Scribd
Upload
15 views

Assignment 5 - Exercises On Domestic Arbitration & Draft An

Uploaded by

khush84279
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
15 views

Assignment 5 - Exercises On Domestic Arbitration & Draft An

Uploaded by

khush84279
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

Assignment 5 - Exercises on Domestic Arbitration & Draft an

Arbitration Clause
By Khushpreet Kaur (8427968035)

Exercise 1: How to draft Arbitration Clause in an Agreement

Dispute Resolution :
In case of any dispute arises between the parties on the terms of this Agreement, such dispute
shall be administered through an Arbitration process which shall be governed under the
Maharashtra State laws. All the proceedings of an arbitration shall be conducted as per the
provisions of the Arbitration & Conciliation Act, 1996. The seat of an Arbitration shall be
Mumbai and the venue can be mutually decided as per convenience of the the parties. The
language of the Arbitration proceedings shall be English or the oral evidences can be produced in
Hindi.
Parties shall refer the dispute to Mr. XXXXX (residing in Mumbai), who shall be a sole
arbitrator for the dispute. The fee of an arbitrator, expenses and costs occurred during the
Arbitration shall be beared by both the parties mutually.

Exercise 2: Reviewing and redrafting an arbitration clause.

“The Parties agree that in the event of any dispute or difference arising between the Parties in
connection with this Agreement, the aggrieved party shall notify the other of the dispute. The
Parties shall attempt to reach an amicable solution by mutual discussion within thirty days. In
case of failure to resolve disputes amicably, the parties will resort to mediation or conciliation. If
all other processes fail, the parties shall resort to arbitration for the effective and binding
resolution of disputes. The arbitral tribunal will consist of 2 arbitrators, with each party
choosing one arbitrator who together will constitute the tribunal.”

A. Mistakes in the above said clause are listed as under:


- The time period for notice within which parties shall notify each other about the dispute
is not decided and mentioned.
- After the failure of amicable solution the process for the dispute resolution is not decided
specifically which shall be either mediation or conciliation. Here, both options are open
ended which may arise a dispute further.
- The time period within which a dispute should be resolved through mediation and
conciliation is not specified.
- As per the Section 10 of the Arbitration and Conciliation Act, 1996 the number of
arbitrators should not be an even number. Here no of arbitrators mentioned is two which
is an even number. It should be an odd number.

B. Redraft of the Clause:


● The Parties agree that in the event of any dispute or difference arising between the Parties
in connection with this Agreement, the aggrieved party shall notify the other of the
dispute within 7 days of the dispute. The Parties shall attempt to reach an amicable
solution by mutual discussion within thirty days. In case of failure to resolve disputes
amicably, the parties will resort to mediation process within 30 days from the date of such
failure. The mediation process shall be conducted as per the rules and regulations of
Mumbai Mediation Centre, under the exclusive jurisdiction of Mumbai Courts.
● In the event of the dispute remaining unresolved through mediation, the parties shall
resort to arbitration for the effective and binding resolution of disputes. The proceedings
of an arbitration shall be conducted as per institutional rules of Delhi Arbitration Centre.
All the proceedings of an arbitration shall strictly adhere to the provisions of the
Arbitration and Conciliation Act, 1996. The seat and venue of an Arbitration shall be in
Delhi. All the arbitration proceedings shall be conducted in English. The arbitral tribunal
will consist of 3 arbitrators, which shall be appointed by the Delhi Arbitration Centre.
The fee and costs occurred during the proceedings shall be payable by both the parties
equally. The dispute shall be governed under Indian Partnership Act, 1932.

You might also like