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Updated Legal Format | India

Agreement to Refer a Three-Party Dispute to Arbitration

Sample post-dispute arbitration agreement for three parties under the Arbitration and Conciliation Act, 1996, covering the reference, tribunal, seat, procedure, evidence, interim measures, costs, award and enforcement.

Where three parties have an existing dispute, they may record their consent in a written arbitration agreement and define the disputes to be decided, the constitution of the arbitral tribunal, the seat and language of arbitration, applicable procedure and other terms. Section 7 of the Arbitration and Conciliation Act, 1996 governs the arbitration agreement.

Important: Section 7 concerns the arbitration agreement itself; appointment and composition of the tribunal are dealt with principally by Sections 10 and 11. The parties should also consider Sections 12, 16, 17, 19, 20, 23, 24, 25, 29, 29A, 31, 31A, 34, 35 and 36 depending on the circumstances.
Official legal source:
Arbitration and Conciliation Act, 1996 - India Code Official consolidated Act PDF

THREE-PARTY ARBITRATION AGREEMENT

This Arbitration Agreement ("Agreement") is executed at __________ on this ____ day of __________, 20__.

BY AND BETWEEN

Mr./Ms./M/s ____________________________, son/daughter of / a company, LLP, partnership or other entity having address at ________________________________, hereinafter referred to as the "First Party";

AND

Mr./Ms./M/s ____________________________, son/daughter of / a company, LLP, partnership or other entity having address at ________________________________, hereinafter referred to as the "Second Party";

AND

Mr./Ms./M/s ____________________________, son/daughter of / a company, LLP, partnership or other entity having address at ________________________________, hereinafter referred to as the "Third Party".

The First Party, Second Party and Third Party are individually referred to as a "Party" and collectively as the "Parties".

Recitals

A. The Parties are parties to / interested in ________________________________ under agreement/deed/transaction dated __________.

B. Disputes and differences have arisen among the Parties concerning ________________________________.

C. The Parties wish to finally resolve the identified disputes through arbitration and therefore enter into this written arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996.

1. Agreement to Arbitrate

The Parties irrevocably agree, subject to the terms of this Agreement, to submit the disputes and differences described in Clause 2 to arbitration under the Arbitration and Conciliation Act, 1996, as amended from time to time.

2. Disputes Referred

The arbitral tribunal shall determine all disputes arising out of or connected with the matters described below:

  1. Whether ________________________________________________.
  2. Whether ________________________________________________.
  3. What amounts, if any, are payable by one Party to another.
  4. What rights each Party has in the property/assets/accounts/business described as __________________________________.
  5. What declarations, damages, interest, accounts, injunctions, costs or other reliefs may lawfully be granted.

The tribunal may determine incidental and ancillary issues necessary for effective adjudication of the disputes referred to it.

3. Constitution of Arbitral Tribunal

Option A - Sole Arbitrator: The disputes shall be referred to a sole arbitrator mutually appointed by all three Parties.

Option B - Three-Member Tribunal: If the Parties choose a three-member tribunal, the appointment mechanism shall be specifically recorded here: ________________________________. The agreed mechanism must comply with the Arbitration and Conciliation Act, 1996.

Any arbitrator appointed shall make the disclosures required by applicable law concerning independence, impartiality and ability to devote sufficient time to the arbitration.

4. Failure of Appointment Procedure

If the agreed appointment procedure fails, any Party may seek appropriate relief for constitution of the arbitral tribunal under Section 11 of the Arbitration and Conciliation Act, 1996, before the competent court or authority as provided by law.

5. Seat and Venue of Arbitration

The juridical seat of arbitration shall be __________, India. Hearings may be held physically, virtually or at another convenient venue without changing the juridical seat unless the Parties expressly agree otherwise in writing.

6. Language

The language of the arbitration shall be English / Hindi / __________.

7. Applicable Law

The arbitration and this Agreement shall be governed by the Arbitration and Conciliation Act, 1996 and the substantive law applicable to the underlying dispute shall be the law of India, unless another applicable law is expressly and validly agreed.

