Frequently Asked Questions (FAQs)

1. What is the significance of DAC Arbitration Rules?
→ The DAC Arbitration Rules constitute a comprehensive set of procedural guidelines governing the institutional arbitration process. Parties can choose to adopt these rules, in whole or in part, to facilitate the resolution of their domestic or international disputes. These rules are built upon the UNCITRAL Arbitration Rules 2010, ensuring global standard compliance and efficient dispute resolution. DAC plays a pivotal role by offering administrative support, appointing arbitrators, addressing procedural concerns, acting as the registry, and providing a transparent fee structure to expedite arbitration proceedings. The DAC Arbitration Rules also introduce innovative procedures such as Emergency Arbitrator, Arb-Med-Arb Procedure, fast-track procedure, Consolidation of proceedings, and Concurrent hearings, enhancing the speed and efficiency of dispute resolution.

2. Where can I find the model arbitration clause under the DAC Arbitration Rules?
→ Parties opting for arbitration under the DAC Arbitration Rules can incorporate the DAC model clause into their agreement. This model clause is accessible on the official DAC website at www.delhiarbitrationcentre.com.

3. What if my agreement lacks a model arbitration clause?
→ In cases where both parties agree to resolve their dispute in accordance with the DAC Arbitration Rules but do not have an existing arbitration clause in their agreement, they can establish an arbitration agreement between themselves.

4. What types of disputes are suitable for arbitration under the DAC Arbitration Rules?
→ Arbitration can generally address civil, commercial, contractual, and business disputes. However, disputes involving moral or public law questions are typically not suitable for arbitration. Examples of non-arbitrable matters include matrimonial issues (e.g., divorce or maintenance), insolvency matters (e.g., declaring someone insolvent), criminal offenses, and the dissolution or winding up of a company.

5. How do I initiate a matter under the DAC Arbitration Rules?
→ Initiating arbitration under the DAC Arbitration Rules is straightforward. The party initiating a domestic dispute must submit a Request for Arbitration to DAC, along with a copy of the Notice of Arbitration served on the Respondent in compliance with the Rules, along with the registration fees.

6. What are the costs associated with arbitration under the DAC Arbitration Rules?
→ DAC Arbitration is cost-effective, especially considering the time-sensitive nature of dispute resolution and the comprehensive administrative services provided for smooth proceedings. Arbitration costs are governed by the DAC Arbitration Fee Schedule.

7. How are arbitrators appointed under the DAC Arbitration Rules?
→ The DAC Rules ensure the swift formation of the arbitral tribunal while maintaining neutrality and international standards. Parties can challenge arbitrators if doubts arise, with provisions in place to address such challenges.

8. Is arbitration proceedings confidential?
→ Yes, arbitration conducted under the DAC Arbitration Rules is confidential. Parties and DAC are bound by the rules to keep all matters related to arbitration proceedings confidential.

9. What is the timeframe for completing arbitration proceedings?
→ Regular arbitration under the DAC Rules typically concludes within 9 months from the date of tribunal appointment, with the award issued within 45 days. Fast-track procedures expedite the entire process, completing it within 6 months.

10. How can a party invoke the AMA Procedure?
→ The Arb-Med-Arb (AMA) Procedure under the DAC Rules allows parties to initiate arbitration while concurrently attempting mediation. If mediation is successful, the outcome becomes an arbitral award, enforceable under the New York Convention. Parties can initiate the AMA Procedure by filing a request along with an application for this purpose.

11. What is mediation, and how does it differ from litigation or arbitration? What are its advantages?
→ Mediation is a dispute resolution process that employs an impartial third-party mediator to facilitate a mutually acceptable agreement. Mediation is efficient, effective, fast, convenient, and cost-effective. Unlike litigation or arbitration, in mediation, parties collaborate to reach a resolution, which is not imposed on them. It preserves relationships, fosters amicable resolutions, and is often referred to as “Win-Win” dispute resolution.

12. What types of disputes are suitable for mediation?
→ Mediation is suitable for resolving various civil and commercial disputes, except for specific legislations like company winding-up.

