What is Fast Track Procedure in Arbitration

Fast track procedure has been provided under Section 29B of the Act. Parties to an arbitration agreement can agree in writing to resolve their dispute by fast-track procedure at any stage before or at the time of appointment of the tribunal. Parties may agree that the tribunal shall consist of sole arbitrator.

In a fast-track procedure:

• Tribunal decides the dispute on the basis of written pleadings and documents without any oral hearing.
• Tribunal has power to call further information or clarification.
• Oral hearing is held only if all the parties make a request or the tribunal considers it necessary.
• Tribunal may dispense with technical formalities if an oral hearing is held.

The award shall be made within period of 6 months from the date the arbitral tribunal enters upon reference. If it isn’t made, provisions under Section 29A would apply.

The text of the Section 29A can be found below:

“29B. Fast track procedure- (1) Notwithstanding anything contained in this Act, the parties to an arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal, agree in writing to have their dispute resolved by fast track procedure specified in sub-section (3).

(2) The parties to the arbitration agreement, while agreeing for resolution of dispute by fast track procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the parties.

(3) The arbitral tribunal shall follow the following procedure while conducting arbitration proceedings under sub-section (1):--

(a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents and submissions filed by the parties without any oral hearing;

(b) The arbitral tribunal shall have power to call for any further information or clarification from the parties in addition to the pleadings and documents filed by them;

(c) An oral hearing may be held only, if, all the parties make a request or if the arbitral tribunal considers it necessary to have oral hearing for clarifying certain issues;

(d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for expeditious disposal of the case.

(4) The award under this section shall be made within a period of six months from the date the arbitral tribunal enters upon the reference.

(5) If the award is not made within the period specified in sub-section (4), the provisions of sub-sections (3) to (9) of section 29A shall apply to the proceedings.

(6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be agreed between the arbitrator and the parties.”