The purpose of arbitration is economic, speedy and final settlement of disputes. The arbitration rules have been prepared to obtain economic, speedy and final settlement of disputes between the parties effectively.

The Rules of Arbitration have been prepared on the basis of ICC (International Chamber of Commerce) Rules of Arbitration which are widely acceptable in the world. There are minor changes which have been denoted by an asterisk (*) mark. The rules have been numbered "AR No." (Arbitration Rule No.) for easy reference.

AR 1 : Court of Arbitration

1.1 The Court of Arbitration of the INDIAN SOCIETY of Arbitrators is the arbitration body attached to the Indian Society of Arbitrators. Members of the court are appointed by the governing body of the INDIAN SOCIETY of Arbitrators. The function of the court is to provide for the settlement of commercial disputes of national as well as of an international character by arbitration in accordance with these Rules.

1.2 In principle, the court meets once a month. It draws up its own internal regulations.

[page]1.3 The Chairman of the Court of Arbitration, or, in his absence, his deputy shall have power to take urgent decisions on behalf of the court, provided that any such decision shall be reported to the court at its next session.

1.4 The court may, in the manner provided for in its internal regulations, delegate to one or more groups of its members the power to take certain decisions provided that any such decision shall be reported to the court at its next session.

1.5 The Secretariat of the Court of Arbitration shall be at the Headquarters of the INDIAN SOCIETY of Arbitrators.

AR 2 : The Arbitral Tribunal

2.1 The Court of Arbitration does not itself settle disputes. Insofar as the parties shall not have provided otherwise, it appoints, or confirms the appointment of arbitrators in accordance with the provisions of this Rule. In making or confirming such appointments the court shall have regard to the proposed arbitrator's nationality, residence, *other relationship with the countries of which the parties or the other arbitrators are nationals etc.*

2.2 The disputes may be settled by a sole arbitrator or by three arbitrators. In the following Rules the word "arbitrator" denotes a single arbitrator or three arbitrators as the case may be. [page]

2.3 Where the parties have agreed that the disputes shall be settled by a sole arbitrator, they may, by agreement, nominate him for confirmation by the court. If the parties fail so to nominate a sole arbitrator within 30 days from the date when the Claimant's request for arbitration has been communicated to the other party, the sole arbitrator shall be appointed by the court.

2.4 Where the dispute is to be referred to three arbitrators, each party shall nominate at the Request for Arbitration and as an answer thereto respectively one arbitrator for confirmation by the court. Such persons shall be independent of the party nominating them. If a party fails to nominate an arbitrator, the appointment shall be made by the court. The third arbitrator, who will act as chairman of the arbitral tribunal, shall be appointed by the court, unless the parties have provided that the arbitrators nominated by them shall agree on the third arbitrator within a fixed time-limit. In such a case the court shall confirm the appointment of such third arbitrator. Should the two arbitrators fail, within the time-limit fixed by the parties or the court to reach agreement on the third arbitrator he shall be appointed by the court.

2.5 Where the parties have not agreed upon the number of arbitrators, the court shall appoint a sole arbitrator, save where it appears to the court that the dispute is such as to warrant the appointment of three arbitrators. In such a case the parties shall each have a period of 30 days within which to nominate an arbitrator.

2.6 The sole arbitrator or the Chairman of the arbitral tribunal shall be chosen from a country other than those of which the parties are nationals. However, in suitable circumstances and provided that neither of the parties objects within the time limit fixed by the court, the sole arbitrator or the Chairman of the arbitral tribunal may be chosen from a country of which any of the parties is a national.* [page]

2.7 Every arbitrator appointed or confirmed by the court must be and remain independent of the parties involved in the arbitration.

Before appointment or confirmation by the court, a prospective arbitrator shall disclose in writing to the Registrar of the court any facts or circumstances which might be of such a nature as to call into question the arbitrator's independence in the eyes of the parties. Upon receipt of such information, the Registrar of the court shall provide it to the parties in writing and fix a time limit for any comments from them. An arbitrator shall immediately disclose in writing to the registrar of the court and the parties any facts or circumstances of a similar nature which may arise between the arbitrator's appointment or confirmation by the court and the notification of the final award.

