The Indian Council of Arbitration
recommends to all parties desirous of making reference to arbitration
by the Indian Council of Arbitration, the use of the following
arbitration clause in writing in their contracts:
"Any dispute or difference
whatsoever arising between the parties out of or relating to the
construction, meaning, scope, operation or effect of this contract
or the validity or the breach thereof shall be settled by arbitration
in accordance with the Rules of Arbitration of the Indian Council
of Arbitration and the award made in pursuance thereof shall be
binding on the parties."
(i) These rules may be called the "Rules of Arbitration of
the Indian Council of Arbitration."
(ii) These rules shall apply where parties have agreed in writing
that (a) a dispute has arisen or (b) a dispute which may arise
between them in respect of defined legal relationship whether
contractual or not, shall be settled under the Rules of Arbitration.
In these rules, the following words have the following meanings:
(i) "Arbitral Tribunal" means an arbitrator or arbitrators
appointed for determining a particular dispute or difference.
(ii) "Arbitral Award" includes an interim award.
(iii) "Committee" means the Arbitration Committee of
the Council as provided for hereinafter.
(iv) "Council" means the Indian Council of Arbitration.
(v) "Governing Body" means the Governing Body of the
(vi) "Guidelines" means the guidelines for arbitrators
and the parties to arbitration for expeditious conduct of the
arbitration proceedings, given in the Annexure to these Rules.
(vii) "International Commercial Arbitration" means an
arbitration relating to disputes arising out of legal relationships,
whether contractual or not, considered as commercial under the
law in force in India and where at least one of the parties is
(a) an individual who is a national of, or habitually resident
in, any country other than India; or
(b) a body corporate which is incorporated in any country other
than India; or (c) a company or an association or a body of individuals
whose central management and control is exercised in any country
other than India, or (d) the Government of a foreign country.
(viii) "Party" means a party to an arbitration agreement.
It shall include any individual, firm, company, Government, Government
organisation or Government Undertaking.
(ix) "Panel" means the Panel of Arbitrators maintained
by the Council.
(x) "Registrar" means the Registrar for the time being
appointed by the Committee and includes such other persons as
the Committee may nominate for carrying out the duties of the
Registrar under these rules.
(xi) "Rules" means the Rules of Arbitration of the Council.
(xii) "Rules of Conciliation" means the Rules of Conciliation
of the Council.
(xiii) "Fast Track Arbitration" means arbitration in
accordance with Rule 44.
(xiv) Words importing the singular number include, where the context
admits or requires, the plural number and vice versa.
(a) The Governing Body of the Council shall constitute an Arbitration
Committee for performing the functions prescribed under these
Rules. The Committee shall consist of the President of the Council,
who shall be the ex officio Chairman of the Committee and three
members of the Governing Body of the Council elected by the Governing
Body from amongst themselves. The Committee shall hold office
for a year.
(b) The Committee may co-opt not more than two persons to be additional
members of the Committee during its terms of office. Persons who
are not members of the Governing Body may also be co-opted to
be members of the Committee.
(c) The Committee or the Chairman of the Committee may delegate
to the Registrar the power to take certain decisions, provided
that any such decision shall be reported to the Chairman or the
Committee as the case may be.
(a) Any dispute relating to any commercial matter including shipping,
sale, purchase, banking, insurance, building construction, engineering,
technical assistance, know-how, patents, trade marks, management
consultancy, commercial agency, or labour, arising between two
or more parties in India or a party or parties in India and a
party or parties in a foreign country or between foreign parties
who agree or have agreed for arbitration by the Council, or under
the Rules of Arbitration of the Council, shall be determined and
settled in accordance with these Rules.
(b) The Council shall also be competent to administer the conduct
of arbitration in any dispute or difference relating to a commercial
transaction between parties as mentioned in sub-clause (a) where
they have agreed to have their dispute arbitrated under any other
Rules of Arbitration and have agreed to have such arbitration
administered by the Council, wholly or in respect of some matters
arising out of such arbitration.
(c) In case the parties have provided different procedure for
appointment of arbitrator or schedule of cost including the arbitrator's
fee, the Council shall not be bound to process the case unless
both the parties agree to follow the entire procedure of arbitration
under Rules of Arbitration of the Council.
(d) The Council shall be competent to function as Appointing Authority
as contemplated under the Arbitration Rules of the United Nations
Commission on International Trade Law (UNCITRAL).
Wherever the Parties have provided or agreed for arbitration by
the Indian Council of Arbitration or for arbitration under the
Rules of Arbitration of the Council, these rules or any amendment
thereof, in the form obtaining at the time the dispute is referred
to arbitration of the Council, shall apply.
If one or both of the parties to a dispute which is referred to
arbitration by the Council belong to a country or countries other
than India, in the absence of an agreement by the Parties on the
substantive law to be applied, it will be determined by the arbitral
tribunal. The procedural law shall be the laws of India and parties
shall be deemed to have submitted to the jurisdiction of the Courts
Any chamber of commerce, trade association or any arbitral or
other organisation may adopt these Rules by making them generally
available to its members or by applying them to any dispute in
which any of its members may be parties or by normally conducting
its arbitration under these Rules.
OF THE RULES
The decision of the Committee on any question relating to interpretation
of these rules or any procedural matter there under shall be final
and binding on the parties.
PANEL OF ARBITRATORS
A Panel of Arbitrators shall be appointed by the Committee from
amongst persons who are qualified and possesses knowledge and
experience in their respective field of profession and arbitration
law & procedure and are willing to serve as arbitrators generally
or in specific fields and who are from time to time recommended
by the members of the Council or any other person or organisation.
All the members of the Panel will
carry equal status and parties will not have any right to challenge
the appointment of the arbitrator on the ground that its nominee
arbitrator has higher status than the Presiding Arbitrator.
