Disputes & Arbitration
Arbitration and Dispute Resolution
Domestic and international commercial arbitration, from the agreement and interim relief to setting-aside and enforcement, and mediation under the new framework.
Arbitration lets commercial parties resolve disputes in a private, contractually agreed forum rather than through the ordinary courts. It is faster in principle and the award is enforceable, but it has its own procedure and its own grounds of challenge, and getting the agreement and the early steps right matters as much as the final hearing. The firm advises on and conducts arbitrations under the Arbitration and Conciliation Act, 1996, and acts in the related court proceedings for interim relief, appointment and enforcement.
Much commercial arbitration is document-intensive, turning on contracts, correspondence and accounts. The firm prepares these matters on the record, and advises on mediation and settlement where that resolves a dispute more sensibly than a contested award.
The arbitration agreement and the seat
An arbitration begins with the agreement to arbitrate under Section 7 of the Act. The seat of the arbitration, distinct from the convenient venue of hearings, determines which courts supervise the process. In Bharat Aluminium Co. v. Kaiser Aluminium a Constitution Bench held that where the seat is outside India, Part I of the Act does not apply and Indian courts do not have supervisory jurisdiction, marking a decisively arbitration-friendly turn. Choosing the seat, the rules and the governing law with care at the contract stage prevents years of jurisdictional dispute later.
Interim relief, awards and enforcement
A party can seek interim measures from the court under Section 9 or from the tribunal under Section 17, and can apply under Section 11 where the parties cannot agree on the appointment of an arbitrator. An award can be challenged only on the narrow grounds in Section 34, and once those are exhausted it is enforced as a decree. Foreign awards are enforced under Part II, which gives effect to the New York Convention.
Not every dispute can be arbitrated. In Vidya Drolia v. Durga Trading Corporation the Supreme Court laid down a structured test for arbitrability, clarifying which categories of dispute the parties can lawfully refer to arbitration and which must go to a court or tribunal.
Mediation and settlement
The Mediation Act, 2023 has put mediation on a statutory footing, providing for pre-litigation mediation, online mediation and the enforcement of mediated settlement agreements. For many commercial and civil disputes a mediated settlement is quicker and less costly than a contested arbitration or trial, and the firm advises on when that route serves the client and conducts the process where it does.
The legal framework
The principal statutes and the provisions that most often decide these matters. Statute text can be read in the firm's Legal Library; always check the current version at the official source.
Arbitration and Conciliation Act, 1996 · Act 26 of 1996
- Sections 7, 11 — the arbitration agreement and the appointment of arbitrators.
- Sections 9, 17 — interim measures from the court and from the tribunal.
- Sections 34, 36 — the limited grounds to set aside an award, and its enforcement as a decree.
- Part II — enforcement of foreign awards under the New York Convention.
Mediation Act, 2023 · Act 32 of 2023
- Mediated settlements — pre-litigation and online mediation, with enforceable settlement agreements.
Commercial Courts Act, 2015 · Act 4 of 2016
- Commercial disputes — specialised commercial courts and timelines for commercial matters, including arbitration-related applications.
Key judgments
Grouped by issue. Each case is cited from the court's own record; open a heading to read it.
Seat of arbitration 1
Bharat Aluminium Co. v. Kaiser Aluminium Technical Services Supreme Court
(2012) 9 SCC 552
The seat of arbitration determines the courts with supervisory jurisdiction. Where the seat is outside India, Part I of the 1996 Act does not apply and Indian courts do not interfere with the arbitration.
Arbitrability of disputes 1
Vidya Drolia v. Durga Trading Corporation Supreme Court
(2021) 2 SCC 1
Laid down a structured fourfold test for the arbitrability of disputes, clarifying which categories of dispute can be referred to arbitration and which are reserved for the courts or specific tribunals.
How we work on these matters
The firm advises at the contract stage on the arbitration clause, the seat and the governing law, where most later disputes are won or lost, and not only once a dispute has arisen.
Arbitrations are run on the documents, with the case built from the contract and the correspondence rather than from assertion.
Where a mediated settlement serves the client better than a contested award, that is advised candidly and pursued.
Frequently asked questions
What is the difference between the seat and the venue of arbitration?
The venue is simply where hearings are conveniently held; the seat is the legal home of the arbitration and decides which courts supervise it and which procedural law applies. As BALCO confirmed, the seat is what matters, so it should be chosen deliberately in the contract.
Can any dispute be referred to arbitration?
No. Some disputes are not arbitrable and must go to a court or a specific tribunal. In Vidya Drolia the Supreme Court set out a test for deciding which disputes can be arbitrated, which should be checked before relying on an arbitration clause.
How is an arbitral award enforced?
Once the limited grounds of challenge under Section 34 are exhausted or the time to challenge has passed, a domestic award is enforced as a decree of the court. A foreign award is enforced under Part II of the Act, which gives effect to the New York Convention.
Is mediation now legally binding?
Under the Mediation Act, 2023, a mediated settlement agreement is enforceable, and the Act provides for pre-litigation and online mediation. For many disputes this is a faster and less expensive route than a contested arbitration or trial.
This note is general information on the law as at Jun 2026, not legal advice on any specific matter. The law changes; for advice on your facts, please speak to the firm.
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