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

Meera Textiles Pvt Ltd and Kaveri Dyes entered into a supply contract that has an arbitration clause. A dispute arises, and before any arbitrator is appointed, both parties exchange emails in which they expressly agree to have the dispute resolved by fast track procedure. Which statement is correct?

The agreement is valid. Under section 29B(1), parties may agree in writing to fast track arbitration at any stage before or at the time of appointing the tribunal, so an email exchange before appointment suffices, and no court approval is required.

  1. AThe agreement is invalid because the fast track agreement must be made only in the original contract
  2. BThe agreement is valid, because parties may agree in writing at any stage before or at the time of appointment of the tribunalCorrect
  3. CThe agreement is valid only if made after the tribunal has entered upon the reference
  4. DThe agreement is valid only if the court approves it

Explanation

Section 29B(1) lets parties agree in writing, at any stage either before or at the time of appointment of the arbitral tribunal, to use the fast track procedure. The emails, exchanged before appointment, satisfy this. Limiting the agreement to the original contract or to a later stage adds conditions the section does not impose.

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