The Registrar shall prepare and maintain an up-to-date Panel of
Arbitrators together with adequate information as to their qualifications
and experience. Separate lists may be kept and maintained of arbitrators
included in the Panel for disputes in general and for each of
the fields of international trade and/or business transactions
in which the Governing Body decides that the Council will offer
arbitration facilities under the Rules.
The parties to a dispute or the
Registrar where he appoints the arbitrator may choose any person
from the panel with reference to any dispute. If any party appoints
a foreigner/person residing abroad, as arbitrator from the panel,
that party will have to meet the travel & stay expenses of
the person appointed as arbitrator at the venue of arbitration.
The arbitral tribunal may, however, make any order in regard thereto
in the award. The panel of Arbitrators shall be open to inspection
by all persons with the permission of the Registrar.
The Committee may at any time add the name of any person to the
list of arbitrators included in the Panel or delete the name of
any person from the panel.
The Chairman of the Committee may include the name of any person
in the panel, in case it is required in any particular case. His
continuance in the Panel will be decided by the Committee.
The persons who have attained the age of more than 80 years will
automatically cease to be member of the Panel of Arbitrators.
In the case of a person, who has been appointed as Arbitrator
before attainment of the age of 80 years, his panel membership
will continue till the pronouncement of the Award in pending arbitration
matters referred to him.
DUTIES OF THE REGISTRAR
(a) The Registrar shall receive applications for arbitration by
the Council, receive payment of fees and deposits, appoint, in
consultation with the Chairman of the Committee, and in his absence
in consultation with the member of the Governing Body designated
by him, an arbitrator or arbitrators as hereinafter provided.
The Registrar shall also receive all communications made to the
arbitral tribunal by the parties and communicate to them the orders
and directions of the arbitral tribunal, keep a register of applications
to the Council and of awards made by the arbitral tribunal, keep
such other books or memoranda and make such other records or returns
as the Committee shall from time to time require and generally
carry out the directions of an arbitral tribunal so constituted
under these rules and take such other steps as may be necessary
to assist such arbitral tribunal in the carrying out of its functions.
(b) The Registrar may delegate to any officer of the Council,
Chambers of Commerce or Trade Association at the premises of which
the arbitration proceedings are taking place, to discharge such
of the functions and administrative duties of the Registrar as
are deemed proper and necessary from time to time, with reference
to a particular case or cases.
(i) Any Party wishing to commence arbitration proceedings under
these rules (Claimant) shall give a notice of request for arbitration
to the Registrar of ICA and to the Respondent.
(ii) The notice of request (application) for arbitration to the
Registrar shall be accompanied by:-
(a) the names and full addresses of the parties to the dispute.
(b) statement of the claim and facts supporting the claim, points
at issue and relief or remedies sought with other details of the
(c) original or duly certified copies of the arbitration agreement,
any contract or agreement out of or in connection with which the
dispute has arisen and such other documents and information relevant
or relied upon.
(d) Registration fee of Rs. 2,500/- for claim upto Rs. One Crore
and Rs.5,000/- for claim more than Rs. One Crore.
(e) The Arbitration shall be deemed to have commenced on the day
the application for arbitration, registration fee and statement
of claim are received in the office of the Council.
If any Court makes an order directing that an arbitration be held
under these Rules, in addition to the documents listed in Rules
15, the order of that Court or a copy thereof shall accompany
the application for arbitration.
(a) On receipt of an application
for arbitration, the Registrar shall have absolute discretion
to accept or reject the said application. The Registrar is not
bound to give reasons for the exercise of his discretion.
Before deciding on the acceptability
of an application for arbitration, the Registrar may ask the parties
for further information and particulars of their claims.
(b) Similarly, if any information
or particulars regarding the arbitration agreement furnished by
claimant with the application for arbitration are found to be
incorrect or false, at any time subsequently, the Registrar shall
have a like power to reject the application for arbitration.
(c) Any Party aggrieved by the decision of the Registrar, in accepting
or rejecting an application for arbitration as above, may apply
to the Court for suitable directions.
(a) On receipt of the application together with the claim statement,
the Registrar shall send to the other Party (Respondent) a copy
of the claim statement and attached documents and ask such other
party to furnish within thirty days or within any extended date,
a defence statement setting out his case accompanied by all documents
and information in support of or bearing on the matter.
(b) Any communication sent by the Registrar under Registered Post
to the Respondent on the address appearing in the Arbitration
Agreement/the contract between the parties, as per the information
supplied to the Council, will be deemed to be duly served on the
Respondent, if it is delivered to the addressee personally or
at his place of business, habitual residence or mailing address
last known, even if the Respondent refuses to accept the said
communication or if it is returned to the Council by the postal
authorities as unclaimed by the said party. The Registrar may
proceed further with the arbitration proceedings as per the rules
as if such communication had been duly served on the concerned
party. The Registrar may in such cases make an additional communication
to the Parties by Registered Letter or by other means which may
provide a record of attempts to deliver it.
(c) A copy of the defence statement and all appended documents,
if any, shall be sent to the Claimant for information.
(d) The communication is deemed to have been received on the day
it is so delivered.
COUNTER-CLAIM AND REPLY TO COUNTER-CLAIM
(a) The Respondent may make a counter-claim against the Claimant
provided the counter-claim arises under the same transaction as
the original claim. He must submit the counter-claim with full
details supported by all documents and information as in the case
of the claim under Rule 15 within the period laid down for the
defence statement to the claim and the Claimant may within twenty-one
days of the notification of the counter claim or within such extended
time submit a statement in reply to the counter-claim. The arbitral
tribunal appointed to adjudicate upon the original claim shall
also adjudicate upon the counter-claim and there will be no change
in the number of members of arbitral tribunal already constituted
on the basis of original claim.