13. Is mediation seen as a compromise, and does it indicate weakness?
→ Mediation is not synonymous with compromise; it is a dispute resolution process that focuses on needs and relationships, maximizing mutual gain. Parties actively participate in the resolution. It is considered an expression of best governance and social commitment, widely adopted by multinational corporations.

14. Can mediation be initiated for disputes pending before a court?
→ Mediation can be initiated at any stage, even if the matter is before a court. Initiating mediation early is encouraged, as it reduces hostility. Courts often support parties in resolving disputes through mediation.

15. Is mediation legally approved in India?
→ While India lacks a specific Mediation Act, mediation is recognized as a legally approved method of dispute resolution. It is acknowledged under the Civil Procedure Code, and courts refer matters for mediation. Settlement agreements made through mediation are equivalent to arbitral awards or court decrees, enforceable under the Arbitration & Conciliation Act, 1996.

16. What legal provisions make the outcome of mediation legal and binding?
→ Relevant provisions under the Arbitration and Conciliation Act, 1996, pertain to mediation/conciliation. Section 73 covers the settlement agreement’s formulation and submission, with Section 74 establishing its status and effect, akin to an arbitral award.

17. How is confidentiality ensured in mediation, and can the conversation be used as evidence in other proceedings?
→ Mediation proceedings are confidential, protected by the mediation agreement and the Arbitration and Conciliation Act, 1996. Section 81 bars the use of mediation-related information as evidence in other proceedings.

18. What is the significance of DAC Mediation Rules?
→ DAC Mediation Rules provide a structured framework for institutional mediation, enabling parties and mediators to leverage flexible procedures for swift and cost-effective dispute resolution. They accommodate assisted deal-making, project mediation, and online/offline mediation via VC.

19. Can mediation be initiated for disputes involving foreign parties?
→ Yes, mediation is internationally accepted, with many multinational corporations preferring it for cross-border disputes. The United Nations Convention on International Settlement Agreements Resulting from Mediation, 2019 (Singapore Convention), which India is a signatory to, enforces mediation settlements like arbitral awards in 52 countries, making private mediation essential in cross-border business disputes.

20. What are the costs associated with mediation under the DAC Mediation Rules?
→ DAC Mediation is cost-effective, considering the timely resolution of disputes. Costs are governed by the DAC Mediation Fee Schedule.

21. What is the typical timeframe for completing mediation proceedings?
→ While DAC Mediation Rules encourage mediators to conclude proceedings within 60 days, commercial mediation often finishes in 4 to 8 sessions.
Can parties bring lawyers to represent them in mediation?
Yes, parties can engage lawyers in mediation. Skilled mediation advocates enhance the process’s success and credibility, raising global mediation standards.

22. How can parties trust a mediator, and can they change the mediator if needed?
→ Trust is crucial in mediation. Parties should trust a mediator’s competence, neutrality, impartiality, and confidentiality. The DAC Mediators’ Code of Professional Conduct sets ethical standards. Parties can file complaints with DAC on a mediator’s conduct or request a change of mediator.

23. Can a mediator be called as a witness in other proceedings?
→ No, mediators cannot testify in other proceedings. The Arbitration and Conciliation Act explicitly prohibits such actions.

24. What happens if the other party does not attend mediation after initiation?
→ Mediation is voluntary, and parties can opt out at any stage. DAC provides a valuable Mediation Status Report or Non-starter Certificate upon completion or non-resolution of mediation, even in the absence of the other party, which can be advantageous when approaching the court.

25. If the other party does not attend mediation, will my fee be refunded?
→ Registration fees for mediation are non-refundable. However, if mediation is abandoned due to the absence of the other party or non-agreement in the first session, the remaining balance will be refunded.

26. What training programs does DAC offer?
→ DAC offers comprehensive training programs on negotiation, mediation, arbitration, and dispute resolution. These programs provide hands-on experience and knowledge to become proficient ADR professionals.

27. Are DAC’s training programs affiliated with any university?
→ No, DAC’s training programs do not offer formal courses. They provide practical training to equip individuals with the skills needed to excel in ADR professions. Testimonials and feedback from participants endorse DAC’s status as a pioneer in training ADR professionals in India.