IIAC is a statutory entity established as a self-governing and autonomous framework for institutional arbitration in India. Its aim is to evolve into a premier institution for facilitating and administering both international and domestic arbitration. Additionally, the IIAC strives to establish partnerships with national and international entities to strengthen its reputation as a specialized institution in arbitration.

Where the parties have consented to submit their dispute to IIAC, whether before or after the dispute arises or where a court mandates arbitration between the parties under the auspices of IIAC, it shall be presumed that the parties have mutually agreed for the arbitration to be conducted by the same in accordance with the stipulations outlined in these regulations.

An arbitration proceeding is commenced when a party makes a request in writing by uploading it on the portal provided on the website i.e. indiaiac.org or by way of an email to the Registrar. A party making a request is required to file a Statement of Claim as well. Upon IIAC’s receipt of the necessary filing fee, the arbitration shall be considered initiated on the date when the complete Request for Arbitration is received by IIAC.

When someone is considered for appointment as an arbitrator, they must disclose in writing any circumstances that may raise concerns about their independence or impartiality, including past or present relationships with the parties involved or the subject matter of the dispute. They must disclose any factors that could impact their ability to dedicate adequate time to the arbitration proceedings, particularly in meeting stipulated timeframes.

Unless otherwise agreed by the parties, a sole arbitrator will be appointed upon mutual consent and agreement of the parties. Parties may nominate an arbitrator from the Panel of Arbitrators, with the Chairperson of IIAC having the authority to appoint another arbitrator nominated by a party in exceptional circumstances. If parties have agreed on the appointment method for an arbitrator, it will be considered in accordance with these Regulations. The Chairperson exclusively holds the power to appoint arbitrators, considering the qualifications required by the parties and ensuring the appointment of an independent and impartial arbitrator capable of handling the case promptly and efficiently.

Before the Arbitral Tribunal is formed, a party has the option to request in writing to the Registrar for the arbitration proceedings to be conducted under the Fast Track Procedure, meeting either of two criteria:

(a) the likely amount in dispute does not exceed INR 5 Crores (approx. 599 USD), or

(b) the parties mutually agree in writing.

If the Chairperson determines, after considering the parties’ perspectives and the case circumstances, that the arbitration should proceed under the Fast Track Procedure, specific procedures are mandated:

i. A sole arbitrator is appointed.

ii. Timelines may be shortened by the Registrar.

iii. The dispute is decided based on written submissions unless otherwise agreed by the parties, the arbitrator may request additional information and oral hearings are held only upon mutual request or if deemed necessary by the arbitrator.

iv. Formalities can be dispensed with for expeditious resolution, and the award must be rendered within six months from the procedure’s commencement, with a provision for extension under exceptional circumstances.

v. The Arbitral Tribunal may, upon application by a party and consultation with the Registrar, decide to discontinue the Fast Track Procedure, with the arbitration continuing under the same tribunal initially constituted for the Fast Track Procedure.

In cases of exceptional emergency, a party can submit a written application to the Registrar for emergency interim relief either during the initial filing or subsequent to the filing of the Notice of Arbitration but before the Arbitral Tribunal is constituted. The party making the application must furnish a statement briefly outlining the nature and context of the relief sought, along with specific reasons justifying the urgent need for such relief and the entitlement of the party to such measures. Furthermore, the party is required to remit the applicable application fee for the appointment of the Emergency Arbitrator.

A prospective Emergency Arbitrator must disclose to the Registrar any facts or circumstances that might raise doubts about their impartiality or independence and cannot act in any subsequent arbitration related to the dispute unless agreed upon by all parties. Within two business days of appointment, the Emergency Arbitrator must schedule a hearing and provide all parties a reasonable opportunity to be heard before issuing any urgent interim measures, along with providing reasons for the decision. Orders by the Emergency Arbitrator must be in writing, with brief reasons, and are enforceable if the arbitration seat is in India. The Emergency Arbitrator ceases to have authority once the order is issued and is not part of the subsequent Arbitral Tribunal unless otherwise agreed by all parties. An order passed by the Emergency Arbitrator’s remains effective for two months unless modified by the Arbitral Tribunal, which can extend the order’s duration. The Arbitral Tribunal has the authority to confirm, modify, discharge, or revoke any order of the Emergency Arbitrator upon application by any party or its own initiative.

