Where parties have agreed to refer their disputes to the DIAC for arbitration (whether before or after a dispute has arisen), or where the Court directs that arbitration be conducted between the parties in accordance with these Rules, the parties shall be deemed to have agreed that the arbitration shall be conducted and administered in accordance with these Rules unless such amended rules as the DIAC may have adopted hereafter and may be in effect on the date of commencement of the arbitration. If any of these Rules are in conflict with a mandatory provision of law applicable to the arbitration or the arbitration agreement from which the parties cannot derogate, that mandatory provision or the agreement shall prevail as the case may be.
Claimant", notwithstanding any nomenclature given to the parties in any Court in any proceeding between them, means the party which files the Statement of Claim first in point of time. The other party(ies) shall be referred to as "Respondent(s)". The party filing Counter-Claim(s) shall be referred as "Counter-Claimant".
The words and phrases not defined herein shall bear the same meaning as used or defined in the Act, the Delhi International Arbitration Centre (DIAC) (Internal Management) Rules, Delhi International Arbitration Centre (Administrative Cost and Arbitrators' Fees) Rules and the schedules thereto as the case may be.
For the purposes of these Rules, any notice, communication or proposal shall be in writing ("Written Communication"). Any such Written Communication may be delivered personally or by registered post or courier service, or transmitted by any form of electronic communication (including electronic mail and facsimile), or delivered by any other means that provides a record of its transmission or in any other manner as may be decided by the Court. It shall be deemed to have been received if it is delivered to:
If none of the places referred to in Rule 3.1 above can be found after making a reasonable inquiry, a written communication will be deemed to have been received if it is sent to the addressee's last known place of business, habitual residence or mailing address by registered post or by any other means which provides a record of attempted delivery.
For the purposes of calculating any period of time under these Rules, such period shall begin to run on the day following the day when a Written Communication or proposal is received or deemed to have been delivered. When the day next following such date is a non-business day, in the place of receipt, the time period commences on the first following business day. If the last day of such period is a non-business day at the place of receipt, the period is extended until the first business day which follows. Non-business days occurring during the running of the period of time are included in calculating the period.
When a party files with the Coordinator a written Request for Arbitration it shall contain or be accompanied by:
a statement briefly describing the nature and circumstances of the dispute and the claims advanced by the Claimant against any other party to the arbitration, each such party being here separately described as the "Respondent", specifying the relief claimed, including the amounts of any quantified claims and, to the extent possible, an estimate of the monetary value of any other claims;
a statement of any matters which the parties have previously agreed to as to the conduct of the arbitration or with respect to which the Claimant wishes to make a proposal (such as the number of arbitrator(s), the applicable rules of law, the language(s) of the arbitration, and the seat of arbitration);
confirmation that copies of the Request for Arbitration and any documents have been or are being served simultaneously on all other parties, specifying the mode of service employed and the date of service, to be supported then or as soon as possible thereafter by documentary proof satisfactory to the Coordinator of actual delivery including the date of delivery; and
The contents of the Request for Arbitration do not prevent a party from subsequently adding, supplementing or amending in its pleadings the matters referred to arbitration or the reliefs claimed, subject to Rule 18, provided that such matters and reliefs fall within the scope of the arbitration agreement.
The Respondent shall simultaneously send to the party making a request for Arbitration and DIAC a Response within 30 days of receipt of the Request for Arbitration. The Response shall contain or be accompanied by:
a statement briefly describing the nature and circumstances of the dispute and the defence to the claim, including counter-claims, if any, raised specifying the relief claimed, and the amounts of any quantified counter-claims and, to the extent possible, an estimate of value of any other counter-claims;
any comment in response to any statements contained in the Request for Arbitration, or with respect to which the Respondent wishes to make a proposal, on matters relating to the conduct of the arbitration such as the number of arbitrator(s), the applicable rules of law, and the seat/place of arbitration;
confirmation that copies of the Response and the documents relied on have been or are being served simultaneously on all other parties, specifying the mode of service employed and the date of service, by documentary proof satisfactory to the Coordinator of actual delivery (including the date of delivery);
On the date fixed for the Terms of Reference, the Arbitral Tribunal may, with the consent of the parties, direct consolidation of two or more arbitral proceedings before it, if the disputes or differences therein are identical and between the same parties or between the parties having commonality of interest or where such disputes arise out of separate contracts but relate to the same transaction.
