Matters we handle
- Negotiated out-of-court settlements and settlement deeds
- Settlement of pending and pre-litigation disputes before the Lok Adalat
- Compromise decrees in pending civil suits
- Drafting arbitration and dispute resolution clauses
- Appointment of arbitrators by the High Court
- Interim relief from the court before or during arbitration
- Representation in institutional and ad hoc arbitrations
- Challenges to arbitral awards
- Enforcement of awards
- Mediation and pre-institution mediation for commercial disputes
Where these matters are heard
- Lok Adalats organised by the legal services authorities in Telangana
- Arbitral tribunals, ad hoc and institutional
- International Arbitration and Mediation Centre, Hyderabad
- Commercial Courts in Hyderabad
- Telangana High Court
The law that applies
Lok Adalats function under the Legal Services Authorities Act, 1987. A settlement recorded by a Lok Adalat is treated as a decree of a civil court, is final and binding, and cannot be appealed against (section 21); where a pending case is settled there, the court fee paid is refunded. In a civil suit, a lawful compromise between the parties can be recorded as a decree under Order XXIII Rule 3 of the Code of Civil Procedure.
Arbitration is governed by the Arbitration and Conciliation Act, 1996. Courts can grant interim measures under section 9, and the High Court appoints arbitrators under section 11 where the parties cannot agree. An award must ordinarily be made within 12 months of completion of pleadings (section 29A), extendable by six months with consent.
An award can be challenged only on limited grounds under section 34, within three months of receiving it, extendable by up to 30 days for sufficient cause. Once the challenge period ends, the award is enforced like a court decree under section 36.
How the process generally works
Read the clause
Seat, rules, number of arbitrators and notice requirements.
Notice of arbitration
Invoking arbitration and proposing arbitrators.
Interim protection
Section 9 relief if assets or evidence are at risk.
Proceedings
Pleadings, evidence and hearings before the tribunal.
Award
Enforcement of the award, or a challenge on the limited grounds available.
Documents to keep ready
- The contract containing the arbitration clause
- Correspondence showing the dispute
- Invoices, payment records and notices
Terms you may hear
- Lok Adalat
- A forum for settling disputes by agreement, whose settlements are final and binding like a court decree.
- Compromise decree
- A decree recording a settlement between the parties in a pending civil suit.
- Pre-litigation mediation
- Mediation before a case is filed; mandatory for most commercial suits.
- Arbitral award
- The binding decision of an arbitrator or arbitral tribunal.
- Settlement deed
- A written agreement recording the terms on which a dispute has been settled.
Questions people ask
What is a Lok Adalat, and which cases can go there?
A Lok Adalat is a forum where disputes are settled by agreement, with the help of conciliators. It takes up civil disputes, money claims, bank recovery matters, motor accident claims, matrimonial disputes other than divorce itself, and compoundable criminal cases, both when they are pending in court and before a case is filed. Non-compoundable offences cannot be settled there.
Is a Lok Adalat settlement final?
Yes. It is treated as a court decree and no appeal lies against it. But nothing is decided without your consent: if the parties do not agree, the matter simply continues in the regular court.
Can we settle a case that is already pending in court?
Yes. The parties can record a compromise before the court under Order XXIII Rule 3 of the Code of Civil Procedure, the court can refer the matter to mediation, or it can be placed before a Lok Adalat. A settlement should always be recorded properly so that it can be enforced.
My contract has an arbitration clause. Can I still go to court?
You can file a suit, but if the other party applies under section 8 of the Arbitration Act before filing its first statement on the merits, the court must refer the dispute to arbitration unless the agreement is not valid. Urgent interim relief can still be sought from the court under section 9.
Who pays the arbitrator's fees?
The parties usually share the tribunal's fees and costs, and the tribunal can later order one side to bear more. For ad hoc arbitrations, the Fourth Schedule to the Act gives model fees, and institutional arbitrations follow the institution's fee schedule.
Can arbitration hearings be held online?
Yes. Hearings are often held by video conference, especially for procedural matters, if the parties and tribunal agree.
Is an arbitration clause valid if the contract was not properly stamped?
Yes. A seven-judge bench of the Supreme Court held in December 2023 that an unstamped or insufficiently stamped agreement is not void; the stamp defect can be cured and is dealt with by the arbitral tribunal, not by blocking the arbitration at the start.
Why choose arbitration over a court case?
Arbitration is private, the parties can choose an arbitrator with relevant expertise, and the law sets time limits for the award. The costs of the tribunal are borne by the parties, so it suits disputes of meaningful value.
How long does arbitration take?
The award should be made within 12 months of completion of pleadings, extendable by six months by consent, and further only by the court. Pleadings themselves are to be completed within six months.
Can I challenge an arbitral award?
Only on limited grounds under section 34, such as incapacity of a party, lack of proper notice, the award going beyond the reference, or conflict with the public policy of India. The court does not re-examine the merits.
What if the other side refuses to appoint an arbitrator?
You can apply to the High Court under section 11, which will appoint an arbitrator.
Is mediation binding?
A settlement reached in mediation and signed by the parties is binding. Mediation itself is voluntary except where the law requires it, such as pre-institution mediation for commercial suits.
This page gives general information about the law as it stands and is not legal advice. The right course in any matter depends on its facts.
Last updated: September 2026.