What Is Summary Arbitration at DIAC for Small Claims?

What DIAC summary arbitration is, in short

It's really two things bolted together. A cheaper fee for the arbitrator, and a short procedure run on paper. You'll find the fee in Schedule C of the DIAC (Administrative Costs and Arbitrators' Fees) Rules, 2018 (the Fee Rules), the schedule DIAC titles as the summary arbitration fee. Claims up to Rs 10 lakh: the arbitrator gets a flat Rs 25,000. Go past Rs 10 lakh and the normal Schedule B scale takes over. Tucked into a footnote is a line saying the figures in Schedules B and C count any counter claim as part of the dispute. Easy to miss.

For the procedure, you go to the DIAC (Arbitration Proceedings) Rules, 2023 (the DIAC Rules). You won't find the word summary anywhere in them. Rules 12 and 13 call it fast track instead. Both sides sign up to it in writing, no later than the tribunal's appointment, and both promise to do without witnesses. One arbitrator then reads the pleadings, the documents and the written arguments and decides, with six months to produce the award once he or she enters upon the reference. That's lifted from Section 29B of the Arbitration and Conciliation Act, 1996 (the Act).

So when someone searches for DIAC small claims, this is usually what they're after. A small claim that rests on documents can be run at DIAC on paper and fairly quickly. And if the Centre treats it as a summary arbitration under Schedule C, the arbitrator's fee is far lower than the standard scale. Will Schedule C be applied to your case? Ask the DIAC Coordinator before you file. The 2023 Rules no longer describe a separate summary track, and the Fee Rules don't say when Schedule C kicks in.

The rules that govern a small claim at DIAC

Why is there a summary fee when the rules say fast track?

Blame history. The Centre's earlier procedural rules had a proper summary procedure. Parties signed up in writing and gave up witnesses, the respondent had a short time to answer, a sole arbitrator was drawn from the panel, oral arguments were heard within days, and an award came quickly. Schedule C was the fee scale for that track. When DIAC brought in its 2023 Rules, the written procedure was rebuilt as fast track under Rules 12 and 13, matching Section 29B of the Act. The Fee Rules date from 2018. They kept Schedule C under its old name.

Frankly, what it's called won't matter to you. Two things will. Is the other side willing to go paper-only? If not, forget fast track; you'll be in an ordinary DIAC case with pleadings, issues and evidence. And will DIAC charge the arbitrator's fee on Schedule C or on Schedule B? On a Rs 8 lakh claim the gap can be more than double. See the table below. Write to the Coordinator. Describe your claim, any counter claim you expect, and the procedure you've agreed. Get the basis of assessment in writing before you commit.

There's one more gap. Schedule B gives a sole arbitrator an extra 25 percent, and Schedule C doesn't say whether that applies to its flat Rs 25,000. Clarify it at the start. A written case will almost always have a sole arbitrator.

The Schedule C DIAC fee against the regular scale on small claims

Our arithmetic uses the Fee Rules on DIAC's website and the Schedule B that took effect on 1 December 2022. That scale charges Rs 45,000 for anything up to Rs 5 lakh. Between Rs 5 lakh and Rs 20 lakh you add 3.5 percent of the excess. Administrative costs come on top, Rs 10,000 from each side for disputes up to Rs 20 lakh. The usual practice is a 50:50 deposit. DIAC changes these schedules from time to time, and its e-filing portal has a calculator. Use it before relying on our numbers. Our guide on DIAC arbitration fees and who pays them takes you through the full schedule.

Which small claims suit a written, summary-style arbitration?

Ask yourself one thing. Could someone who's never met you decide this from the file? Usually yes for goods sold on purchase orders and never paid for, where you've got challans, e-way bills and a ledger. Same for service fees on a signed work order where the client emailed to say the work was fine. Or an advance you paid for goods nobody delivered. Unpaid rent or maintenance on a shop lease. Or a deposit the landlord sat on after you returned the keys. Or a buyer who short-paid and then admitted the shortfall in writing. Lawyers call these liquidated sums, amounts you can add up from paper. That's the sweet spot for DIAC summary arbitration.

Some claims usually fail. Fights about what was said in a meeting. Lost profit or damaged reputation that needs an expert. Fraud or forgery allegations. Quality disputes with two inspection reports that contradict each other. Anything where the case turns on whether the main witness is believable. A paper-only process can still decide these. But the losing side will feel it was never heard, and the award becomes easier to attack. If you really need oral evidence, go for a regular arbitration, even on a small sum. It's safer.

