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

Meridian Textiles Pvt Ltd and Kaveri Dyes Ltd have a supply contract with an ordinary arbitration clause. After a payment dispute arises, but before any arbitrator is appointed, both companies sign a short letter agreeing to resolve the dispute by fast track procedure. Is this agreement permissible under the Act?

Yes. Section 29B(1) allows parties to an arbitration agreement to agree in writing to fast track procedure at any stage before or at the time of appointment of the tribunal, so a later signed letter agreement is valid even if the original clause was ordinary.

  1. AYes, parties may agree in writing to fast track procedure at any stage before or at the time of appointment of the tribunalCorrect
  2. BNo, fast track can be chosen only in the original arbitration clause at the time of contract
  3. CNo, fast track requires an order of the court before the tribunal is appointed
  4. DYes, but only if the agreement is made after the tribunal has entered upon the reference

Explanation

Section 29B(1) lets the parties agree in writing, at any stage either before or at the time of appointment of the tribunal, to fast track procedure. The original clause need not contain it. Option D reverses the timing, as the agreement must come by the time of appointment.

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