2.8 A challenge of an arbitrator, whether for an alleged lack of independence or otherwise is made by the submission to the Registrar of the court of a written statement specifying the facts and circumstances on which the challenge is based. For a challenge to be admissible, it must be sent by a party either within 30 days from receipt by the party of the notification of the appointment or confirmation of the arbitrator by the court or within 30 days from the date when the party making the challenge was informed of the facts and circumstances on which the challenge is based, if such date is subsequent to the receipt of the aforementioned notification.

2.9 The court shall decide on the admissibility, and at the same time if need be on the merits, of a challenge after the Registrar of the court has accorded an opportunity for the arbitrator concerned, the parties and any other members of the arbitral tribunal to comment in writing within a suitable period of time. [page]

2.10 An arbitrator shall be replaced upon his death, upon the acceptance by the court of challenge, or upon the acceptance by the court of the arbitrator's resignation.

2.11 An arbitrator may also be replaced when the court decides that he is prevented de jure or de facto from fulfilling his functions, or that he is not fulfilling his functions in accordance with the Rules or within the prescribed time limits. When, on the basis of information that has come to his attention, the court considers applying this subparagraph, it shall decide on the matter after the Registrar of the court has provided such information in writing to the arbitrator concerned, the parties, and any other members of the arbitral tribunal and accorded an opportunity to them to comment in writing within a suitable period of time.

2.12 In each instance where an arbitrator is to be replaced, the procedure indicated in the proceedings paragraphs 2.3, 2.4, 2.5, 2.6 and paragraphs 3,4,5 and 6 shall be followed. Once reconstituted, and after having invited the parties to comment, the arbitral tribunal shall determine if and to what extent prior proceedings shall again take place.

2.13 Decisions of the court as to the appointment, confirmation, challenge or replacement of an arbitrator shall be final. The reasons for decisions by the court as to the appointment, confirmation, challenge, or replacement of an arbitrator on the grounds that he is not fulfilling his function in accordance with the Rules or within the prescribed time-limits shall not be communicated.[page]

AR 3 : Request for Arbitration

3.1 A party wishing to have recourse to arbitration by the INDIAN SOCIETY of Arbitrators shall submit its Request for Arbitration to the Secretariat of the court. The date when the request is received by the Secretariat shall, for all purposes, be deemed to be the date of commencement of the arbitral proceedings.

3.2 The request for arbitration shall, inter alia, contain the following information :

(a) names in full, description and address of the parties.

(b) a statement of the Claimant's case.

(c) the relevant agreements, and in particular the agreement to arbitrate, and such documentation or information as will serve clearly to establish the circumstances of the case.

(d) all relevant particulars concerning the number of arbitrators and their choice in accordance with the provisions of Rule 2 above.

[page]3.3 The secretariat shall send a copy of the Request and the documents annexed thereto to the Defendant for his Answer.

AR 4 : Answer to the Request

4.1 The Defendant shall within 30 days from the receipt of the documents referred to in paragraph 3 of Rule 3 comment on the proposals made concerning the number of arbitrators and their choice and where appropriate, nominate an arbitrator. He shall at the same time set out his defence and supply relevant documents. In exceptional circumstances the Defendant may apply to the Secretariat for an extension of time for the filing of his defence and his documents. The application must, however, include the Defendant's comments on the proposals made with regard to the number of arbitrators and their choice and also, where appropriate, the nomination of an arbitrator. If the Defendant fails to do so, the secretariat shall report to the court, which shall proceed with the arbitration in accordance with these Rules.

4.2 A copy of the Answer and of the documents annexed thereto, if any, shall be communicated to the Claimant for his information.

AR 5 : Counter-Claim

[page]5.1 If the defendant wishes to make a counter-claim, he shall file the same with the Secretariat, at the same time as his Answer as provided for in Rule 4.

