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Domestic arbitration in India, is an arbitration conducted as per the procedural law of India and in a seat (Place) in India. The Procedural law in India is Arbitration and Conciliation Act,1996. There are two types of arbitrations in India which are classified as Domestic Arbitration, which are as follows:

  1. An arbitration between two Indian Parties
  2. An arbitration between one Indian party and foreign parties, with an arbitration seat in India

In both the above said cases, the supervisory jurisdiction vests with Indian courts, having its jurisdiction over the seat of arbitration. Hence the power to appoint an arbitrator and power to set aside the arbitral award goes to those supervising courts.

Appointment of Arbitrator:

If it is an ad-hoc arbitration proceeding between Indian parties, then the power to appoint the arbitrator is with the High Court of the State, where the arbitration seat is situated. Normally the above said appointment proceedings take one to five years, which is waste of time for the parties. If parties choose IDAC India Rules, then the parties will jointly choose the arbitrator, failing which IDAC India will appoint the arbitrator on the request of the parties. IDAC India will complete the appointment procedure and inform the parties, the name, qualifications, and his /her consent and contact details to the parties within 30 days from the date of receipt of the request.

IDAC India Domestic Arbitration:

Indian law prescribes certain procedure for the conduct of arbitration, only when the parties do not agree for a common procedure. That means if parties agree on a particular procedure to conduct arbitration, the law does not interfere into the agreed procedure. But parties cannot decide item wise and finalise a strong arbitration procedure. But IDAC India being a professional Arbitration centre, has drafted and published “IDAC India Domestic Arbitration Rules”, which has taken care all the possible issues, to ensure transparent arbitration. Hence if parties incorporate into the arbitration clause, choosing IDAC India Rules, that will help them to have a hassle free systematic arbitration.

Once parties choose IDAC Rules for their arbitration, IDAC gets the authority to appoint the arbitrator (if parties do not agree on a common arbitrator), fix the fees, administer the arbitration etc., Since IDAC India ensures transparency, fair and professionally managed arbitration, the parties will resolve their disputes effectively and within a reasonable time.

Procedure to initiate arbitration proceedings as per IDAC India Rules:

If the agreement contains an arbitration clause, in which the parties have agreed to apply IDAC India Arbitration Rules, then the party which requires to start the arbitration can write a letter enclosing the copy of the arbitration clause, list of claims along with the application fee to Registrar, IDAC India seeking appointment of arbitrator. Once such a letter is received, the centre will take over the matter, initiate the proceedings and administer the arbitration as prescribed in the Rules.