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Is Arbitration appropriate without accounts and books
09-Oct-2025 (In Arbitration Law)
We are in business dispute. My partner unwilling to disclose accounts or bank account books and he is asking for Arbitration. I have said no because how can arbitrator arbitrate without actual accounts and books. If arbitrator makes estimation he could estimate less and I not agree, if he estimate more than my business partner will not agree.
I need second opinion whether Arbitration is right or should I go to Court to compel disclosure of accounts
You should file a civil suit seeking disclosure and inspection of all business accounts, bank statements, and related financial records before agreeing to arbitration. An arbitrator cannot fairly decide the dispute without proper financial documents, and any estimation made without records could go against either party. Once the accounts are produced and examined, arbitration can be considered if both sides agree. Until then, approaching the court is the more appropriate step to ensure transparency.
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Adv. Karishma Rajput
Delhi | 100+ Answers
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Arbitration can proceed only on the basis of fair disclosure and access to material records. If your partner is withholding account books and financial records, you may first approach the civil court under Section 9 of the Arbitration and Conciliation Act or under the Partnership Act to compel production/disclosure of accounts. Without transparent financial data, any arbitral award may be challenged as biased or based on incomplete evidence. Therefore, before consenting to arbitration, insist on complete disclosure through court intervention or through a preliminary direction by the arbitrator if appointed.
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Dr Ajay Kumar Pandey
Delhi | 100+ Answers
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Arbitration is possible only if both sides disclose full financial records. Without accounts, the arbitrator can’t decide fairly. First seek disclosure of accounts—if your partner refuses, approach the civil court for direction to produce them.
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Adv. Adarsh Kumar
Delhi | 400+ Answers
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In this situation, since your business partner is refusing to disclose the account books or bank statements, it would be difficult for an arbitrator to conduct fair proceedings because proper evidence and financial records are essential to determine the actual profit, loss, or liability between partners. Arbitration relies on transparency and production of relevant documents by both parties. Therefore, before proceeding to arbitration, you should first approach the appropriate civil court under the to seek a direction compelling your partner to disclose and produce the account books and financial records. Once the accounts are disclosed and available, arbitration may be a suitable forum to resolve the dispute efficiently. But at this stage, going to court to compel disclosure would be the appropriate first step.
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Adv. Aditya Kumar
Delhi | 25+ Answers
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