Under Section 7 of the Arbitration and Conciliation Act 1996, it is a requirement that an arbitration agreement be in writing. This means that the parties involved in a dispute must have a written agreement that outlines the terms and conditions of the arbitration process.
The purpose of this requirement is to ensure that the parties have a clear and concise understanding of the arbitration process. It also ensures that there is a record of the agreement in case of any disputes that may arise during the arbitration process.
It is worth noting that the requirement for a written agreement does not mean that the agreement must be signed by both parties. An agreement can be deemed to be in writing if it is contained in an exchange of letters, faxes, or emails.
The requirement for a written agreement also makes it easier for the parties to enforce the agreement in a court of law. If the agreement is not in writing, then it may be difficult for the parties to prove that an agreement existed, which could lead to delays in the arbitration process.
It is also important to note that the requirement for a written agreement applies to both domestic and international arbitration. This means that if the parties involved in a dispute are from different countries, then they must still have a written agreement in place to proceed with arbitration.
In conclusion, under Section 7 of the Arbitration and Conciliation Act 1996, it is essential that an arbitration agreement be in writing. This requirement ensures that the parties have a clear and concise understanding of the arbitration process and makes it easier to enforce the agreement in case of any disputes that may arise.