Arbitration cases arise when a dispute or disagreement emerges between parties who have previously agreed to resolve such conflicts outside of a traditional court setting. This agreement is typically established in advance through a specific arbitration clause within their original contract
When can arbitration be invoked?
For an arbitration case to be initiated, several prerequisites must be met:
- Existence of a Valid Arbitration Agreement: There must be a written agreement, often a clause in a broader contract, where parties consent to submit present or future disputes to arbitration.
- An Actual Dispute: A real disagreement or conflict must have arisen between the parties concerning their legal relationship, such as a breach of contract claim, a payment dispute, or issues related to performance.
- Notice of Arbitration: The process formally commences when one party serves a formal written notice to the other party, indicating their intention to refer the specific dispute to arbitration. This notice is crucial for establishing the start date of the proceedings and adhering to limitation periods.
- Arbitrable Subject Matter: The nature of the dispute must be one that can legally be settled by arbitration. Certain matters, such as criminal cases or family law issues, may not be suitable for arbitration in some jurisdictions
How do you invoke the arbitration clause?
Section 11 of the Arbitration and Conciliation Act, 996 addresses the appointment of arbitrators when parties cannot agree on a choice or mechanism for their selection. This provision empowers the Chief Justice of the High Court or the Supreme Court, depending on the case, to appoint an arbitrator or an arbitral tribunal. The scope of Section 11(6) involves the Court’s role in ensuring that an arbitration agreement is honoured and that the appointment process is handled fairly.
When happens after an arbitrator has been appointed?
Upon appointment of the arbitrator, the claimant is expected to file their claim statement. Following notice to the respondent, a defence statement is filed and the case is posted either for evidence or directly for arguments depending on the facts and circumstances of the case. An award is passed by the Arbitrator upon hearing both the parties.
The procedure to for arbitration can be simplified in the following steps:
- Appointment of Arbitrator application > Notice to respondent.
- Arbitrator Appointed.
- Claim statement filed > notice to respondent.
- Defence statement filed > evidence of parties
- Arguments > Award Pronounced.