(b) Copy of the reply of the Claimant to the counter-claim and
all appended documents, if any, shall be sent to the Respondent
COPIES OF STATEMENTS,
All statements, replies and other documents and papers submitted
by the parties and all appended documents must be supplied in
triplicate. Where there is more than one arbitrator or more than
one opposing party, the parties shall within the time specified
furnish to the Registrar such number of further copies as may
be required by the Registrar.
OF THE ARBITRAL TRIBUNAL
On receipt of the application for arbitration, the Registrar shall
take necessary steps to have the arbitral tribunal constituted
for the adjudication of the dispute or difference as provided
The number of arbitrators to hear
a dispute shall be determined as under:
(a) Where the claim including determination of interest, if any,
being claimed upto the date of commencement of arbitration in
terms of Rule 15, does not exceed Rs. One crore and where the
arbitration agreement does not specify three arbitrators, the
reference shall be deemed to be to a sole arbitrator, unless the
parties to the dispute agree to refer the dispute to three arbitrators
within thirty days from the date of notification of request for
(b) Where the claim including determination of interest, if any,
being claimed upto the date of commencement of arbitration in
terms of Rule 15 exceeds Rs. One crore, the dispute will be heard
and determined by three arbitrators, unless the parties to the
dispute agree to refer the dispute to a sole arbitrator within
thirty days from the date of the notification of the request for
(c) Where three arbitrators have to be appointed as per the above
sub-rule and any of the parties to the dispute fails to make the
necessary deposit towards the cost and expenses of arbitration,
instead of three arbitrators, the Registrar may appoint a sole
arbitrator, where the claim is upto One crore. Where the claim
is for more than Rs. One crore, the Registrar may appoint arbitrator/s
on behalf of the Respondent as well the as Presiding Arbitrator.
The appointment of sole arbitrator or three arbitrators shall
be made in the following manner:
(a) In case a Sole Arbitrator has to be appointed, the Registrar
shall, by a notice in writing, call upon the parties to the dispute
to forward the name of an agreed arbitrator from among the Panel
of Arbitrators. The said notice shall specify the period within
which the nomination shall be made which shall not be more than
thirty days from the date of the said notice to the respective
parties. If the parties fail to agree on the person to be appointed
as sole arbitrator within the time granted by the Registrar, the
Registrar in consultation with the Chairman of the Committee and
in his absence in consultation with the member of the Governing
Body designated by the Chairman, shall appoint the sole arbitrator
from among the Panel of Arbitrators. If one of the parties is
a national or resident of a country other than India, the sole
arbitrator shall, as far as possible, be chosen or appointed by
the Registrar from among the nationals of a country other than
that of either of the parties. The sole arbitrator so nominated
shall constitute the arbitral tribunal to hear the dispute and
shall be appointed as such in writing by the Registrar. The Registrar
shall give notice to the Parties of the constitution of the arbitral
(b) Where the reference is to three arbitrators, the Registrar
shall in the first instance call upon the parties to nominate
one arbitrator each from among the Panel of Arbitrators by a notice
in writing, sent to them. The said notice shall specify the period
within which the nomination shall be made which shall not be more
than thirty days from the date of the said notice to the respective
Parties. If a Party to the dispute refuses or neglects to appoint
an arbitrator on his behalf within the period specified or if
he requests the Registrar to nominate an arbitrator on behalf
of that party, the Registrar in consultation with the Chairman
of the Arbitration Committee and in his absence in consultation
with the members of the Governing Body designated by the Chairman
shall appoint the arbitrator from the Panel of arbitrators on
behalf of that party. On receipt of the nominations from the respective
parties or on the appointment as aforesaid by the Registrar, the
Registrar shall appoint another person as the Presiding Arbitrator
of the arbitral tribunal in consultation with Chairman of the
Committee and in his absence in consultation with members of the
Governing Body designated by the Chairman, from among the panel
of arbitrators to be additional arbitrator to act as Presiding
Arbitrator of the arbitral tribunal.
(c) If one of the parties is a national or resident of a country
other than India, the additional arbitrator shall, as far as possible,
be chosen or appointed from among the nationals of a country other
than that of either of the parties. The arbitrators so nominated
or appointed shall constitute the arbitral tribunal and shall
be appointed as such in writing by the Registrar. The additional
arbitrator appointed by the Registrar shall act as Presiding Arbitrator
of the arbitral tribunal. The Registrar shall give notice to the
parties of the constitution of the arbitral tribunal.
The parties will obtain the consent from the persons nominated
by them as arbitrator and intimate the Council accordingly. The
Registrar will obtain the consent from person(s) nominated by
him. After a person gives his consent for appointment as arbitrator,
he will be duly intimated about his appointment to decide the
dispute, by a Memo in writing under the hand of the Registrar
about the constitution of the arbitral tribunal. The appointment
of the arbitrator will take effect from the date of such intimation
about the constitution of the arbitral tribunal.
Before accepting his nomination the prospective arbitrator shall
disclose any circumstances such as financial or personal interest
in the outcome of the award, likely to disqualify him as an impartial
arbitrator. Upon receipt of such information, the Registrar shall
disclose it to the parties, who if willing to proceed under the
circumstances disclosed, shall advise the Registrar accordingly.
If either party declines to waive the presumptive disqualification,
the prospective arbitrator shall be disqualified from acting as
arbitrator and the vacancy so created shall be filled, in accordance
with the applicable provision of these Rules.
Any Party shall have the right to challenge the appointment of
an arbitrator on receipt of the notice of his appointment for
reasons which disqualify the arbitrator. The Challenge of an arbitrator
shall be made within 30 days after his appointment has been communicated
to the challenging party or within 30 days of his becoming aware
of the reasons for which the challenge is made. Copies of the
communication of challenge shall be sent to the other Parties
and the arbitrators. The Committee shall be the sole judge of
the grounds of challenge and its decision shall be final and binding
on the Parties.
