Arbitration in India: what it costs and how long it takes

The short version

• Arbitration in India runs under the Arbitration and Conciliation Act 1996, last amended in 2021. Part I covers Indian seats and Part II enforces foreign awards.
• Outside international commercial cases, the award is due 12 months after pleadings close, plus six by consent, then only by court order. In international commercial cases it is a target.
• A challenge must be filed within three months of receiving the award, plus at most 30 days for sufficient cause. Since April 2025 courts may modify an award in limited ways.
• A missing stamp does not void an arbitration agreement. For appointments after 8 November 2024, a public sector body cannot make the other side pick its arbitrator from its own panel.
• The Mumbai Centre for International Arbitration (MCIA) received 61 matters in 2025. For a Rs 5 crore ad hoc claim, the Act’s model fee for a sole arbitrator is Rs 9,21,875.
• The MCIA and Delhi International Arbitration Centre (DIAC) rules do not mention AI. In July 2026 the Supreme Court held that citing unverified AI-generated precedents is misconduct by an advocate.^{1,4,7,9,11,13,16,17,18}

What law governs arbitration in India?

Arbitration law in India is the Arbitration and Conciliation Act 1996. It is based on the UNCITRAL Model Law, the 1985 template for national arbitration laws, amended in 2006. The preamble cites the 1985 text, and UNCITRAL lists India from 1996, with no note of the 2006 amendments.^1,21

Part I applies where the place of arbitration is in India (s 2(2)). Part IA provides for the Arbitration Council of India, Part II enforces foreign awards and Part III covers conciliation, which the Mediation Act 2023 will replace once its section 61 is in force. An international commercial arbitration concerns a legal relationship Indian law treats as commercial, with at least one foreign party, such as a foreign company or government (s 2(1)(f)). The Act calls every Part I award domestic (s 2(7)), but in this guide a domestic case is an India-seated one that is not international commercial.^1,6

The 2015 and 2019 amendments added the award and pleadings deadlines (ss 29A, 23(4)), the fast track (s 29B) and confidentiality (s 42A), and ended automatic stays on enforcement (s 36(2)).^1,2,3

What does choosing India as the seat change?

An Indian seat of arbitration puts the case under Part I and the Indian courts (s 2(2)). The seat is the arbitration’s legal home. Its law governs the procedure and its courts supervise the case and hear challenges to the award. Hearings can take place somewhere else (s 20(3)), and the award is deemed made at the stated place (s 31(4)).¹

• Domestic cases apply Indian law; international commercial cases apply the law the parties chose or, failing that, rules the tribunal considers appropriate (s 28(1)).
• International commercial cases go to the High Court (s 2(1)(e)(ii)), with appointment applications to the Supreme Court (s 11(12)(a)).¹

An arbitrator may be of any nationality unless agreed otherwise (s 11(1)). Indian courts can grant interim measures, orders that protect assets or evidence until the award, and help take evidence for an international commercial arbitration seated abroad, unless the parties exclude this (s 2(2) proviso).¹

For parties weighing India against Singapore or London, the 2025 International Arbitration Survey by Queen Mary University of London asked users for their preferred seats. Respondents could name up to five seats. London was named by 34% and Singapore and Hong Kong by 31% each (Chart 3, printed p 7). New Delhi was named by 2% (endnote 20, printed p 34). See arbitration in Singapore and arbitration in London.²²

Which institutions run arbitrations in India?

Arbitration in India can be ad hoc or institutional, and the Act covers both (s 2(1)(a)). Institutions include MCIA, the Delhi International Arbitration Centre (DIAC), not to be confused with Dubai’s, and the statutory India International Arbitration Centre (IIAC), formerly the New Delhi International Arbitration Centre.^1,5,19

MCIA received 61 matters in 2025, over 60% from contracts that already had an MCIA clause (Annual Report 2025, p 5). DIAC, attached to the Delhi High Court, wants the award within 18 months of the close of pleadings, with a draft for scrutiny at least 45 days earlier (r 31.1).^17,18,19

The Arbitration Council of India is meant to grade institutions and keep an electronic depository of awards (ss 43-I, 43K), but we found no notification setting it up (s 43B(1)). An agreement includes any rules it refers to (s 2(8)), so Indian contracts can adopt the rules of the Singapore International Arbitration Centre (SIAC) or the LCIA in London.¹

What makes an arbitration agreement valid, and which disputes can be arbitrated?

