⚖️ Arbitration Services by TAXAJ

Arbitration is a form of Alternative Dispute Resolution (ADR) where two or more parties agree to resolve their dispute outside of traditional courts, through a neutral third party known as an arbitrator. The arbitrator hears the arguments, evaluates the evidence, and issues a binding decision, known as an arbitral award.

Unlike litigation, arbitration is usually private, faster, and more flexible, offering a practical solution for commercial, contractual, and even international disputes. It allows the parties to maintain control over the process—such as selecting arbitrators, deciding the language and location of arbitration, and determining the procedural rules.

Arbitration in India is governed by the Arbitration and Conciliation Act, 1996, which aligns with global standards such as the UNCITRAL Model Law. Once the arbitration award is passed, it has the same enforceability as a court decree, making it a strong legal tool.

Imagine a company in India has a supply contract with a manufacturer in Germany. If a payment dispute arises, rather than litigating in Indian or German courts, both parties may resolve the matter through international commercial arbitration seated in Singapore or London. The award rendered will be enforceable in either country under international conventions.

• Voluntary & Binding: Both parties must agree to arbitration and are bound by its outcome.

• Neutral & Impartial: Parties can choose arbitrators to ensure neutrality.

• Private & Confidential: Proceedings are not open to the public, protecting business reputation.

• Final & Enforceable: Awards are legally binding and can be enforced through courts.

Whether you're a corporate, startup, exporter, or professional service provider, arbitration gives you a legally sound yet efficient route to resolve conflicts—without the delays and publicity of traditional litigation.

🧑‍⚖️ 3. Institutional Arbitration

In this form, the arbitration is administered by a recognized institution, which provides procedural rules, a panel of arbitrators, and administrative support.

Popular Institutions:

• SIAC (Singapore International Arbitration Centre)

• ICC (International Chamber of Commerce)

• LCIA (London Court of International Arbitration)

• MCIA (Mumbai Centre for International Arbitration)

• ICA (Indian Council of Arbitration)

⚖️ 4. Ad-Hoc Arbitration

This is a flexible and informal method where parties do not involve any institution. They agree upon the rules, arbitrator, and procedure themselves.

Use Cases:

• Family business disputes.

• SME contract issues.

• Service and consulting agreements.

🌐 2. International Commercial Arbitration

When at least one party is a foreign national or company, the arbitration becomes international in nature. These cases often involve cross-border commercial agreements, governed by Part II of the Arbitration Act and global conventions like the New York Convention.

Use Cases:

• Export-import contract disputes

• Cross-border mergers or joint ventures

• Technology licensing & IP disputes

• Maritime and shipping agreements

💼 5. Sector-Specific Arbitration

We frequently handle disputes unique to specific industries that require technical understanding and tailored strategies.

Industries We Cover:

• 🏗 Real Estate & Construction: Delay penalties, design defects, cost overruns

• 🚢 Shipping & Logistics: Bills of lading, freight disputes

• 💻 IT & SaaS: Software development contracts, licensing issues

• 📽 Media & Entertainment: IP rights, distribution agreements

• 🏭 Manufacturing & Supply Chain: Quality claims, delivery defaults

🌍 3. In Cross-Border Transactions

When dealing with foreign entities, arbitration provides a neutral forum and enforceable outcome under global conventions like the New York Convention, which is recognized in over 160 countries.

Ideal for: Export-import contracts, international joint ventures, offshore services.

⚖️ 4. When You Want More Control

In arbitration, parties can mutually decide the governing law, venue, language, number of arbitrators, and other procedural elements—giving you far more control than court litigation.

Ideal for: Complex technical disputes where expert arbitrators are beneficial.

💼 5. When the Contract Already Has an Arbitration Clause

If your agreement includes a binding arbitration clause, you are legally required to resolve disputes via arbitration rather than going to court.

Ideal for: Pre-existing commercial agreements, franchise deals, tech licenses.

✅ 6. When You Seek Finality Without Appeals

Arbitral awards are generally final and binding with very limited grounds for appeal. This ensures certainty of outcome and quicker resolution.