(a) If any appointed arbitrator resigns or dies or becomes incapable
of acting or neglects or fails to act expeditiously, prior to
or during the arbitration hearings, or if he fails to make the
award within the prescribed time and the Parties do not agree
to extend the time for making the award, the Registrar in consultation
with the Arbitration Committee may terminate the authority of
such an appointed arbitrator and inform him accordingly.
(b) In case of the resignation or death or termination of authority
of an appointed arbitrator under Sub-Rule(a) above, a new arbitrator
will be appointed in his place by the Registrar in case he had
appointed the original arbitrator. Where the appointment was made
by the Parties, the Registrar shall call upon the Party who had
appointed the arbitrator to nominate another arbitrator in his
place. If any Party refuses or neglects to nominate an arbitrator
within 15 days of the date of notice requiring him to nominate
the arbitrator or within such extended time, the Registrar shall
nominate the arbitrator on behalf of that Party from among the
Panel of Arbitrators.
(c) The arbitrator(s) appointed as above will be informed about
the reconstitution of the arbitral tribunal and the reconstituted
arbitral tribunal shall make the award expeditiously within the
time prescribed under Rule 63 from the date when the reconstituted
arbitral tribunal enters on the reference. The reconstituted arbitral
tribunal shall proceed with the arbitration with the liberty to
act on the record of evidence and proceedings as then existing
or to commence the proceedings de novo.
The Registrar may require the Parties
before passing the case on to the arbitrators under Rule 38, to
deposit in advance in one or more installments such sums of money
as he deems necessary to defray expenses of the arbitration including
the administrative charges and arbitrator's fee. As a general
rule, the deposits shall be called for in equal shares from the
Claimant(s) and the Respondent(s). The arbitral tribunal may,
during the course of the arbitration proceedings or in the arbitration
award, require further sums to be deposited by the Parties or
any one of them to meet the expenses of the arbitration. When
one of the Parties neglects or refuses to make the deposit, the
Registrar or the arbitral tribunal, as the case may be, may require
such deposit whether in relation to a claim or a counter-claim,
to be made by the other Party to the dispute (Claimant or Respondent
as the case may be). Should the whole or part of the deposit be
not made by the Parties or any one of them, the Registrar shall
inform the Parties or the Party concerned that the claim or counterclaim,
as the case may be, will not be the subject matter of the reference.
The arbitral tribunal shall proceed only in respect of those claims
or counter-claims for which the deposits has been duly paid to
the Council and otherwise may order the suspension or termination
of the arbitral proceedings.
All deposits towards costs and expenses
shall be made with the Council and no payment shall be released
to the arbitrators directly by the parties. The deposit made shall
be taken into account by the arbitral tribunal in apportioning
the cost while making the award. Any deposit made in excess shall
be refunded to such of parties as the arbitral tribunal may direct.
The Council shall have a lien for the arbitral award on any unpaid
cost of the arbitration.
FEES AND EXPENSES
arbitral tribunal shall be entitled to allow fees and expenses
of witnesses, expenses connected with the selection and carriage
of sample and examination of goods, Licensed Measureís Department
charges, conveyance, hire, cost of legal or technical advice or
proceedings in respect of any matter arising out of the arbitration
incurred by the arbitral tribunal, and any other incidental expenses
and charges in connection with or arising out of the reference
or award as the arbitral tribunal shall, in its absolute discretion,
costs of the reference and the award including charges, fees and
other expenses shall be in the discretion of the arbitral tribunal,
which may direct to and by whom, and in what proportion, such
charges, fees and other expenses and any part thereof shall be
borne and paid, and may tax and settle the amount of costs to
be so paid or any part thereof and may award costs to be paid
as between solicitor and client. In the event, any administrative
fees and expenses are due to the Council, the arbitral tribunal
may award them in favour of the Council.
fees, costs and expenses incidental to the reference and the award
shall include the following :
Registration fee shall be payable with regard to the amount in
dispute in each case as hereunder. The registration fee will not
be refunded and becomes the property of the Council.
upto Rs. One Crore claim
more than Rs. One Crore claim
Administrative Fee and Arbitratorís Fee
Administrative fee (of ICA) and Arbitratorís fee (for each arbitrator)
will be fixed separately with regard to the amount in dispute
including determined interest in each case, as under:
(3) In addition to the above the
ICA will be entitled to receive a Special Fee of Rs.2, 500/- per
hearing for providing facilities of hearing rooms, for arbitration
hearings and secretarial assistance etc. at the arbitration hearing.
(4) Notwithstanding the provisions in Sub-Rule (2) of this Rule,
the Committee/Chairman of the Committee may prescribe the Arbitrator's
fees and the Administrative fees of the Council at a figure higher
than those prescribed in the said Sub- Rules, if in the exceptional
circumstances of the case this appears to be necessary.
(5) Notwithstanding the provision in Sub-Rule (2) hereinabove,
in arbitration cases to which Rule 39 applies, the Arbitrator's
fee and the Administrative fee of the ICA will be fixed by computing
the fee applicable to larger claim in addition to 60% of the applicable
fees of all claims being tried jointly. Provided that the Committee
will have the power to prescribe the Arbitrator's Fee and Administrative
Fee under this Sub-Rule in any other manner, having regard to
the nature and facts of the matters under reference.
Other expenses : The arbitrator may be paid an amount of Rs. 750/-
towards local conveyance for attending each arbitration hearing
in the city of his residence. In respect of joint trial, the hearing
will be treated as one irrespective of the number of cases. Any
traveling and other expenses incurred by the arbitrator or the
Registrar for attending the arbitration hearings in a city other
than the place of residence, shall also be reimbursed to him as
provided hereinafter. All the above expenses shall form part of
the arbitration costs.
