Arbitration and Conciliation Act, 1996

Step 8: 24-09-2025

👋 Dear friends, ✨
👉 Get ready, friends! Time to decode India’s arbitration law with laughter, logic, and learning. 😅⚖️

Guruji’s Step-by-Step Study Plan 👇

THE ARBITRATION AND CONCILIATION ACT, 1996: SEC 7.

CHAPTER II: ARBITRATION AGREEMENT

7. Arbitration agreement.

(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, 8

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.

Guruji’s Step-by-Step Study Plan with Illustrations 👇

⚖️😂 Guruji Explains Section 6 of Arbitration Act, 1996. in Comedy Style:

😎🙏 Guruji Comedy Class on Law – Arbitration Act Sec. 7

📜 Section 7: Arbitration Agreement – Guruji’s Version

👉 Guruji says: “When two people fight, instead of going to court and standing in line for 25 years, they can sit in one A/C room with samosa and chai 🍵🥟 and fight in front of an arbitrator. That’s called arbitration agreement!” 😁

(1) Meaning

💡 Arbitration agreement = “Both parties agree in writing: If we fight, we’ll solve it through arbitration, not court drama.”

📖 Illustration

Ramesh vs. Suresh – Business partners 👬

They write: “If we quarrel about money 💰 or profit, we’ll call Arbitrator Uncle to solve.”
➡️ That paper = Arbitration Agreement!

(2) Form

👉 Can be inside a contract (hidden like pickle in a tiffin 🍱),
or as a separate stand-alone paper (like chutney in a separate cup).

(3) Writing is compulsory ✍️

No writing → No arbitration agreement.
Or else tomorrow one fellow says, “Arbitrator was my cousin only, he’ll decide!” 😆

(4) What counts as writing?

(a) Signed document 🖊️
(b) Exchange of letters, telex, telegrams (even WhatsApp screenshots today! 📱😂)
(c) One says “We had arbitration agreement” → Other fellow keeps quiet 🤫 → Silence = Acceptance.

📖 Illustration

Priya sends email: “If fight comes, arbitration okay?”

Raj doesn’t deny, just sends 😐 emoji.
➡️ Boom 💥 Agreement exists!

(5) Reference Clause

👉 If your contract says: “This contract follows XYZ document” and XYZ has arbitration clause → Congrats 🎉 That clause secretly enters your contract too!

📖 Illustration

Gym Membership Form 🏋️‍♂️

It says: “Refer to Big Rules Book on website.”

In website rules: “Disputes → Arbitration.”
➡️ Even if you didn’t read the website (because who reads T&Cs? 😜), still binding!

😂 Guruji’s Wisdom:

In court you get adjournment dates 📅, in arbitration you get snacks 🍪.

In arbitration, judge called “Arbitrator” – but don’t mistake him for “Terminator” 🤖… he won’t say Hasta La Vista, only “Award passed!” 🏆

👉 So Guruji says: “Write it down ✍️, sign it ✅, or even WhatsApp it 📲… but if you want less headache in life, have an arbitration clause ready. Because in India, fighting is sure, only question is: ‘Where to fight?’ 🤺” 😆

✨ Moral: “Always keep Arbitration Clause ready… fights will come, but solutions can be sweet 🍬!”

Dear Friends,

🚀 Step 8 done… Step 9 coming tomorrow! Guruji doesn’t deliver pizza, only wisdom 🍕

😂 Don’t run away! Guruji’s Step 9 will land tomorrow like a hot samosa from the kadai!