5.2 It shall be open to the Claimant to file a Reply with the Secretariat within 30 days from the date when the counter-claim is communicated to him.

AR 6 : Pleadings and written statements, notifications or Communications :

6.1 All pleadings and written statements submitted by the parties, as well as all documents annexed thereto, shall be supplied in a number of copies sufficient to provide one copy for each party, plus one for each arbitrator, and one for the Secretariat.

6.2 All notifications or communications from the Secretariat and the arbitrator shall be validly made if they are delivered against receipt or forwarded by registered post to the address or last known address of the party for whom the same are intended as notified by the party in question or by the other party as appropriate.

6.3 Notification or communication shall be deemed to have been effected on the day when it was received, or should, if made in accordance with the preceding paragraph, have been received by the party itself or by its representative.

[page]6.4 Periods of time specified in the present Rule or in the Internal Rules or Rules set by the court shall start to run on the day following the date a notification of communications is deemed to have been effected in accordance with the preceeding paragraph. When in the country where the notification or communication is deemed to have been effected the day next following such date is an official holiday or a non-business day the period of time shall commence on the first following working day. Official holidays and non-working days are included in the calculation of the period of time. If the last day of the relevant period of time granted is an official holiday or a non-business day in the country where the notification or communication is deemed to have been effected the period of time shall expire at the end of the first following working day.

AR 7 : Absence of Agreement to Arbitrate

7.1 Where there is no prima facie arrangement between the parties to arbitrate or where there is an agreement but it does not specify the Indian Society of Arbitrators, and if the Defendant does not file an Answer within the period of 30 days provided by paragraph 1 of Rule 4 or refused arbitration by the Indian Society of Arbitrators, the Claimant shall be informed that the arbitration cannot proceed.

AR 8 : Effect of the Agreement to Arbitrate[page]

8.1 Where the parties have agreed to submit to arbitration by the Indian Society of Arbitrators they shall be deemed thereby to have submitted ipso facto to the present Rules.

8.2 If one of the parties refuses or fails to take part in the arbitration, the arbitration shall proceed notwithstanding such refusal or failure.

8.3 Should one of the parties raise one or more pleas concerning the existence or validity of the agreement to arbitrate, and should the court be satisfied of the prima facie existence of such an agreement the court may, without prejudice to the admissibility or merits of the plea or pleas decide that the arbitration shall proceed. In such a case any decision as to the arbitrator's jurisdiction shall be taken by the arbitrator himself.

8.4 Unless otherwise provided, the arbitrator shall not cease to have jurisdiction by reason of any claim that the contract is null and void on the allegation that it is non-existent provided that he upholds the validity of the agreement to arbitrate. He shall continue to have jurisdiction, even though the contract itself may be non-existent or null and void, to determine the respective right of the parties and to adjudicate upon their claims and pleas.

8.5 Before the file is transmitted to the arbitrator, and in exceptional circumstances even after, the parties shall be at liberty to apply to any competent judicial authority for interim or conservatory measures, and they shall not by so doing be held to infringe the agreement to arbitrate or to affect the relevant powers reserved to the arbitrator[page]

AR 9

9.1 The court shall fix the amount of the advance on costs in a sum likely to cover the costs of arbitration of the claims which have been referred to it. Where, apart from the principal claim, one or more counter-claims are submitted, the court may fix separate advances on costs for the principal claim and the counter-claim or counter-claims.

9.2 The advance on costs shall be payable in equal shares by the Claimant or Claimants and the Defendant or Defendants. However, any one party shall be free to pay the whole of the advance on costs in respect of the claim or the counter-claim should the other party fail to pay its share.

9.3 The secretariat may make the transmission of the file to the arbitrator conditional upon the payment by the parties or one of them of the whole or part of the advance on cost to the Indian Society of Arbitrators.

