Updated Arbitration Format

Arbitration Invocation Notice Format under Sections 21 and 11

This sample legal notice may be adapted to invoke an arbitration agreement, identify the disputes and claims, and request constitution of the arbitral tribunal under the Arbitration and Conciliation Act, 1996. The actual procedure must follow the arbitration clause, the applicable institutional rules (if any), and the Act.

Important: Section 21 ordinarily governs commencement of arbitral proceedings by receipt of a request that the dispute be referred to arbitration, unless the parties agree otherwise. Section 11 deals with appointment of arbitrators and court intervention where the agreed appointment procedure does not result in constitution of the tribunal. A notice should therefore invoke the arbitration agreement clearly rather than merely cite Section 11.

Current Legal Position

  • Arbitration agreement: First verify that a valid written arbitration agreement exists and identify the precise clause, seat/place, governing law, number of arbitrators and agreed appointment mechanism.
  • Commencement under Section 21: Unless otherwise agreed, arbitral proceedings in respect of a particular dispute commence when the respondent receives a request to refer that dispute to arbitration.
  • Appointment under Section 11: Parties remain free to agree on an appointment procedure. Where the statutory default procedure applies, a failure to act within the prescribed 30-day period may permit recourse under Section 11, subject to the wording of the clause and the applicable sub-section.
  • Independence and impartiality: Any proposed arbitrator must satisfy the disclosure, independence and eligibility requirements under Section 12 and the Fifth and Seventh Schedules, as applicable.
  • Unilateral appointments: Current Supreme Court law restricts appointment mechanisms that give one interested party exclusive control over appointment of a sole arbitrator. Appointment clauses should be applied consistently with the Act and binding judicial precedent.
  • Proof of service: Preserve the arbitration agreement, notice, annexures and reliable proof showing the date the respondent received the invocation notice.

Updated Legal Notice Invoking Arbitration

Illustrative format only. Replace all blanks and modify the appointment paragraph to match the actual arbitration clause.

SAMPLE FORMAT - NOTICE INVOKING ARBITRATION

BY SPEED POST / REGISTERED POST / COURIER / E-MAIL
AND OTHER CONTRACTUALLY PERMITTED MODE

Date: __________________

To
Mr./Ms./M/s __________________________
_____________________________________
_____________________________________

Subject: Notice invoking arbitration under Clause ____ of the Agreement dated ____ read with Sections 21 and 11 of the Arbitration and Conciliation Act, 1996

Sir/Madam,

Under instructions from and on behalf of my client, Mr./Ms./M/s __________________________, having address at __________________________________________ ("my Client"), I hereby issue the following notice:

1. My Client and you entered into an Agreement dated __________ concerning __________________________________________. Clause ____ of the Agreement contains a written arbitration agreement for resolution of disputes arising out of or in connection with the Agreement.

2. Under the Agreement, you were required to __________________________________________ on or before __________ and to comply with the agreed specifications, milestones, payment obligations and other contractual conditions.

3. My Client has duly performed / has been ready and willing to perform its contractual obligations, including __________________________________________. An amount of Rs. __________ was paid / became payable in accordance with the Agreement.

4. You have committed breaches including, inter alia, __________________________________________, despite communications and requests dated ____________________. The breaches remain unresolved.

5. By reason of the above acts and omissions, disputes have arisen between the parties. My Client has suffered and continues to suffer loss and damage, including __________________________________________, presently quantified at Rs. __________, together with interest and costs, subject to revision and further particulars before the arbitral tribunal.

6. The disputes presently referred to arbitration include:

(a) whether you have breached the Agreement dated __________;
(b) whether the work / goods / services supplied comply with the contractual specifications and timelines;
(c) whether any amount is due and payable to my Client and, if so, the amount thereof;
(d) whether my Client is entitled to damages, compensation, refund, interest and costs; and
(e) all other disputes, claims, counterclaims and issues arising out of or connected with the Agreement that are capable of arbitration.

7. Invocation of arbitration: My Client hereby unequivocally invokes the arbitration agreement contained in Clause ____ of the Agreement and requests that the above disputes be referred to arbitration. This notice shall constitute a request for reference of the disputes to arbitration for the purposes of Section 21 of the Arbitration and Conciliation Act, 1996, subject to the terms of the Agreement.

8. Constitution of the tribunal: In accordance with Clause ____ of the Agreement, you are called upon to take the steps required for appointment / constitution of the arbitral tribunal. Where the Agreement provides for a sole arbitrator to be appointed by mutual consent, my Client proposes Mr./Ms. __________________________, Advocate / Arbitrator, subject to his/her consent, disclosures and eligibility under the Act, and calls upon you to communicate your concurrence or propose an eligible alternative in accordance with the agreed procedure.

9. Where the applicable appointment procedure requires a party to act within thirty days of receipt of a request, you are called upon to complete the required appointment step within that statutory / contractual period. If you fail to act as required, my Client shall be entitled to take appropriate proceedings under Section 11 and other applicable provisions of the Act before the competent Court, at your risk as to costs and consequences.

10. Nothing in this notice shall be treated as a waiver or abandonment of any claim, remedy, right to interim relief, right to amend or supplement claims, or other right available to my Client under the Agreement or law.

You are requested to acknowledge receipt of this notice and respond within the period applicable under the arbitration agreement and law.

A copy of this notice and proof of dispatch/service are retained for further proceedings.

__________________________
Advocate / Authorised Representative
for __________________________

Practical Drafting Checklist

Before dispatch, reproduce the arbitration clause accurately; identify the contract and disputes; state an unequivocal request for arbitration; quantify claims where reasonably possible; follow all contractual pre-arbitration steps; use the agreed mode of service in addition to reliable electronic/postal service; and retain delivery proof. If the clause names an appointing authority or prescribes an institution, adapt paragraphs 8 and 9 accordingly.

Official Legal Sources

India Code - Arbitration and Conciliation Act, 1996 Supreme Court of India - Official Website
Disclaimer: This is a general drafting aid and not a substitute for advice on a particular contract or dispute. Arbitration clauses vary significantly, and limitation, jurisdiction, seat, institutional rules and mandatory pre-arbitration steps should be checked before issuing the notice.