Updated Legal Format | India

Agreement for Arbitration and Appointment of Sole Arbitrator

Sample agreement for parties to refer an existing dispute to a mutually appointed sole arbitrator under the Arbitration and Conciliation Act, 1996, with modern clauses on appointment, seat, procedure, interim relief, award, costs and enforcement.

Parties may agree in writing to submit existing or future disputes arising from a defined legal relationship to arbitration. Section 7 of the Arbitration and Conciliation Act, 1996 governs the arbitration agreement, while Sections 10 and 11 deal with the number and appointment of arbitrators.

Drafting note: A sole arbitrator should be appointed by a neutral and legally valid process. The proposed arbitrator should make the disclosures required by Section 12 and the Sixth Schedule, and the appointment should not fall within any applicable ineligibility under Section 12(5) read with the Seventh Schedule unless a legally valid post-dispute waiver is executed.

SOLE ARBITRATOR AGREEMENT

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

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".

The First Party and Second Party are individually a "Party" and collectively the "Parties". Additional parties, if any, may be inserted with corresponding execution blocks.

Recitals

A. The Parties entered into / are connected with ________________________________ under an agreement, transaction or legal relationship dated __________.

B. Disputes and differences have arisen concerning ________________________________.

C. The Parties have been unable to resolve those disputes amicably and now intend to refer them to a sole arbitrator by mutual consent.

1. Agreement to Refer Disputes to Arbitration

The Parties agree to submit the disputes described in this Agreement to final determination by arbitration in accordance with the Arbitration and Conciliation Act, 1996, as amended from time to time.

2. Scope of Reference

The following disputes and all issues incidental to their determination are referred to arbitration:

  1. Whether ________________________________________________.
  2. Whether ________________________________________________.
  3. The amount, if any, payable by either Party to the other.
  4. The entitlement of either Party to declarations, damages, interest, accounts, injunctions, specific or consequential reliefs permitted by law.
  5. Costs and expenses of the proceedings.

3. Appointment of Sole Arbitrator

The Parties mutually appoint Mr./Ms. ____________________________, having address at ________________________________, as the sole arbitrator, subject to acceptance of the appointment and disclosures required by applicable law.

If the named arbitrator declines, becomes unable to act, is legally ineligible, withdraws, or the mandate otherwise terminates, a substitute arbitrator shall be appointed by mutual agreement or in accordance with the Arbitration and Conciliation Act, 1996.

4. Independence, Impartiality and Disclosure

The sole arbitrator shall disclose in writing any circumstances likely to give rise to justifiable doubts as to independence or impartiality and any circumstances affecting the ability to devote sufficient time to the arbitration, in accordance with Section 12 and the applicable Schedules to the Act.

5. Seat and Venue of Arbitration

The juridical seat of arbitration shall be __________, India. Hearings may be conducted at the seat, at another agreed venue, or through video conferencing without altering the juridical seat unless the Parties expressly agree otherwise in writing.

6. Language

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

7. Governing Law

This Agreement and the arbitral proceedings shall be governed by the Arbitration and Conciliation Act, 1996. The substantive rights and obligations of the Parties shall be determined under the law applicable to the underlying transaction or relationship.

8. Pleadings

The claimant shall file its statement of claim, facts, legal grounds, documents and reliefs sought. The respondent shall file its statement of defence and any counterclaim, together with supporting documents, within the timetable fixed by the sole arbitrator and subject to Section 23 and other applicable provisions of the Act.

9. Procedure

Subject to the Act and this Agreement, the sole arbitrator may conduct the proceedings in the manner considered appropriate. Each Party shall be treated equally and given a reasonable opportunity to present its case.

10. Evidence and Documents

The sole arbitrator may require production of relevant contracts, correspondence, accounts, electronic records, expert reports and other documents. Witnesses may be examined or cross-examined where necessary or directed by the arbitrator.

11. Hearings

The sole arbitrator may conduct physical, virtual or hybrid hearings. Where appropriate and permitted by law, issues may also be decided on written pleadings and documentary evidence.

12. Interim Measures

Nothing in this Agreement prevents a Party from seeking interim measures available under Section 9 or Section 17 of the Arbitration and Conciliation Act, 1996 or any other applicable provision.

13. Jurisdiction of Arbitrator

The sole arbitrator may rule on his or her own jurisdiction, including objections concerning the existence or validity of the arbitration agreement, in accordance with Section 16 of the Act.

14. Non-Participation or Default

If a Party fails to participate after due notice, the sole arbitrator may proceed in accordance with Section 25 and other applicable provisions. Failure to appear shall not by itself be treated as an admission of the other Party's allegations.

15. Time for Making Award

The award shall be made within the period prescribed by Section 29A of the Arbitration and Conciliation Act, 1996, to the extent applicable. Any extension shall be governed by applicable law.

16. Interim and Final Awards

The sole arbitrator may make interim or partial awards where legally permissible and shall make the final award in writing in accordance with Section 31.

17. Interest

The sole arbitrator 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 costs of arbitration shall be determined in accordance with Section 31A and other applicable provisions. Deposits toward the arbitrator's fees and expenses shall be made as directed by the sole arbitrator or as mutually agreed.

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 enforcement, challenge, legal advice, compliance with law or protection of a legal right.

20. Settlement

The Parties may settle the dispute at any stage. If requested by the Parties and permissible under law, the settlement may be recorded by the sole arbitrator as an arbitral award on agreed terms under Section 30.

21. Death, Succession or Change in Status

Subject to Section 40 and other applicable law, the arbitration agreement shall not be discharged solely by the death of a Party and may bind legal representatives to the extent permitted by law.

22. Finality and Enforcement

The arbitral award shall be final and binding on the Parties subject to remedies available under the Arbitration and Conciliation Act, 1996. Any challenge shall be governed by Section 34 and enforcement by Section 36 and other applicable provisions.

23. Court Jurisdiction

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

24. Notices

Notices relating to the arbitration shall be in writing and may be delivered personally, through recognised courier, registered post or electronic communication that provides a record of transmission.

25. Entire Agreement and Amendments

This document records the complete arbitration agreement concerning the disputes described herein. Any amendment shall be in writing and executed or otherwise validly recorded by the Parties in accordance with law.

26. Severability

If any provision 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: ___________________

Witness 1: ____________________________

Witness 2: ____________________________

Acceptance by Sole Arbitrator

I, ____________________________, accept appointment as sole arbitrator subject to the Arbitration and Conciliation Act, 1996 and confirm that the disclosures required by applicable law have been made separately in writing.

Signature of Arbitrator: ____________________    Date: __________

Legal references reviewed for this redraft: August 2026.