9.4 When the Terms of Reference are communicated to the court in accordance with the provisions of Rule 13, the court shall verify whether the requests for the advance on costs have been complied with. The terms of reference shall become operative and the arbitrator shall proceed only in respect of those claims for which the advance on costs has been duly paid to the Indian Society of Arbitrators. [page]AR 10 : Transmission of the File to the Arbitrator

AR 10

10. Subject to the provisions of Rule 9, the secretariat shall transmit the file to the arbitrator as soon as it has received the Defendant's answer to the Request for Arbitration, at the latest upon the expiry of the time-limits fixed in Rules 4 and 5 above for the filing of these documents.s

AR 11

11. The rules governing the proceedings before the arbitrator shall be those resulting from these Rules and where these Rules are silent, any rules which the parties (or, failing them, the arbitrator) may settle, and whether or not reference is thereby made to a municipal procedural law to be applied to the arbitration.

[page]AR 12 : Place of Arbitration

AR 12

12. The place of arbitration shall be fixed by the court, unless agreed upon by the parties.

AR 13 : Terms of Reference

AR 13

13.1 Before proceeding with the preparation of the case, the arbitrator shall draw up, on the basis of the documents or in the presence of the parties and in the light of their most recent submission, a document defining his Terms of Reference. This document shall include the following particulars.

(a) the full names and description of the parties.

(b) the addresses of the parties to which notifications of communications arising in the course of the arbitration may validly be made.

[page](c) a summary of the respective claims of the parties.

(d) definition of the issues to be determined.

(e) the arbitrator's full name, description, address and the place of arbitration

(f) particulars of the applicable procedural rules and, if such is the case, reference to the power conferred upon the arbitrator to act as an amiable compositor

(g) such other particulars as may be required to make the arbitral award enforceable in law, or may be regarded as helpful by the Court of Arbitration or the arbitrator.

13.2 The document mentioned in paragraph 1 of this rule shall be signed by the parties and the arbitrator. Within two months of the date when the file has been transmitted to him the arbitrator shall transmit to the court the said document signed by himself and by the parties. The court may, pursuant to a reasoned request from the arbitrator, or, if need be on its own initiative, extend this time-limit if it decides it is necessary to do so. Should one of the parties refuse to take part in the drawing up of the said documents or to sign the same, the court, if it is satisfied that the case is one of those mentioned in paragraphs 2 and 3 of Rule 8, shall take such action as is necessary for its approval. Thereafter the court shall set a time limit for the signature of the statement by the defaulting party and on expiry of that time limit the arbitration shall proceed and the award shall be made.

[page]13.3 The parties shall be free to determine the law to be applied by the arbitrator to the merits of the dispute. In the absence of any indication by the parties as to the applicable law the arbitrator shall apply the law designated as the proper law by the rule of conflict which he deems appropriate. In domestic or national arbitration Indian law shall be the proper law unless otherwise agreed to by the parties.

13.4 The arbitrator shall assume the powers of an amiable compositor if the parties have agreed to give him such powers.

13.5 In all cases the arbitrator shall take account of the provisions of the contract and the relevant trade usages.

AR 14

14.1 The arbitrator shall proceed within as short a time as possible to establish the facts of the case by all appropriate means. After study of the written submissions of the parties and of all documents relied upon, the arbitrator shall hear the parties together in person if one of them so requests, and failing such a request he may of his own motion decide to hear them. In addition, the arbitrator may decide to hear any other person in the presence of the parties or in their absence provided they have been duly summoned.

14.2 The arbitrator may appoint one or more experts, define their terms of reference, receive their reports, and/or hear them in person. [page]

14.3 The arbitrator may decide the case on the basis of the relevant documents alone if the parties so request or agree.

AR 15

15.1 At the request of one of the parties, or if necessary on its own initiative, the arbitrator, giving reasonable notice, shall summon the parties to appear before him on the day and at a place appointed by him and shall so inform the Secretariat of the court.

15.2 If one of the parties, although duly summoned, fails to appear, the arbitrator, if satisfied that the summon was duly received and the party is absent without valid excuse, shall have the power to proceed with the arbitration, and such proceedings shall be deemed to have been conducted in the presence of all parties.

