The surest route to institutional arbitration is a well-drafted dispute-resolution clause, inserted at the time of contracting. The model clauses below are ready to copy and paste into your agreement. Parties to an existing dispute without such a clause may equally agree, in writing, to refer the dispute to arbitration under the DAC Rules.
How to use these clauses: Click Copy clause on any model clause and paste it into the dispute-resolution section of your contract or agreement. The clauses may be adopted as drafted or adapted to the parties' needs. Words in [square brackets] indicate options to be selected or details to be completed by the parties. For customised or hybrid ADR clauses, write to the Registrar, DAC.
Parties to a contract who wish to have any future dispute resolved by arbitration administered by the Delhi Arbitration Centre should insert the following clause in their contract:
"Any dispute or difference whatsoever arising between the parties out of or relating to the construction, meaning, scope, operation or effect of this contract/agreement, or the validity or breach thereof, shall be referred to and finally resolved by arbitration administered by the Delhi Arbitration Centre ("DAC"), Tis Hazari, Delhi, in accordance with the DAC Rules of Arbitration for the time being in force, which Rules are deemed to be incorporated by reference into this clause.
The reference shall be initiated by an application in writing to the Registrar, DAC. The seat of arbitration shall be New Delhi, India. The tribunal shall consist of a sole arbitrator appointed in accordance with the DAC Rules from the panel of arbitrators maintained by DAC. The language of the arbitration shall be [English/Hindi]. The law governing this arbitration agreement shall be the law of India, and the award made in pursuance hereof shall be final and binding on the parties."
Parties who wish to provide expressly for confidentiality, an expedited timeline and connected matters may add the following optional provisions after the model clause:
(a) Confidentiality. All information and documents disclosed in the course of the arbitration shall be kept confidential by the parties and the arbitrator(s), and shall not be disclosed to any third party unless required by law.
(b) Reasoned Award. The arbitrator shall render a written award stating the reasons upon which it is based. The award shall be final and binding upon the parties and enforceable in accordance with applicable law.
(c) Expedited Procedure. The arbitration shall be conducted in an expedited manner under the summary procedure provisions of the DAC Rules, and the arbitrator(s) shall make all reasonable efforts to render the final award within six months from the date of the first hearing.
(d) Interim Measures and Enforcement. The parties submit to the exclusive jurisdiction of the courts at New Delhi, India, for the limited purpose of seeking interim measures or enforcing the arbitral award.
(e) Survival. This arbitration clause shall survive the termination or expiration of this contract and of any subsequent agreement between the parties.
(f) Amendment. This arbitration clause may be amended only in writing signed by all parties to this contract.
Where a dispute has already arisen and the contract contains no arbitration clause, the parties may nonetheless agree in writing to refer the dispute to DAC by executing the following submission agreement:
"The parties hereby agree that the dispute which has arisen between them concerning [briefly describe the dispute and the contract or relationship out of which it arises] shall be referred to and finally resolved by arbitration administered by the Delhi Arbitration Centre ("DAC"), Tis Hazari, Delhi, in accordance with the DAC Rules of Arbitration for the time being in force. The reference shall be initiated by an application in writing to the Registrar, DAC. The seat of arbitration shall be New Delhi, India, and the dispute shall be decided by a sole arbitrator appointed in accordance with the DAC Rules from the panel of arbitrators maintained by DAC. The award made in pursuance hereof shall be final and binding on the parties."
Parties who prefer to attempt an amicable settlement before arbitration may adopt the following two-tier clause:
"Any dispute, difference or controversy arising out of or in connection with this contract shall first be referred to mediation at the Delhi Arbitration Centre ("DAC"), Tis Hazari, Delhi, in accordance with the DAC Mediation Rules and the applicable law. If the mediation is abandoned by the mediator, or is otherwise concluded without the dispute, difference or controversy being resolved, then such dispute, difference or controversy shall be referred to and finally determined by arbitration administered by DAC in accordance with the DAC Rules of Arbitration and the Arbitration and Conciliation Act, 1996."
Parties who wish to provide comprehensively for mediation under the DAC Mediation Rules may adopt the following clause:
1. Reference to Mediation. In the event of any dispute arising out of or in relation to this contract, including any question regarding its existence, validity or termination, the parties shall first attempt to resolve the dispute amicably through mediation administered by the Delhi Arbitration Centre ("DAC"), Tis Hazari, Delhi, in accordance with the DAC Mediation Rules.
2. Initiation. Either party may initiate the mediation by serving a written notice upon the other party, specifying the nature of the dispute and the desire to mediate.
3. Appointment of Mediator. If the parties do not agree upon a mediator within seven days of receipt of the notice, the mediator shall be appointed by the Registrar, DAC, in accordance with the DAC Mediation Rules.
4. Confidentiality. All mediation proceedings, communications and documents shall be confidential, and shall not be used as evidence in any subsequent arbitration or litigation, except as required by law.
5. Settlement. Any settlement reached through the mediation shall be reduced to writing, shall be binding upon the parties, and shall be enforceable in accordance with applicable law.
6. Escalation to Arbitration. If the mediation fails to resolve the dispute, the dispute shall be referred to and finally resolved by arbitration administered by DAC in accordance with the DAC Rules of Arbitration.
7. Governing Law. The mediation shall be governed by and construed in accordance with the laws of India.
Parties to an existing dispute who have no prior mediation agreement may enter into a DAC Mediation Agreement to facilitate the mediation.
Scope of ReferenceGenerally speaking, all disputes of a civil or quasi-civil nature which can be decided by a civil court can be referred to arbitration, subject to arbitrability under law. Disputes relating to property, the right to hold an office, compensation for non-fulfilment of a contractual term, and disputes between partners, among others, may be referred to arbitration. Even disputes between an insolvent and his creditors may be referred to arbitration by the official receiver or official assignee with the leave of the court. In short, disputes arising in respect of a defined legal relationship, whether contractual or not, can be referred to arbitration.
Parties who wish to design customised ADR clauses to fit particular situations, or to create hybrid clauses combining mediation, conciliation and arbitration, may mail their request to the Registrar, DAC.
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