HUF Arbitration Agreement Format under Section 7
Members of a Hindu Undivided Family may use a written arbitration agreement to refer defined disputes concerning family business, accounts, joint family assets, claims or partition-related issues to arbitration, provided the subject matter is legally capable of settlement by arbitration and the agreement satisfies the Arbitration and Conciliation Act, 1996.
Updated: 8 September 2026
Can HUF Members Refer Family Property Disputes to Arbitration?
Where members of a Hindu Undivided Family have disputes regarding joint family assets, business interests, accounts, valuation, distribution or other defined civil claims, they may enter into a written agreement referring arbitrable disputes to an arbitral tribunal. The scope of the reference should be stated clearly so that the tribunal knows precisely which controversies have been submitted for decision.
The arbitration agreement should identify all parties whose rights are intended to be determined. It should also specify whether a sole arbitrator or a three-member tribunal will act, the method of appointment, the seat or place of arbitration, the language of proceedings and the governing law.
For a related general format, see the Agreement for Reference of Dispute to Arbitrator by Mutual Consent and the Agreement to Refer Dispute to a Sole Arbitrator.
Sample Agreement for Arbitration Among HUF Members
This Agreement is made at ____________________ on this ____ day of ____________________, 20____.
BETWEEN:
1. Mr./Ms. A, son/daughter of ____________________, aged about ____ years, residing at ________________________________, hereinafter referred to as the "First Party";
2. Mr./Ms. B, son/daughter of ____________________, aged about ____ years, residing at ________________________________, hereinafter referred to as the "Second Party";
3. Mr./Ms. C, son/daughter of ____________________, aged about ____ years, residing at ________________________________, hereinafter referred to as the "Third Party";
4. Mr./Ms. D, son/daughter of ____________________, aged about ____ years, residing at ________________________________, hereinafter referred to as the "Fourth Party";
5. Mr./Ms. E, son/daughter of ____________________, aged about ____ years, residing at ________________________________, hereinafter referred to as the "Fifth Party".
The above persons are collectively referred to as the "Parties".
Recitals
WHEREAS the Parties are members of a Hindu Undivided Family and disputes have arisen concerning certain assets, properties, business interests, accounts and claims alleged to belong to or arise from the Hindu Undivided Family;
AND WHEREAS differences have arisen regarding the nature and ownership of certain properties, including claims that specified assets were acquired from personal or separate funds and do not form part of the joint family estate;
AND WHEREAS the Parties desire to resolve the disputes capable of settlement by arbitration without prolonged litigation and have mutually agreed to refer the disputes described below to arbitration under the Arbitration and Conciliation Act, 1996;
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. Disputes referred. The Parties refer to arbitration their disputes concerning the identification, character, ownership, accounts, valuation and division or distribution of the assets and business interests described in Schedule A, together with all connected claims specifically raised by the Parties in relation to those assets.
2. Separate or self-acquired property claims. Where any Party claims that a particular asset is self-acquired, separately owned or otherwise does not form part of the HUF property, the arbitral tribunal may determine that claim to the extent it forms part of the reference and is legally arbitrable.
3. Sole arbitrator. The disputes shall be adjudicated by a sole arbitrator, Mr./Ms. ________________________________, subject to the disclosures, independence, impartiality and eligibility requirements of the Arbitration and Conciliation Act, 1996.
4. Substitute appointment. If the named arbitrator declines to act, becomes unable or ineligible to act, or the appointment otherwise fails, the Parties shall first attempt to appoint a substitute arbitrator by mutual written agreement. If no agreement is reached, any Party may seek appointment in accordance with Section 11 of the Arbitration and Conciliation Act, 1996.
5. Statements, inventories and accounts. The arbitral tribunal may direct the Parties to file statements of claim and defence, inventories, title documents, accounts, valuations, business records and other material relevant to the disputes within the time permitted by law.
6. Valuation and expert assistance. Subject to the Act, the arbitral tribunal may obtain expert assistance for valuation, accounting or other technical matters. The Parties shall have the opportunity required by law to respond to material relied upon in the proceedings.
7. Equal treatment and hearing. The Parties shall be treated equally and each Party shall be given a full opportunity to present its case in accordance with Section 18 and the other applicable provisions of the Arbitration and Conciliation Act, 1996.
8. No automatic power of sale or demolition. Nothing in this Agreement shall be construed as granting the arbitrator an unrestricted power to sell, transfer, demolish or alter immovable property. Any relief granted must remain within the scope of the reference, the rights of the Parties, and applicable substantive and procedural law.
9. Rights of all affected members. The arbitral tribunal shall decide only the rights and disputes validly submitted to arbitration by persons bound by this Agreement. Rights of persons who are not validly bound by the arbitration agreement shall not be treated as extinguished merely by this reference.
10. Seat and language. The seat/place of arbitration shall be ________________________________. The language of arbitration shall be English, unless otherwise agreed in writing or directed in accordance with law.