(1) An arbitrator who has to travel shall be paid travelling expenses
by air or rail (air conditioned wherever available) or car (when
neither air nor rail transport is available) at actuals. In addition,
he may be paid out-of-pocket expenses at actuals for boarding,
lodging and local transport subject to maximum of Rs. 6,000/-
per day in metropolitan towns, Rs.3,000/- in class A cities and
Rs. 2,000/- in other cities. An arbitrator who makes his own arrangements
for boarding, lodging, local transport etc. may be paid out of
pocket expenses at the rate of Rs.1,000/ - per day, without production
of vouchers. The limits for stay of the Registry officials will
be of those applicable to arbitrators.
(2) The cost to be incurred on payment of expenses referred to
in Sub-Rule (1) to an arbitrator nominated by a party will be
borne and paid by the party nominating the arbitrator. However,
if an appointed arbitrator changes his residence after his nomination
by a party, he will not be entitled to reimbursement of any enhanced
expenses for attending the arbitration hearing, unless the party
nominating him agrees to reimburse the same to him. The expenses
payable to the third arbitrator or sole arbitrator appointed by
the Council under Rule 23(a) & (b) will be borne and paid
by both the parties in equal proportion or in such other manner
as may be determined by the Arbitral Tribunal.
Where the arbitration proceedings under an adhoc arbitration or
under the rules of arbitration of any other arbitral organisation
or otherwise are administered by the Council wholly or in respect
of some matters arising out of such arbitration, the Council may
charge an appropriate fee for such administration and other services.
The amount of the claim shall be stated in the application by
the party applying for arbitration. If the amount is stated in
a currency other than the rupee, it shall be converted into Rupees,
at the current official rate of exchange.
Where the sum under dispute is not stated or in arbitration proceedings
where the relief claimed is other than a money claim, viz., a
declaratory claim, the Registrar and the Arbitral Tribunal under
Rule 28, may require such deposits as may be deemed necessary
to be paid by such of the parties as may be required subject to
The amount of interest, wherever specified, will be included in
the claim amount for the purpose of calculation of administrative
fee. Further, claims and counter-claims referred for arbitration
shall be taken into consideration separately for the purpose of
calculation of arbitrator as well as administrative fees under
Sub Rule 31(2).
THE CASE TO THE ARBITRAL TRIBUNAL
The Registrar shall send copies of all papers relating to arbitration
such as claim statement, defence statement, counterclaims, reply,
statements, or other documents received from the parties to the
dispute to the Arbitrator/Arbitrators constituting the Arbitral
Tribunal under Rule 22 with a request to proceed with the arbitration
and the arbitral tribunal shall be deemed to have entered on the
reference on the day on which applications, defence statement,
counter-claims, replies, documents, etc. have been dispatched
to the Arbitrator/Arbitrators. Intimation shall be given to the
Parties of the day on which the Arbitral Tribunal is deemed to
have entered on the reference.
If the Claimant does not file all
the requisite documents, papers, etc. or does not deposit the
appropriate fees as per the Rules after having been given due
opportunity for the purpose by the Registrar or the arbitral tribunal,
the Registrar or the arbitral tribunal may dismiss/close the case
on file for lack of pursual by the Claimant. Similarly, if the
Respondent fails to produce any requisite documents, papers including
the statement of defence or information or fails to deposit administrative
fees, or arbitrators fees etc. after having been given due opportunity
for the purpose by the Registrar or the arbitral tribunal, the
Registrar or the arbitral tribunal may proceed further with the
arbitration proceedings as per the Rules, notwithstanding such
failure or refusal by the Respondent.
Where there are two or more applications for arbitration by the
Council and the issue involved in the dispute arises out of same
transactions, the Registrar may, if he thinks proper to do so
and with the consent of the Parties, fix the hearings of the disputes
to be heard jointly or refer the applications to the same Tribunal.
The awards, however, shall be given separately in each case.
AND/OR COMMUNICATIONS FROM THE REGISTRAR
All applications which the parties desire to make to the arbitral
tribunal and all notices to be given to the Parties before or
during the course of arbitration or otherwise in relation thereto
shall be made through and sent by the Registrar who shall communicate
the orders and directions of the Arbitral Tribunal thereon to
Amendments of the claim, defence statement, counter-claim or reply
submitted to the Arbitral Tribunal must be formulated in writing
by the Party so desiring. The Arbitral Tribunal will decide whether
such amendments should be allowed or not. The Administrative fee
and Arbitrator's fee (for each Arbitrator) shall get revised to
the extent of increase for such additional claims/counter-claims.
The party making such additional claim/counter-claim shall deposit
the entire fees payable in respect of such increase of additional
claim as set out in the schedule of fees in Rule 31(2).
PLACE OF ARBITRATION
The place or venue of arbitration shall be India. The Arbitration
proceedings shall be held at such place or places in India as
the Arbitral Tribunal may determine having regard to the convenience
of the Arbitrators and the Parties. In a case in which one or
both the Parties are from overseas, the Arbitration proceedings
may also be held at any place outside India at the discretion
of the Arbitral Tribunal.
BEFORE THE ARBITRAL TRIBUNAL CONCILIATION
Optional Conciliation: The parties may opt for conciliation and
request the arbitral tribunal before the commencement of the arbitration
proceedings unless they have already agreed otherwise, to settle
their dispute through conciliation as per Rules of Conciliation
of the Council.
FAST TRACK ARBITRATION
Fast Track Arbitration : The Parties may opt for Fast Track Arbitration
and request the arbitral tribunal, before the commencement of
the arbitration proceedings, to decide the reference in a fixed
time frame of 3 to 6 months or any other time agreed between the
Parties, according to the Fast Track Arbitration procedure, as
(1) The arbitral tribunal will be authorised to decide the dispute
on the written pleadings, documents and written submissions filed
by the Parties without any oral hearings.
(2) The arbitral tribunal shall have power to call for any further
information/clarification from the parties in addition to the
pleading and documents filed by them.
