Arbitration, Mediation and Conciliation · Emerging Aspects: Fast Track and Virtual Arbitration

Arbitration Agreement for Fast Track and Online Arbitration

Updated 11 October 2026 · Fact-checked

An arbitration agreement under Section 7 must be in writing, and writing includes emails and other electronic communication that record the agreement. Parties may also agree in writing, before or at the time the tribunal is appointed, to use the Section 29B fast track procedure, which asks for an award within six months.

Understand Arbitration Agreement for Fast Track and Online Arbitration

Start with the basic idea. An arbitration agreement is the parties' agreement to submit to arbitration all or certain disputes that have arisen or may arise between them, in respect of a defined legal relationship, whether contractual or not. This is Section 7(1). It can be a clause in a contract or a separate agreement (Section 7(2)).

The one fixed requirement is form. Section 7(3) says the agreement shall be in writing. Section 7(4) tells you when it counts as written. There are three routes: a document signed by the parties; an exchange of letters, telex, telegrams or other means of telecommunication, including communication through electronic means, that provide a record of the agreement; or an exchange of statements of claim and defence where one party alleges the agreement and the other does not deny it.

This is why an agreement made by email can be valid. The signature of both parties on one paper is not needed. What matters is that the exchange gives a record of the agreement. The words "including communication through electronic means" were inserted by the 2015 amendment, with effect from 23 October 2015. Section 7(5) adds that a reference in a written contract to another document containing an arbitration clause is an arbitration agreement if the reference makes that clause part of the contract.

Now the fast track link. Section 29B lets parties agree in writing to have their dispute resolved by fast track procedure. They may do so at any stage, either before or at the time of appointment of the tribunal. So the option can be built into the original arbitration clause, or agreed later by a separate written agreement. The parties may also agree on a sole arbitrator chosen by them (Section 29B(2)).

Under the fast track procedure the tribunal decides on written pleadings, documents and submissions without an oral hearing, unless all parties request one or the tribunal considers it necessary. The award is due within six months from the date the tribunal enters upon the reference. If that period is missed, sub-sections (3) to (9) of Section 29A apply. Fees are as agreed between the arbitrator and the parties.

Key rules to remember

Definition of arbitration agreement: Agreement to submit present or future disputes + defined legal relationship (contractual or not) — Section 7(1); Can be a clause in a contract or a separate agreement, Section 7(2).
Writing requirement: Arbitration agreement shall be in writing — Section 7(3); No writing, no valid arbitration agreement under Part I.
Three ways of being in writing: (a) document signed by parties; (b) exchange of letters, telex, telegrams or other telecommunication, including electronic means, giving a record; (c) exchange of statement of claim and defence, existence alleged by one and not denied by the other — Section 7(4); Email fits (b). Pleadings fit (c).
Incorporation by reference: Contract in writing + reference makes the arbitration clause part of the contract — Section 7(5); A passing mention of a document is not enough. The reference must make the clause part of the contract.
Agreeing to fast track: Written agreement, at any stage before or at the time of appointment of tribunal — Section 29B(1); Optional. Sole arbitrator chosen by parties may be agreed, Section 29B(2).
Fast track time limit: Award within 6 months from the date tribunal enters upon the reference — Section 29B(4); On delay, Section 29A(3) to (9) apply, Section 29B(5).

How to solve Arbitration Agreement for Fast Track and Online Arbitration questions

Use this method for any question on the form of an arbitration agreement or on agreeing to fast track or online arbitration.

1Identify the dispute and the legal relationship. Check that the parties agreed to submit present or future disputes to arbitration (Section 7(1)).
2Test the form. Ask: is there a signed document, an exchange of electronic or other telecommunication giving a record, or an exchange of claim and defence with no denial? Name the clause of Section 7(4).
3If the arbitration clause sits in another document, apply Section 7(5): is the contract in writing and does the reference make the clause part of it?
4If fast track is raised, check that the parties agreed in writing and that it was before or at the time of appointment of the tribunal (Section 29B(1)).
5Apply the fast track features: written pleadings without oral hearing, oral hearing only on request of all parties or if the tribunal thinks it necessary, six months for the award, and the Section 29A consequence of delay.
6State the conclusion clearly: valid or not, fast track applicable or not, and why. Add a practical drafting point if the question asks for it.

Quickest way: Four-question check

When to use it: When time is short and the question gives a short fact pattern, such as an email exchange or a clause that mentions fast track.

Writing? Find the record: signed paper, email or message exchange, or pleadings.
Dispute and relationship? Confirm a defined legal relationship and disputes covered.
Fast track? Look for a written agreement made no later than the time of appointment.
Conclude in one line with the section: Section 7(3)-(4) for form, Section 29B for fast track.