15.3 In international arbitration the arbitrator shall determine the language of the arbitration, due regard being paid to all the relevant circumstances and, in particular, to the language of the contract.

15.4 The arbitrator shall be in full charge of the hearings, at which all the parties shall be entitled to be present. Save with the approval of the arbitrator and of the parties, persons not involved in the proceedings shall not be admitted. [page]

15.5 The parties may appear in person or through duly accredited agents. In addition, they may be assisted by advisers.

AR 16

. The parties may make new claims or counter-claims before the arbitrator on condition that these remain within the limits fixed by the Terms of Reference provided for in Rule 13 or that they are specified in a rider to the document signed by the parties and communicated to the court.

AR 17

If the parties reach a settlement after the file has been transmitted to the arbitrator in accordance with Rule 10, the same shall be recorded in the form of an arbitral award made by consent of the parties.

AR 18

18.1 The time-limit within which the arbitrator must render his award is fixed at six months. Once the terms of Rule 9 (4) have been satisfied, such time-limit shall start to run from the date of the last signature by the arbitrator or of the parties of the document mentioned in Rule 13, or from the expiry of the time-limit granted to a party by virtue of Rule 13 (2), or from the date that the Registrar of the court notifies the arbitrator that the advance on costs is paid in full, if such notification occurs later. [page]

18.2 The court may, pursuant to a reasoned request from the arbitrator or if need be on its own initiative extend this time-limit if it decides it is necessary to do so.

18.3 Where no such extension is granted and, if appropriate, after application of the provision of Rule 2 (ii), the court shall determine the manner in which the dispute is to be resolved.

AR 19

19. When three arbitrators have been appointed, the award is given by a majority decision. If there be no majority, the award shall be made by the Chairman of the arbitral tribunal alone.

AR 20

20.1 The arbitrator's award shall, in addition to dealing with the merits of the case, fix the costs of the arbitration and decide which of the parties shall bear the costs or in what proportions the costs shall be borne by the parties.

20.2 The costs of the arbitration shall include the arbitrator's fees and administrative costs fixed by the court in accordance with the scale annexed to the present Rules, the expenses, if any, of the arbitrator, the fees and expenses of any experts, and the normal legal costs incurred by the parties. [page]

20.3 The court may fix the arbitrators' fees at a figure higher or lower than that which would result from the application of the annexed scale if in the exceptional circumstances of the case this appears to be necessary.

AR 21

21. Before signing an award, whether partial or definitive, the arbitrators shall submit it in draft form to the court. The court may lay down modifications as to the form of the award and without affecting the arbitrator's liberty of decision, may also draw his attention to points of substance. *

AR 22

22. The arbitral award shall be deemed to be made at the place of the arbitration proceedings and on the date when it is signed by the arbitrator.

AR 23

23.1 Once an award has been made, the Secretariat shall notify to the parties the text signed by the arbitrator : provided always that the costs of the arbitration have been fully paid to the Indian Society of Arbitrators by the parties or by one of them. [page]

23.2 Additional copies certified true by the Registrar of the court shall be made available, on request and at any time, to the parties but to no one else.

23.3 By virtue of the notification made in accordance with paragraph 1 of this rule, the parties waive any other form of notification or deposit on the part of the arbitrator.

AR 24

24.1 The arbitral award shall be final.

24.2 By submitting the dispute to arbitration by the Indian Society of Arbitrators, the parties shall be deemed to have undertaken to carry out the resulting award without delay and to have waived their right to any form of appeal insofar as such waiver can validly be made.

AR 25

25. An original of each award made in accordance with the present Rules shall be deposited with the Secretariat of the court. The arbitrator and the Secretariat of the court shall assist the parties in complying with whatever further formalities may be necessary.[page]

AR 26

26. In all matters not expressly provided for in these rules the court of Arbitration and the arbitrator shall act in the spirit of these Rules and shall make every effort to make sure that the award is enforceable at law.