Ideal for: Businesses that prefer closure over prolonged litigation.

🛡 2. When You Need Confidentiality

Court cases are public, which can harm your business reputation or expose sensitive information. Arbitration is private, protecting your commercial interests and brand image.

Ideal for: IP matters, founder disputes, or high-stakes corporate conflicts.

Fast-Track Arbitration, available under Indian law (Section 29B), can deliver a decision within 6 months—making it perfect for lower-value disputes or cases where both parties seek speed and efficiency.

⏱ 3. Time-Efficient Process

Unlike court litigation, arbitration is streamlined and deadline-driven, often resulting in a final decision within 6 to 18 months—significantly faster than traditional courts.

Fast-track arbitration can resolve matters in just 6 months under Section 29B of the Arbitration Act.

📍 4. Flexibility of Procedure

Arbitration allows parties to set their own rules regarding venue, language, timeline, and evidence procedure, making it adaptable to the complexity and scope of the dispute.

Ideal for international deals or highly technical sectors where specialized rules are needed.

📜 5. Binding & Enforceable Awards

Arbitral awards are legally binding and enforceable through courts under the Arbitration & Conciliation Act, 1996, with limited scope for appeal—ensuring finality.

International awards are enforceable in over 160 countries under the New York Convention.

💰 7. Cost-Efficiency

Although arbitrators charge fees, arbitration typically proves more cost-effective in the long run due to quicker resolutions and fewer procedural delays.

Avoiding years of litigation can significantly reduce overall legal expenditure.

🔒 2. Confidentiality

Arbitration proceedings are private, and the outcome is not published unless both parties agree. This protects trade secrets, financial information, and sensitive relationships.

Especially relevant in sectors like technology, pharma, and media.

💼 6. Expert Decision-Makers

Unlike court judges, arbitrators can be selected for their domain expertise—in law, construction, finance, IP, etc.—ensuring decisions are technically sound.

For example, a construction dispute may be arbitrated by a retired judge and a structural engineer.

🔄 8. Global Compatibility

Arbitration is internationally accepted and supported by global legal frameworks, such as UNCITRAL Model Law and the New York Convention, making it ideal for multinational contracts.

An ambiguous or poorly worded clause can lead to:

• Jurisdictional confusion

• Delay in appointing arbitrators

• Challenges to enforceability of awards

• Unnecessary litigation before arbitration even begins

That's why a properly constructed clause is essential for preempting future legal hurdles and ensuring a seamless arbitration process.

“All disputes arising out of or in connection with this Agreement shall be finally settled by arbitration in accordance with the Arbitration and Conciliation Act, 1996. The arbitration shall be conducted by a sole arbitrator appointed mutually by the parties. The seat of arbitration shall be New Delhi, and the language shall be English.”

India's arbitration legal framework reflects a pro-business, pro-enforcement approach that is increasingly trusted by Indian and foreign parties alike. It balances autonomy of the parties with judicial oversight to ensure fairness and enforceability.

At TAXAJ, we stay fully updated with legislative changes and judicial trends to ensure your arbitration agreements, procedures, and enforcement strategies are legally compliant and globally viable.

✅ 3. Notice of Dispute and Demand for Arbitration

• Send a formal notice of dispute to the opposite party stating:

  • Nature of dispute

  • Breach or default alleged

  • Relief or compensation sought

  • Intention to initiate arbitration

This notice is critical and must comply with Section 21 of the Arbitration Act.

✅ 4. Adherence to Pre-Arbitration Steps

• Some agreements mandate negotiation, mediation, or expert determination before arbitration.

• Document all such efforts or waive them properly if mutually agreed.

✅ 5. Choice of Arbitrator(s) and Appointment Mechanism

• Review if the contract:

  • Names an institution (e.g. ICA, SIAC)

  • Prescribes a sole arbitrator or a panel

  • Details the appointment procedure

• If no mechanism is followed, court intervention under Section 11 may be required.