(3) An oral hearing may be held if both the parties make a joint
request or if the Arbitration tribunal considers an oral hearing
necessary in any particular case.
(4) If an oral hearing is held, the arbitral tribunal may dispense
with any technical formalities and adopt such procedure as it
deems appropriate and necessary for economic and expeditious disposal
of the case.
At a hearing, a party shall be entitled to appear by counsel,
attorney, advocate or a duly authorised adviser or representative
or personally. However, where the dispute is purely of a commercial
nature, the parties shall have no right to be represented by lawyers
except where, having regard to the nature or complexity of the
dispute, the arbitral tribunal considers it necessary in the interest
of justice that the parties should be allowed to be represented
by counsel, attorney or advocate.
The arbitral tribunal may proceed with the reference notwithstanding
any failure by a party to comply with any of the directions of
the arbitral tribunal and may also proceed with the arbitral proceedings
in the absence of any or both the Parties who fail or neglect
to attend at the time and place appointed by the arbitral tribunal,
in spite of due notice.
The parties shall do all acts necessary to enable the arbitral
tribunal to make an award expeditiously and shall not do or cause
or allow to be done, any act which will delay the proceedings
or prevent arbitral tribunal from making an award expeditiously,
and if any party does cause or allow to be done any such act,
that party shall pay such costs as the arbitral tribunal deems
The arbitration session will go on as far as possible on a day-to-day
basis from 10.30 a.m. to 4.30 p.m once the hearing begins after
completion of all the formalities. The arbitral tribunal shall
not ordinarily adjourn a hearing at the request of any party,
except where the circumstances are beyond the control of the party
and the arbitral tribunal is satisfied that reasons and circumstances
for the adjournment are justified. While granting an adjournment,
the arbitral tribunal may make such orders regarding payment of
costs by one or both of the parties, as it deems fit and reasonable.
If the parties have agreed to submit their case to arbitration
under these Rules and any party refuses or fails to take part
in the arbitration proceedings, the arbitral tribunal may proceed
with the arbitration notwithstanding such refusal or absence.
The arbitral tribunal may at its discretion at any time or times
before making the final award and at the expense of the parties
concerned, consult any person having special knowledge relating
to the particular industry, commodity, produce or branch of trade
concerned in the reference or any expert or qualified accountant
and may also at the like expenses of the Parties, consult solicitors,
counsel or advocates upon any technical question of law, evidence,
practice or procedure arising in the course of the reference.
If the parties agree, the arbitral tribunal may, at the expense
of the Parties, appoint any expert, accountant, or lawyers to
sit with as an assessor and take into account the advice of such
The Parties to the reference and any witness on their behalf shall,
subject to the provisions of any law for the time being in force
(a) submit to be examined by the arbitral tribunal on oath or
affirmation in relation to the matters in dispute.
(b) produce before the arbitral tribunal all books, deeds, papers,
accounts, writings and documents in their possession or power
respectively which may be required or called for by the arbitral
(c) Comply with the requirements of the arbitral tribunal as to
the production or selection of samples, and
(d) generally do all other things which, during the pendency of
the reference, the arbitral tribunal may require.
The arbitral tribunal will consider, as far as possible, to receive
the evidence of witnesses by affidavit. Provided that the witness
whose affidavit is admitted in evidence is made available for
cross-examination at the request of the opposite Party, the Arbitral
(a) administer oath or affirmation to the Parties or witnesses
appearing and giving evidence;
(b) make any award conditional or in the alternative;
(c) correct in any award any clerical mistake or error arising
from or incidental to any slip or omission;
(d) administer to the Parties to the arbitration such interrogatories
as it may consider necessary;
(e) decide all objections to its jurisdiction including any objection
regarding the existence or validity of the arbitration clause
or the arbitration agreement, without prejudice to the right of
the parties to have the matter decided by the Court of law;
(f) decide the law governing :
(i) the contract or the matter in dispute,
(ii) the arbitration agreement, and
(iii) the arbitration procedure
(g) award interest including pendente lite interest.
When substantially the same dispute or questions of law and facts
are likely to arise in more than one contract or agreement (Chain
Contracts), the arbitral tribunal may invite all parties involved
to agree to submit to an award in one arbitration between such
two or more of the parties as are named for the purpose.
(i) The arbitral tribunal may by the award dismiss the application
(a) if the Claimant does not prosecute the arbitration proceedings
or file the papers within the time granted; or
(b) neglects or refuses to pay the dues or deposits ordered to
be paid by the arbitral tribunal or the Registrar.
(ii) The arbitral tribunal may make an ex parte award :
(a) if the Respondent neglects or refuses to appear or make his
defence or fails to file the papers within the time granted; or
(b) neglects or refuses to pay the dues or deposits ordered to
be paid by the arbitral tribunal or the Registrar.
The Registrar shall make necessary arrangements for a stenographic
record of evidence whenever such record is required by a Party.
The cost of the stenographic record and all transcripts thereof,
if any, shall form part of the costs of the reference.
The language of the arbitration proceedings shall be English unless
otherwise agreed by the parties. If any documents filed by a Party
are in a language other than English, the Party filling such documents
shall simultaneously furnish an English translation of the documents.
The Registrar may make arrangements for the service of an interpreter
at the request of one or more of the parties and costs thereof
shall form part of the costs of the reference.
The arbitral tribunal may issue such orders or directions as it
may deem necessary for safeguarding, interim custody, preservation,
protection, storage, sale or disposal of the whole or part of
the subject matter of the dispute or for its inspection or sampling
without prejudice to the rights of the Parties or the final determination
of the dispute.
WAIVER OF RULES
Any party who proceeds with the arbitration with the knowledge
that any provision or requirement of these rules has not been
complied with and who fails to state his objection thereto in
writing, shall be deemed to have waived his right to object.