Indian Society of Arbitrators Rules of Optional Conciliation

The purpose of conciliation is economic, speedy and final settlement of disputes. The optional rules of conciliation have been prepared to obtain economic, speedy and final settlement of disputes between the parties effectively.

The Rules have been prepared on the basis of ICC rules of conciliation which are widely acceptable in the world. There are minor changes which have been denoted by asterisk (*) mark. The rules have been numbered as "CR No." (CONCILIATION RULES) for easy reference.[page]

Rules of optional conciliation
Preamble

Settlement is a desirable solution for * commercial disputes. The Indian Society of Arbitrators therefore sets out these Rules of Optional Conciliation in order to facilitate the amicable settlement of such disputes.

CR 1: All * commercial disputes may be submitted to conciliation by a sole conciliator appointed by the Indian Society of Arbitrators.

CR 2 : The party requesting conciliation shall apply to the Secretariat of the court of the Indian Society of Arbitrators writing out sufficiently the purpose of the request and accompanying with it the * prescribed fee required to open the file.[page]

CR 3 : The Secretariat of the court shall, as soon as possible, inform the other party of the request for conciliation. The party will be given a period of 15 days to inform the Secretariat whether it agrees or declines to participate in the attempt to conciliate.

If the other party agrees to participate in the attempt to conciliate, it shall so inform the Secretariat within such period.

In the absence of any reply within such period, or in the case of a negative reply, the request for conciliation shall be deemed to have been declined. The Secretariat shall, as soon as possible, so inform the party which had requested conciliation.

CR 4 : Upon receipt of an agreement to attempt conciliation, the Registrar of the court shall appoint a conciliator as soon as possible.

The conciliator shall inform the party of his appointment and set a time-limit for the parties to present their respective arguments to him.

[page]CR 5 : The conciliator shall conduct the conciliation process as he thinks fit, guided by the principles of impartiality, equity and justice.

The conciliator shall fix the place, date and time for conciliation proceedings with the agreement of the parties.

The conciliator may at any time during the conciliation request a party to submit to him such additional information as he deems necessary. The parties may, if they so wish, be assisted by counsel of their choice.

CR 6 : The confidential nature of the conciliation process shall be respected by every person involved in it in whatever capacity.

CR 7 : The conciliation process shall come to an end :

Upon the parties signing an agreement. The parties shall be bound by such agreement.

The agreement shall remain confidential unless and to the extent that its execution or application require disclosure. [page]

Upon the production by the conciliator of report recording that the attempt to conciliate has not been successful. Such report may not contain reasons.

Upon notification to the conciliator by one or more parties any time during the conciliation process of an intention no longer to pursue the conciliation process.

CR 8 : Upon termination of the conciliation, the conciliator shall provide the Secretariat of the court with the settlement agreement signed by the parties, or with his report of lack of success, or with a notice from one or more parties of the intention to no longer pursue the conciliation process, as the case may be.

CR 9 : Upon the file being opened, the Secretariat on its part shall fix the sum required to permit the process, taking into consideration the nature and importance of the dispute. Such sum shall be paid in equal shares by the parties. This sum shall cover the estimated fees of the conciliator, expenses of the conciliation, and the administrative expenses. * On termination of the conciliation, the Secretariat shall settle the total costs of the process and advise the parties. [page]

The above costs shall be borne in equal shares by the parties, or, and insofar as a settlement agreement provides, otherwise. Other expenditures of a party shall remain the responsibility of that party.

CR 10:Unless the parties agree otherwise, a conciliator shall not act in any judicial or arbitration proceeding relating to the dispute which has been the subject of the conciliation process as an arbitrator, representative or counsel of a party. The parties mutually undertake not to call the conciliator as a witness in any such proceedings. *

CR 11:The parties agree not to introduce in any judicial or arbitration proceedings as evidence or in any manner whatsoever :

(a) Any views expressed or suggestions made by any party with regard to the possible settlement of the dispute :

(b) any proposals put forward by the conciliator.