FAQs Arbitration

Arbitration as a method of dispute resolution can be more cost-effective, expeditious than litigation. It is also a less formal process than court litigation, and it is conducted in private. Parties to the arbitration, as well as arbitrators, are obliged to maintain the confidentiality of all matters relating to the proceedings and the award. Arbitral awards are binding on the parties, just like a decree of the Court. There are limited avenues for setting aside an arbitral award.

In institutional arbitration, arbitral proceedings are administered by specialised institution like ILSCA. The institution has its dedicated set of rules to regulate different stages of arbitral proceedings. The institution provides assistance to parties and arbitrators in conducting arbitral proceedings.

A form of arbitration where the parties and the arbitrators determine the procedure, without the involvement of an arbitral institution. In such arbitration parties on their own have to make all administrative arrangements.

The following are some of the advantages which arbitration under the ILSCA (IA) Rules offers over ad hoc arbitration proceedings:

1. An arbitration conducted under the ILSCA (IA) Rules enables the parties to take advantage of a sophisticated set of institutional arbitration rules which incorporate international best practices for the efficient conduct of arbitration proceedings.
2. The ILSCA (IA) Rules provide for, among other things, special procedures such as the consolidation of arbitral proceedings, joinder of parties and appointment of an emergency arbitrator – mechanisms which are not available in ad hoc proceedings.
3. The ILSCA (IA) Rules contain an efficient procedure for the appointment of the Arbitral Tribunal, which is more convenient and expeditious than approaching the Indian courts under Section 11 of the Arbitration and Conciliation Act, 1996.
4. ILSCA provides administrative assistance in ILSCA administered arbitral proceedings which eases the administrative burden on the parties and the Arbitral Tribunal. The ILSCA Secretariat will also supervise the arbitral process to facilitate expeditious completion of the arbitration proceedings.
5. ILSCA also provides assistance of Tribunal Secretary, to arbitrators in conducting ILSCA administered arbitral proceedings.
6. The ILSCA (IA) Rules contain ILSCA Schedule of Fees so the likely costs of the proceedings can be calculated in advance, thereby ensuring a cost-efficient and transparent arbitration process.
7. The Appointing Authority, ILSCA will scrutinize arbitral awards before they are released to the parties. While it does not affect the Arbitral Tribunal’s liberty of decision, this process helps to reduce the scope for administrative errors in the award and makes enforcement problems less likely.

ILSCA (IA) Rules facilitate administer arbitral proceedings in an efficient and effective manner. In ILSCA administered arbitrations parties and arbitrators are bound by these Rules.
The 1st edition of ILSCA (IA) Rules came into force on 10th January 2020. Unless the parties have agreed otherwise, these rules shall apply to any arbitration, domestic or international, commenced on or after the said date.

All disputes arising out of contractual or non-contractual legal relationship between the parties and which are arbitrable can be referred to ILSCA. The types of disputes administered by ILSCA may include, among others, corporate, commercial, trade and investment, construction/engineering, shipping/maritime, insurance, intellectual property, banking and finance, etc.

No; ILSCA is an independent and neutral arbitral institution, and thus, does not provide any legal advice to the parties.

Any person, company or organization can submit a dispute to ILSCA pursuant to an arbitration agreement which has a clause referring the parties to ILSCA for resolution of dispute, or if the parties subsequently agree to resolve their disputes through arbitration according to ILSCA (IA) Rules.

No. There is no minimum or maximum claim amount for cases to be administered by ILSCA.

Yes. All arbitrations conducted according to the ILSCA (IA) Rules are confidential. Parties and the Arbitral Tribunal are required to treat all matters relating to the proceedings and the award as confidential.

Yes. ILSCA (IA) Rules provide for juridical seat of arbitration which is by default Pune.
ILSCA (IA) Rules also give the discretion to parties to select an alternative juridical seat of arbitration.

The parties must first agree to submit the dispute to ILSCA to be administered according ILSCA (IA) Rules – either by way of an arbitration clause contained within their agreement, or a written post-dispute agreement. If either requirement is fulfilled, an arbitration under ILSCA (IA) Rules can be commenced by filing a Request for Commencement of Arbitration.

Any party wishing to commence an arbitration (the “Claimant”), under the ILSCA (IA) Rules, shall send a written Request by filing the Request Form (Form No. 101, Schedule I – Forms)

Any party wishing to commence an arbitration (the “Claimant”) in court referred arbitration, under the ILSCA (IA) Rules, shall send a written Request by filing the Request Form (Form No. 102, Schedule I – Forms).

