1, Introduction
‘An Arbitral agreement is an esscntial point in the law of Arbitration
‘The particular form of arbitral agreement is not provided under this Act, by
there must be legal, valid and binding agreement between the parties, This Ag
specifically provided that arbitration agreement must be in the form a
document and document must be signed by the parties to operate as a,
arbitration agrecment.
2. Definition of Arbitral Agreement-
Sec 2(a) of the Arbitration Act, 1940 defines “Arbitration Agreement’
& sec 7&8 of the same statute narrate the essential conditions those ar,
necessary for the “arbitration agreement.”
Sec 2(a) “Arbitration Agreement means written agreement to submit
present or future differences to arbitration whether an, arbitrator is nained
therein or not”.
Sec 2 (1) (b) “Arbitration Agreement” means an agreement referred to
in sec.7.
According to Sec.7(1) of Arbitration & Conciliation Act 1996.
“Arbitration Agreement” means an agreement by the parties to submit
to arbitration all or’ certain disputes which have arisen or which may arise
between them in respect of a defined legal relationship, whether contractual or
not.
; yoSaraEaE a
3, Kinds of Arbitration Agreement
“arbitration agreements are generally divided into two types:
; . Agreements which provide that, if a dispute should arise, it will
; be resolved by arbitration
- Agreements which are signed after a dispute has arisen, agrecing
that the dispute should be resolved by arbitration (sometimes
called a "submission agreement")
4, Essential features of an "Arbitral Agreement"
The essential features of an arbitration agreement, as defined by clause
) of S.2(1) read with S. 7., are as follows
(1) Valid & binding Agreement -
There should be a valid and binding agreement between the
parties.
(2) Such agreement may be -
in the form of an arbitration clause in a contract or in the form of
a separate agreement.
(3) Written Agreement -
An arbitration agreement shall be in writing.
(4) An arbitration agreement is in writing if it is contained in—
(a) a document signed by the parties:
(b) an exchange of letters, telex, telegrams or other means of
telecommunication which provide a record of the agreement;
or
(c) an exchange of statements of claim and defence in which the
existence of the agreement is alleged by one party and not
denied by the other.
(5) The reference in a contract to a document containing an arbitration
clause constitutes an arbitration agreement if the contract is in writing and the
reference is such as to make that arbitration clause part of the contract
5. Case law
In Gopal Chand Vs. Madanlal (1990)
Held: In Gopalchand Vs. madanlal 1990 held it was "held oral
‘on cannot be the basis of suit."
it aan law requires that arbitration agreement must not be uncertain and
be capable of being as certained.
In other words there should be certainty as to the -
; 1. Dispute
submissjParties et :
Identity of the arbitral tribunal and its composition in th
arbitration agreement certain dispute such as matrimonial dispute
criminal prosecutions questions relating to guardianship aboy
validity of a will ctc.are treated as not suitable for arbitration
Test of Arbitration Agreement
In Jagdish chandar Vs. ramesh chander 2007
Judgment:- it was held that a clause in a contract can be construed as
an arbitration agreement only an agreement to-refer dispute or differences ty
arbitration is expressly or impliedly spelt out from the clause the well settled
principles in regard to what constitutes an arbitration agreement are.
The intention of Parties to enter in to an arbitration agreement shall
have to be gathered from the terms of the agreement.
6. Attributes of arbitration agreement
1,
N
The agreement must contemplate that the substantive rights of the
parties will be determined by the arbitral tribunal.
The agreement of parties to refer their disputes to the decision of
the arbitral tribunal should be enforceable at law.
The arbitration agreement must contemplate that the decision of
the arbitral tribunal will be binding on the Parties to the
agreement. >
The arbitral tribunal must determine
impartial and judicial manner,
The agreement should contemplate that the tribunal wil] i
evidence from both sides and hear their contention or at least give
the parties an opportunity to put them forward, Bive
the rights of Parties in an