RETURN OF DOCUMENTS
Unless required to be filed in a Court of law, the arbitral tribunal
shall have full discretion to retain/to return all books, documents
or papers produced before it and may direct at any time that the
books, documents or papers produced before it or any of them may
be returned to the parties producing them on such terms and conditions
as the arbitral tribunal may impose.
No award shall be made by the arbitral tribunal unless the case
of the party applying for arbitration has been brought to the
notice of the other party and until after the lapse of such specified
time within which he has been asked to submit his defence statement
under Rule 18.
Whenever there is more than one arbitrator, the award of the majority
shall prevail and be taken as the decision of arbitral tribunal.
Failing a majority, the Presiding Arbitrator of the arbitral tribunal
alone shall make the award.
Should the Parties arrive at a settlement
of the dispute by common agreement before the Arbitral Tribunal
and the Arbitral Tribunal is satisfied that such agreement is
genuine and not to defeat the purpose of any law, the arbitral
tribunal shall render an award as per agreement of the Parties.
Otherwise, the arbitral tribunal shall make the award on the basis
of the documents, evidence, etc. filed before it by the Parties.
The arbitral tribunal shall make the award as expeditiously as
possible, preferably within six months, according to the Guidelines,
from the date of the reference subject to a maximum limit of two
years from the date of commencement of the arbitral proceedings.
If necessary, the maximum limit of two years for making the award
may be extended by agreement between the parties to the dispute
or by the Committee.
The arbitral award shall state the reasons upon which it is based,
(i) the parties have agreed that no reasons are to be given, or
(ii) the award is an arbitral award on agreed terms.
The arbitral award shall state its date and the place of arbitration
and the award shall be deemed to have been made at that place.
The arbitral tribunal may make an interim award, and may, by an
award, determine and order what shall be done by either or any
of the Parties, respecting the matters referred.
The arbitrators constituting the
arbitral tribunal or the Presiding Arbitrator where Rule 61 is
applicable, shall sign the award and the Registrar shall give
notice in writing to the Parties of the making and signing thereof
and of the amount of fees & charges payable in respect of
the arbitration and the award. The arbitrators fee shall be payable
by the Council on receipt of the award and requisite deposit made
by the parties.
(a) When an award has been made, the Registrar shall furnish a
true copy of the award to the parties by registered post provided
the arbitration costs have been fully paid to the Council by the
parties or by one of them.
(b) The Registrar may require either Party to notify him of the
compliance with the award.
(c) The arbitral tribunal and the Registrar of the Council shall
assist the parties in complying with any formalities that may
be necessary for the enforcement of the award or for other purposes.
(d) The Council may print, publish or otherwise circulate any
award made under its rules or under its auspices, in any arbitration
journal, magazine, report, etc. for the purpose of creating arbitration
jurisprudence or precedents for the benefit and guidance of future
arbitrations. No party to the arbitration shall have any objection
to the publication of awards as above provided that the names
and addresses of any Party to the dispute will be omitted from
such publication and its identity duly concerned if so desired
by such party.
Additional copies of the award certified true by the Registrar
shall be made available to the parties but to no one else, at
all times at request and on payment as fixed by the Registrar.
A party shall in all things abide by and obey the award which
shall be binding on the Parties and their respective representatives,
notwithstanding the death of any party before or after the making
of the award and such death shall not operate as revocation of
the submission or reference. To avoid delays and further litigation,
the arbitrators/Registrar shall ask the Parties to agree that
the award made by the arbitrators/s shall be final and binding
on the Parties and neither Party shall be entitled to challenge
it in the Court of law.
FILING OF AWARD
The arbitral tribunal shall at the request of any of the Parties
to the proceedings or of any person claiming under a Party or
if so directed by the Court and upon payment of fees and charges
due in respect of the arbitration and award and of the costs and
charges of filing the award, cause the award or a signed copy
thereof together with the deposition or documents which may have
been taken and proved before it to be filed before the Court.
A fee of Rs. 1,000/- plus incidental expenses at actuals in addition
to the court fees, on the scale for the time being in force is
payable by the party requiring the award to be filed.
Stamp duties are to be paid by the parties in equal share in all
cases in accordance with the scale of stamp duties for the time
being imposed by law.
COPIES OF PROCEEDINGS
No party is entitled as of right to copies of proceedings before
the arbitral tribunal. In case the Registrar is required to furnish
copies of depositions and/or documents which have been taken or
proved before the arbitrator, a charge as demanded by the Registrar
shall be paid by the party requiring such copies.
The Registrar shall, upon the written request of a party, furnish
to such party at his expense certified facsimile of any documents
filed in the arbitration proceedings.
When the party instituting a case desires to withdraw it before
an arbitral tribunal has been constituted, the Registrar shall
return to him any deposits made by him, under Rule 28, after deducting
such charges as he might have incurred in connection with the
cases. The registration fee, however, shall not be refundable.
If the arbitration is terminated by the act or default of any
parties after constitution of the arbitral tribunal and before
the award is made, any fees, charges and expenses incurred by
the Council shall be paid by the parties in such proportion as
per schedule of fees prescribed in the Rules of Arbitration of
SECRETARIAT AND ARBITRATORS
The Council, the Arbitration Committee
and officers of the Council shall not be liable for any act or
omission in whatever capacity they may have acted in connection
with or in relation to an arbitration under these Rules. Parties
are themselves required to contest the proceedings regarding the
validity of the arbitration agreement before the court.
No party shall bring or prosecute any suit or proceedings whatsoever
against the arbitral tribunal, or any member thereof, for or in
respect of any matter or thing purporting to be done under these
Rules nor any suit or proceedings in respect thereof (save for
enforcement of the award) against the other party.
The Governing Body may revise, amend or alter these rules or the
schedule of fees and other monies to be charged and paid as and
when expedient and necessary.