When Advocate B.K. Singh looks at a small claim for the written track, he reads the file the way an arbitrator with an hour to spare would. Then he asks: does every rupee claimed trace back to a document the other side signed, sent or can't credibly deny? If that's true for most of the money, proposing the written track usually makes sense. If big chunks depend on someone explaining things out loud, he'll advise against it.

Does the other side have to agree to summary arbitration?

Yes, always. Rule 12.1 of the DIAC Rules and Section 29B of the Act both make the paper-only track depend on a written agreement, reached no later than the tribunal's appointment. Rule 12.2 then wants the undertaking on oral evidence signed. You can't impose it as claimant. And once the tribunal is appointed without that agreement, the Rule 12.1 window is shut. The parties can still agree to finish without an oral hearing under Rule 26.1(b), though.

The agreement can come from three places. The contract itself may say disputes up to a certain value go to a sole arbitrator under DIAC's fast track or summary procedure. That's the cleanest route, and we'd put it into every small-ticket supply and service contract from now on. Our guide on drafting a DIAC arbitration clause shows how. Or the parties can agree after the dispute starts, often in the reply to the notice invoking arbitration. Or the respondent can accept the proposal in its Response under Rule 5.

Why would a respondent say yes? Because the money works for it too. A lower arbitrator's fee, half of which it would otherwise have to deposit, less time lost by its managers, and a quicker finish. A respondent with an honest quarrel about a few invoices may well prefer a fast paper decision to a year of hearings. One that only wants delay will refuse. Then you're in a regular arbitration, which is still open to you.

How a small claim moves through DIAC on the written track

This assumes there's a DIAC arbitration clause and the claim is up to Rs 10 lakh, counter claim included.

1. Send the notice invoking arbitration

   Send the respondent a notice under Section 21 of the Act. Set out the claim, refer to the DIAC clause, and propose the fast track written procedure with a sole arbitrator. The day they receive it is the day the arbitration commences. That date fixes limitation.

2. Get the agreement and the undertaking signed

   If the respondent agrees, sign a short agreement to use Rules 12 and 13, plus the undertaking giving up oral evidence under Rule 12.2. If your contract already provides for it, just cite the clause.

3. Ask DIAC how the fee will be worked out

   Write to the Coordinator with the claim value, any counter claim you expect and the agreed procedure. Ask whether Schedule C will apply, and whether the sole arbitrator addition goes on top. Keep their reply on file.

4. File the Request for Arbitration

   File under Rule 4 with the arbitration clause, the fast track agreement, the contract and supporting papers, a quantified statement of the claim, proof you served the respondent and confirmation you've paid the administrative charges. Rule 4.3 lets you file your full statement of claim with the Request. On this track, do.

5. Response and appointment

   Under Rule 5.1 the respondent has 30 days from receipt to respond. The parties try to agree a sole arbitrator from the DIAC panel. If they can't, the Chairperson or a Sub-Committee appoints one within a week after the reply period, under Rule 12.5.

6. Pay the deposit

   DIAC fixes the deposit for the arbitrator's fee, normally half from each side. Pay it before the due date. Under Rule 33.5 a claim can be terminated if its deposit isn't paid within 30 days of falling due.

7. Written rounds, then the award

   The arbitrator sets short deadlines for the defence, the reply and written submissions, may put questions in writing, and decides on the papers unless all parties ask for an oral hearing or the arbitrator thinks one is needed. The award is due within six months of the arbitrator entering upon the reference.

For the fast track procedure in detail, including when the six-month clock starts and what happens if it runs out, see our guide on fast track arbitration at DIAC.

Time and cost on a small DIAC claim, stage by stage

Lawyers' fees are separate and depend on the work. We talk about ours at the first meeting and agree them in writing, stage by stage. On a small claim, ask for a fixed fee for the written track.

How does anyone decide a claim without oral evidence?

On paper. That changes how you build the file. Under Rule 13.1 the tribunal decides on the written pleadings, documents and submissions, can call for more information or clarification, and holds a short, time-limited oral hearing only if all parties ask or it thinks one is needed. There's no witness box where your accountant can explain the ledger. The documents have to speak for themselves.

