Home / Legal Services
LEGAL SERVICES
Dispute resolution with clear steps and timelines.
Practical guides for arbitration and conciliation, cheque bounce (Section 138) and general litigation: the legal framework, step-by-step process, indicative timelines and documents.
Arbitration & Conciliation
Framework under the Arbitration and Conciliation Act, 1996 (as amended in 2015, 2019 and 2021): Part I (domestic arbitration and international commercial arbitration seated in India), Part II (enforcement of foreign awards) and Part III (conciliation).
DOMESTIC
Domestic arbitration
- All parties Indian; seat in India.
- Indian substantive law governs the merits.
- Award due within 12 months of completing pleadings (extendable by 6 months by consent; then by court).
- Award can be challenged for patent illegality as well as the usual Section 34 grounds.
INTERNATIONAL
International commercial arbitration (ICA)
- At least one party is a foreign national, resident or company (Section 2(1)(f)).
- Parties may choose the governing law and seat.
- Tribunal should endeavour to decide within 12 months; no fixed 12+6 rule.
- Patent illegality is not a ground to set aside an ICA award.
ENFORCEMENT
Foreign awards (Part II)
- New York and Geneva Convention awards from notified countries.
- Enforced like a decree once the court finds it enforceable.
- Refusal only on limited grounds in Section 48.
Fast-track vs regular tribunal
| Point | Fast-track (Section 29B) | Regular tribunal |
|---|---|---|
| How it starts | Parties agree in writing to fast-track, before or when the arbitrator is appointed | Default route under the arbitration clause |
| Tribunal | Sole arbitrator appointed by the parties | Sole arbitrator or panel of three |
| Procedure | Decided on written pleadings and documents; oral hearing only if all parties ask or the arbitrator considers it necessary | Pleadings, evidence and oral hearings as the tribunal directs |
| Time limit | Award within 6 months of the arbitrator receiving notice of appointment | Pleadings within 6 months of the tribunal starting; award within 12 months after that, extendable by 6 months |
| Best for | Documents-heavy, lower-value or urgent disputes | Complex or high-value disputes needing evidence and cross-examination |
Practical steps and timelines
- Review the contractCheck the arbitration clause, seat, governing law, notice provisions, limitation and any pre-arbitration steps such as negotiation or mediation.Days 1–7
- Send notice invoking arbitration (Section 21)Serve a written notice setting out the dispute and relief and, where the clause allows, proposing an arbitrator.Day 7–14
- Appoint the tribunalIf parties cannot agree within 30 days, apply to the High Court (domestic) or the Supreme Court (international) under Section 11; courts endeavour to decide within 60 days.30–90 days
- Interim protectionSeek urgent relief from the court before or during arbitration (Section 9) or from the tribunal (Section 17).As needed
- Claim, defence and evidenceStatement of claim and defence, documents, witness statements, hearings.6–12 months
- Award (Section 31)Reasoned award with interest and costs; copy to each party.Within statutory limit
- Challenge or enforceSection 34 application within 3 months (plus up to 30 days on sufficient cause). Filing a challenge does not automatically stay the award; a domestic award is enforced as a decree under Section 36.3–4 months to challenge
Mediation, conciliation and enforceability
CONCILIATION
Part III of the Act
- Conciliator(s) help the parties reach a settlement; proceedings are confidential.
- A settlement agreement signed by the parties has the same status and effect as an arbitral award on agreed terms (Section 74).
- Parties cannot use conciliation statements as evidence in later proceedings.
MEDIATION
Mediation Act, 2023 and Section 12A
- Statutory framework for mediation, including pre-litigation mediation.
- Commercial suits without urgent interim relief must go through pre-institution mediation first.
- Mediated settlement agreements can be enforced as court decrees.
AWARDS
Making the award count
- Domestic award: enforce through the executing court under Order 21 CPC.
- Foreign award: file an enforcement application; the court decides enforceability before executing.
- Courts only have limited power to modify an award, so frame relief precisely.
Cheque Bounce: Section 138, Negotiable Instruments Act, 1881
A criminal remedy for dishonour of a cheque issued to discharge a legally enforceable debt or liability. Strict statutory time limits apply, so the calendar matters more than the drafting.