GUIDELINES FOR ARBITRATORS AND THE PARTIES
FOR EXPEDITIOUS CONDUCT OF ARBITRATION PROCEEDINGS
1. The arbitrators and the parties
to arbitration are expected to follow these guidelines to ensure
economic and expeditious disposal of arbitration cases.
2. The arbitrators must take up the arbitration expeditiously
on receipt of the request from the Council and should also complete
the same with reasonable despatch. Serious efforts should be made
to settle arbitration cases expeditiously within a period of 6
months where the amount of claim exceeds 1 crore and within a
period of 4 months where the amount of claim is less than Rs.1
3. When accepting his mandate, the arbitrator shall be able to
perform his task with the necessary competence according to his
4. When giving notice of his acceptance, the arbitrator shall
disclose in writing in the printed format as under:
- any relationship with the parties or their counsel which may
affect his independence and impartiality;
- any personal or economic interest, either direct or indirect,
in the subject matter of the dispute;
- any prejudice or reservation as to the subject matter of the
dispute which may affect his impartiality.
- Where necessary due to supervening facts, this Statement shall
be repeated in the course of the entire arbitral proceedings until
the award is filed.
5. Where facts that should have been disclosed are subsequently
discovered, the arbitrator may either withdraw or be challenged
or the Indian Council of Arbitration may refuse to appoint him
in other arbitral proceedings on this ground.
6. The arbitrator may at all stages suggest the possibility of
a settlement to the parties but may not influence their decision
by indicating that he has already reached a decision on the dispute.
7. In the course of the arbitral proceedings, the arbitrator shall
refrain from all unilateral contact with the parties or their
counsel which is not notified to the Indian Council of Arbitration
so that the ICA can inform the other parties and arbitrators.
8. The arbitrator shall refrain from giving the parties, either
directly or through their counsel, notice of decisions in the
evidence taking place or on the merits; notice of these decisions
may be given exclusively by the ICA.
9. The arbitrator shall neither request nor accept any direct
arrangement on costs or fees with the party which has designated
him. The arbitrator is entitled to reimbursement of expenses and
a fee as exclusively determined by the ICA according to its Schedule
of Fees, which is deemed to be approved by the arbitrator when
accepting his mandate.
10. The arbitrator shall encourage a serene and positive development
of the arbitral proceedings. In particular, he shall decide on
the date and manner of the hearings in such a way as to allow
both parties to fully participate therein, in compliance with
the principle of equal treatment and adversarial proceedings.
11. The first hearing of the arbitral tribunal should be convened
within 15 days of the receipt of the complete reply of the respondent
when the arbitral tribunal may issue necessary directions. Admission
and denial of the documents may be got done by the Registrar.
Issues if any to be framed, may be done at the same or at the
next hearing. The arbitrators should hold arbitration hearings
continuously on day-to-day basis during office hours.
12. The parties should be asked to furnish a list of their witness,
if any, in advance and they should be asked to file affidavits
of witness on the date fixed for evidence preferably within a
weeks of the settlement of issues, Cross examination of such of
the deponent's witnesses whose presence is demanded by the opposite
party should be completed at a hearing to be fixed within 15 days.
13. Arguments preferably should be heard within 15 days of the
completion of evidence, to be followed by submission of written
arguments, if any.
14. Adjournments of duly fixed hearing should not be granted except
for unavoidable reasons which should be spelt out in the adjournment
15. The Arbitrator should make the award expeditiously after the
close of the hearings, preferably within 15 days.
16. The arbitrator who does not comply with the provisions of
these guidelines may be replaced by the Committee. Where it is
not appropriate to replace the arbitrator in order not to cause
delay in the arbitral proceedings, the ICA may also take such
action after the conclusion of the arbitral proceedings, by refusing
to confirm him in subsequent arbitral proceedings.
17. The claimant should file the applications or demand for arbitration
to the Registrar of the Council with all the information and papers
as per Rules, full statement of claim and copies of documents
relied upon, in 3 sets in case of a Sole Arbitrator and in 5 sets
in case of three arbitrators
18. The respondent should file his reply to the claim with complete
information and documents relied upon, in 3 or 5 sets as above
as early as possible within the prescribed time. Fresh documentation/claims
should not be entertained at a later stage of the proceedings
unless the arbitral tribunal is satisfied about the reasons for
granting such permission.
19. If any party to arbitration, particularly in cases where any
arbitrator, advocate or any of the parties has to come from out
station to participate in arbitration proceedings, desires to
seek adjournment on any valid ground, it must submit a written
request to the Registrar at least before 5 working days stating
the grounds which compel it to request for postponement of the
hearing so that the Council is in a position to take necessary
steps to inform the Parties, Arbitrators and Advocates regarding
postponement of the hearing. Parties seeking adjournment will
have to pay cost as may be determined by the arbitral tribunal.
20. Parties should deposit arbitration and administrative fees
with the Council (ICA) within the stipulated time, as per the
Rules and no extension should be sought in this behalf except
for compelling reasons.
21. To avoid excessive costs in arbitration proceedings, the parties
are advised to choose their arbitrators from the Panel, as far
as possible from the place where the arbitration hearings have
to be held. In case, a party still chooses an arbitrator from
a place other than the place of hearing, the concerned party will
bear the entire extra cost to be incurred on stay TA/DA etc. of
the arbitrator nominated by it.
For Arbitration Committee
22. The Arbitration Committee of the Council may examine the arbitration
case file, from time to time to evaluate the progress of the proceedings
and to ascertain whether the arbitrators have granted adjournments
only on reasonable grounds.
23. The Arbitration Committee shall be sole judge of the grounds
of violation of the guidelines and its decision shall be final
and binding on the arbitral tribunal as well as the parties.
Council of Arbitration
Tansen Marg, New Delhi 110001
Tel: 91-11-23719103, 23319760, 23319849,
Fax: 91-11-23320714, 91-11-23721504