The Arbitral Tribunal is mandated to apply the agreed-upon laws or rules in deciding the merits of the dispute. In the absence of such agreement, the Tribunal will determine the applicable laws based on the facts and circumstance of the case. In an arbitration other than international commercial arbitrations, the Tribunal will follow the prevailing Indian law. The Tribunal may employ amiable compositeur or ex aequo et bono principles only if explicitly authorized by the parties. Additionally, the Tribunal will adhere to the contract terms and consider relevant trade usages in making decisions.

The Arbitral Tribunal is required to submit all draft awards to the Registrar within 60 days of closing the proceedings, unless exceptional circumstances necessitate an extension, which may be granted upon request by the Tribunal or at the Registrar’s discretion. The Registrar then has 21 days to suggest changes to the draft award’s format and to identify any typographical or clerical errors. The Arbitral Tribunal maintains the discretion to make any changes it deems appropriate to the award and may issue separate awards on different issues at different times. In cases involving multiple arbitrators, decisions are made by a majority vote. The award must be in writing, signed by the Arbitral Tribunal, and, unless otherwise agreed by the parties, must provide the reasons for the decision. In international commercial arbitration, The award must be issued within 12 months of filing the Statement of Defence to the Claim or Counterclaim, but the Registrar may extend this period under certain circumstances. The award can be executed in multiple counterparts, each considered an original. If a member of a three-person Arbitral Tribunal fails to sign the award, the reason for the absence of the signature must be stated. If the majority of the Tribunal members sign the award, it is considered final and binding. Subsequently, the award is delivered to the Registrar, who distributes certified copies to the parties upon full payment of arbitration costs. The arbitration concludes upon payment of all outstanding costs, and parties agree that awards are final and binding from the date of issuance under these regulations.

The Registrar will fix the fees for both the Arbitral Tribunal and IIAC based on the applicable Schedule of Fees. The total costs of the arbitration will be specified in the award, and unless agreed otherwise by the parties, the Arbitral Tribunal will determine the allocation of these costs among them.

The Regulation defines the term ‘costs of the arbitration’ as the following-

i. the Arbitral Tribunal’s fees and expenses

ii. the IIAC’s administration fees and expenses

iii. the costs of expert advice and of other assistance reasonably required by the Arbitral Tribunal.

The Registrar of IIAC shall determine the required deposits for covering the costs of the arbitration. Typically, the Claimant will pay 50% of the deposits, while the Respondent will pay the remaining 50%. The Parties are jointly and severally liable for the costs of the arbitration and any party is free to pay the whole of the deposits towards costs of the arbitration in respect of the Claim or the Counterclaim in case the other party fails to pay its share. The Registrar may also set separate advances on costs for claims and counterclaims. If the Claim or Counterclaim amount is uncertain at the time of payment, the Registrar will make a provisional estimate of the arbitration costs based on various factors, which may later be adjusted and may request additional advances towards incurred or anticipated arbitration costs.

Failure to make required deposits may result in the Arbitral Tribunal suspending proceedings, with a deadline for payment before claims or counterclaims are terminated.

In terms of schedule of fees provided in the regulations, the fee structure in an international arbitration is as follows-

Case Filing Fee – USD 500/- (or equivalent in INR)

Adminstration Fees-

Arbitrator’s Fees (Per Arbitrator)-

In an emergency arbitration proceeding, the fee structure is as follows-

Adminstration Fees of IIAC – USD 1,500 (or equivalent in INR)

Emergency Arbitrator’s Fees – USD 15,000 (or equivalent in INR)