The statutory timeline
- Cheque presented and dishonouredPresent within its validity (3 months from the date on the cheque). The bank issues a return memo stating the reason, such as insufficient funds.Day 0
- Legal demand noticeSend a written notice to the drawer demanding the cheque amount within 30 days of receiving the bank’s information about dishonour. Keep proof of dispatch and delivery.Within 30 days
- Cure period for the drawerThe drawer has 15 days from receipt of the notice to pay the amount. Payment within this window ends the offence.15 days
- File the criminal complaintIf no payment, file the complaint before the Magistrate within one month from the date the cause of action arises, that is, the day after the 15-day period ends. A delayed complaint can be entertained only on sufficient cause.Within 30 days after cure period
- Summons, plea and trialSummary trial in most cases; evidence on affidavit; the court may order interim compensation up to 20% of the cheque amount (Section 143A).Months to years
- Judgment and remediesConviction can bring imprisonment up to 2 years, a fine up to twice the cheque amount, or both; compounding is possible. An appeal by the convict requires depositing at least 20% of the fine or compensation (Section 148).After trial
Illustration: Bank informs you of dishonour on 1 March. Notice must go out by 31 March. If the drawer receives it on 5 April, the 15 days end on 20 April, and the complaint must be filed by 20 May.
Essential prerequisites
CHECK
Valid cheque and dishonour
- Cheque drawn on an account the drawer maintains, within its validity period.
- Original bank return memo giving the reason for dishonour.
- Dishonour for insufficient funds or because the amount exceeds the arrangement with the bank.
CHECK
Legally enforceable debt or liability
- Cheque issued for a subsisting debt (invoice, loan, agreement, advance).
- The law presumes the cheque was for a debt (Sections 118 and 139), but the drawer can rebut it.
- Time-barred debts and gifts are not enforceable debts.
CHECK
Documentary proof
- Copy of cheque and return memo; demand notice with postal receipts, tracking or email proof.
- Invoices, ledger, agreement, acknowledgements and messages showing the debt.
- For companies: board resolution or authority letter for the person filing.
Jurisdiction and process: the complaint is filed where the payee’s bank branch is located (Section 142(2)). Trials are meant to be summary and continuous, with evidence on affidavit (Section 145). Where the cheque was a security for an outstanding loan, the debt must have become due when the cheque was presented.
General Litigation: Procedure at a Glance
A clear workflow for civil and commercial disputes before civil courts, commercial courts and the High Court. Court appearances are handled by advocates; our role is to prepare, organise and track the matter.
- 1. Notice stageReview documents, limitation and forum; send a legal notice stating facts, claim and a reasonable time to comply. Many disputes settle here.7–30 days
- 2. Pre-institution mediationFor commercial disputes above the specified value (Section 12A, Commercial Courts Act, 2015) that do not need urgent interim relief, attempt mediation before filing. Skipping it can lead to rejection of the suit.Up to 3 months (+2)
- 3. Filing and pleadingsPlaint with verification and documents; court issues summons; written statement due in 30 days, extendable up to 120 days in commercial suits; replication; admission and denial of documents; case management hearing.2–6 months
- 4. Interim relief and injunctionsApply under Order 39 CPC for temporary injunction (prima facie case, balance of convenience, irreparable harm), or other interim orders such as attachment before judgment.Any stage; urgent cases within days
- 5. TrialFraming of issues, evidence on affidavit, cross-examination and final arguments. Commercial courts follow strict case-management timelines.6–24 months (varies by court)
- 6. Judgment and decreeThe court pronounces judgment and prepares the decree; appeal windows begin to run.After arguments
- 7. Execution and appealsEnforce the decree under Order 21 CPC through attachment, sale or arrest; a first appeal lies to the appellate court within the limitation period.Varies
Choosing the right forum
| Dispute | Typical forum | Points to check |
|---|---|---|
| Commercial contract or IP dispute | Commercial Court / High Court (commercial division) | Specified value, Section 12A mediation, arbitration clause |
| Money recovery from a company | Civil / commercial court; NCLT under IBC Section 9 for operational debt | Undisputed debt and demand notice for IBC |
| Bank and financial-institution recovery | Debt Recovery Tribunal; SARFAESI measures | Value thresholds and secured status |
| Company law and insolvency | NCLT / NCLAT | Limitation and eligibility of applicant |
| Consumer disputes | Consumer Commission | Pecuniary limits and limitation |
| Cheque dishonour | Magistrate court | Section 138 timelines |
Limitation matters: most money and contract suits must be filed within three years of the cause of action under the Limitation Act, 1963. Keep records dated and complete from day one.
Please note: This page is general information, not legal advice. Thresholds, forms, fees and timelines change; the position for your matter depends on its facts and current law. Court and tribunal appearances are through advocates.