What is the difference between arbitration and
litigation?
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Litigation is court proceedings before a judge appointed by government. Arbitration is a private
dispute resolved by a neutral arbitrator chosen by the parties. Key differences: arbitration is
faster (12–24 months vs. 3–7 years), confidential (not public), and the award is final (no
appeals). For international disputes, arbitration is almost always preferable.
How is an international arbitration award
enforced if the other party refuses to comply?
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Under the New York Convention, international arbitration awards are enforceable in 170+
countries. If the other party refuses to comply, you file an enforcement petition in the country
where the debtor has assets (or where you want to enforce). Courts must enforce the award unless
fraud, corruption, or other narrow grounds for refusal exist. Once enforced, it's as binding as
a court judgment.
What is the seat of arbitration and why does
it matter?
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The seat is the location where the arbitration officially sits — Singapore, London, Paris, etc.
The seat matters because: (1) the seat's law governs the arbitration procedure, (2) the seat's
courts hear challenges and interim applications, (3) the seat's courts are typically
pro-arbitration (Singapore and London are especially favorable). You should choose a seat
neutral to both parties and pro-arbitration.
Can arbitration awards be appealed?
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Generally no. International arbitration awards are final — no appeals allowed. This is a major
advantage (finality, no years of appeals) and a risk (if the award is wrong, you have limited
recourse). Limited grounds to challenge awards exist: fraud, corruption, arbitrator bias, or
serious procedural violations — but these succeed rarely.
How long does international arbitration take?
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Typically 12–24 months from notice of arbitration to award. SIAC offers expedited proceedings
(9–12 months) for smaller disputes. Court litigation of the same dispute would take 3–7+ years.
Speed is one of arbitration's biggest advantages.
How much does international arbitration cost?
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Costs vary widely depending on: dispute value, number of arbitrators (1 vs. 3), seat location,
institutional vs. ad hoc, hearing length. Typical range: ₹50,000–₹10,00,000+ total. Per-hour
rates are higher than court (₹5,000–₹20,000+ per hour) but total cost is often lower because
arbitration is faster. Institutional fees also apply (5–10% of dispute value at ICC, for
example).
Can I arbitrate any dispute or are some
disputes non-arbitrable?
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Most commercial disputes are arbitrable — contracts, payment disputes, quality disputes, IP
disputes. Some disputes are non-arbitrable: criminal matters, family law (in some
jurisdictions), certain regulatory matters. We assess whether your dispute is arbitrable.
What if the other party ignores the
arbitration clause and sues me in court instead?
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You can file a "stay of court proceedings" application, asking the court to stop the court case
and enforce the arbitration clause. Courts generally enforce arbitration clauses under Section 8
of the Arbitration Act. If successful, the court case is dismissed and the dispute goes to
arbitration as the parties agreed.
Can I settle a dispute mid-arbitration?
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Yes. Many arbitrations settle during proceedings — once evidence becomes clear or parties
realize settlement is cheaper than continuing. Settlements are enforced as arbitration awards
("consent awards").
What if I need urgent relief before the
arbitrator is appointed?
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File a Section 9 application in the court seeking interim relief — freezing assets, injunctions,
disclosure orders. Courts can grant interim relief even before arbitration formally starts, to
preserve the status quo until the arbitrator takes over.