An arbitration agreement must be in writing, which includes a signed document or letters or electronic communications that record it (s 7(3), (4)). Other laws keep some disputes for the courts (s 2(3)). The Supreme Court’s recognised examples include criminal offences, divorce and child custody, guardianship, insolvency, probate and tenancies protected by special statutes (Booz Allen & Hamilton, para 36, quoted in CORE, para 155, fn 290).^1,9

An unstamped or under-stamped agreement is not void: the defect is curable, and stamping objections go to the tribunal (In re Interplay, 2023, para 224). A company that did not sign can still be a party, and its conduct can show consent. The group of companies doctrine stays (Cox and Kings, 2023, para 165).^7,8

Unilateral appointment, where one side alone picks the arbitrator, is now limited. Anyone whose links to the parties, counsel or the dispute fall in the Seventh Schedule is ineligible “notwithstanding any prior agreement to the contrary”, unless the parties waive this in writing after the dispute arises (s 12(5)).¹

In CORE (2024), the majority held that a clause letting one party appoint a sole arbitrator raises justifiable doubts, and that a public sector undertaking cannot make the other side choose from its panel (para 169). It applied this to appointments after 8 November 2024, a direction it tied to three-member tribunals (para 169(g)). Two separate opinions dissented in part. See unilateral appointment and other judgments.⁹

What is the arbitration process in India, step by step?

Unless the parties agree otherwise, the arbitration starts when the respondent receives the request to arbitrate, the section 21 notice (s 21). That date also stops the limitation clock (s 43(2)). By default the tribunal is a sole arbitrator (s 10(2)).¹

If appointment fails, a party applies under section 11 to the High Court, or the Supreme Court in international commercial cases. The court checks only that an arbitration agreement exists (s 11(6A)) but can refuse a plainly time-barred claim (BBM Enterprises, paras 5 to 8). The petition is due within three years, counted from 30 days after the notice (Arif Azim v Aptech, as restated in BBM Enterprises, para 4).^1,12

The tribunal rules on its own jurisdiction (s 16). It is not bound by court procedure rules but must treat the parties equally (ss 18, 19(1)). Unless the parties agreed otherwise, it holds an oral hearing if a party asks (s 24(1)).¹

How long does arbitration in India take, and what does it cost?

A domestic case has about two years from appointment before only a court can extend: six months for pleadings (s 23(4)), then 12 months for the award plus six by consent (s 29A(1), (3)). MCIA averaged 16 months 25 days to an award in 2025, excluding emergency arbitrations (Annual Report 2025, p 10). Cost depends on the claim and the forum.^1,17

A court extending time may cut the arbitrators’ fees by no more than 5% for each month of delay they caused (s 29A(4)). An agreed fast track runs on documents unless all parties or the tribunal want a hearing (s 29B(3)).¹

1 lakh is 100,000 and 1 crore is 10 million. For ad hoc cases that are not international commercial, High Courts may frame fee rules considering the Fourth Schedule, the Act’s model fee scale, unless the parties chose an institution’s fee rules (s 11(14)).¹

• Filing: MCIA charges Rs 50,000, non-refundable, plus taxes (printed p 23).
• Administration: MCIA’s maximum runs from Rs 1,10,000 to Rs 50,00,000 plus taxes, by total claims and counterclaims (printed p 23).
• Arbitrator fees: MCIA sets a maximum per arbitrator (printed p 24). The Fourth Schedule model fee adds 25% for a sole arbitrator.
• Emergency arbitrator: MCIA charges Rs 1,00,000 to file, and the fee is normally Rs 7,00,000 (printed p 24).
• Worked example, Rs 5 crore claim: Fourth Schedule fee Rs 3,37,500 plus 1% of the Rs 4 crore above Rs 1 crore, so Rs 7,37,500, or Rs 9,21,875 for a sole arbitrator. MCIA maximums, before taxes: Rs 5,80,000 administration (Rs 2,40,000 plus 0.85% of Rs 4 crore) and Rs 25,00,000 per arbitrator (Rs 7,80,000 plus 4.3%), which the Registrar may exceed in exceptional cases (r 43.4).
• Who pays: the loser as a general rule, though conduct and refused settlement offers count (s 31A(2), (3)). Awarded sums carry interest at 2% above the current rate unless the award says otherwise (s 31(7)(b)).^1,16

What can Indian courts do during an arbitration?

Courts support the arbitration and step in only where Part I allows (s 5). A court must refer the parties to arbitration if a party asks by its first statement on the substance, unless it finds prima facie that no valid agreement exists (s 8(1)).¹

Under section 9 a court can grant interim measures before or during the arbitration, or after the award until enforcement (s 9(1)). Once the tribunal is formed, the court acts only if the tribunal’s remedy may not be effective (s 9(3)). The tribunal can order such measures during the proceedings, enforceable like court orders (s 17).¹

The Act does not mention an emergency arbitrator, an arbitrator appointed for urgent relief before the tribunal is formed. MCIA, if it grants an application, seeks to appoint one within one business day, with a decision due 14 days after appointment (rr 19.2, 19.6). DIAC also provides one (r 14).^1,16,18

Only the orders section 37 lists can be appealed, with no second appeal, though the right to appeal to the Supreme Court remains (s 37).¹

How do you challenge an arbitral award in India?

