Can parties agree on the confidentiality of arbitration proceedings in India?

Answer By law4u team

Yes, parties can agree on the confidentiality of arbitration proceedings in India. Here are the key points regarding confidentiality in arbitration: 1. Arbitration and Conciliation Act, 1996 Confidentiality Not Explicitly Stated: The Arbitration and Conciliation Act does not explicitly provide for confidentiality, but it allows parties to agree to confidentiality as part of their arbitration agreement. 2. Party Autonomy Agreement Between Parties: Parties have the autonomy to include confidentiality clauses in their arbitration agreements, specifying that the proceedings, including documents and awards, remain confidential. 3. Institutional Rules Institutional Arbitration: Many arbitration institutions in India, such as the Indian Council of Arbitration (ICA) and the Mumbai Centre for International Arbitration (MCIA), include provisions for confidentiality in their rules. Example: For instance, the MCIA's rules explicitly state that arbitration proceedings are confidential unless the parties agree otherwise. 4. Judicial Recognition Support from Courts: Indian courts have recognized the importance of confidentiality in arbitration and have upheld confidentiality agreements between parties in various judgments. 5. Exceptions to Confidentiality Disclosure Requirements: Confidentiality may not apply if there are legal requirements to disclose information, such as in cases of fraud or to protect public interest. Conclusion Parties can indeed agree on the confidentiality of arbitration proceedings in India, and it is advisable to explicitly include such provisions in their arbitration agreements to protect sensitive information.

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