When a person is approached in connection with his possible appointment as an Arbitrator, he shall disclose in writing any circumstances –
such as the existence either direct or indirect, of any past or present relationship with or interest in any of the parties or in relation to the subject-matter in dispute, whether financial, business, professional or other kind, which is likely to give rise to justifiable doubts as to his independence or impartiality; and;
Explanation 1 – The grounds stated in the Fifth Schedule to the Act shall guide in determining whether such circumstances exist which give rise to justifiable doubts as to the independence or impartiality of an Arbitrator.
Explanation 2 – The disclosure shall be made by such person in the form specified in the Sixth Schedule to the Act.
Notwithstanding any prior agreement to the contrary, any person whose relationship, with the parties or Counsel or the subject-matter of the dispute, falls under any of the categories specified in the Seventh Schedule to the Act shall be ineligible to be appointed as an Arbitrator. PROVIDED that parties may, subsequent to disputes having arisen between them, waive the applicability of Rule 7.5 by an express agreement in writing. PROVIDED further that Rule 7.5 shall not apply to cases where an Arbitrator has already been appointed on or before the commencement of the Arbitration and Conciliation (Amendment) Act, 2015.
The parties to a dispute are free to determine the number of arbitrators, provided that such number shall not be an even number and in case there are only two parties to a dispute such number shall not exceed three. In case of more than two parties to a dispute, the number of arbitrators may be more than three, but in no case, it shall exceed five.
Where the agreement provides for the appointment of three arbitrators the Claimant and Respondent shall appoint their individual arbitrators within thirty days of intimation of filing of the Request and the two arbitrators shall within 21 days, appoint the third arbitrator and such third arbitrator shall preside over the Arbitral Tribunal.
Where the parties fail to appoint their respective Arbitrators or where the Arbitrators appointed by the Parties fail to appoint the Presiding Arbitrator, in terms of the Rule 8.3, then within 21 days thereof, the Chairperson/ Sub-Committee shall appoint the Arbitrator/ Presiding Arbitrator as the case may be. PROVIDED that in a case of International Arbitration the Presiding Arbitrator shall be of a nationality other than the nationalities of the parties where the parties belong to different nationalities.
Where disputes arise amongst more than two parties out of a defined legal relationship or out of a series of interconnected contracts (including "chain" or "string" contracts), the parties may agree that the Arbitral Tribunal shall consist of three members, one to be nominated by each of the parties (supporting parties will be grouped together and treated as one party for the purpose of such nomination of the arbitrator) and the third arbitrator shall be appointed by the Chairperson and such third arbitrator shall Chair the Arbitral Tribunal.
If the parties to a dispute are required to be grouped in three groups, each such group will nominate one arbitrator each and the three members of the Arbitral Tribunal shall nominate one out of themselves to Chair the Arbitral Tribunal. If the members fail to so nominate, the Chairperson shall nominate anyone of them to Chair the Arbitral Tribunal within fifteen days of the constitution of the Arbitral Tribunal.
If the parties to a dispute are required to be grouped in five groups, each such group will nominate one arbitrator each and the five members of the Arbitral Tribunal shall nominate one out of themselves to Chair the Arbitral Tribunal. If the members fail to so nominate, the Chairperson shall nominate anyone of them to Chair the Arbitral Tribunal within fifteen days of the constitution of the Arbitral Tribunal.