An award can be challenged only by asking the court to set aside the award under section 34. Set aside means a court at the seat cancels the award. The application is due within three months of receiving the award (or of a section 33 request being decided), plus up to 30 days for sufficient cause, “but not thereafter” (s 34(3)).¹

There is no appeal on the merits (s 34(1), Explanation 2). Grounds include an invalid agreement, lack of notice and matters outside the submission, shown from the tribunal’s record, and conflict with public policy (s 34(2)). That covers only fraud or corruption (or breach of section 75 or 81), breach of the “fundamental policy of Indian law” and conflict with “the most basic notions of morality or justice” (Explanation 1).¹

Patent illegality, an illegality on the face of the award, is an extra ground only outside international commercial arbitration, and never just for a wrong application of law or reweighing evidence (s 34(2A)). See how courts have treated awards challenged over AI use.¹

If the three months end on a court holiday, filing on the next working day is in time, but the extra 30 days get no such benefit. The Court called this “stringent” and said Parliament must address it (My Preferred Transformation, paras 35.2, 35.3, 36).¹⁰

Filing does not by itself stop enforcement. A court can stay the award on application, with conditions, and since 2021 must stay it unconditionally on a prima facie case of fraud or corruption (s 36(2), (3)).^1,4

Since Gayatri Balasamy (30 April 2025), courts can modify an award in limited ways: severing an invalid, separable part, correcting clerical, computational or typographical errors, and changing post-award interest in some cases. The Supreme Court’s Article 142 power also applies, with great care (para 85).¹¹

How are arbitral awards enforced in India, and Indian awards abroad?

An award made in India is final and binding (s 35). Once the time to challenge it passes, it is enforced “as if it were a decree of the court” (s 36(1)).¹

India signed the New York Convention, the 1958 treaty on recognising and enforcing foreign arbitral awards, on 10 June 1958 and ratified it on 13 July 1960. Its two reservations apply the Convention only to awards made in another contracting state, and only to relationships that are commercial under Indian law. The Convention has 172 parties, as of 26 October 2026.²⁰

A foreign award is enforced under Part II only if made in a territory the Central Government has notified as having reciprocal provisions (s 44). The seat decides, not the institution: a SIAC or LCIA award seated in India is an Indian award under Part I. Refusal is allowed only on the section 48 grounds, which follow Article V of the Convention, and an enforceable award is deemed a decree (s 49). See New York Convention grounds.¹

Abroad, an Indian award is enforced under local procedure (First Schedule, art III). The courts’ limited power to modify awards does not affect that, because the enforcing court asks whether the award is binding under the law of the seat (Gayatri Balasamy, paras 66, 67).^1,11

What has changed recently, and which judgments matter most?

India Code’s text as on 1 June 2026 lists no amending Act after 2021, and Part IA came into force on 12 October 2023. The main changes since have come from Supreme Court judgments, mainly on stamping, appointment and modifying awards.¹

MCIA co-hosted a London panel on 6 June 2025 on the Arbitration and Conciliation (Amendment) Bill 2024 (Annual Report 2025, p 20). We could not open the Bill.¹⁷

The 2019 removal of section 11(6A) had not been notified when the Court ruled in December 2023 (Interplay, para 146), and India Code’s 1 June 2026 text still includes it. Much of the Mediation Act 2023, including its enforcement and challenge sections (ss 27, 28), had no commencement in India Code’s text as on 6 October 2025.^1,6,7

How is AI treated in arbitration in India?

The Arbitration and Conciliation Act, the MCIA Rules 2025 and the DIAC Rules 2023 (text published April 2026) do not mention AI. We searched all three texts on 26 October 2026.^1,16,18

In Pooja Ramesh Singh (2 July 2026), the Supreme Court set aside insolvency tribunal decisions that relied on fake AI-generated precedents (para 1). It held that citing them without verification is misconduct by an advocate, and that a decision relying on hallucinated material is “no decision in the eyes of the law” (para 7). The judgment does not mention arbitration.¹³

The Court’s draft AI regulations of 3 June 2026 would cover courts “including Tribunals and statutory Commissions” (reg 3(o)) but do not name arbitral tribunals. Comments were due by 15 July 2026, and we found no final version as of 26 October 2026.^14,15

The Act’s general duties still apply: each party gets a full opportunity to present its case (s 18), and the award must give reasons unless the parties agreed otherwise (s 31(3)). The glossary explains non-delegation, the rule that the decision stays the arbitrator’s own. An MCIA 2025 session asked whether AI misuse can ground a challenge, with a focus on the Ciarb Guideline (Annual Report 2025, p 30).^1,17

See how India’s courts are handling AI in legal work, what India still has to decide, AI in arbitration and the AI rules tracker.

What is still unsettled in Indian arbitration law?

• When the Arbitration Council of India will be set up (s 43B(1)).
• Whether the Arbitration and Conciliation (Amendment) Bill 2024 will become law.
• What Parliament will do about the “quite stringent” section 34(3) time limit (My Preferred Transformation, para 36).
• How far the AI ruling and the draft AI regulations will reach arbitral tribunals (reg 3(o)).
• How courts will treat unilateral appointment clauses in purely private contracts (CORE, para 169(e)).^{1,9,10,13,14,17}