A contract has a clause to refer any dispute to arbitration. Now there is a dispute with regard to settlement of accounts. How should the party proceed for arbitration.


as per the arbitration clause if the dispue relates to the terms of contract , first issue notice exercising your right to refer the matter for arbitration and suggest the name of your arbitrator and request him to accept him. if the other side accepts the same he will be your arbitrator, other wise if the other side suggest anohter arbitrator for him , both of the arbitrators will slect anohter person to act as a principal arbitrator . if there is a no uniformity between them then the matter will be referred to court by you by making an application to the high court under sectio 11 of the act to appoint principal arbitrator and later the proceddings will be comenced by him.

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Sri G L V Ramana Murthy,

Thank you very much for the reply and guidance.


Third Arbitrator is Prsiding Arbitrator not a Principal Arbitrator..


Please refer the the agreement. If the clause has got no named arbitrator or has not spelt out the numbers of arbitrator. Then it is advised to issue a notice to the opp-party raising  the disputes that has arose, by giving them 30 days times to settle it other wise you shall be constrained to approach the High court to appoint one under section-11. If the agreement is silent about the appointing procedure of the arbitrator or arbitrator's. Please note appointing three arbitrator shall be too costly and also see the amount of dispute involved.

Correction -In a panel three , there are two arbitrator's and the third one is always a presiding arbitrator.




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