All efforts shall be made to ensure that such grouping of parties shall not exceed five. In case the groups are more than five, the Chairperson shall adopt such procedure for the appointment of arbitrators as may be deemed appropriate, in view of the facts and circumstances of the case, but in no case shall the number of arbitrators comprising the Arbitral Tribunal exceed five.
Any arbitrator may be challenged if circumstances exist that give rise to justifiable doubts as to the arbitrator's impartiality or independence, or if the arbitrator does not possess any requisite qualification which the parties have previously agreed, or if the arbitrator becomes de jure or de facto unable to fulfil his functions or is not fulfilling those functions in accordance with the Rules or within the prescribed time limits.
Subject to Rule 8, a party who intends to challenge an arbitrator shall send a notice of challenge within 14 days after the receipt of the notice of appointment of the arbitrator who is being challenged or within 14 days after the circumstances mentioned in Rule 11.2 become known to that party.
The notice of challenge shall be submitted to DIAC and simultaneously shall be sent to the other party, the Arbitrator(s) being challenged and the other members, if any, of the Tribunal. The notice of challenge shall be in writing and shall state the reasons for the challenge. The DIAC may request comments on the challenge from the parties, the challenged arbitrator and the other members of the Tribunal (or if the Tribunal has yet not been constituted, any appointed arbitrator) within a period of 10 days' from the date of such request.
The notice of challenge duly submitted as per Rule 10.1 shall be disposed of by the Chairperson/ Sub-committee within a period of 30 days from the date of receipt of notice in terms of the Rules.
PROVIDED however, the time for deciding the challenge can in no circumstance exceed a further period of 30 days.
Explanation: Notice of Challenge shall not be acted upon and shall not be treated as received by DIAC unless the party submitting such notice deposits a sum of Rs.10,000/- towards processing costs which shall not be refundable under any circumstances. The time for making the Award, for the purposes of Section 29A of the Act, shall stand extended by the period spent between the date of receipt of the application for the challenge and its disposal by the Chairperson/ Sub-committee. This period shall be deemed to be an extension under Section 29A (3) of the Act.
If the Chairperson or the Sub-Committee appointed by the Chairperson sustains the challenge, a substitute arbitrator shall be appointed in accordance with the procedure referred to in Rule 11.2. The time limits provided in Rule 11 shall commence from the date of the Coordinator's notification to the parties of the decision by the Chairperson or the Sub-Committee appointed by the Chairperson.
An arbitrator may be replaced on the grounds specified in Section 14 of the Act either on an application by the Party or otherwise if in the opinion of the Chairperson or the Sub-Committee appointed by the Chairperson is not fulfilling those functions in accordance with the Rules or within the prescribed time limits.
When, on the basis of information that has come to its attention, the Chairperson or the Sub-Committee appointed by the Chairperson considers applying Rule 11.1, it shall decide on the matter after the arbitrator concerned, the parties and any other members of the Tribunal have had an opportunity to comment in writing within a reasonable period of time. Such comments shall be communicated to the parties and to the Tribunal.
The parties shall appoint a sole arbitrator from the DIAC Panel of Arbitrators in terms of Rule 9 of these Rules within a period of thirty days after the expiry of the date specified in Rule 12.4 and communicate the same to the Coordinator. If parties fail to reach an agreement, the Chairperson or the Sub-Committee appointed by the Chairperson shall make such appointment within one week after the expiry of said period of thirty days. The confirmation of the appointment of the Arbitrators after obtaining mandatory disclosure in terms of Sixth Schedule of the Act, as may be amended from time to time, shall be communicated to the parties and the Arbitrators.
The Arbitral Tribunal shall follow the following procedure while conducting arbitration proceedings under the fast-track procedure:
an oral hearing may be held only if all the parties make a request or if the Arbitral Tribunal considers it necessary to have an oral hearing for clarifying certain issues; if the Parties desire an oral hearing, such hearing would be limited to oral submissions within a specified time to be determined by the Arbitral Tribunal;
If a party is in a requirement of urgent interim or conservatory measures that cannot await the formation of the Arbitration Tribunal, it may make an application to the Secretariat addressed to the Coordinator, with a simultaneous copy thereof to the other parties to the arbitration agreement for such measures.
