How is an arbitration agreement defined under Indian law?

Answer By law4u team

Under Indian law, an arbitration agreement is defined under the Arbitration and Conciliation Act, 1996. Section 7 of the Act specifically outlines the definition of an arbitration agreement. Here's the definition as per the Act: "Section 7 - Arbitration Agreement: (1) In this Part, 'arbitration agreement' means an agreement by the parties to submit to arbitration all or certain disputes which have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. (2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. (3) An arbitration agreement shall be in writing. (4) An arbitration agreement is in writing if it is contained in- (a) a document signed by the parties; (b) an exchange of letters, telex, telegrams, or other means of telecommunication which provide a record of the agreement; or (c) an exchange of statements of claim and defence in which the existence of the agreement is alleged by one party and not denied by the other. (5) The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement if the contract is in writing and the reference is such as to make that arbitration clause part of the contract." Key points from the definition of an arbitration agreement under Indian law include: Submission to Arbitration: The parties must agree to submit all or certain disputes arising between them to arbitration. This agreement can be related to a contractual or non-contractual legal relationship. Form of Agreement: An arbitration agreement can be in the form of an arbitration clause within a contract or as a separate agreement. Requirement of Writing: An arbitration agreement must be in writing to be legally enforceable. Forms of Writing: The agreement can be in the form of a signed document by the parties, exchange of written communications (letters, telex, telegrams, emails, etc.) showing the agreement, or exchange of statements of claim and defense where the existence of the agreement is acknowledged. Incorporation by Reference: If a contract refers to a document containing an arbitration clause and meets the requirements of being in writing, the arbitration clause is considered part of the contract. These provisions ensure clarity and enforceability of arbitration agreements under Indian law, providing a legal framework for resolving disputes through arbitration.

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