Resolution of Construction Disputes in India

Construction disputes in India can be resolved, and in practice, through various dispute
resolution methods, although arbitration is often the preferred route.

In construction-related disputes, it is common for the parties to first present their differences to
the Disputes Committee for resolution, although the Disputes Committee's decisions are
generally not binding. Therefore, according to the requirements of the contract, the party that is
not satisfied with the dispute committee's decision may submit the matter to arbitration.

The Arbitration and Conciliation Act 1996 revised in 2015, 2019 and 2020 governs arbitrations
in India and provides a framework for the enforcement of foreign arbitration awards. The bill
covers domestic arbitration and international commercial arbitration involving at least one
foreign party, as well as matters such as the appointment of arbitrators, interim measures, and
cancellation procedures.

Arbitrations involving Indian parties are often conducted in India, while arbitrations involving at
least one foreign party are often conducted outside India. Foreign investors generally prefer to
use institutional arbitration under the rules of the International Chamber of Commerce, the
London Court of International Arbitration or the Singapore International Arbitration Centre
(SIAC). 1

1
Aditya Singh, 'Navigating Through Construction Disputes In India | White & Case LLP' (Whitecase.com, 2021)
<https://www.whitecase.com/publications/insight/construction-arbitration/navigating-construction-disputes-
india> accessed 19 August 2021.