Section 29B of the Arbitration and Conciliation Act, 1996: Fast Track Procedure

Section 29B of the Arbitration and Conciliation Act, 1996 provides an optional fast-track arbitration procedure. Parties may agree in writing to use this procedure, which generally relies on written pleadings, documents and submissions, permits oral hearings only in limited circumstances, and requires the award to be made within six months from the date the arbitral tribunal enters upon the reference.

What is Section 29B of the Arbitration and Conciliation Act, 1996?

Section 29B creates a simplified and time-focused arbitration mechanism. It begins with a non-obstante clause and allows parties to agree in writing that their dispute will be resolved under the fast-track procedure specified in the section.

In simple terms: Section 29B allows parties to choose a faster arbitration process that is primarily document-based. A sole arbitrator may be chosen, oral hearings are not the default, technical formalities may be reduced, and the award is intended to be made within six months.

Text of Section 29B - Fast Track Procedure

29B. Fast track procedure.

(1) Notwithstanding anything contained in this Act, the parties to an arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal, agree in writing to have their dispute resolved by fast track procedure specified in sub-section (3).

(2) The parties to the arbitration agreement, while agreeing for resolution of dispute by fast track procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the parties.

(3) The arbitral tribunal shall follow the following procedure while conducting arbitration proceedings under sub-section (1):-

(a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents and submissions filed by the parties without any oral hearing;

(b) The arbitral tribunal shall have power to call for any further information or clarification from the parties in addition to the pleadings and documents filed by them;

(c) An oral hearing may be held only, if, all the parties make a request or if the arbitral tribunal considers it necessary to have oral hearing for clarifying certain issues;

(d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for expeditious disposal of the case.

(4) The award under this section shall be made within a period of six months from the date the arbitral tribunal enters upon the reference.

(5) If the award is not made within the period specified in sub-section (4), the provisions of sub-sections (3) to (9) of section 29A shall apply to the proceedings.

(6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be agreed between the arbitrator and the parties.

Official text: Arbitration and Conciliation Act, 1996 - India Code

When Can Parties Choose Fast Track Arbitration?

Under Section 29B(1), the parties may agree in writing to use fast-track arbitration before or at the time of appointment of the arbitral tribunal. The procedure is therefore based on party consent and cannot ordinarily be imposed unilaterally by one party.

Meaning of the Non-Obstante Clause

Section 29B begins with the words "Notwithstanding anything contained in this Act". A non-obstante clause is a legislative device used to give the provision overriding effect over inconsistent provisions within the same enactment to the extent of the inconsistency.

In the context of Section 29B, this allows the specially designed fast-track procedure to operate as the agreed procedural framework for the arbitration.

Section 29B(2): Sole Arbitrator

While opting for fast-track arbitration, the parties may agree that the arbitral tribunal will consist of a sole arbitrator chosen by them. A sole-arbitrator structure can reduce procedural complexity and may assist in achieving faster disposal.

Section 29B(3): How the Fast Track Procedure Works

Requirement	Fast Track Rule
Primary mode	Decision on written pleadings, documents and submissions.
Further material	The tribunal may request additional information or clarification.
Oral hearing	Held only if all parties request it or the tribunal considers it necessary for clarification.
Technical formalities	The tribunal may dispense with technical formalities if an oral hearing is held and may adopt an appropriate procedure for expeditious disposal.

Written Proceedings are the Default

Section 29B(3)(a) makes document-based adjudication the default model. The tribunal decides on the basis of written pleadings, documents and submissions without an oral hearing.

This does not prevent the tribunal from seeking clarification. Under Section 29B(3)(b), it may call for further information or clarification in addition to the material already filed.

When Can an Oral Hearing Be Held?

Under Section 29B(3)(c), an oral hearing may be held only if all parties request it or if the arbitral tribunal considers an oral hearing necessary to clarify certain issues.

This is one of the principal differences between ordinary arbitration and the statutory fast-track model, where written adjudication is the norm rather than merely an available option.

Power to Dispense with Technical Formalities

If an oral hearing is held, Section 29B(3)(d) allows the tribunal to dispense with technical formalities and adopt a procedure it considers appropriate for expeditious disposal.

Section 29B(4): Six-Month Award Period

The award under the fast-track procedure must be made within six months from the date on which the arbitral tribunal enters upon the reference.

Important: the six-month period in Section 29B is different from the general timeline under Section 29A.

What Happens if the Six-Month Period Expires?

Section 29B(5) provides that if the award is not made within the six-month period, sub-sections (3) to (9) of Section 29A apply to the fast-track proceedings.

This brings into operation the statutory framework for consensual extension, court extension, continuation or termination of mandate, substitution of arbitrators, costs and expeditious disposal of an extension application.

Arbitrator's Fees under Section 29B(6)

Section 29B(6) leaves the arbitrator's fees and the manner of payment to agreement between the arbitrator and the parties.

Purpose of Fast Track Arbitration

The structure of Section 29B is designed to reduce procedural delay by favouring written adjudication, limiting oral hearings, allowing procedural flexibility and prescribing a shorter award period.

The Supreme Court has also referred to Section 29B as a provision through which parties may opt for a fast-track procedure without the ordinary requirement of oral hearings, illustrating the importance of party autonomy in arbitral procedure.

Supreme Court reference to Section 29B and party autonomy

Key Features of Section 29B

Fast-track arbitration requires a written agreement of the parties.
The parties may agree to appoint a sole arbitrator.
Written pleadings, documents and submissions are the primary basis for decision.
The tribunal may seek further information or clarification.
Oral hearing is not automatic and is permitted only in the circumstances stated in Section 29B(3)(c).
The tribunal may reduce technical formalities to promote expeditious disposal.
The award must be made within six months from the date the tribunal enters upon the reference.
If the six-month period is exceeded, Section 29A(3) to 29A(9) applies.
Arbitrator fees are governed by agreement between the arbitrator and the parties.

Relationship with Sections 29A and 30

Section 29A provides the broader statutory regime governing time limits and extensions for arbitral awards. Section 29B creates the specialised fast-track model. Section 30 deals with settlement during arbitral proceedings.

Statutory text checked against the current India Code publication of the Arbitration and Conciliation Act, 1996.