Arbitration agreement

Section 7 Arbitration agreement

Arbitration and conciliation act section 7(1) arbitration agreement

In this Part, “arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not.

Section 7(2) arbitration and conciliation act,

An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of
a separate agreement.

Arbitration and conciliation act section 7(3) & section 7(4) writing, Arbitration agreement

3) An arbitration agreement shall be in writing.
4) An arbitration agreement is in writing if it is contained in—

  • (a) a document signed by the parties;
  • (b) an exchange of letters, telex, telegrams or other means of telecommunication including communication through electronic means which provide a record of the agreement, or
  • (c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other.

Section 7(5) arbitration and conciliation act

The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract.

Power to refer parties to arbitration where there is an arbitration agreement Section 8

Section 8(1) arbitration and conciliation act

1) A judicial authority, before which an action is brought in a matter which is the subject of an arbitration agreement shall,

  • if a party to the arbitration agreement or any person claiming through or under him,
  • so applies not later than the date of submitting his first statement on the substance of the dispute,
  • then, notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to arbitration unless
  • it finds that prima facie no valid arbitration agreement exists.

Arbitration and conciliation act section 8(2)

The application referred to in sub-section (1) shall not be entertained unless it is accompanied by the original arbitrationAgreement or a duly certified copy thereof.

Provided that where the original arbitration agreement or a certified copy thereof is not available with the party applying for reference to arbitration under sub-section (1),

And the said agreement or certified copy is retained by the other party to that agreement, then, the party so applying shall file such application along with a copy of the arbitration agreement,

And a petition praying the Court to call upon the other party to produce the original arbitration agreement or its duly certified copy before that Court.

Section 8(3) arbitration and conciliation act

Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority,

An arbitration may be commenced or continued and an arbitral
award made.

Interim measures, etc., by Court section 9 arbitration and conciliation act

Section 9(1) arbitration and conciliation act

A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court-

(i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings, or

(ii) for an interim measure of protection in respect of any of the following matters, namely

  • a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement,
  • (b) securing the amount in dispute in the arbitration,
  • (c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration,
    • or as to which any question may arise therein and
    • authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or
    • authorising any samples to be taken or any observation to be made, or
    • experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence.
  • (d) Interim injunction or the appointment of a receiver.
  • (e) Such other interim measure of protection as may appear to the Court to be just and convenient.
  • And the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it.

Arbitration and conciliation act section 9(2)

Where, before the commencement of the arbitral proceedings, a Court passes an order for any interim measure of protection under sub-section (1),

The arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the Court may determine.

Section 9(3) arbitration and conciliation act

Once the arbitral tribunal has been constituted, the Court shall not entertain an application under sub section (1), unless the Court finds that circumstances exist which may not render the remedy provided under section 17 efficacious.

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