Have you ever conceded in a dispute related to an important matter just to avoid going through the years of judicial proceedings? Well, there’s an alternate way to avoid the lengthy procedure and it’s called Arbitration.

Abrise Legal
2 min readMay 25, 2023


Arbitration is one of the methods of Alternative Dispute Resolution(ADR) that allows parties to resolve their disputes outside the traditional court system and in India, it is governed by the Arbitration and Conciliation Act, 1996.

When can Arbitration be initiated?

You can initiate Arbitration proceedings if you have signed an Arbitration Agreement in addition to your main agreement OR if the main agreement itself has a clause stating the mode of dispute resolution as Arbitration. This Arbitration Agreement or Arbitration clauses can be invoked by sending the opponent a notice.

The core procedure is much the same as normal court proceeding in the way that both parties get the opportunity to present their case, submit evidence, and cross-examine witnesses in front of an ‘Arbitrator’.

However, here is where the difference lies:

subject to the arbitration clause or the arbitration agreement, both parties get to choose and appoint the arbitrator(s).

time that both procedures take to offer relief.

The Act provides that any matter referred to Arbitration must be resolved within 12 months, however, in the courts of law, it may take years on end.

The arbitrators render a final and binding decision, known as an arbitral award, which is enforceable in Courts.

Additionally, it is important to keep in mind that Arbitration is a much more expensive procedure making it unsuitable for matters having smaller monetary value.

Now, what about when there is no arbitration agreement or an arbitration clause in the agreement? Can the matter still be referred to arbitration?

In the absence of either, the parties cannot claim arbitration as a matter of right and must approach the courts.

Contact your lawyers for more info or hit us up with your questions!

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