Five Common Problems People Face During Arbitration in Bengaluru — And How to Solve Them

You signed a contract thinking everything was smooth. Later, a dispute pops up — maybe your real estate builder delayed possession, or your business partner didn’t deliver. You agreed to “arbitration” thinking it would be faster and easier than going to court.
But now… you’re stuck. Endless delays, huge fees, confusion about next steps.
Sounds familiar? You’re not alone.

In Karnataka alone, over 3,200 arbitration cases were filed in the last five years (as per Karnataka State Legal Services Authority data 2024). And Bengaluru, being the startup and real estate hub, naturally sees the highest number of cases.

At PWR Juris, we work with individuals, startups, real estate players, and businesses across Bengaluru who often face unexpected hurdles during arbitration.
Here’s a simple breakdown of the five most common problems people face during arbitration in Bengaluru — and how you can solve them smartly.

“We thought arbitration would be quick… why is it taking years?”

This expectation of a quick and hassle-free process is common — but the reality on the ground, especially in Bengaluru’s busy commercial hubs, can often be very different. Let’s look at an example to understand this better.

In 2023, a tech startup in HSR Layout entered arbitration over a software IP dispute. They expected a 6-month resolution. Instead, the case dragged on for 2.5 years due to multiple adjournments and procedural wrangles.

Delays in arbitration often happen because parties fail to fix strict timelines when drafting their arbitration clause. Without a clear schedule, arbitrators — who are often busy with multiple cases — can adjourn hearings frequently. Sometimes, one party intentionally causes procedural delays to exhaust or frustrate the other, especially when stakes are high. In Bengaluru, with the high caseload at institutional arbitration centres, finding convenient hearing dates can itself take months.

The best way to tackle delay is to set strong foundations right at the contract stage. A well-drafted arbitration clause should clearly mention strict timelines for completing proceedings, referencing provisions like the fast-track process under Section 29B of the Arbitration Act. Choosing committed arbitrators who respect timelines and opting for institutions that guarantee quick turnarounds, like BIMACC in Bengaluru, can make a huge difference. At PWR Juris, we ensure your dispute moves at the speed you expect by designing airtight timelines and actively managing the arbitration calendar.

“Isn’t arbitration supposed to be cheaper than court?”

While arbitration is marketed as a cost-effective solution, many individuals and businesses in Bengaluru are shocked at how expensive it can actually become. Let’s dive into a real situation where costs spiraled unexpectedly.

A small construction contractor from Yelahanka signed an arbitration clause thinking it would save money. But when the dispute happened, he ended up paying over ₹7 lakh just in arbitrator and lawyer fees — more than the amount in dispute!

Costs spiral out of control when arbitrators charge per hearing without a clear cap, and when hearings get stretched over months or years. Often, contracts don’t fix the arbitrator’s fees beforehand, leaving parties vulnerable to ad hoc and sometimes unreasonable costs. In Bengaluru, where top arbitrators command premium rates, small businesses and individuals often get shocked by how quickly expenses mount.

The smart approach is to fix arbitrators’ fees in advance, either by agreement or by referring to the Fourth Schedule of the Arbitration Act. Choosing reputable but cost-conscious arbitration centres can also help you control costs. Additionally, properly structuring the arbitration clause to limit unnecessary hearings and procedural formalities can significantly lower the financial burden. At PWR Juris, we plan a cost-effective strategy from the start — helping you avoid hidden fees and ensuring that your legal battle doesn’t burn a hole in your pocket.

“It felt like the arbitrator was totally favouring the other party.”

Bias — whether real or perceived — can completely shatter trust in the arbitration process, leaving parties feeling helpless and cheated. Here’s an example from a real estate dispute in Bengaluru that shows how dangerous bias can be.

In a recent Whitefield property dispute, one party alleged the arbitrator was closely connected to the opposing real estate developer. The award naturally went against them, and they had to challenge it — wasting another 1.5 years.

Bias often creeps into arbitration when parties appoint arbitrators without conducting proper background checks. Some arbitrators may have undisclosed personal or professional relationships with one of the parties, which compromises impartiality. Although the Arbitration Act (Section 12) mandates disclosure of conflicts, in practice, many appointments in Bengaluru happen informally, without a full check on neutrality.

The safest strategy is to choose arbitrators either through mutual agreement facilitated by neutral institutions or to appoint through reputed panels where neutrality is guaranteed. Insisting on thorough disclosure of any past relationships or conflicts before appointment is essential. At PWR Juris, we rigorously vet arbitrators for any bias and, if necessary, assist you in challenging the appointment to protect your right to a fair hearing.

“Our contract said ‘arbitration’, but didn’t explain who, where, or how.”

A poorly drafted arbitration clause is like setting off on a journey without a map — confusion and misdirection are almost guaranteed. Let’s see a real-world Bengaluru case where an unclear clause created major headaches.

An electronics business in Jayanagar had an arbitration clause that simply said, “All disputes shall be resolved through arbitration.” No mention of seat, language, rules, or even the number of arbitrators! When the dispute came up, confusion led to months of wrangling even before starting arbitration.

 Ambiguity arises when arbitration clauses are copied blindly from templates without tailoring them to the specific needs of the parties or the Bengaluru jurisdiction. Without mentioning the seat of arbitration, language of proceedings, number of arbitrators, and applicable rules, parties are left arguing about basic procedural aspects rather than focusing on the real dispute. This results in unnecessary delays and expenses right at the outset.

Every arbitration clause must be clear, complete, and customized. It should state the seat (Bengaluru, if preferred), number of arbitrators (typically one or three), the rules (such as Indian Council of Arbitration Rules), and the language (usually English). This clarity prevents preliminary disputes and ensures a smooth beginning. At PWR Juris, we don’t believe in one-size-fits-all templates — we draft personalized arbitration clauses that safeguard your interests from day one.

“We won the arbitration, but now they refuse to pay!”

Winning on paper doesn’t always translate to real-world success, especially when the losing party decides to play delaying games. Let’s understand this better through a true Bengaluru case.

A Koramangala-based interior design company won an arbitration against a client. But when they approached for payment, the client refused. They had to approach the Bengaluru civil court to enforce the award, adding another 10 months!

Winning the arbitration does not automatically guarantee payment. Many losing parties either refuse to comply voluntarily or attempt to delay enforcement by filing objections or setting-aside petitions under Section 34 of the Arbitration Act. In Bengaluru courts, especially, enforcement proceedings can get delayed if the case isn’t actively and strategically pursued.

To secure your award effectively, it is crucial to act quickly — file for enforcement immediately under Section 36 of the Arbitration Act. It’s also wise to prepare for potential challenges by ensuring the award is well-reasoned, defensible, and procedurally sound. At PWR Juris, we specialize in fast-tracking enforcement proceedings and defending awards against challenges, making sure your victory on paper translates into real-world success.

Arbitration in Bengaluru isn’t perfect — but when handled smartly, it can still be faster, cheaper, and less stressful than long court battles.
The key is preparation and choosing the right legal team to walk you through it.

At PWR Juris, we combine deep local Bengaluru expertise with sharp arbitration strategy to help you:
✅ Draft watertight contracts
✅ Choose the right arbitrators
✅ Speed up proceedings
✅ Keep costs manageable
✅ Ensure you actually enforce your wins

Talk to our friendly legal experts today.
We’ll make sure your rights are protected — and your dispute doesn’t become another Bengaluru arbitration horror story.