seven-judge bench in In re Interplay (2023), the Supreme Court in SBI General Insurance v. Krish Spinning (2024) held that the referral court looks at the prima facie existence of an arbitration agreement and leaves questions such as accord and satisfaction to the arbitrator. The petition itself must be filed within three years, as held in Arif Azim v. Aptech (2024). Our guide to getting an arbitrator appointed by the Delhi High Court under Section 11 sets out each step.

Independence of the arbitrator

An arbitrator must be independent and impartial, and must disclose at the outset anything likely to raise justifiable doubts about that, in the form set out in the Sixth Schedule. The Fifth Schedule lists the relationships that guide whether doubts are justifiable. The Seventh Schedule lists relationships, such as being an employee or adviser of a party, that make a person ineligible under Section 12(5). That ineligibility can be waived only by an express agreement in writing made after the dispute has arisen.

Unilateral appointment clauses have been narrowed sharply:

• In TRF v. Energo Engineering Projects (2017) the Supreme Court held that a person who is ineligible to be an arbitrator cannot nominate one.
• In Perkins Eastman Architects v. HSCC (India) (2019) it held that a party with an interest in the outcome cannot unilaterally appoint a sole arbitrator.
• In Central Organisation for Railway Electrification v. ECI-SPIC-SMO-MCML (2024) a Constitution Bench held, by majority, that a clause letting one party unilaterally appoint a sole arbitrator in a public-private contract violates the right to equality, and that a public body cannot compel the other party to choose its nominee from a narrow panel curated by the public body. The ruling applies to appointments made after the judgment.

The arbitration itself: time limits and costs

Pleadings and the award. The statement of claim and defence are to be completed within six months of the arbitrator receiving notice of appointment (Section 23(4)), and the award is to be made within twelve months of the completion of pleadings (Section 29A). The parties may agree to extend by six months. After that, only the court can extend the time on sufficient cause, and where the delay is the tribunal’s, it may reduce the arbitrator’s fees. In Rohan Builders v. Berger Paints (2024) the Supreme Court held that an extension can be sought even after the period has expired. For an international commercial arbitration, the twelve-month period is a target rather than a rule.

Institutional or ad hoc. An ad hoc arbitration is run by the arbitrator and the parties under the clause and the Act. An institutional arbitration is administered by an arbitral institution under its rules. In Delhi, the Delhi International Arbitration Centre (DIAC), the centre attached to the Delhi High Court and formerly known as the Delhi High Court Arbitration Centre, administers many arbitrations, including references made by the High Court.

Costs. The main costs are the arbitrator’s fees, any institutional fees, the venue and stenography, and legal fees. The Fourth Schedule to the Act sets model fees, starting at ₹45,000 for a claim up to ₹5 lakh and capped at ₹30 lakh per arbitrator, with 25% more for a sole arbitrator. It is a guide, and the Supreme Court held in ONGC v. Afcons Gunanusa (2022) that where the parties have agreed fees, the agreement governs. Under Section 31A the tribunal decides who bears the costs, and the general rule is that the unsuccessful party pays the successful party’s costs, subject to the tribunal’s discretion.

Challenging and enforcing the award

Challenge under Section 34

A challenge must be filed within three months of receiving the signed award, with a further thirty days only if the court finds sufficient cause, and not a day more. The applicant must also give the other side prior notice of the application. Section 34 is not an appeal on the merits. The grounds are closed:

• incapacity of a party, or an invalid arbitration agreement;
• no proper notice of the appointment or proceedings, or inability to present the case;
• an award on matters beyond the reference;
• a tribunal or procedure not in line with the agreement or the Act;
• a subject matter not capable of settlement by arbitration;
• conflict with the public policy of India, which since 2015 covers fraud or corruption, contravention of the fundamental policy of Indian law, and conflict with the most basic notions of morality or justice;
• for a domestic award, patent illegality appearing on the face of the award, which does not extend to reappreciating the evidence.

In Gayatri Balasamy v. ISG Novasoft Technologies (2025) a Constitution Bench held that a court also has a limited power to modify an award, for example by severing an invalid part or correcting a computational error, but not to rewrite it.

Stay and enforcement under Section 36

Once the time for a challenge has passed, or a challenge has failed, the award is enforced as if it were a decree of a civil court, without a fresh suit. Filing a Section 34 petition does not stop enforcement by itself. The party challenging must apply for a stay, and the court may grant it on conditions, commonly a deposit of all or part of the money awarded. An unconditional stay is available only where the court is satisfied, prima facie, that the agreement or the award was induced by fraud or corruption.

Appeals under Section 37

An appeal lies against an order refusing to refer parties under Section 8, granting or refusing interim measures under Section 9, and setting aside or refusing to set aside an award under Section 34. Appeals also lie from certain orders of the tribunal, including those under Section 17. In a commercial dispute, the Commercial Courts Act, 2015 gives sixty days for the appeal.

MSME Facilitation Council references

A micro or small enterprise registered under the Micro, Small and Medium Enterprises Development Act, 2006 that supplies goods or services is entitled to payment within the agreed period, which cannot exceed 45 days, and to compound interest at three times the bank rate notified by the Reserve Bank of India on delayed payment. Under Section 18, the supplier can refer the dispute to the Micro and Small Enterprises Facilitation Council, which first attempts conciliation and, if that fails, takes up arbitration itself or refers it to an institution. In Gujarat State Civil Supplies Corporation v. Mahakali Foods (2022) the Supreme Court held that this route prevails even where the contract contains its own arbitration clause. A buyer who wants to set aside the Council’s award must first deposit 75% of the amount awarded under Section 19.

Registration and its timing relative to the contract are frequently disputed, so we check the dates at the first meeting.

How we take an arbitration forward

1. First meeting. We read the contract, the clause, the correspondence and the claim, and identify the seat, the forum and the limitation position.
2. Notice under Section 21, proposing an arbitrator or calling on the other side to appoint, as the clause requires.
3. Urgent protection, if needed, under Section 9 before the tribunal is in place.
4. Section 11 petition in the Delhi High Court if the appointment stalls after thirty days.
5. Pleadings before the tribunal: statement of claim or defence, counter-claim and documents.
6. Evidence and hearings, usually on affidavit with cross-examination, followed by written and oral arguments.
7. Award, then a Section 34 challenge or Section 36 enforcement, and any appeal under Section 37.

Settlement remains open throughout.

Realistic timelines

• Notice to appointment by agreement: a few weeks.
• Section 11 petition to appointment: the Act asks the court to try to decide within sixty days of notice to the other side; in practice, some weeks to a few months.
• Pleadings: up to about six months.
• Award: within twelve months of pleadings unless extended, so commonly eighteen months to three years from the notice overall.
• Section 34 challenge: commonly one to two years, longer where a stay is contested; an appeal can add more.

These are ranges, not promises.

What to bring

Bring the contract with the arbitration clause, invoices, correspondence about the dispute, any notice sent or received, MSME registration details if you are a supplier, and any award with proof of the date you received it.

Talk to us

Call 99115 44811 or write to manujalawyers@gmail.com with a short note on the contract and the dispute. Our principal chamber is at S-307, 3rd Floor, Delhi High Court, Pragati Vihar, New Delhi 110003, with a chamber at Saket in the Lawyers Block and offices at the Dwarka District Court and at Pitampura, opposite Rohini Court. Consultations are arranged in advance and can be by phone or video.

This page gives general information about the law as it stands and is not advice on your particular case. It does not promise any outcome, since every matter turns on its own facts.