Your statement of claim has to lead the arbitrator by the hand. Start with the contract or PO. Then every invoice and the proof it was delivered, every rupee that came in, the balance as it grew, the reminder dates and any answers, and how you've worked out interest and why. One reconciliation table should pull it together, each number pointing to a page in the bundle. If the other side admitted the debt in an email or a WhatsApp message, quote it and attach it with a certificate of the kind courts use for electronic records under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023. Strictly, the tribunal isn't bound by evidence law (Section 19 of the Act). We'd still attach one. An affidavit from whoever kept the accounts, filed with the claim, helps as well. It's written evidence, not oral.

Interest is worth thinking about separately. If there's a rate in the contract or printed on the invoices, use it. Registered micro and small units get more: the MSMED Act, 2006 sets interest on late payment at three times the RBI bank rate, and that rate changes, so pull it for each period. With neither, it's the tribunal's call under Section 31(7) of the Act. After the award, unless the arbitrator orders otherwise, interest runs at two percent over the current rate of interest prevailing on the award date.

Papers you'll need for a small claim on the written track

• The contract, work order or purchase orders that carry the DIAC arbitration clause
• Every invoice you're claiming on, with delivery challans, e-way bills, signed receipts or the email where they accepted the work
• The customer's ledger or statement of account, certified by your CA
• Bank statements that show each payment that came in against those invoices
• Your reminders, any legal notice, and every reply or acknowledgment you got back
• GST returns showing the invoices were reported, if you need them to prove the supply
• A certificate for the electronic records you rely on, like emails and chats
• Your Udyam certificate, if you're claiming MSMED Act interest
• The signed fast track agreement and the undertaking giving up oral evidence
• A one-page reconciliation of the claim, with page references

Summary arbitration, summary suit, MSME Council or a cheque case: which one for a small claim?

If your contract has a DIAC clause, the claim normally has to go to arbitration. File a suit instead and you'll usually face an application under Section 8 of the Act asking the court to refer it to arbitration. Both sides can choose court if they'd rather. But that only works if the respondent doesn't object.

No arbitration clause? Then you're looking at court. Commercial disputes worth Rs 3 lakh or more belong in the commercial court, and you'll normally have to try pre-institution mediation under Section 12A of the Commercial Courts Act, 2015 before filing. If your claim stands on a written contract, invoices or a cheque, you can file a summary suit under Order XXXVII. The defendant then has to ask the court's leave even to defend. Under Rs 3 lakh, it's an ordinary civil suit, at Tis Hazari, Saket or wherever jurisdiction lies. Our guide on DIAC arbitration or a commercial suit compares the routes more closely.

Registered micro and small suppliers have another door. Section 18 of the MSMED Act, 2006 lets them refer late payments to the MSME Facilitation Council, which tries conciliation and, failing that, arbitrates. The Supreme Court ruled in Gujarat State Civil Supplies v. Mahakali Foods (2022) that the Council beats a private arbitration clause. The MSMED (Amendment) Act, 2026 has been published, but we couldn't find its new provisions on the Council process notified as of late October 2026. Check the current position. Our guide on DIAC or the MSME Council lays out the choice.

If the debtor's cheque bounced, a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 can run next to the civil claim, and it often gets you paid sooner. The deadlines start from the return memo and they're strict. They're explained on our network site for cheque bounce cases. None of these routes automatically shuts out the others. Running several at once costs money, though, and invites an abuse of process argument. Pick the one that fits your papers and your debtor.

What if they refuse the written track, or file a counter claim?

A refusal just puts you in an ordinary DIAC arbitration. That means Schedule B fees, full pleadings, framed issues and witnesses where they're needed. Don't panic. A small case can still be kept tight. Rule 21.1 gives the tribunal charge of procedure so time and money aren't wasted. Under Rule 19.2 it can cap the length and scope of pleadings. And if every party asks in writing, Rule 26.1(b) lets it finish without an oral hearing even outside fast track. Ask for those directions at the first procedural meeting.

The counter claim is what really wrecks the sums. That footnote again. Your Rs 8 lakh claim plus their Rs 4 lakh counter claim adds up to Rs 12 lakh in dispute, which is over the Schedule C line, so DIAC prices the whole thing on Schedule B. And if the respondent then refuses to deposit its half? The proviso to Rule 3(ii) of the Fee Rules lets the Centre split the assessment, claim on one side and counter claim on the other. The Delhi High Court approved that very approach in Samsung India Electronics Pvt Ltd v. Delhi International Arbitration Centre (18 March 2026).

