Arbitration Agreement

A party to an arbitration agreement starts a legal proceeding with respect to subject matter of such agreement. The other party has right to get such proceedings stayed so as to enable arbitration to proceed in terms of agreement.

Following are the important essential ingredients of arbitration agreements.

i- There must be an agreement

ii- Agreement must be written

iii- That must be certain

iv- Agreement must relate to differences

v- There must be a provision regarding arbitration

vi- Name of arbitrator is not necessary

Parties may provide contents of arbitration agreement but if not provided, the 1^st schedule shall apply. An arbitration agreement is required to stamp u/s 3 of stamp act 1899.

It is not register-able but if it relates to immoveable property, it is required to be registered. Proceeding shall be stayed by the court on,

i- The application of other party, and

ii- After satisfaction of court Proceedings cannot be stayed Suo Moto, only by the application of the other party and after the satisfaction of court. Following are the conditions must be satisfied by court for the stay of proceedings. There has been a valid arbitration agreement between the partiesLegal proceedings in the court must have been commenced.

 The proceeding must have been commencing by any of the party to agreement. Proceeding in the court must be in respect of a matter which was decided to refer to arbitration.An application for stay of proceeding must be given by the party. The application for stay of proceedings must be filed before filing written statement. 

When proceedings are stayed, the court is bound to exercise its control over arbitration proceedings. Section 34 applies where proceedings have been instituted in respect of matter agreed to refer. An order to stay the proceedings u/s 34 of arbitration act 1940 is an appealable order.