Written Request for Commencement of Arbitration, shall be filed with the Appointing Authority, ILSCA either by hand, or through post, or by fax, or by email at the following contact details

Appointing Authority, ILSCA
Indian Law Society’s Centre for Arbitration and Mediation (ILSCA),
ILS Law College Campus, Chiplunkar Road (Law College Road),
Pune - 411004.
Email: ilsca@ilslaw.in

A copy of the Request for Arbitration should also be sent to the Respondent(s) and the Claimant should notify the Appointing Authority, ILSCA of the mode of service employed and the date of service by documentary proof of such service.

All communications and applications to ILSCA under these Rules shall be in English.

No. Subject to the circumstances of the case, it is not necessary for arbitrators to be lawyers or to have a legal background. They can also be engineers, Chartered Accountants, financial experts or any other experts. Such experts may be appointed to the ILSCA Panel of Arbitrators.

No. Parties to a dispute do not necessarily need to be represented by lawyers in ILSCA-administered arbitrations, although it is recommended.

Yes. There is one-time non-refundable ILSCA Filing Fee.

If the Claimant does not pay the non-refundable ILSCA Filing Fee, the Appointing Authority, ILSCA may determine that the Request for commencement of Arbitration is not complete and Appointing Authority shall not proceed further with the arbitral process, by passing an appropriate written order.

Yes. The one-time non-refundable ILSCA Filing Fee is payable for a Counterclaim as well. A Respondent who wishes to bring a Counterclaim in pending arbitral proceedings must pay a non-refundable ILSCA Filing Fee for the counterclaim.

If the Respondent fails to pay the non-refundable ILSCA Filing Fee for a counterclaim the Appointing Authority shall not proceed further with the arbitral process relating to Counterclaim, by passing an appropriate written order.

Yes. There is an ILSCA Administrative Fee payable for both Claim and Counterclaim.

The non-refundable ILSCA Filing Fee and ILSCA Administrative is calculated on the total amount of Claim and Counterclaim. For details, please check ILSCA Schedule of Fees.

Yes. ILSCA (IA) Rules provide for juridical seat of arbitration which is by default Pune.
The non-refundable ILSCA Filing Fee and the ILSCA Administrative Fee can be paid either by Cheque, Demand Draft or Pay Order drawn in favor of ‘Indian Law Society Centre for Arbitration’ or through bank transfer. (Bank details are provided in the ILSCA Schedule of Fees.)

Unless there is an arbitration clause in the contract or parties have a post-dispute agreement to refer the dispute to arbitration at ILSCA or arbitration in accordance with the ILSCA (IA) Rules, ILSCA will not be able to administer the arbitration.

No. An arbitration agreement referring to “arbitration in Pune” may not sufficiently provide for ILSCA-administered arbitration, although it may provide for ad hoc arbitration seated in Pune. To ensure that the intention of parties for arbitration to be administered by ILSCA according to the ILSCA (IA) Rules is reflected in the contract, parties shall incorporate the ILSCA Model Clause, in their contract.

When the parties refer their dispute to ILSCA and if the parties have not appointed an arbitrator or have not agreed upon any specific method of appointment, the Appointing Authority, ILSCA shall appoint the arbitrator(s) using the ILSCA List Procedure

Yes. ILSCA maintains a Panel of Arbitrators comprised of experienced and qualified arbitrators from around the globe.

Any person interested in being considered for becoming a member of the ILSCA Panel of Arbitrators may send an application in prescribed format along with required documents to Advisory Body of ILSCA in response to the call inviting applications for empanelment. For more details see ILSCA Panel of Arbitrators.

Yes, the parties can nominate their arbitrator(s) under the ILSCA (IA) Rules; however, appointment of such arbitrator(s) is subject to confirmation by the Appointing Authority, ILSCA.

A party may challenge the appointment of an arbitrator if:

1. the circumstances exist that give rise to justifiable doubts as to his independence or impartiality; or
2. the arbitrator does not possess any requisite qualification on which the parties have agreed; or
3. if an arbitrator becomes de jure or de facto unable to fulfill his functions; or
4. If the arbitrator is not fulfilling those functions in accordance with the ILSCA (IA) Rules or within the prescribed time limits.

Yes. Upon application being made by a party, the Appointing Authority, ILSCA, in consultation with the ILSCA Secretariat may consolidate two or more arbitrations into a single arbitration.

Two or more arbitrations pending under ILSCA (IA) Rules may be consolidated only if the parties have agreed to consolidate:

1. two or more pending arbitrations or;
2. where the claims in all the arbitrations to be consolidated are made under the same arbitration agreement.

Yes.

