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CS Professional · Arbitration, Mediation and Conciliation · Arbitration under Investors' Grievances Redressal Mechanism of Stock Exchanges

Kaveri Brokers and investor Anil Desai never signed one document. Kaveri's email proposed arbitration of all trading disputes, and Anil replied by email accepting the terms. Both emails are stored and retrievable. Is there an arbitration agreement in writing under the Act?

Yes. Under section 7(4)(b), an arbitration agreement is in writing if it is contained in an exchange of communications, including electronic means, that provides a record of the agreement. Signed paper is not essential, and notarisation is not required.

  1. ANo, because only a document signed by both parties can be in writing
  2. BYes, because an exchange of communication through electronic means that provides a record of the agreement is in writingCorrect
  3. CNo, because electronic communication is valid only for conciliation
  4. DYes, but only if the emails were also printed and notarised

Explanation

Section 7(4)(b) treats an exchange of letters, telex, telegrams or other telecommunication, including electronic means, providing a record of the agreement as writing. A signed document under 7(4)(a) is only one of several routes, so the first option is wrong.

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