11. Interim measures. Nothing in this Agreement prevents a Party from seeking interim measures available under the Arbitration and Conciliation Act, 1996.
12. Award and time limit. The arbitral award shall be made in writing and delivered in accordance with the Act. The statutory time limits and extension provisions under Section 29A shall apply wherever applicable.
13. Costs. Costs of the arbitration shall be dealt with in accordance with Section 31A of the Arbitration and Conciliation Act, 1996, subject to any lawful agreement applicable between the Parties.
14. Binding effect. The award shall bind the Parties in accordance with the Arbitration and Conciliation Act, 1996, subject to the statutory remedies and enforcement provisions available under that Act.
15. Governing law. This Agreement and the arbitration shall be governed by the Arbitration and Conciliation Act, 1996 and the substantive law applicable in India.
The Parties state that they have read and understood this Agreement and execute it voluntarily and without coercion or undue influence.
Signatures of Parties
Name: ____________________
Signature: ____________________
Name: ____________________
Signature: ____________________
Name: ____________________
Signature: ____________________
Name: ____________________
Signature: ____________________
Name: ____________________
Signature: ____________________
Witnesses
1. Name: ____________________ Address: ____________________ Signature: ____________________
2. Name: ____________________ Address: ____________________ Signature: ____________________
Schedule A - Property, Business and Disputes Referred
1. Immovable property: ________________________________________________
2. Movable property and investments: __________________________________
3. HUF business or partnership interests: _______________________________
4. Accounts and financial claims: ______________________________________
5. Property claimed as separate/self-acquired: ___________________________
6. Other disputes specifically referred: _________________________________
Relevant Provisions of the Arbitration and Conciliation Act, 1996
Section 7 - Arbitration agreement
Section 7 defines an arbitration agreement as an agreement by the parties to submit all or certain disputes arising from a defined legal relationship to arbitration. It may be contained in a contract or in a separate agreement and must be in writing. Written form may be established by a signed document, recorded communications including electronic communications, or an exchange of statements of claim and defence in which the agreement is alleged by one party and not denied by the other.
Section 10 - Number of arbitrators
The parties are free to determine the number of arbitrators, but the number must not be even. If the parties do not determine the number, the arbitral tribunal consists of a sole arbitrator. For this reason, the old format using two arbitrators and an umpire has not been retained.
Section 11 - Appointment of arbitrators
Section 11 governs appointment. Subject to the Act, parties may agree on an appointment procedure. Where the agreed appointment mechanism fails, the statutory process under Section 11 may be invoked before the competent forum in accordance with the provision as applicable.
Section 12 - Disclosure and eligibility
A prospective arbitrator must make the disclosures required by Section 12 concerning circumstances that may give rise to justifiable doubts about independence or impartiality and other matters specified by law. The statutory eligibility restrictions must also be considered before an arbitrator is appointed.
Section 18 - Equal treatment of parties
The parties must be treated equally and each party must be given a full opportunity to present its case. Clauses allowing one-sided procedure or denial of a reasonable opportunity to participate should therefore be avoided.
Section 29A - Time limit for arbitral award
For matters other than international commercial arbitration, Section 29A generally requires the award to be made within twelve months from completion of pleadings under Section 23(4), subject to the extension mechanism provided by the Act. The provision treats international commercial arbitration differently.
Sections 31 and 31A - Award and costs
Section 31 deals with the form and contents of the arbitral award, including writing, signatures, reasons, date, place, delivery and related matters. Section 31A contains the statutory regime governing costs of arbitration and related proceedings.
HUF Property and Rights of Daughters as Coparceners
Any HUF arbitration agreement dealing with Mitakshara coparcenary property should account for the rights conferred by Section 6 of the Hindu Succession Act, 1956 as amended. A daughter of a coparcener is a coparcener by birth in her own right in the same manner as a son and has the rights and liabilities attached to that status under the statutory provision.
Accordingly, an older clause that merely creates a discretionary "share of unmarried daughter" to be held by another family member is not an appropriate modern formulation. The agreement should identify each affected member and determine rights according to the applicable substantive law rather than marital status.
Important Drafting Points for an HUF Arbitration Agreement
- Describe the HUF assets and disputed business interests in a schedule rather than referring generally to "all property".
- Identify claims of self-acquired or separate property specifically.
- Ensure that persons whose proprietary rights are intended to be determined are properly made parties where legally required.
- Use a sole arbitrator or another legally permissible odd-numbered tribunal rather than two arbitrators plus an umpire.
- Specify a substitute appointment method in case the named arbitrator cannot act.
- Do not give the tribunal unrestricted powers to sell or demolish family property without regard to ownership rights and applicable law.
- State the seat/place and language of arbitration and consider confidentiality, valuation, accounting and document-production requirements.
- Adapt the agreement to issues involving minors, persons under disability, third-party rights, non-signatories, tenancy rights or other special legal restrictions before execution.