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CS Professional · Arbitration, Mediation and Conciliation · Arbitration: Introduction, Agreements and its Institutions

Sundaram Textiles Ltd (Coimbatore) and Kiran Dyes Pvt Ltd (Surat) have a contract stating that disputes will be resolved under the rules of a named permanent arbitral institution. Kiran Dyes argues that Part I of the Act does not apply because the arbitration will be administered by an institution. Which position is correct under the Act's definitions?

Institutional administration does not exclude Part I. The Act defines arbitration as any arbitration, whether or not administered by a permanent arbitral institution, and Part I applies where the place of arbitration is in India. So the argument that institutional arbitration falls outside Part I fails.

  1. APart I applies only to ad hoc arbitration, so institutional arbitration falls outside it
  2. BArbitration means any arbitration whether or not administered by a permanent arbitral institution, so Part I can apply if the place is in IndiaCorrect
  3. CPart I applies to institutional arbitration only if the institution is set up by statute
  4. DPart I applies only if the Court appoints the institution

Explanation

Section 2(1)(a) defines arbitration as any arbitration whether or not administered by a permanent arbitral institution. Under section 2(2), Part I applies where the place of arbitration is in India. So institutional administration does not take the dispute out of Part I.

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