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

Emerging Trends in Arbitration in India

Updated 11 October 2026 · Fact-checked

Emerging trends in arbitration in India are the shifts that make arbitration faster and cheaper: institutional arbitration over ad hoc, time-bound awards, fast track procedure under section 29B, written proceedings, virtual hearings and settlement during proceedings. In the exam, name the trend, give the provision, apply it to the facts and conclude.

Understand Emerging Trends in Arbitration in India

Arbitration was meant to be a quicker and cheaper alternative to court. In practice, many ad hoc arbitrations dragged on, with long hearings, repeated adjournments and court challenges. The emerging trends are the law's and the market's response to that delay.

The first trend is institutional arbitration. In ad hoc arbitration, the parties and the tribunal design the procedure themselves, with no body administering it. In institutional arbitration, an arbitral institution applies its own rules, helps appoint arbitrators, fixes fees and supervises the case. Ad hoc gives flexibility. Institutional gives structure and discipline. Both are valid under the Act, and the choice depends on what the parties agree.

The second trend is time-bound proceedings. The Act now puts time limits on the process. Section 29B lets parties agree in writing to a fast track procedure. The tribunal decides on written pleadings, documents and submissions, without an oral hearing, unless all parties request one or the tribunal thinks it necessary. The award must come within six months from the date the tribunal enters upon the reference. If it does not, sub-sections (3) to (9) of section 29A apply.

The third trend is technology and virtual arbitration. Filing of pleadings, exchange of documents and hearings by video are now common. The idea is to save travel, cost and time. Fast track and virtual arbitration are different things. Fast track is a procedure under the Act. Virtual is the mode of conducting hearings and filings.

The fourth trend is settlement within arbitration. Section 30 allows the tribunal to encourage settlement and, with the parties' agreement, use mediation, conciliation or other procedures at any time. If parties settle, the tribunal terminates the proceedings and, if requested and not objected to by it, records the settlement as an award on agreed terms. Such an award has the same status and effect as any other award on the substance of the dispute.

The fifth point is the court's supportive role. Under section 8, a judicial authority must refer parties to arbitration if a party applies not later than the date of submitting the first statement on the substance of the dispute, unless it finds that prima facie no valid arbitration agreement exists. This reflects the pro-arbitration approach of the Act.

Key rules to remember

Fast track agreement (section 29B(1)): Written agreement of parties, at any stage before or at the time of appointment of the tribunal; Fast track is consensual. The tribunal cannot impose it, and an agreement after the tribunal is appointed does not fit this text.
Tribunal composition (section 29B(2)): Parties may agree on a sole arbitrator chosen by them; This is optional ('may'), not compulsory.
Procedure (section 29B(3)): Decision on written pleadings, documents and submissions; no oral hearing unless all parties request or the tribunal considers it necessary; The tribunal may call for further information or clarification. If a hearing is held, it may dispense with technical formalities.
Time limit (section 29B(4) and (5)): Award within 6 months from the date the tribunal enters upon the reference; on default, section 29A(3) to (9) apply; The period runs from the date the tribunal enters upon the reference, not from the agreement.
Fees (section 29B(6)): As agreed between the arbitrator and the parties; No fixed fee scale is set in this section.
Reference by court (section 8(1)): Application not later than the date of submitting first statement on the substance of the dispute; Refusal only if prima facie no valid arbitration agreement exists.
Settlement (section 30): Settlement in proceedings: tribunal terminates proceedings; award on agreed terms if parties request and tribunal does not object; Award on agreed terms must state that it is an arbitral award and has the same status as any other award.

How to solve Emerging Trends in Arbitration in India questions

Use this method for any question on trends, fast track or virtual arbitration. Keep the answer in the order provision, analysis, conclusion.

1Identify the trend the question is testing: institutional vs ad hoc, fast track, virtual mode, time limits or settlement.
2State the problem the trend solves, such as delay, cost or lack of administration, in one or two lines.
3Quote the rule in plain words with the section number only where you are sure of it, for example section 29B for fast track.
4Apply the rule to the facts: check who agreed, when, in what form, and how many months have passed.
5Test the conditions one by one: written agreement, timing of agreement, oral hearing request, six-month period.
6State the consequence, such as the section 29A provisions applying on delay.
7Conclude clearly in one sentence and add one practical drafting point, such as including a fast track clause in the agreement.

Quickest way: Condition checklist for fast track questions

When to use it: Use when the facts give dates, an agreement and a hearing request, and you have little time.

Write: agreement in writing? Made before or at the time of appointment?
Write: oral hearing? Only if all parties request or tribunal considers it necessary.
Write: six months from the date the tribunal enters upon the reference.
If late, write: section 29A(3) to (9) apply.
Close with the conclusion and one drafting tip.

