AIBE XVIII — December 2023 — Q.73 (Arbitration and Conciliation Act, 1996)

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Q.73

ADR & Arbitration Act Medium Act + Section Given

Bare Act Arbitration and Conciliation Act, 1996 · Section 7

Which of the following is incorrect with respect to arbitration agreement as per the Arbitration and Conciliation Act, 1996?

✓ Arbitration agreement may be written as well as oral Answer

B Arbitration agreement may be in the form of a separate agreement

C Arbitration agreement may be in the form of an arbitration clause in a contract

D Arbitration agreement may be for all or certain disputes

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Explanation & Strategy

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Section 7 mandates that arbitration agreements must be in writing — oral agreements are not valid. The writing requirement can be satisfied by signed documents, electronic communications, or exchange of claim/defence statements. Option A is incorrect because it includes 'oral' which is explicitly excluded.

1 Pick up ACA 1996.
2 Go to Section 7.
3 Read sub-section (3): 'An arbitration agreement shall be in writing.'
4 Option A says 'written as well as oral' — this contradicts S.7(3). Must be written only → A is INCORRECT.

The text reads: Section 7(3): An arbitration agreement shall be in writing.

At a Glance

Subject ADR & Arbitration Act

Difficulty Medium

Act Arbitration and Conciliation Act, 1996

Section Section 7

Answer (A) Act + Section Given

Paper AIBE XVIII — December 2023

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