Prior to accepting his appointment, a prospective Emergency Arbitrator must disclose to the Coordinator any facts or circumstances which may give rise to justifiable doubts as to his impartiality or independence. Any challenge to the appointment of the Emergency Arbitrator must be made within one business day of the communication by the Coordinator to the parties of the appointment of the Emergency Arbitrator and the circumstances disclosed.
The Emergency Arbitrator so appointed shall schedule a hearing including the filing of pleadings and documents by the parties within two business days of his appointment. The Emergency Arbitrator shall provide a reasonable opportunity of being heard to all the parties before granting any urgent, interim or conservatory measures and proceed to make an order by giving reasons. The parties shall comply with any order made by the Emergency Arbitrator.
The Emergency Arbitrator shall have the power to order any interim relief that he deems necessary. An order of the Emergency Arbitrator shall be made in writing, with a brief statement of reasons. An order or award of an Emergency Arbitrator shall be enforceable in the manner as provided in the Act.
The order passed by the Emergency Arbitrator shall remain operative for a period of two months from the date of passing of the order unless modified, substituted or vacated by the Arbitral Tribunal. The Arbitral Tribunal will also have the power to extend the order beyond the period of two months.
A party may, during the arbitral proceedings apply to the Arbitral Tribunal for an interim measure of protection in respect of the subject matter of the dispute as it may consider necessary, including -
the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorizing for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party or authorizing any samples to be taken, or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;
Unless already submitted pursuant to Rule 4.3, the Claimant shall, within a period of time to be determined by the Tribunal or the Centre as the case may be, at the first procedural meeting held pursuant to Rule 21.2, send to the Respondent and the Tribunal a Statement of Claim setting out in full detail:
Unless otherwise agreed, within 30 days from the date of the receipt of the Statement of Claim and the documents, the Respondent(s) shall file Statement of Defence. The plea of Set-Off and/or Counter-Claim, if any, shall be filed along with the Statement of Defence. Notwithstanding Rule 17.1, the Statement of Defence and/or Set Off/Counter-Claim may be entertained if the Arbitral Tribunal or the Centre, as the case may be, having regard to the facts and circumstances grant further extension, not exceeding 30 days, upon such terms including costs, as it may deem fit and proper.
PROVIDED however, the party seeking such extension of time will necessarily file the Statement of Defence and/or Set Off/Counter-Claim before the expiry of the further period of 30 days and which shall be taken on record subject to the decision of the Arbitral Tribunal or Centre, as the case may be.
The Claimant shall file the reply to the Counter Claim and the provisions of sub-rule 1 to 4 to this rule shall apply mutatis mutandis. Failure of the Claimant to file his Reply to the Counter-Claim within the time stipulated or the extended time shall constitute a waiver of the Claimant's opportunity to file the Reply
Explanation: For the purpose of this Rule, the provisions of Rule 3 shall apply mutatis mutandis.
With the leave of the Tribunal and on such terms as the Tribunal may determine, a party may amend or supplement its Claim, Counter-Claim or other pleadings, unless the Tribunal considers it inappropriate, having regard to the delay in making such requestor prejudice to the other party or any other circumstances. However, a Claim or Counter-Claim or pleadings may not be amended or supplemented in such a manner that the amended or supplemented Claim or Counter-Claim or pleadings would, if permitted, fall outside the scope of the arbitration agreement.
The Tribunal shall decide whether further pleadings shall be required from the parties or may be presented by them. The Tribunal shall fix the periods of time for communicating such pleadings if any. The Tribunal may further limit the length and scope of written pleadings and written and oral evidence (both fact witnesses and experts).
The Tribunal may conduct the arbitration in such manner as it considers appropriate to ensure the avoidance of unnecessary delay and expense, having regard to the complexity of the issues involved and the amount in dispute.