✅ 8. Limitation Period

• Ensure the claim is within the statutory limitation period (generally 3 years for commercial contracts unless extended).

• Time starts from the date of cause of action or breach.

✅ 10. Jurisdictional & Legal Review

• Conduct a legal vetting of the arbitration clause, jurisdictional rules, and enforceability issues.

• Review any earlier court proceedings related to the dispute or clause.

✅ 2. Scope of Dispute Falls Within the Arbitration Clause

• Verify whether the subject matter of the dispute is covered by the arbitration agreement.

• Some disputes (e.g. criminal allegations, matrimonial matters, insolvency) may be non-arbitrable under Indian law.

✅ 6. Governing Law and Seat of Arbitration

• Identify the governing law (substantive law of contract) and seat of arbitration (which determines procedural law).

• Clarifies which courts have jurisdiction and ensures correct legal framework is applied.

✅ 7. Availability of Evidence

• Gather all relevant contracts, invoices, emails, communications, payment records, and third-party correspondences.

• Consider preserving digital forensics or appointing an expert if required.

✅ 9. Funding and Budgeting

• Assess legal fees, arbitrator costs, venue charges, and expert fees.

• Institutional arbitration bodies often publish a fee calculator to estimate expenses.

✅ 11. Draft Statement of Claim / Counterclaim

• Prepare the factual background, legal arguments, documentary support, and prayers for relief (damages, injunction, declarations).

• Organize the content per institutional or UNCITRAL rules if applicable.

Disputes in this sector often involve:

• Supply chain disruptions

• Defective goods or machinery

• Delay in commissioning of plants

• EPC contract disputes
  We assist in enforcing performance guarantees, resolving payment conflicts, and negotiating amicable settlements through arbitration.

We serve banks, NBFCs, fintechs, and investors in:

• Recovery of dues

• Enforcement of security

• Breach of loan or facility agreements

• Fraudulent transactions or misrepresentation
  Our team ensures swift invocation of arbitration clauses, and often combines arbitration with Section 9 interim relief for freezing assets.

Confidentiality, IP, and licensing disputes are prevalent in:

• Clinical trial contracts

• Franchise agreements for diagnostics/pharmacies

• JV disputes between foreign and Indian pharma firms
  We specialize in arbitration involving cross-border licensing, regulatory compliance, and data integrity.

We represent brands and aggregators in:

• Franchise agreement breaches

• Payment disputes with vendors or partners

• IP misuse or trademark conflicts

• Platform-based disputes with logistics or delivery vendors
  Our arbitration clauses are drafted to protect brand reputation and ensure enforceability across jurisdictions.

We help logistics companies resolve:

• Freight and demurrage disputes

• Delay/loss/damage of goods in transit

• Carrier liability claims
  These often involve cross-border contracts and require quick, low-cost arbitration.

Each sector has its own legal frameworks, commercial norms, and sensitivities. Our arbitration strategy is never generic—we align it with:

• Industry-specific laws (e.g., RERA, SEBI, IP laws, FSSAI)

• Regulatory frameworks

• Commercial practices

One of the most dispute-prone sectors due to:

• Delay in possession

• Cost overruns

• Defective construction

• Termination of development agreements
  

  We handle arbitrations under RERA, FIDIC, and project-specific MOUs, often involving multiple parties and complex evidence.

Common issues arise from:

• Scope creep or change requests

• Delay in delivery of software

• Source code ownership and licensing

• Data breach & indemnity disputes
  We draft and enforce SaaS, licensing, development, and service-level agreements (SLAs) via arbitration when disputes arise.

From tender disputes to post-award issues:

• Breach of contract by PSUs

• Force majeure and compensation claims

• Disputes under PPP and EPC contracts
  We appear before tribunals formed under institutional rules (like SIAC, ICA) or those governed by Indian statutes like MSMED Act or Arbitration Act.