8. Statements of Claim and Defence

The tribunal may direct each claimant to file its statement of claim, supporting documents and reliefs sought and each respondent to file its statement of defence and any counterclaim, together with supporting documents, within the timetable fixed by the tribunal.

9. Procedure and Hearings

Subject to mandatory law and this Agreement, the tribunal may conduct the proceedings in the manner it considers appropriate, while treating the Parties equally and giving each Party a reasonable opportunity to present its case.

The tribunal may hold oral hearings, virtual hearings or decide appropriate issues on documents and written submissions, subject to the Act and directions of the tribunal.

10. Evidence, Documents and Experts

The tribunal may direct production of documents, books of account, electronic records and other relevant material. It may appoint an independent expert where necessary and may permit the Parties to examine or cross-examine witnesses and experts in accordance with applicable procedure.

11. Interim Measures

Nothing in this Agreement prevents a Party from seeking interim protection available under law, including relief from a competent court under Section 9 or from the arbitral tribunal under Section 17 of the Arbitration and Conciliation Act, 1996.

12. Jurisdiction of Tribunal

The arbitral tribunal may rule on its own jurisdiction in accordance with Section 16 of the Arbitration and Conciliation Act, 1996.

13. Default or Non-Participation

If a Party fails to file pleadings, appear or participate after due notice, the tribunal may proceed in accordance with Section 25 and other applicable provisions of the Act. Mere absence shall not automatically be treated as an admission of the opposing Party's case.

14. Decision of Multi-Member Tribunal

Where the tribunal consists of more than one arbitrator, decisions shall be made in accordance with Section 29 of the Act. Where permitted, procedural questions may be decided by the presiding arbitrator if authorised by the Parties or all members of the tribunal.

15. Time for Award

The arbitral award shall be made within the period prescribed by Section 29A of the Arbitration and Conciliation Act, 1996, to the extent that provision applies to the arbitration. Any extension shall be dealt with in accordance with applicable law.

16. Interim and Final Awards

The tribunal may make interim or partial awards where permitted by law and shall make its final award in writing in accordance with Section 31 of the Act.

17. Interest

The tribunal may award pre-award and post-award interest to the extent permitted by Section 31 and other applicable law.

18. Costs and Arbitrator's Fees

The tribunal shall determine costs in accordance with Section 31A of the Act and any valid agreement regarding fees and deposits. Each Party shall make deposits as directed by the tribunal, subject to the Act.

19. Confidentiality

The Parties shall maintain confidentiality of the arbitral proceedings and award to the extent required by Section 42A and other applicable law, subject to disclosures necessary for implementation, enforcement, challenge, legal advice, statutory compliance or protection of a legal right.

20. Settlement

The Parties may settle the dispute at any stage. If requested by the Parties and legally permissible, the tribunal may record the settlement in the form of an arbitral award on agreed terms under Section 30.

21. Finality and Enforcement

The award shall be final and binding on the Parties subject to remedies available under the Arbitration and Conciliation Act, 1996. Enforcement shall be governed by Section 36 and other applicable provisions of law.

22. Court Proceedings

Applications arising from or connected with the arbitration shall be filed before the court having jurisdiction under the Arbitration and Conciliation Act, 1996, having regard to the agreed seat of arbitration and applicable law.

23. Notices

All notices concerning the arbitration shall be in writing and may be delivered personally, by recognised courier, registered post or by electronic means that provide a record of transmission, to the contact details notified by each Party.

24. Entire Arbitration Agreement

This document records the Parties' complete agreement concerning the reference described above. Any amendment shall be in writing and signed or otherwise validly recorded in a manner recognised by law.

25. Severability

If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue to operate to the maximum extent permitted by law, provided the essential agreement to arbitrate remains capable of being given effect.

Execution

IN WITNESS WHEREOF, the Parties have executed this Arbitration Agreement on the date and place first written above.

First Party

Name: ___________________
Signature: ______________
Date: ___________________
Second Party

Name: ___________________
Signature: ______________
Date: ___________________
Third Party

Name: ___________________
Signature: ______________
Date: ___________________

Witness 1: ____________________________

Witness 2: ____________________________

Legal references reviewed for this redraft: August 2026.