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Arbitration Agreement & Notice Format India

An Arbitration Agreement records the parties' consent to refer existing or future disputes to one or more arbitrators, while an Arbitration Notice formally invokes that agreement and commences proceedings. In India, both are governed by the Arbitration and Conciliation Act, 1996. Whether you need a reference agreement between partners, an HUF arbitration deed, a sole or multi-arbitrator agreement, or a notice invoking arbitration, download free Arbitration Agreement and Notice formats in ready-to-use editable templates.

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What is Arbitration Agreement & Notice ?

An Arbitration Agreement is a written contract by which two or more parties agree to submit their existing or future disputes to arbitration instead of approaching ordinary courts. Under Section 7 of the Arbitration and Conciliation Act, 1996, an arbitration agreement must be in writing — either as a clause in a contract or as a separate agreement — and may also arise from an exchange of letters, electronic communications, or pleadings where the existence of the agreement is admitted.

The agreement records the parties' names, the disputes referred, the number of arbitrators (one or three, as permitted under Section 10), the appointing mechanism, the seat and venue of arbitration, and the procedural rules. The Supreme Court in N.N. Global v. Indo Unique (2023) held that an unstamped arbitration agreement is inadmissible until duly stamped under the applicable State Stamp Act.

An Arbitration Notice (also called a "Notice Invoking Arbitration") is a written communication by which one party formally requests reference to arbitration under the agreement. Under Section 21, arbitral proceedings are deemed to commence on the date the respondent receives this notice. A separate Notice of Revocation may be issued where a party seeks to revoke the appointment of an arbitrator on permissible grounds under Sections 13, 14, and 15 of the Act.

Both documents are admissible as evidence under the Bharatiya Sakshya Adhiniyam, 2023.

When is Arbitration Agreement & Notice Required?

Drafting a fresh commercial contract — to insert a binding arbitration clause covering future disputes under Section 7 of the 1996 Act.

Settling an existing dispute — when parties to a finalised dispute decide to resolve it through arbitration instead of litigation, by signing a standalone reference agreement.

Partnership and HUF disputes — to refer internal business or family disputes to a sole or panel arbitrator.

Invoking arbitration — issuing a Section 21 notice to the opposite party to formally commence arbitral proceedings and stop the clock on the limitation period.

Revocation or appointment of substitute arbitrator — issuing notices under Sections 13, 14, or 15 in cases of bias, withdrawal, or termination of mandate.

All Arbitration Agreement & Notice Templates — Download Free

Disclaimer: This template is provided for general informational and drafting reference purposes only. It does not constitute legal advice. Stamp duty, registration, and procedural requirements may vary by state. Consult a qualified advocate before executing or filing any legal document. For more details, see our Disclaimer.

Quick Overview

Arbitration Agreements and Notices in India are governed by the Arbitration and Conciliation Act, 1996, as amended in 2015, 2019, and 2021. Under Section 7, every arbitration agreement must be in writing and signed by the parties, and under Section 21 proceedings commence on the date the respondent receives a request for arbitration. Agreements require non-judicial stamp paper as per the State Stamp Act. Documents typically run 2–6 pages.

How To Draft Arbitration Agreement & Notice Documents — Step by Step Guide

  1. 1

    Title and Stamp Paper

    For an agreement, use the heading "Arbitration Agreement" or "Agreement for Reference to Arbitration" on non-judicial stamp paper of the value prescribed under the applicable State Stamp Act. For a notice, use plain paper or office letterhead.

  2. 2

    Parties and Recitals

    State the full name, address, and capacity of each party. Add recitals describing the underlying contract, partnership, HUF, or relationship from which disputes arise.

  3. 3

    Scope of Disputes & Number of ArbitratorsSection 10

    Define the disputes covered — typically, "all disputes arising out of or in connection with this Agreement". State the number of arbitrators (one, two, or three) under , the appointing authority, the seat and venue, and the language of arbitration.

  4. 4

    Procedural ClausesSection 29ASection 42A

    Specify the applicable institutional rules (ad hoc, ICA, MCIA, DIAC), the law governing the arbitration agreement, the substantive law, timeline under , confidentiality under , and the cost regime.

  5. 5

    Notice Particulars (for Arbitration Notice)Section 21

    The notice must clearly identify the agreement, the disputes, the proposed arbitrator (or appointing process), and demand a response within a specified period (commonly 30 days), making reference to of the 1996 Act.

  6. 6

    Signatures, Witnesses, and Service

    For agreements, both parties sign before two witnesses. For notices, send by registered post AD, speed post, email, and courier to all parties at their last known addresses; retain proof of delivery as evidence of commencement of proceedings.

Types of Arbitration Agreement & Notice DOCUMENTS

Sole Arbitrator Agreement

A written agreement referring all present or future disputes to a single arbitrator under Section 7 read with Section 10 of the Arbitration and Conciliation Act, 1996.

Two or Three Arbitrator Agreement

Reference to two or three arbitrators with a presiding arbitrator; commonly used in commercial contracts and partnership deeds for balanced decision-making.

Partnership Arbitration Agreement

Agreement between partners of a firm to refer all disputes arising out of the partnership to arbitration, typically clause-based within the Partnership Deed.

HUF Arbitration Agreement

Reference agreement between members of a Hindu Undivided Family for resolving family, business, or coparcenary disputes through arbitration.

Arbitration Clause in Main Contract

A specimen arbitration clause inserted as part of a parent contract under Section 7(2) of the Act, covering scope, seat, and procedure.

Notice to Arbitrator / Notice of Revocation

Formal notices invoking arbitration under Section 21, communicating with the arbitrator, or revoking the appointment under Sections 13–15 of the 1996 Act.

Frequently Asked Questions

Is an Arbitration Agreement legally valid in India?

Yes. Under Section 7 of the Arbitration and Conciliation Act, 1996, an arbitration agreement is legally valid if it is in writing and signed by the parties, or contained in exchanged communications or admitted pleadings. The Supreme Court in N.N. Global v. Indo Unique (2023) held that the agreement must also be properly stamped before it is acted upon.

Does an Arbitration Agreement need stamp paper, notarisation, or registration?

Yes, stamp duty is mandatory under the applicable State Stamp Act — failure to pay makes the agreement inadmissible until rectified, as held in N.N. Global (2023). Notarisation is optional but recommended for evidentiary value. Registration is required only if the underlying transaction is one that requires compulsory registration under the Registration Act, 1908.

What is the difference between an Arbitration Agreement and an Arbitration Notice?

An Arbitration Agreement is the contract that gives the parties the right to arbitrate. An Arbitration Notice is the formal communication under Section 21 of the 1996 Act by which one party invokes that agreement and starts the arbitration. Without the agreement, the notice has no foundation; without the notice, proceedings do not commence.

Can an Arbitration Notice be sent through email or WhatsApp?

Yes. Section 3 of the Arbitration and Conciliation Act, 1996 read with the Information Technology Act, 2000 recognises electronic communications. Courts have upheld arbitration notices served by email, courier, and even WhatsApp, provided service is provable. Sending by registered post AD remains the safest practice.

What is the limitation period to invoke arbitration in India?

Under Section 43 of the 1996 Act read with Article 137 of the Limitation Act, 1963, an arbitration claim must generally be invoked within three years from the date the cause of action arises. The clock stops on the date the respondent receives the Section 21 notice invoking arbitration.