For administered mediation or arbitration by DAC, there should be an appropriate ADR clause in the contract or in the absence of any such clause; there should be an agreement between the parties to arbitrate under the DAC Rules. By using such a clause, the parties to the contract agree to mediate or arbitrate any future disputes.
“Any dispute or difference whatsoever arising between the parties out of or relating to the construction, meaning, scope, operation or effect of this contract/Agreement or the validity or the breach thereof shall be settled by arbitration in accordance with the Rules and procedure of Delhi Arbitration Centre-“DAC”, Tis Hazari, Delhi. In case of any disputes application in writing to be made to Secretary, DAC and the award made in pursuance thereof shall be final and binding on the parties.” The seat of Arbitration shall be New Delhi, India and the dispute shall be resolved by a sole arbitrator appointed in accordance with the rules of DAC out of the panel of Arbitrators maintained by DAC.
Confidentiality: All information and documents disclosed in the course of the arbitration shall be kept confidential by the parties and the arbitrator(s) and shall not be disclosed to any third party unless required by law.
Arbitration Award: The arbitrator shall render a written award, which shall include the reasons for the award. The award shall be final and binding upon the parties and enforceable in accordance with applicable laws.
Expedited Procedure: The parties agree that the arbitration shall be conducted in an expedited manner under summary procedure rules, and the arbitrator(s) shall make all reasonable efforts to render a final award within 6 months from the date of the initial hearing.
Submission to Jurisdiction: The parties hereby submit to the exclusive jurisdiction of the courts of New Delhi, India, for the limited purpose of seeking interim measures or enforcing arbitral awards.
This arbitration clause shall survive the termination or expiration of this contract and any subsequent agreements between the parties.
Amendment: This arbitration clause may only be amended in writing and signed by all parties to this contract.
“Any dispute difference or controversy arising out of or in connection with this contract shall first be referred to mediation at the Delhi Arbitration Center (DAC) as per its Mediation Rules and as per the Arbitration & Conciliation Act, 1996. If the mediation is abandoned by the mediator or is otherwise concluded without the dispute or difference being resolved, then such dispute difference or controversy shall be referred to and determined by arbitration as per the Arbitration & Conciliation Act, 1996 by DAC in accordance with its Arbitration Rules”.
General Mediation Clause:
In the event of any dispute arising out of or in relation to this contract, including any question regarding its existence, validity, or termination, the parties shall first attempt to resolve the dispute amicably through mediation in accordance with the DAC Mediation Rules.
Initiation of Mediation:
⦁ Voluntary Initiation: Either party may initiate mediation by serving written notice to the other party, clearly specifying the nature of the dispute and the desire to mediate.
⦁ Existing Disputes: In cases where a dispute has already arisen, parties who wish to mediate, even in the absence of a prior agreement for mediation, may enter into a DAC Mediation Agreement to facilitate the mediation process.
Selection of Mediator:
⦁ Appointment: If the parties do not agree on the selection of a mediator within 7 days of receiving Notice, the mediator shall be appointed by Registrar, DAC in accordance with its Mediation Rules.
Confidentiality:
⦁ Confidential Nature: All mediation proceedings, communications, and documents related to the mediation shall be confidential and may not be used as evidence in any subsequent arbitration or litigation, except as required by law.
Mediation Agreement:
⦁ Binding Nature: Any resolution reached through mediation shall be binding upon the parties and may be enforced as a contract.
Arbitration as an Alternative:
⦁ Escalation to Arbitration: If mediation efforts fail to resolve the dispute, the parties agree that the dispute shall be referred to arbitration in accordance with the DAC Arbitration Rules.
Governing Law:
⦁ Applicable Law: The mediation process shall be governed by and construed in accordance with the laws of India.
This mediation clause encourages parties to engage in a mediation process facilitated by DAC as a first step in resolving disputes. It allows for both voluntary initiation of mediation and initiation in cases of existing disputes where no prior mediation agreement exists between the parties. If mediation does not lead to a resolution, it outlines the option to escalate the dispute to arbitration, offering a comprehensive approach to dispute resolution.
Parties who wish to design customized ADR clauses to fit particular situations or create hybrid-clauses, may mail their request to Secretary, DAC.
For further details, mail to admin@delhiarbitrationcentre.com
Generally speaking, all disputes of a civil nature or quasi civil nature, which can be decided by a civil court, can be referred to Arbitration. Thus disputes relating to property, right to hold an office, compensation for non-fulfillment of a clause in a contract, disputes in partnership etc. can be referred to arbitration. Even the disputes between an insolvent and his creditors can be referred to arbitration by the official receiver or the official assignee with the leave of the court. Thus disputes arising in respect of defined legal relationship, whether contractual or not, can be referred to Arbitration.
Parties who wish to design customized ADR clauses to fit particular situations or create hybrid-clauses, may mail their request to Secretary,DAC.
For further details, mail to admin@delhiarbitrationcentre.com