An arbitration agreement must be signed by the parties. The agreement may take the form of a document signed by both parties, with all the conditions, or may also be a signed document of one party containing the terms and an acceptance signed by the other party. It is sufficient for one party to enter its signature into the written proposal and the other party to accept it. Recently, there has been exponential growth in international business and contracts and, as a result, an increase in international arbitration litigation. India is no longer a closed economy and is keeping pace with changing times, and judgments like BALCO show the world that parties can easily enter an arbitration procedure without worrying about any uncomfortable orthodox proceedings. The Arbitration and Conciliation Act 1996 (Law) provides the framework for arbitration and conciliation in India. Designed on the basis of the standard law of the CNUDCI, it is divided into four parts. Each party regulates a different aspect of the arbitration procedure and the conciliation procedure: the Court had recognized, in its judgment that annized Bhatia International, the need to create a mechanism allowing a party to benefit from an effective interim appeal for a foreign-based arbitration procedure. It acknowledged, however, that neither the regulation of the Act nor the 1908 Code of Civil Procedure provided for a mechanism for obtaining such an interim action. The Hon`ble apex court in the Union of India vs. Ambika Construction, which granted the decision on the interest rate granted in the arbitration awards, held that the interest rate to be awarded and calculated from the date on which the arbitration was called until the final realization of the amount to be calculated. There are some important provisions in an arbitration agreement, and these are mentioned below: an arbitration agreement must be made in writing.

Under Section 7 (4) of the Act, the arbitration agreement is considered written if it is contained in it: Indian courts have recently begun to adopt a pro-arbitration approach and thus apply valid arbitration agreements. The explanatory statement of the Arbitration and Conciliation Act recognizes a policy of non-interference by the courts in the arbitration process. However, Indian courts will continue to refuse to apply an arbitration agreement if they find that prima facie does not have a valid agreement or that the dispute is not arbitral. 1. Any dispute, difference or issue that may arise at any time between the parties or a person entitled to persons who are entitled to persons who are touching or in person, touch or arise from or in relation to this agreement (act) or its purpose, are referred to the arbitration of XY, etc., or, if he is unable or willing to act , to another arbitrator, who is agreed between the parties or not by………… or, if the consent to two arbitrators are appointed by each party on the difference (whether one or more than one person) and, in the event of disagreement between them, to an arbitrator by the two arbitrators cited before seizing the reference and the decision of the arbitrator (or such arbitrators, or arbitrators, as the case may be) is final and engages the parties.