How To File A Case Under The Arbitration And Conciliation Act
To file a case under the Arbitration and Conciliation Act, 1996 in India, follow these detailed steps:
Step 1: Draft an Arbitration Clause or Agreement: Ensure your contract includes a clear arbitration clause specifying that disputes will be resolved through arbitration. If a clause is absent, parties can create an arbitration agreement by mutual consent.
Step 2: Send a Notice: The aggrieved party must send a notice of arbitration to the other party, indicating the intention to initiate arbitration. This notice should detail the nature of the dispute and the relief sought.
Step 3: Choose an Arbitrator: The parties can mutually agree on an arbitrator. If they cannot agree, they may seek judicial intervention under Section 11 of the Act for the appointment of an arbitrator.
Step 4: Conduct a Preliminary Hearing: Once the arbitrator is appointed, a preliminary hearing is held to discuss procedural matters, timelines, and the exchange of information.
Step 5: Submit Statements: The claimant submits a statement of claim outlining the facts and relief sought. The respondent follows with a statement of defense, which may include counterclaims.
Step 6: Conduct Hearings: The arbitrator conducts hearings where both parties present their evidence and arguments. This can occur in person or through written submissions.
Step 7: Receive the Award: After considering all evidence, the arbitrator issues an arbitral award. This binds on both parties. The award must be in writing and signed by the arbitrator.
Step 8: Enforce the Award: the losing party may not comply with the award. If so the winning party can approach the court for enforcement under Section 36 of the Act.