Common mistakes in Arbitration Agreement for Fast Track and Online Arbitration

Saying an arbitration agreement is valid only if both parties sign one document.
Students remember Section 7(4)(a) and forget the other two limbs.
Fix: Learn all three limbs. An exchange of emails giving a record of the agreement falls under Section 7(4)(b).
Treating an oral arbitration agreement as valid because both sides admit it.
Confusion with contracts, which can be oral.
Fix: Section 7(3) requires writing. Only the listed forms count, including the case where claim and defence pleadings show the agreement alleged and not denied.
Saying fast track applies automatically to small disputes.
The name suggests a speed-based rule.
Fix: Section 29B applies only if the parties agree in writing. It is not imposed by the value of the claim.
Stating that fast track can be agreed at any time, even after the tribunal is appointed.
Students read 'at any stage' and ignore the words that follow.
Fix: The text says at any stage either before or at the time of appointment of the arbitral tribunal. Quote it.
Writing that an oral hearing is banned in fast track.
Students remember 'without any oral hearing' and stop.
Fix: An oral hearing may be held if all parties request it or the tribunal considers it necessary to clarify issues. Then technical formalities may be dispensed with.
Saying the award lapses after six months.
Mixing the time limit with its consequence.
Fix: If the award is not made in six months, Section 29A(3) to (9) apply to the proceedings. Do not say the proceedings simply end.

Worked examples

Example 1

Ananya Textiles Pvt Ltd, Surat, and Rao Dyes, Hyderabad, never signed a single agreement. Ananya's purchase manager emailed: 'We confirm that any dispute under our dye supply arrangement will be referred to arbitration in Mumbai.' Rao Dyes' director replied by email: 'Agreed.' A dispute arises. Rao argues there is no arbitration agreement because nothing was signed. Advise.

Show the solution

Provision: Section 7(3) requires the arbitration agreement to be in writing. Section 7(4)(b) treats an exchange of letters, telex, telegrams or other telecommunication, including electronic means, that provide a record of the agreement as writing.
Analysis: The parties exchanged emails. The first email proposed referring disputes under the supply arrangement to arbitration. The reply said 'Agreed.' The emails together give a record of the agreement. The disputes relate to a defined legal relationship, the supply arrangement.
Rao's argument: Signature of both parties on one document is only one limb, Section 7(4)(a). It is not the only way to satisfy the writing requirement.
Conclusion: The exchange of emails satisfies Section 7(4)(b), so there is a valid arbitration agreement in writing.

Answer: Rao's objection fails. The email exchange is an arbitration agreement in writing under Section 7(3) and 7(4)(b), because it is an exchange by electronic means that provides a record of the agreement.

Example 2

A contract between Kavya Logistics Ltd and Metro Cold Storage LLP contains an arbitration clause. After a dispute arises, but before any arbitrator is appointed, the parties sign a letter agreeing to resolve it by fast track procedure with a sole arbitrator chosen by them. Explain whether this is valid and how the proceedings will run, including the time limit.

Show the solution

Provision: Section 29B(1) allows parties to an arbitration agreement to agree in writing, at any stage either before or at the time of appointment of the tribunal, to fast track procedure.
Analysis of facts: There is an arbitration agreement. The fast track agreement is in writing and was made before the arbitrator was appointed, so the timing condition is met.
Sole arbitrator: Section 29B(2) permits the parties to agree on a sole arbitrator chosen by them.
Procedure: The tribunal decides on written pleadings, documents and submissions without oral hearing. It may call for further information or clarification. An oral hearing is held only if all parties request it or the tribunal considers it necessary to clarify issues. If one is held, technical formalities may be dispensed with.
Time: The award must be made within six months from the date the tribunal enters upon the reference. If it is not, Section 29A(3) to (9) apply, Section 29B(5). Fees are as agreed between the arbitrator and the parties.

Answer: The agreement is valid under Section 29B(1) and (2). The proceedings are mostly on documents, and the award is due within six months of the tribunal entering upon the reference, failing which Section 29A(3) to (9) apply.

Exam tips

Quote the sub-section. 'Section 7(4)(b)' for email and 'Section 29B(1)' for fast track earn more than a general statement.
In case questions, first state the form test, then apply it to the exact words of the emails or letters, then conclude.
Learn the timing phrase of Section 29B(1): 'before or at the time of appointment of the arbitral tribunal'. Examiners test it.
Add a short drafting point when asked: put the clause in writing, name the relationship and disputes covered, and say whether fast track and a sole arbitrator are chosen.
Keep fast track mechanics (written pleadings, six months, Section 29A on delay) in a short list so you can reproduce them quickly.

Practice questions from Emerging Aspects: Fast Track and Virtual Arbitration

Arbitration Agreement for Fast Track and Online Arbitration: frequently asked questions

Is an arbitration agreement by email valid in India?

Yes, if the exchange provides a record of the agreement. Section 7(4)(b) covers an exchange of letters, telex, telegrams or other means of telecommunication, including communication through electronic means. The agreement must still relate to disputes in a defined legal relationship.

Does an arbitration agreement have to be signed?

Not always. A document signed by the parties is one way under Section 7(4)(a). The agreement can also be in an exchange of telecommunications giving a record, or in an exchange of claim and defence where the agreement is alleged by one party and not denied by the other.

Can parties agree to fast track arbitration in the arbitration agreement itself?

Yes. Section 29B(1) lets them agree in writing to fast track at any stage before or at the time of appointment of the tribunal. This can be in the original clause or in a later written agreement made within that window.

Is an oral hearing possible in fast track arbitration?

Yes, but only in limited cases. Under Section 29B(3)(c), a hearing may be held if all the parties request it or if the tribunal considers it necessary to clarify certain issues. Otherwise, the tribunal decides on documents.

What happens if a fast track award is not made in six months?

Section 29B(5) says that sub-sections (3) to (9) of Section 29A then apply to the proceedings. Do not write that the proceedings automatically end.