Common mistakes in Emerging Trends in Arbitration in India

Saying fast track arbitration is automatic or imposed on small disputes.
Students link 'fast track' with urgency and assume the law forces it.
Fix: State that section 29B applies only when parties agree in writing.
Writing that no oral hearing can ever be held in fast track.
The words 'without any oral hearing' are remembered without the exception.
Fix: Add that a hearing may be held if all parties request it or the tribunal considers it necessary for clarifying certain issues.
Counting the six months from the date of the agreement or the dispute.
Students mix this with other time limits.
Fix: Count from the date the tribunal enters upon the reference.
Treating virtual arbitration and fast track as the same.
Both are described as faster and cheaper.
Fix: Fast track is a statutory procedure agreed in writing. Virtual is the mode of hearing and filing. A case can be one, both or neither.
Calling institutional arbitration mandatory or ad hoc arbitration invalid.
Students over-read the trend towards institutions.
Fix: Say both are valid. The trend is a preference for institutions, not a legal requirement.
Forgetting the consequence of missing the six-month period.
Students stop after stating the time limit.
Fix: Add that sub-sections (3) to (9) of section 29A then apply.

Worked examples

Example 1

Aarav Traders Pvt. Ltd. and Bharat Steel Ltd. have a supply contract with an arbitration clause. Before the tribunal was appointed, they agreed in writing to resolve their dispute by fast track procedure. The tribunal entered upon the reference on 1 March. On 1 June, Bharat Steel asks for an oral hearing, but Aarav Traders objects. Advise on the procedure and the time for the award.

Show the solution

Provision: section 29B(1) allows parties to agree in writing, at any stage before or at the time of appointment of the tribunal, to fast track procedure.
Analysis of agreement: the agreement was in writing and made before appointment, so fast track applies.
Procedure: under section 29B(3)(a) the tribunal decides on written pleadings, documents and submissions without an oral hearing.
Oral hearing: under section 29B(3)(c) a hearing may be held only if all parties request it or the tribunal considers it necessary to clarify certain issues.
Here only Bharat Steel requests it and Aarav Traders objects, so the request alone does not compel a hearing. The tribunal may still hold one if it considers it necessary.
Time: the award must be made within six months from 1 March, that is by 1 September, under section 29B(4).
If the award is late, sub-sections (3) to (9) of section 29A apply under section 29B(5).

Answer: Fast track applies. A hearing is not a right on one party's request; the tribunal may hold one only if it considers it necessary. The award is due within six months of 1 March, and on delay section 29A(3) to (9) apply.

Example 2

Explain why institutional arbitration, fast track and virtual arbitration are regarded as emerging trends in India, and state how an arbitration clause can be drafted to use them.

Show the solution

Problem: ad hoc arbitration often suffers from delay, high cost and procedural disputes, since no body administers it.
Institutional arbitration: an institution's rules, appointment support and fee structure give discipline and reduce the need to approach courts. Ad hoc remains valid if parties prefer flexibility.
Fast track: section 29B lets parties agree in writing to a documents-only procedure, a sole arbitrator chosen by them and an award within six months from the tribunal entering upon the reference.
Virtual arbitration: electronic filing and video hearings save travel and cost. It is a mode, not a separate statutory procedure.
Settlement: section 30 lets the tribunal use mediation or conciliation with the parties' agreement, and an agreed settlement can become an award on agreed terms.
Drafting: name the institution and its rules, state the seat, provide for a sole arbitrator, record the written agreement to fast track before appointment, and permit virtual hearings and electronic service.

Answer: These trends respond to delay and cost. A well drafted clause names the institution and rules, fixes the seat, agrees in writing to section 29B fast track before appointment, and allows virtual hearings and settlement efforts.

Exam tips

Always tie the trend to a provision. Section 29B is the anchor for fast track questions.
In fact-based questions, check the timing of the written agreement and the date the tribunal entered upon the reference.
Do not forget the exception for an oral hearing and the consequence under section 29A of delay.
Close each answer with a drafting point; the paper rewards practical compliance advice.
For comparison questions, use two columns of points in prose: flexibility and cost control for ad hoc, administration and supervision for institutional.

Practice questions from Emerging Aspects: Fast Track and Virtual Arbitration

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Emerging Trends in Arbitration in India: frequently asked questions

What is the difference between institutional and ad hoc arbitration?

In ad hoc arbitration, the parties and tribunal set the procedure themselves without an administering body. In institutional arbitration, an arbitral institution applies its rules and supervises the process. Both are valid under the Act.

Why are fast track and virtual arbitration needed in India?

They address delay and cost in dispute resolution. Fast track uses written proceedings and a six-month award period. Virtual arbitration cuts travel and logistics through electronic filing and video hearings.

Is fast track arbitration compulsory under section 29B?

No. Parties must agree in writing, at any stage before or at the time of appointment of the tribunal. Without such agreement the ordinary procedure applies.

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

The provisions of sub-sections (3) to (9) of section 29A apply to the proceedings. The six months run from the date the tribunal enters upon the reference.