• We provide custom arbitration clauses for each industry

• Pre-dispute advisory to reduce litigation exposure

• Strong coordination with technical/financial experts

• Multilingual and international arbitration experience

An arbitration clause determines:

• Where your disputes will be resolved (seat and venue)

• How disputes will be resolved (rules and procedures)

• Who will resolve them (choice of arbitrators or institutions)

• What types of disputes are covered
  An unclear clause may result in:

• Costly litigation just to decide on the mode or forum of dispute resolution

• Invalidation of the clause itself

• Risk of unenforceability of the final award

🔹 Enercon (India) Ltd. v. Enercon GmbH, (2014):
The Supreme Court held that a poorly drafted arbitration clause led to long delays and confusion over seat, procedure, and validity. It reinforced the need for precision in arbitration clauses.

🔹 M.R. Engineers & Contractors Pvt. Ltd. v. Som Datt Builders Ltd., (2009):
The Court held that reference to arbitration must be clear and unambiguous for the clause to be enforceable.

A strong arbitration clause is not just about avoiding court—it’s about securing your right to fast, fair, and enforceable resolution. Whether you're entering into a new agreement or reviewing existing ones, TAXAJ ensures your arbitration clauses are legally sound, commercially aligned, and future-proof.

TAXAJ ensures that every arbitration clause we draft or review includes the following essential elements:

✅ 1. Clear Intention to Arbitrate

• Explicit use of the word “shall” (e.g., “All disputes shall be referred to arbitration…”)

• Avoids ambiguity by removing phrases like “may refer” or “can consider”

✅ 2. Scope of Disputes

• Clearly identifies what types of disputes are to be arbitrated

• Includes both contractual and related disputes (e.g., tort, quantum meruit, breach of confidentiality, etc.)

✅ 3. Number of Arbitrators

• Typically sole arbitrator for smaller disputes, three arbitrators for high-stake matters

• Mechanism for appointment (e.g., each party appoints one, the two arbitrators appoint the third)

✅ 4. Institutional vs. Ad-Hoc Arbitration

• Institutional (e.g., SIAC, ICC, LCIA, ICA): Rules and fee structures predefined

• Ad-hoc: Parties determine rules and arbitrator(s), often relying on the Arbitration & Conciliation Act, 1996

✅ 5. Seat and Venue of Arbitration

• Seat defines the legal jurisdiction (procedural law), while venue is the physical location of hearings

• For example: “The seat of arbitration shall be New Delhi, and the venue shall be Mumbai”

✅ 6. Governing Law

• Clearly mention the substantive law that will govern the contract (e.g., Indian Law or English Law)

✅ 7. Language of Arbitration

• Especially important in cross-border transactions

• Prevents disputes over translation or interpretation

✅ 8. Confidentiality Clause

• Arbitration is private, but confidentiality should be contractually reinforced

• Includes prohibition on public disclosure or third-party sharing

✅ 9. Interim Relief Clause

• Allows parties to seek interim measures from courts under Section 9 of the Arbitration Act

• Useful for preserving assets, preventing breach, or stopping irreparable harm

✅ 10. Finality and Binding Nature

• Ensures the award is final and binding on both parties

• Prevents frivolous challenges unless there's a fundamental issue

• Tribunals generally follow the "principle of natural justice", giving both sides equal opportunity to present their case

• Under most institutional rules (like SIAC, ICC, or ICA), the tribunal has discretion to determine admissibility, weight, and relevance of evidence

• The IBA Rules on the Taking of Evidence in International Arbitration often serve as soft guidance in cross-border disputes

Well-managed evidence and credible witness presentation can make or break your arbitration case. At TAXAJ, we ensure a systematic, compliant, and persuasive approach to both, strengthening your position before the arbitral tribunal.

