Arbitration agreement
Section 7 of the Arbitration and Conciliation Act, 1996 deals with arbitration agreement. In this Part, "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. The Act came into force on 22 Aug 1996.
(1) In this Part, "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.
(2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement.
(3) 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 1[including communication through electronic means] 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.
Section 7, The Arbitration and Conciliation Act, 1996 (Act 26 of 1996).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Trimex International Fze Ltd. Dubai vs Vedanta Aluminium Limited, India
Court's Decision & Legal Precedent
When parties exchange emails containing a commercial offer with an arbitration clause and the offeree sends an email with clear, unconditional language accepting the material terms of the offer ('we confirm the deal for 5 shipments'), a valid and binding contract comes into existence at the moment the acceptance email comes to the knowledge of the proposer, even without execution of a formal signed agreement. The arbitration clause contained in the original commercial offer becomes an integral part of this binding contract. An arbitration agreement can be inferred from exchange of emails, correspondence, and other means of telecommunication providing a record of agreement, in accordance with Section 7 of the Arbitration and Conciliation Act, 1996. The doctrine of autonomy of will requires courts to uphold parties' intention to arbitrate and not to defeat such intention by insisting on formalities such as signatures and formal execution when the parties' agreement is otherwise clearly demonstrated through email correspondence. Therefore, upon proof of a validly concluded contract containing an arbitration clause, the court is obligated to appoint an arbitrator in accordance with Section 11(6) of the Arbitration and Conciliation Act, 1996, without delving into the merits of the underlying dispute.
On this section: Applied to determine validity and existence of arbitration agreement. Court held that arbitration agreement can be inferred from documents signed by parties or exchange of emails, letters, telex, telegrams or other means of telecommunication
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Great Offshore LTD vs Iranian Offshore Eng&constn. CO
Court's Decision & Legal Precedent
A faxed copy of a charter party agreement bearing the signatures of both parties in the signature boxes, transmitted through the respondent's own head office and delivered by respondent's representative to the petitioner, constitutes a valid arbitration agreement under Section 7 of the Arbitration and Conciliation Act, 1996, even if it is not an original document, not stamped by both parties, and not signed on every page. The requirement of 'in writing' under Section 7(3) and Section 7(4)(a) is satisfied by such faxed signatures, and Section 7(4)(b) explicitly recognizes 'other means of telecommunication' as valid. Courts must not read into the statute additional formalities not envisaged by Parliament, as such would undermine the core legislative objective of minimizing judicial supervision and upholding parties' 'autonomy of will' to resolve disputes through arbitration.
On this section: Defines 'arbitration agreement' as an agreement by parties to submit all or certain disputes to arbitration in respect of a defined legal relationship
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Ntpc Limited vs Afcons R. N. Shetty and Co. Pvt. LTD Jv
Court's Decision & Legal Precedent
Arbitrators do not have unilateral power to determine their own fees. Where parties have fixed fees by agreement or court has fixed fees by order, arbitrators are bound by such fees. Where no agreement or court order exists, arbitrators may fix reasonable fees only after transparent consultation with parties at preliminary stage, and such fees are subject to court review for reasonableness under Section 39. The Fourth Schedule is binding on ad hoc arbitrations post-Amendment Act 2019. The term 'sum in dispute' in Fourth Schedule refers to aggregate of claim and counter-claim. The ceiling of Rs. 30 lakhs in Serial No. 6 applies to total fee, not just variable component. The fee is per individual arbitrator, not per tribunal. Arbitrators cannot charge separate fees for claims and counter-claims; they must charge single fee based on aggregate sum in dispute.
On this section: Arbitration agreement - defines scope of arbitral tribunal's jurisdiction
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Lindsay International Pvt. LTD vs Ifgl Refractories Limited
Court's Decision & Legal Precedent
When a party raises a prima facie objection to the existence or validity of an arbitration agreement, the court must apply a narrow examination limited to: (1) whether the agreement is in writing or contained in exchange of letters/telecommunication; (2) whether the core contractual ingredients of the arbitration agreement are fulfilled; and (3) only in rare cases, whether the subject matter is arbitrable. If the court cannot determine on a prima facie basis that no valid arbitration agreement exists, it must refer the matter to arbitration, applying the principle 'when in doubt, refer to arbitration.' The arbitral tribunal itself is empowered to decide questions of its own jurisdiction and arbitrability, subject to parties' right to challenge such decisions under Section 34.
On this section: Definition and requirements of arbitration agreement; necessity of agreement in writing or contained in exchange of letters/telecommunication
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Vidya Drolia vs Durga Trading Corporation
Court's Decision & Legal Precedent
Landlord-tenant disputes under the Transfer of Property Act are arbitrable. At the referral stage (Sections 8 and 11), the court must only perform a prima facie review to check if an arbitration agreement exists and is valid; all debatable questions of non-arbitrability must be left to the Arbitral Tribunal.
On this section: Core statute defining the powers of court vs tribunal.
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Minions Ventures Private Limited vs Mr Hardik Shah
Court's Decision & Legal Precedent
When a single cause of action involves multiple respondents, and only some are bound by an arbitration clause, the court cannot split the cause of action and must dismiss the Section 11 petition.
On this section: Requirement for an arbitration agreement to be in writing and signed or evidenced by exchange.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 7
What have the courts held on Section 7 of the Arbitration and Conciliation Act?
Trimex International Fze Ltd. Dubai vs Vedanta Aluminium Limited, India (22 Jan 2010) is the leading judgment on this section among those set out below: Applied to determine validity and existence of arbitration agreement. Court held that arbitration agreement can be inferred from documents signed by parties or exchange of emails, letters, telex, telegrams or other means of telecommunication. Another 5 judgments on this section are set out below, 5 of them from the Supreme Court. They run from 2008 to 2022.
How do I find court cases under Section 7 of the Arbitration and Conciliation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Arbitration Act 7, section 7 Arbitration Act, section 7 of the Arbitration and Conciliation Act. People searching for it also type arbitration act 7 15 and arbitration act s 7. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 6 reported judgments on this section are set out on this page, beginning with Trimex International Fze Ltd. Dubai vs Vedanta Aluminium Limited, India (22 Jan 2010).
What should I read with Section 7 of the Arbitration and Conciliation Act, and has it changed?
1 other provision in this corpus refers back to it.
When did Section 7 of the Arbitration and Conciliation Act come into force?
Section 7 of the Arbitration and Conciliation Act, cited as Arbitration Act 7, came into force on 22 Aug 1996, having been enacted on 16 Aug 1996. It is in force as at the date shown on this page.
Other sections of this Act
- 8. Power to refer parties to arbitration where there is an arbitration agreement1029 words
- 11. Appointment of arbitrators1027 words
- 34. Application for setting aside arbitral awards861 words
- 2. Definitions732 words
- 29A. Time limit for arbitral award635 words
- 57. Conditions for enforcement of foreign awards519 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.