PROVIDED that such procedures ensure fair and equal treatment of the parties and afford them a reasonable opportunity to present their case.
The Tribunal may proceed with the arbitration notwithstanding the failure or refusal of any party to comply with these Rules or with the Tribunal's orders or directions, or to attend any meetings or hearings, and may:-
Any party seeking adjournment or change in the timetable fixed for the arbitration proceedings shall file a written request, supported by sufficient and cogent reasons and necessary documents, if any, at least 30 days prior to the date for which such adjournment is sought along with costs by way of Demand Draft in the name of Delhi International Arbitration Centre for a sum of Rs. 25,000/-. The Arbitral Tribunal may accede to such request after recording its reasons in writing.
If a request for adjournment could not be made at least thirty days prior to the date for which it is sought, then the same may be entertained only if it is made in writing and supported by sufficient and cogent reasons and necessary documents, subject to payment of costs as given below:
| Time | Cost |
| 30 to 26 days (both inclusive) prior to the fixed date | Rs.25,000/- plus10% i.e. Rs.27,500/- |
| 25 to 21 days (both inclusive) prior to the fixed date | Rs.25,000/- plus 20% i.e. Rs.30,000/- |
| 20 to 16 days (both inclusive) prior to the fixed date | Rs.25,000/- plus 30% i.e.. Rs.32,500/- |
| 15 to 11 days (both inclusive) prior to the fixed date | Rs.25,000/- plus 40% i.e. Rs.35,000/- |
PROVIDED, that no request for adjournment shall be entertained ten days before the scheduled date unless supported by special or exceptional reasons or in cases of emergency. The percentage of additional costs may be decided by the Arbitral Tribunal in such cases, including the power to exempt the imposition of additional costs, original costs to remain unaffected. In all such cases, the Tribunal shall record special reasons in writing.
Witnesses, including expert witnesses, who are presented by the parties to testify to the Tribunal on any issue of fact or expertise, may be an individual, notwithstanding that the individual is a party to the arbitration or in any way related to a party. Unless otherwise directed by the Tribunal, statements by witnesses, including expert witnesses, may be presented in writing and signed by them.
A party wishing to join an additional party to the arbitration shall submit its written request for arbitration against the additional party (the "Request for Joinder") to the Coordinator. The date on which the Request for Joinder is received by the Coordinator shall, for all purposes, except the time for making the award, be deemed to be the date of the commencement of arbitration against the additional party. No additional party may be joined after the confirmation or appointment of any arbitrator, unless all parties, including the additional party, otherwise agree in writing.
Parties to an arbitration agreement may, at any time before the commencement of the arbitration proceedings or while the arbitration proceedings are in progress, opt for mediation, and request the arbitral tribunal to put the arbitration proceedings on hold to enable the parties to resolve their disputes amicably.
The mediation proceedings shall be conducted in accordance with the mediation rules of the Delhi High Court Mediation Centre, which shall be deemed to have been incorporated herein and as an integral part of these rules. The proceedings before the mediators shall remain confidential and shall not be brought on record in the arbitration proceedings, should the mediation fail.
At the request of any one of the parties and subject to the statutory timeline for completion of proceedings, the Tribunal may submit a draft award to the Coordinator for the scrutiny by the Committee constituted for that purpose. In such event, the Coordinator will, on the advice of such Committee suggest modifications to the draft award without in any manner interfering with the decision of the Tribunal. The suggestions will be communicated not later than 10 days after the receipt of the draft award failing which the Arbitrator will proceed to pronounce the final award without waiting for the suggestions. The Tribunal is at liberty to make such changes as it deems fit to the draft award.
In the event of a settlement, if the parties so request, the Tribunal may render a consent award recording the settlement, provided always that such Award contains an express statement that it is an Award made by the parties' consent. A consent award need not contain reasons. If the parties do not require a consent award, the parties shall confirm to the Coordinator that a settlement has been reached. The Tribunal shall be discharged and the arbitration concluded upon payment of any outstanding costs of the arbitration.
