Sections 3-4 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 3 says when a written communication in an arbitration is deemed received. Section 4 says that a party who knows of a non-compliance and carries on without objecting is deemed to have waived the right to object. Together they decide whether a notice "reached" you and whether you spoke up in time.
Unless the parties agree otherwise, a written communication is deemed received when delivered personally or at the addressee's place of business, habitual residence or mailing address, and it is deemed received on the day it is so delivered. Under section 4, a party who knows a derogable provision of Part I or a requirement of the arbitration agreement has not been complied with, and proceeds without stating an objection without undue delay (or within any stated time limit), is deemed to have waived the right to object. This is as per the India Code consolidated text consulted.
Why these two sections matter together
Arbitration runs on written communications: notices, requests, statements and orders. A dispute about when a notice was received can change the date from which a period runs. A party that notices a defect, for example in how the tribunal was constituted, and says nothing can lose the point. Both sections are short, and neither carries a footnote of amendment in the text consulted.
Both sections stand in Chapter I, "General provisions", of Part I of the Act, and we read them as the India Code consolidated text prints them. If a notice you sent or received may be tested against them, a legal notice drafting review before the next step can save a later argument.
Section 3: receipt of written communications
Sub-section (1): when a communication is deemed received
The opening words are "Unless otherwise agreed by the parties". So the parties may set their own rule in the contract, and the section applies only if they have not.
| Situation | Deemed receipt under section 3(1) |
|---|---|
| (a) The communication is delivered to the addressee personally | Deemed received |
| (a) It is delivered at the addressee's place of business, habitual residence or mailing address | Deemed received |
| (b) None of those places can be found after making a reasonable inquiry | Deemed received if sent to the addressee's last known place of business, habitual residence or mailing address by registered letter or any other means which provides a record of the attempt to deliver it |
Note the order. Clause (b) is a fallback. You must first make a reasonable inquiry for the places in clause (a), and only if none can be found does the last-known-address route work. The section speaks of a "record of the attempt to deliver", so keep the postal receipt, courier proof or tracking record.
Sub-section (2): the day of receipt
The communication "is deemed to have been received on the day it is so delivered." The section does not add a rule for a later date of actual reading. If a period under another section runs from receipt, as several do, this day is the starting point. For example, section 21 starts proceedings from the date a request to refer the dispute is received by the respondent; see our article on commencement of arbitral proceedings.
Sub-section (3): court proceedings are outside it
Section 3 "does not apply to written communications in respect of proceedings of any judicial authority." Service of a court notice follows the court's own rules, not this section. Our guide on service of documents on a company covers the general position for legal notices.
A worked example
Rawat Components Pvt. Ltd. and Mehra Logistics have a supply contract with an arbitration clause that is silent on notices. Mehra sends a notice invoking arbitration by hand to Rawat's registered place of business on 4 March. Under sub-section (2), Rawat is deemed to have received it on 4 March, even if the manager reads it on 7 March. If Rawat had moved and no place in clause (a) could be found after reasonable inquiry, a registered letter to its last known address, with the postal record, would carry the same deemed effect under clause (b).
Section 4: waiver of right to object
Section 4 applies to a party who knows that:
- (a) any provision of Part I from which the parties may derogate, or
- (b) any requirement under the arbitration agreement,
has not been complied with, and yet proceeds with the arbitration without stating the objection:
- without undue delay, or
- if a time limit is provided for stating the objection, within that period.
Such a party "shall be deemed to have waived his right to so object."
The elements, one by one
- Knowledge. The section turns on a party who knows of the non-compliance. It does not say what happens to a party who does not know.
- A derogable provision or an agreement requirement. Clause (a) covers only provisions from which the parties may derogate, that is, where the Part lets them agree otherwise. Clause (b) covers any requirement in the arbitration agreement itself, such as a stated number of arbitrators or a stated qualification.
- Proceeding without objecting. Taking part in the proceedings while silent is the trigger.
- Timing. The test is "without undue delay" where the agreement sets no time. Where a time limit is provided, that period governs. The Act does not define "undue delay" in the text consulted, so it is a matter of the facts.
A worked example
Sethi Textiles agreed that three arbitrators would decide any dispute, but the claimant appoints a sole arbitrator, and Sethi learns of it at the first sitting. Sethi attends two further hearings and files a defence without saying a word about the number. Under section 4(b), continuing without a timely objection risks being treated as a waiver of that objection. The safe step is to record the objection in writing at the first opportunity and, if the agreement fixes a time limit, within it.
What section 4 does not cover
Section 4 does not allow parties to waive provisions from which they may not derogate. Which provisions of Part I the parties may derogate from is told by each section's own words, such as "unless otherwise agreed" or "failing any agreement". It is therefore worth reading section 4 with the section under challenge, for example the grounds in section 12 (see our article on grounds for challenge and disclosure), and with section 5 on the limits of court intervention (see sections 5 and 6).
Practical steps
- Put a notices clause in the contract naming addresses, e-mail addresses and the means of delivery, because section 3 yields to what the parties agree.
- Keep proof of every delivery or attempt. For a response to a notice, see our guide on responding to a legal notice.
- Object in writing as soon as you know of a defect, state it clearly, and repeat it if the proceeding continues.
- Check whether the agreement sets a time limit for objections.
Need help with an arbitration notice?
A badly addressed notice or a late objection can cost a party a point it would otherwise have won. Our team can review the notice, the delivery proof and the clause with you through legal notice drafting, so that the record is clean from the first letter.
Key takeaways
- Section 3 starts with "Unless otherwise agreed": a notices clause in your contract overrides it.
- Deemed receipt is on the day of delivery; the last-known-address route needs a reasonable inquiry first and a record of the attempt.
- Section 3 does not apply to communications in proceedings of a judicial authority.
- Section 4 waiver needs knowledge, continuing without objection and delay beyond "without undue delay" or the stated period.
- Raise objections in writing, early and for each defect.
Read next
- Sections 5 and 6: judicial intervention and administrative assistance
- Section 21: commencement of arbitral proceedings
- Legal notice: format, requirements and drafting tips
- Section 12: grounds for challenge and disclosure
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.