“Arbitration” means any arbitration whether or not administered by permanent arbitral institution;

This is the definition given under the Arbitration & Conciliation Act, 1996.

In a general sense, it refers to a private tribunal constituted to adjudicate disputes between the parties. Individuals and organizations when commonly conducting commercial transactions often agree in writing to refer any disputes or differences arising out of such commercial transactions to be decided by a mutually appointed person(s) (arbitrator). Such private courts verdict is then called an arbitral award and proceedings an "arbitration"

It is typically faster, confidential, and more flexible than litigation. Importantly, the parties retain significant autonomy in choosing the adjudicator, deciding the seat and venue of arbitration, and agreeing on the manner of proceedings—options not usually available in regular court litigation.

Arbitration is suitable when parties want a time-bound, enforceable, and neutral mechanism for resolving commercial, contractual, construction, shareholder, or cross-border disputes. It is especially preferred where confidentiality and enforceability of the award are important.

Yes. In India, arbitral awards are enforceable as if they were decrees of a court under the Arbitration and Conciliation Act, 1996. Foreign arbitral awards can also be enforced in India under the New York Convention or Geneva Convention, subject to conditions.

An arbitral award made in a country that is a signatory to either the New York Convention or the Geneva Convention, and which has been notified by the Central Government of India as a "convention country," is deemed to be a foreign award. Such an award is enforceable in India in accordance with the provisions of Part II of the Arbitration and Conciliation Act, 1996 (Sections 44–52 for New York Convention awards and Sections 53–60 for Geneva Convention awards).

Arbitration is premised on the principle of party autonomy, allowing parties to mutually agree upon the appointment of an arbitrator or to designate an arbitral institution for such appointment. In the absence of consensus or a prescribed procedure, a party may invoke Section 11 of the Arbitration and Conciliation Act, 1996, and seek the appointment of an arbitrator from the Hon’ble Supreme Court (in international commercial arbitration) or the Hon’ble High Court (in domestic arbitration).

While the duration of arbitration proceedings may vary depending on the complexity of the matter, arbitration is generally faster than traditional litigation. Under Section 29A of the Arbitration and Conciliation Act, 1996, domestic arbitrations are required to be completed within a period of 12 months from the date of completion of pleadings, extendable by a further 6 months with the consent of the parties. Any further extension requires leave of the Court.

Costs depend on the nature of the dispute, the arbitrator’s fees, institutional charges (if applicable), and professional legal representation. However, arbitration often proves cost-effective in the long run by reducing prolonged litigation.

Yes, but only in rare cases. Courts can set aside an arbitral award on limited grounds like fraud, denial of fair hearing, or if it goes against India’s public policy. Otherwise, courts usually respect the finality of arbitral awards and avoid re-examining the merits of the case.

Parties can still mutually agree to refer their dispute to arbitration through a separate arbitration agreement.

A party wishing to challenge an arbitral award in India must file an application under Section 34 of the Arbitration and Conciliation Act, 1996 within three months from the date of receiving the award. The court may allow an additional 30 days if sufficient cause for delay is shown, but not beyond that.

Justice should not only be done but must also be seen to be done." This principle emphasizes that the process of delivering justice must be fair, transparent, and impartial.

Unilateral Arbitration refers to an arbitration process where one party, without adhering to the due process of law, unilaterally appoints an arbitrator to adjudicate its disputes. The process is termed “unilateral” because the appointing party does so without consulting the other party or obtaining its consent, often designating either an individual or an institution of its own choice.

Such a procedure is fundamentally flawed from its inception and has been criticized and struck down by several High Courts as well as the Supreme Court for lacking fairness and equality between parties.

Yes, Lex Horizon provides expert legal services for arbitration cases PAN India. Our arbitration team assists with drafting agreements, initiating or defending claims, and representing clients in institutional and ad-hoc arbitrations. We ensure compliance with the Arbitration and Conciliation Act, 1996 and guide you through every stage of the process, from filing a claim to enforcing an award.