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GUIDELINE

Guideline for Drafting Application for an Order of Reference under Section 21 of the Arbitration Act, 1940:

This application is essential when a party seeks the court's intervention to appoint arbitrators or to make a reference to arbitration under the Arbitration Act, 1940. Here's a concise guide for drafting this application:

Title and Identification: Clearly title the document as "Application for an Order of Reference under Section 21 of the Arbitration Act, 1940." Include names of the parties, case details, and legal jurisdiction.

Introduction and Agreement: Begin with an introduction, stating the existence of a valid arbitration agreement and the need for the court's intervention under Section 21.

Statement of Request: Clearly state the request for the court to appoint arbitrators or make a reference to arbitration, emphasizing the inability to resolve the dispute amicably.

Factual and Legal Grounds: Present factual grounds justifying the need for arbitration and reference to Section 21. Support legal arguments with relevant provisions of the Arbitration Act.

Supporting Documents: Annex relevant documents, such as the arbitration agreement, correspondence showing failed negotiations, and any communication evidencing the need for court intervention.

Common Mistakes to Avoid:

Insufficient Details: Clearly articulate the details of the arbitration agreement, avoiding vague or incomplete descriptions.

Failure to Establish Validity: Provide evidence to establish the validity of the arbitration agreement, preventing challenges to its enforceability.

Ignoring Legal Formalities: Ensure compliance with procedural requirements, including serving notice to the opposing party, to prevent procedural challenges.

Inadequate Reference to Arbitration Clause: Clearly reference the specific arbitration clause or agreement that the application is based on.

Lack of Signatures: Ensure the application is duly signed by authorized representatives, confirming their consent to arbitration.

This application is used in legal contexts where parties seek the court's intervention for the appointment of arbitrators or a reference to arbitration under Section 21 of the Arbitration Act, 1940. By following these guidelines and avoiding common mistakes, a well-drafted application facilitates a smoother commencement of arbitration proceedings.

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