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Sabahat Sayed (Advocate)     28 May 2008

Arbitration Agreement

Iam looking for a standard format of Arbitation Agreement.


 9 Replies

Manish Singh (Advocate)     28 May 2008

You dont need to make a separate arbitration agreement for every agreement you enter into. You can put it in a clause forming a part of that agreement.

Prakash Yedhula (Lawyer)     28 May 2008

An arbitration agreement must be in writing, but no special form has been prescribed for it. It can be in one document or it can be gathered from several documents or from correspondence consisting of a number of letters, fax messages, telegrams or telex messages. The arbitration agreement may provide that arbitration shall be conducted according to the rules of an arbitral institution. In such a case, those rules will form part of the arbitration agreement. This has been the legal position though the Act of 1940 did not contain any provision to this effect.

Prakash Yedhula (Lawyer)     28 May 2008

AGREEMENT OF REFERENCE TO A COMMON ARBITRATOR THIS AGREEMENT is made at ... this ... day of …………. between Mr. A of ……….. residing at ……….... hereinafter referred to as the Party of the First Part and Mr. B of ………... residing at …………………. hereinafter referred to as the Party of the Second Part. WHEREAS by an Agreement (Building contract) dated the ... day of ... entered into between the parties hereto the Party of the First Part entrusted the work of constructing a building on his plot of land situated at... to the Party of the Second Part on the terms and conditions therein mentioned. AND WHEREAS the Party of the Second Part has commenced the construction of the building according to the plans sanctioned by the... Municipal Corporation and has completed the construction to the extent of the 1st floor level. AND WHEREAS the Party of First Part has made certain payments to the Party of the Second Part on account but the Party of the Second Part is pressing for more payments which according to the Party of the First Part he As not bound to pay and, therefore. the work has come to a standstill. AND WHEREAS disputes have therefore arisen between the parties hereto regarding the interpretation of certain provisions of the said agreement and also regarding the quality of construction and delay in the work. AND WHEREAS the said agreement provides that in the event of any dispute or difference arising between the parties the same shall be referred to arbitration of a common arbitrator if agreed upon or otherwise to two Arbitrators and the Arbitration shall be governed by the provisions of the Arbitration & Conciliation Act, 1996. AND WHEREAS the parties have agreed to refer all the disputes regarding to the said contract to Mr... Architect, as common Arbitrator and have proposed to enter into this Agreement for reference of the disputes to the sole arbitration of the said Mr.………. NOW IT IS AGREED BETWEEN THE PARTIES HERETO AS FOLLOWS:- 1. That the following points of dispute arising out of the said agreement dated... are hereby referred to the sole arbitration of the said Mr.... for his decision and award. 2. The points of dispute are:- 1. Whether the Party of the Second Part has carried out the work according to the sanctioned plans and specifications. 2. Whether the Party of the Second Part has delayed the construction. 3. Whether the Party of the Second Part is overpaid for the work done up to now. 4. Whether Party of the First Part is bound to make any further payment over and above the payments made up to now for the work actually done. 5. All other claims of one party against the other party arising out of the said contract up to now. 1. The said Arbitrator shall allow the parties to file their respective claims and contentions and to file documents relied upon by them within such reasonable time as the Arbitrator may direct. 2. The said Arbitrator shall give hearing to the parties either personally or through their respective Advocates but the Arbitrator will not be bound to take any oral evidence including cross examination of any party or person. 3. The said Arbitrator shall make his Award within a period of four months from the date of service of a copy of this agreement on him by any of the parties hereto provided that, the Arbitrator will have power to extend the said period from time to time with the consent of both the parties. 4. The Arbitrator will not make any interim award. 5. The Arbitrator will have full power to award or not to award payment of such costs of and incidental to this arbitration by one party to the other as he may think fit. 6. Subject to the provisions of the Arbitration & Conciliation Act 1996 the award will he binding on the parties hereto. 7. The Arbitration shall subject to what is herein provided be governed by the provisions of the Arbitration Act. IN WITNESS WHEREOF the parties have put their respective hands the day and year first hereinabove written. SIGNED by the within named Mr. A ... in the presence of Signed by the within named Mr. B... in the presence of

H. S. Thukral (Lawyer)     28 May 2008

an arbitration agreement is not only to resolve the disputes which have come in to existence but can also be in respect to disputes which might arise in future.
Arbitration agreement need not be in any special format . It should be in writjng and it should disclose that the parties agree to this dispute resolution method. Arbitratoe can also be named in the agreement.
In building contracts the arbitration agreement generally excepts certain disputes beyond the scope of arbitration and decision in such disputes is left to a named authority which is usually a high official of the department or the architect.

Md. Muneeruddin (Advocate)     29 May 2008

I am relying on the case law : K.K Modi Vs K.N Modi wherein it is laid down that the following attributes must be present for an agreement to be considered as an arbitration agreement:
1. The arbitration agreement must Contemplate that the decision of the tribunal will be final and binding onthe parties to the agreement.
2. The jurisdictio of the tribunal to decide the rights of parties must derive either from the consent of the parties or from an order of the court or from a statute, the terms of which make it clear that the process is to be an arbitration.
3. The agreement must contemplate that substantive rights of parties be determined by the agreed tribunal
4. That the tribunal will determine the rights of the parties in an impartial and judicial manner with the tribunal owing an equal obligeation of fairness towards both sides.
5. That the agreement of the parties to refer their dispute to the decicion of the tribunal must be indended to be enforcable in law.
6. The agreement must contemplate that the tribunal will make a decision upon a dispute which is already formulated at the time when a reference is made to the tribunal.
7. Other factors : like tribunal will receive evidence from both sides 7hear their contentions , the arbitration process was intended expressly, Tribunal to decide the dispute in accordance to law such factors may also be considered.

Guest (n/a)     30 May 2008

Very nice,M a new comer

Guest (n/a)     13 June 2008



Arbitration agreement is not required to be in a separate form. It can be in the form of a clause in the agreement and is read independent of that contract so that in case the contract becomes void, the arbitration agreement does not become void

Srinivas.B.S.S.T ( Advocate)     15 June 2008

As far as my little knowledge is considered there is no seperate agreement such as arbitration agreement.  Arbitraion can be inserted in any agreement by putting a clause of arbitration stating that in the event of dispute between the parties to the agreement the same shall be referred to a mutually agreed arbitrator or the same can be referred to an abritrator. isnt it?








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