• A party to an on-going arbitral proceeding wishing to join a third party, who is not a party to the arbitration agreement, as a Claimant or a Respondent, to the arbitral proceeding may submit a Request for Joinder to the Arbitral Tribunal constituted under ILSCA (IA) Rules
• A non-party to the arbitration agreement wishing to join as a third party, to an on-going arbitral proceeding, as a Claimant or a Respondent, may submit a Request for Joinder to the Arbitral Tribunal constituted under ILSCA (IA) Rules.
• The Request for Joinder may be submitted, by a party or by a non-party, prior to the constitution of the Arbitral Tribunal, to the Appointing Authority, ILSCA. Such Request for Joinder made to the Appointing Authority will be decided by the Arbitral Tribunal after its formation.

An interim measure of protection is a temporary measure passed by the Arbitral Tribunal at the request of a party at any time prior to the making of the final award by which the Arbitral Tribunal orders a party to:

1. maintain or restore the status quo pending determination of the dispute;
2. take action that would prevent, or refrain from taking action that is likely to cause current or imminent harm;
3. provide a means of preserving assets out of which the final award may be satisfied;
4. preserve evidence that may be relevant and material to the resolution of the dispute.

Before the Arbitral Tribunal orders interim measures, the party requesting for interim measures shall satisfy the Arbitral Tribunal that:

1. non granting of interim measures will result in irreparable harm, loss or damages, which cannot be compensated in terms of money; and
2. such harm substantially outweighs the harm that is likely to result to the party against whom the measure is directed if the measure is granted; and
3. there is a reasonable possibility that the party making the request is likely to succeed on the merits of its claim; and
4. the party seeking interim measure has a prima facie case; and
5. the balance of convenience is in its favour.

The final arbitral award shall be in writing and signed by the members of the Arbitral Tribunal. The award shall state the date of award and the place of arbitration.

Yes; ILSCA (IA) Rules provide that before signing any award, the Arbitral Tribunal shall submit the draft arbitral award to the Appointing Authority, ILSCA. The Appointing Authority may make modifications as to the form of the draft award and, without affecting the Arbitral Tribunal’s liberty of decision, may also draw its attention to points of substance. No award shall be made final by the Arbitral Tribunal until the draft arbitral award has been scrutinized by the Appointing Authority as to its form.

Yes. A party may within thirty (30) days of receipt of the final arbitral award may request for correction, interpretation of the final award or for additional award.

The final arbitral awards passed by Arbitral Tribunals in arbitrations administered under ILSCA (IA) Rules may be published on ILSCA’s website after obtaining written consent of all parties and the Arbitral Tribunal. Provided, however, that the names of parties and other material which ILSCA or the parties consider confidential in nature, is redacted.

Emergency Arbitrator means an interim Arbitral Tribunal appointed for the purposes of an Emergency Arbitration. In a scenario, wherein the Arbitral Tribunal is not constituted and sufficient time will be spent in constituting an Arbitral Tribunal, a party that needs urgent interim or conservatory measures that cannot await the constitution of an Arbitral tribunal may file an application for appointment of an Emergency Arbitrator under the ILSCA (IA) Rules.

The party shall submit the application for appointment of Emergency Arbitrator to the Appointing Authority in the prescribed format (Form No. 104, Schedule I – Forms).

The Appointing Authority, ILSCA shall use its best endeavours and in consultation with the ILSCA Secretariat shall within two (2) days of receiving such application, complete in all respects, appoint an Emergency Arbitrator from ILSCA Panel of Arbitrators.

A party may file an application with the Appointing Authority, ILSCA for the arbitral proceedings to be conducted in accordance with the FastTrack Procedure. The application may be filed after the completion of pleadings but prior to the constitution of the Arbitral Tribunal.

Under the following conditions the arbitral proceedings may be conducted in accordance with the FastTrack procedure;

1. the anticipated amount in dispute at the time of the application does not exceed the amount of, or the amount equivalent to, Rs 10 crore (Rs 10,00,00,000), representing the aggregate of the claim, Counterclaim or set-off, if any; or
2. the parties so agree; or
3. in cases of exceptional urgency.

The arbitral proceedings in FastTrack procedure iILSs conducted by a sole arbitrator, who shall pass the final arbitral award within six months when the Arbitral Tribunal is constituted.

A regular arbitration under the ILSCA (IA) Rules would be completed approximately within 5 months, extendable up to 12 months from the date of commencement of arbitral proceedings. The actual duration of any case will depend on, among other factors, the number of arbitrators, sum in dispute, complexity, interlocutory applications, factual witnesses and/or expert witnesses, hearing days and the respective calendars of parties and the Tribunal.