Before proposing summary arbitration, Advocate B.K. Singh tries to guess the counter claim. What has the buyer complained about in emails? Has it held back payment citing quality or delay? What would a counter claim be worth if it were pleaded? If a big one looks likely, he budgets on Schedule B from day one and treats any Schedule C saving as a bonus. The client isn't caught off guard when the deposit demand lands.

Mistakes that make a small DIAC claim expensive

• Taking Schedule C for granted. The Fee Rules don't say when DIAC uses it. Ask the Coordinator in writing before you file.
• Forgetting the counter claim. Schedule C counts it in the sum in dispute, and even a modest one can tip you into Schedule B.
• Missing the window to agree. Fast track has to be agreed before or when the tribunal is appointed. Put the proposal in your notice. After appointment is too late.
• Filing a thin claim. There's no witness on the written track to plug gaps. Every figure has to trace to a document.
• Padding the claim. Tack speculative damages onto a clean invoice claim and you may cross Rs 10 lakh and invite oral evidence.
• Letting the deposit slide. Under Rule 33.5, small cases get terminated for unpaid deposits just as readily as big ones. Our guide on paying DIAC fees on time sets out the deadlines.
• Not thinking past the award. An award is paper until someone pays it or you execute it. Find out what the debtor owns before you spend on the claim.

How a small DIAC claim plays out for different businesses

• Freelancers and small service firms. If your client contract has a DIAC clause, a written-track claim for unpaid fees is often worth it. Hang on to acceptance emails and timesheets. They're your evidence.
• MSME suppliers. Weigh DIAC against the MSME Facilitation Council, which gives interest at three times the RBI bank rate and makes a buyer deposit money to challenge the award. When you got your Udyam registration can matter; the law on registration taken after the contract is unsettled and pending before a larger bench.
• Startups. Use summary-style arbitration for vendor or customer disputes with clean paperwork. And put a small-claims fast track clause in your standard contracts now, before anything goes wrong.
• Landlords and tenants of business premises. Rent arrears and deposit fights under a lease with a DIAC clause often suit the written track, provided nobody is arguing about the state of the premises in a way that needs an inspection.
• Buyers wanting a refund. Paid an advance and never got the goods? That's a document claim too, and a buyer can propose the written track just as easily as a seller.

After the award: challenge and enforcement on a small claim

Size doesn't change an award's force. Whoever loses gets three months from receiving it to file a Section 34 challenge, and the court can allow up to 30 days more for sufficient cause. The grounds are few. Maybe they weren't properly notified, or the award strays outside the reference, or it clashes with public policy. With a domestic award, patent illegality on its face is also a ground. Nobody reargues the facts. For a Delhi-seated arbitration this size, the challenge goes to the district court level (the court designated as commercial court where the value is Rs 3 lakh or more), not the High Court. Check the current limit.

Filing a challenge doesn't freeze the award by itself. Under Section 36 the court can grant a stay on conditions, very often a deposit of the amount awarded. Once the challenge period is over or the challenge fails, the award is enforced like a decree, through execution for attachment of bank accounts, receivables or property. Our guide on enforcing a DIAC award explains how execution works. On a small claim, what execution will cost is part of the sum. Work out where the debtor's money is before you start.

If you're not sure a small claim belongs at DIAC at all, our DIAC arbitration lawyer service page explains how we look at claims of every size at the Centre.

What to do this week

Take out the contract and confirm the DIAC clause is there. Add up your claim. Then estimate the counter claim honestly. If the total is under Rs 10 lakh and your claim rests on documents, prepare the reconciliation table and the list of papers, check limitation, and draft a notice invoking arbitration that proposes the written fast track. Then write to DIAC and confirm the fee basis.

No arbitration clause, or are you an MSME supplier chasing a buyer? Compare the court and Council routes first. Our DIAC arbitration practice page lists what we need from you to assess a claim quickly.

If you'd like your invoices, ledger and contract looked at before you pick summary arbitration at DIAC or another route, or want to hear when DIAC changes its fee schedules and rules, share them with Advocate B.K. Singh's team through the contact page.