In relation to any arbitration proceeding or a proceeding under any of the provisions of these Rules pertaining to the arbitration, the Centre or Arbitral Tribunal, notwithstanding anything contained in the Code of Civil Procedure, 1908 (5 of 1908), shall have the discretion to determine—
Explanation—For the purpose of this Rule, "costs" means reasonable costs relating to— (i) the fees and expenses of the arbitrators, Centre and witnesses; (ii) legal fees and expenses; (iii) any administration fees of the institution supervising the arbitration; and (iv) any other expenses incurred in connection with the arbitral or Court proceedings and the arbitral award.
In determining the costs, the Centre or Arbitral Tribunal shall have regard to all the circumstances, including—
The Coordinator shall fix the amount of deposits for costs of the arbitration. Unless the Coordinator directs otherwise, 50% of such deposits shall be payable by the Claimant and the remaining 50% of such deposits shall be payable by the Respondent. The Coordinator may fix separate advances on costs for Claims and Counter-Claims, respectively.
Where the amount of the Claim or the Counter-Claim is not quantifiable at the time payment is due, a provisional estimate of the costs of the arbitration shall be made by the Coordinator. Such estimate may be based on the nature of the controversy and the circumstances of the case. This may be adjusted in light of such information as may subsequently become available.
If a party fails to make the deposits as directed within 30 days from the date on which it is due, the Coordinator may, after consulting with the Chairperson or the Sub-Committee appointed by the Chairperson and the parties, direct the Tribunal to terminate the work. If the payment is not made within 30 days, the relevant Claims or Counter-Claims shall be considered as withdrawn without prejudice to the party reintroducing the same Claims or Counter-Claims in another proceeding.
Parties are jointly and severally liable for the costs of the arbitration. Any party is free to pay the whole of the deposits for costs of the arbitration in respect of the claim or the counterclaim should the other party fail to pay its share. The Tribunal or the Coordinator may suspend its work, in whole or in part, should the advances or deposits directed under this Rule remain either wholly or in part unpaid. On the application of a party, the Tribunal may issue an Award for unpaid deposits towards the costs of the arbitration pursuant to Rule 33.4(D).
If the arbitration is settled or disposed of without a hearing or in terms of Rule 30.2, the costs of arbitration shall be finally determined by the Coordinator. The Coordinator shall have regard to all the circumstances of the case, including the stage of proceedings at which the arbitration is settled or disposed or terminated under Rule 30.2. In the event that the costs of arbitration determined are less than the deposits made, there shall be a refund in such proportions as the Chairperson or the Sub-Committee appointed by the Chairperson may decide, in the same proportion as the deposits were made.
The Centre shall have a lien on the Arbitral Award for any unpaid costs of the Arbitration including adjournment cost, miscellaneous expenses and the fees of the Arbitrator and the Award will not be notified to the parties unless all such costs have been fully paid to the Centre by the parties or by one of them.
A party or any Arbitrator shall not, without the prior written consent of all the parties, disclose to a third party any such matter except:
In this Rule, "matters relating to the proceedings" means the existence of the proceedings and the pleadings, evidence and other materials in the arbitration proceedings and all other documents produced by another party in the proceedings or the Award arising from the proceedings, but excludes any matter that is otherwise in the public domain.
Subject to Rule 21.1, the decisions of the members of the Arbitration Committee and the Secretariat with respect to all matters relating to an arbitration shall be conclusive and binding upon the parties and the Tribunal. The Chairperson, the Arbitration Committee and the Secretariat shall not be required to provide reasons for such decisions.
In all matters not expressly provided for in these Rules, The Chairperson, the Arbitration Committee, the Secretariat and the Tribunal shall act in the spirit of these Rules and shall make every reasonable effort to ensure fair, expeditious and economical conclusion of the arbitration and the enforceability of any Award.
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