• Early Identification: Flag and preserve all potential evidence from the outset to avoid spoliation

• Relevance & Materiality: Submit only those documents that support your case and are legally admissible

• Indexing & Referencing: Present evidence with proper labelling and linkage to pleadings and submissions

• Chain of Custody: Maintain integrity by documenting how evidence was collected, stored, and shared

• Selecting the Right Witnesses: Fact witnesses should have direct knowledge of the dispute; experts must have domain credibility

• Witness Statements: Prepare signed, structured narratives detailing the witness’s account, to be submitted before oral hearings

• Cross-Examination Preparation: Witnesses should be trained on how to handle questioning, remain calm, and stick to facts

• Ethical Boundaries: Coaching is distinct from influencing testimony; any attempt to fabricate or mislead can backfire legally

✅ Speed: Decisions within 6 months
✅ Cost-Efficient: Reduced arbitrator fees, legal costs, and overhead
✅ Minimal Formalities: Less paperwork, fewer hearings
✅ Privacy: Like all arbitration, the process remains confidential
✅ Enforceable Award: Binding and legally enforceable under the Arbitration Act

📌 Conclusion:

Fast-track arbitration offers a powerful alternative to lengthy litigation and traditional arbitration, especially when time and cost are critical. TAXAJ ensures you leverage this tool effectively—without compromising on legal rigour or strategic advantage.

Section 29B provides statutory backing for fast-track arbitration in India. It empowers arbitrators to:

• Conduct proceedings in a summary manner

• Decide disputes on the basis of documents, affidavits, and limited arguments

• Deliver a binding award within 6 months

This provision reflects the Indian judiciary’s commitment to minimizing litigation delays and promoting alternate dispute resolution.

• Recovery of dues or breach of commercial contracts

• Vendor disputes, service-level disagreements, or lease conflicts

• Shareholder exit issues, IP licensing claims with limited monetary value

• Internal business disagreements requiring urgent resolution

While efficient, it may not be suitable for:

• Disputes involving complex factual or technical issues

• Situations requiring multiple witnesses, expert testimony, or in-depth cross-examination

• Cases with multiple parties, extensive procedural requirements, or international elements

• Before tribunal is formed → Apply to court under Section 9

• After tribunal is formed → Apply to tribunal under Section 17

• Application should include supporting affidavit, documents, urgency, and proposed relief

• Orders under Section 17 are binding and enforceable like court orders (after 2015 amendment)

• Interim measures are not meant for harassment or delay

• Courts and tribunals take strict view against frivolous or bad faith applications

• Orders can be reversed, modified, or vacated if circumstances change

Interim measures are a powerful protective tool in arbitration that help secure rights, assets, and justice even before the final award. With strategic counsel from experts like TAXAJ, parties can navigate this phase effectively while minimizing risk.

Arbitral tribunals and courts typically assess:

• Prima facie case: Is there a reasonable case to be tried?

• Balance of convenience: Does the harm to the applicant outweigh the inconvenience to the respondent?

• Irreparable injury: Will the applicant suffer loss that cannot be adequately compensated by damages?

• Does not review facts or re-appreciate evidence

• Does not substitute the tribunal’s decision with its own

• Focus is only on procedural and legal validity of the award

📚 Landmark Case Laws

• ONGC Ltd. v. Saw Pipes Ltd. (2003)
  Established that an award can be set aside for “patent illegality” under public policy grounds.

• Associate Builders v. DDA (2014)
  Defined the scope of “public policy” in award challenges and emphasized minimal judicial intervention.

• MMTC Ltd. v. Vedanta Ltd. (2019)
  Reiterated that courts cannot interfere with merits or re-evaluate evidence in award challenges.

• Delay in enforcement and risk of penalty or adverse costs

• Damaged credibility before the court

• Possible enforcement action during or after the challenge period

At TAXAJ, we guide you through the strategic and procedural aspects of challenging (or defending) an arbitral award:

• Detailed scrutiny of the arbitral award for legal infirmities

• Drafting Section 34 applications or replies with strong legal reasoning and case law

• Representing clients in challenge proceedings before competent courts

• Coordinating with forensic or subject matter experts to prove grounds like fraud or corruption

• Advising on enforcement or interim relief while award challenge is pending

While arbitral awards are presumed final and binding, Indian law offers a narrow window for challenge on procedural or public policy grounds. With TAXAJ’s expert legal team, you can safeguard your rights and assets through well-grounded challenge proceedings or by defending the integrity of the award.