Law of Arbitration in India: Critical Inquiry in Real Estate Disputes

In India, arbitration has become a prominent dispute resolution method, especially in the business sector where parties value efficiency, adaptability and autonomy. However, its use in the real estate sector has been convoluted and frequently disputed. This paper critically analyses Indian arbitration law with an emphasis on real estate disputes, a field that usually involves numerous parties, expensive transactions and the interests of consumers. From the Arbitration Act of 1940 to the Arbitration and Conciliation Act of 1996 and its amendments, it charts the development of arbitration law, emphasizing the move toward a more arbitration-friendly framework. To determine whether arbitration is a practical solution, the study examines the types of real estate disputes, such as builder-buyer disputes, joint development agreements, investor-developer issues and lease disagreements. Arbitration has been limited when consumer rights and public policy are involved, but it has been maintained in business disputes between parties with equal bargaining power. The study critically examines the benefits and drawbacks of arbitration in this field, contrasts India's strategy with global norms and makes reform suggestions. It concludes that for arbitration to be a successful mechanism for resolving real estate disputes in India, a standardized framework that aligns it with statutory protections is required.