In the event if parties adopt ‘fast-track’ procedure for resolving their dispute, FastTrack Procedure as per ILSCA (IA) Rules requires the final award to be issued within 6 months of the constitution of the Tribunal, unless the time for making the final award is extended.

Yes. ILSCA is situated in a separate building which has state-of-the-art arbitration hearing rooms, breakout rooms, arbitrator’s lounge and a business centre for the smooth running of the proceedings.

It comprises of three big arbitration rooms (Samata, Vivachan, Mimansa) that can seat up to 14 people around the table and 6 audiences, as well as three small arbitration rooms (Nyay, Neeti, Sudharma) that can seat up to 7 people around the table and 4 audiences. The big arbitration rooms have video conferencing facility. All arbitration rooms are air-conditioned and have wi-fi connectivity.

On request, the ILSCA may also provide for facilities such as printing, photocopy, services of a stenographer, translator/interpreter and food arrangements upon payment of additional charges at actuals.

Apart from this, the building also has a Conference Hall that can seat up to 100 people, and Guest Rooms to facilitate accommodation of the guests.

Yes. Where a request for appointment of arbitrator(s) is made by the parties in an ad hoc arbitration ILSCA appoint arbitrator from the ILSCA Panel of Arbitrators.

The party requesting for appointment of arbitrator in ad-hoc Arbitration shall pay the fee to ILSCA (as mentioned below) along with the application for appointment of the arbitrator.

1 Arbitrator	2 Arbitrators	3 Arbitrators
INR 50,000*	INR 65,000*	INR 80,000*

* Taxes as applicable.

Yes, it is possible to use the ILSCA premises for ad hoc arbitrations against the payment of ILSCA Arbitration Hearing Room charges specified under the ILSCA Schedule of Fees.

Where parties have chosen to resolve their disputes by application of ILSCA (IA) Rules, such arbitrations are held at ILSCA, ILS Law College Campus, Chiplunkar Road, Pune – 411004, unless in exceptional circumstances, the Appointing Authority permits, in its discretion, holding of oral hearings outside ILSCA.

The standard operating hours of the ILSCA is 9 a.m. to 6 p.m. from Monday to Saturday. However, this is extendable according to the request of the parties.

Arbitrations at the ILSCA operate on an ad valorem system, in which the costs of the arbitration are based on the value of the sum in dispute (i.e., total of Claim and Counterclaim amount).

The costs of an arbitration are based on the sum of dispute in the arbitration proceedings in accordance with the ILSCA Schedule of Fees.

Fee calculator is provided in ILSCA Schedule of Fees.

At the time when payment of deposit is due, the Claim or Counterclaim resulting from the dispute is undervalued or not quantified because the relief claimed is other than the money claim, viz., a declaratory claim etc, then in that event the Appointing Authority, ILSCA shall at its discretion proceed to revise or fix a value for such claims taking into account all necessary circumstances and advise the parties accordingly to deposit the costs.

Yes. ILSCA can administer arbitrations where the governing law of the contract is not Indian law, as long as the parties mutually agree to submit their dispute to the ILSCA.

The term “costs of the arbitration” means procedural cost and other expenses.

Procedural cost includes;

1. ILSCA Institutional Fees;
2. Non-refundable ILSCA Filing Fee;
3. ILSCA Administrative Fee;
4. The Tribunal Secretary’s fee, whenever appointed;
5. Fees and expenses of the Arbitrators;
6. Application Fee for Scrutiny of Award

expenses include

1. The travel, lodging and boarding and other expenses incurred by the Arbitrators or by witnesses and by expert witnesses.

1. Arb-Med-Arb is a flexible and efficient form of alternative dispute resolution, which combines the advantages of confidentiality and neutrality with enforceability and finality.
2. Arb-Med-Arb is a hybrid mechanism which is a combination of arbitration and mediation. Parties to the dispute are free chose the Arb-Med- procedure.
3. The Advantages under the Arb-Med-Arb are clarity, certainty of process, the possibility of a meaningful mediation with an effort towards settlement and its enforceability.
4. ILSCA Arb-Med-Arb Rules shall apply to all disputes submitted to ILSCA for resolution under the Arb-Med-Arb Clause.
5. If the party invokes the Arb-Med-Arb clause anytime during the arbitral proceedings, the dispute should be submitted initially for arbitration to be administered according to ILSCA (IA) Rules and then to mediation to be administered according to ILSCA (IM) Rules.

Yes. In drawing up of contracts it is recommended that parties may include the ILSCA Arb-Med-Arb Model Arbitration Clauses.