In short
- Write a ladder into the contract: notice, a short cure period, a senior contact, mediation, then arbitration with a named seat. Most disputes should end on the first two rungs.
- Under section 7 of the Arbitration Act an arbitration agreement must be written; electronic exchanges count. Section 29A sets a 12-month limit for the award, extendable by six months.
- Courts can still order interim relief such as an injunction under section 9. Commercial suits of specified value need pre-institution mediation first, unless urgent relief is sought.
- Know the payment clock: a registered micro or small enterprise must be paid within 45 days of acceptance, or interest accrues at three times the RBI bank rate.
A brand settles a dispute with a creator or agency best by climbing a ladder it wrote into the contract: a written notice that quotes the clause, a short cure period, a call between senior people, mediation, and then arbitration or court. Each rung is cheaper and faster than the next, and most disputes should end on the first two. What the statutes add is the enforcement behind the later rungs, and a few deadlines you cannot contract out of.
This post goes one level below the dispute and governing-law clause in our guide to influencer contracts in India, and it works alongside the agency contract checklist and influencer payment terms. It sits under our complete guide to influencer marketing in India. We cite the statutes we could read, flag what we could not, and label every working timeline as our practice.
Eight disputes that come up
| Dispute | Typical trigger | First move | Contract lever |
|---|---|---|---|
| Late or missed delivery | Post not live on the booked date | Written notice with a new date | Replacement window; payment tied to go-live |
| Rejected content | Brand says the draft misses the brief | Compare against the approved script in writing | Approval log; revision limit |
| Unapproved edit or claim | Caption or sticker added after sign-off | Take the post to the approved version; see takedown process | Approval clause; takedown time; payment hold |
| Non-payment or short payment | Creator invoices; brand disputes delivery | Pay the undisputed part; dispute the rest in writing | Verified-delivery definition; dispute window |
| Use beyond the licence | Brand ad runs after the end date | Stop the ad; agree a priced extension | Licence schedule; renewal price |
| Exclusivity breach | Creator posts a rival's ad inside the window | Written notice quoting the window | Exclusivity clause; remedy |
| Conduct or controversy | Old posts resurface mid-campaign | Pause; apply the tiered remedy | Morality clause |
| False audience data | Insights shown were edited or inflated | Ask for a live screen-share; stop payment of unearned fees | Data warranty; audit right; see fake followers |
Agency disputes follow the same pattern: scope against statement of work, pass-through fees against actual creator invoices, and who owes what when a creator misses a date.
The ladder, rung by rung
These timings are our working practice, not a legal standard.
| Rung | What happens | Suggested time |
|---|---|---|
| 0 | Capture evidence, pause anything live that creates exposure, tell the creator or agency a notice is coming | Same day |
| 1 | Written notice quoting the clause, the fact, the cure asked for and the date | Cure in 5 business days |
| 2 | Call between a named senior person on each side, with a written summary after | Within 5 business days of the cure date |
| 3 | Mediation with a neutral mediator | Weeks, not months; see below |
| 4 | Arbitration under the clause, or court for interim relief and where no arbitration clause exists | Months |
A rung is only useful if the contract says what happens on it. A clause that says "the parties will try to resolve disputes amicably" with no names, no dates and no next step is not a rung.
What the law gives you at each rung
Contract remedies
Section 74 of the Indian Contract Act, 1872 says that where a sum is named in the contract as payable on breach, the party complaining of the breach is entitled to reasonable compensation not exceeding that sum, whether or not actual loss is proved. A named amount for a missed date, an early withdrawal of ad permission or use beyond a licence can therefore give you something to negotiate with. A court decides what is reasonable.
The same Act's section 28, as shown in the India Code copy we read, makes void to the extent any agreement that limits the time within which a party may enforce its rights, and any that extinguishes rights on the expiry of a specified period. A clause saying "claims lapse after 30 days" is a candidate for trouble. Section 28's first exception saves a contract to refer future disputes to arbitration. Ask counsel to review any short claims window.
Mediation
The Mediation Act, 2023 deals with mediation as a route before or beside litigation. Section 5 lets parties take steps to settle by pre-litigation mediation, with a proviso that commercial disputes of specified value follow section 12A of the Commercial Courts Act, 2015. PIB described section 12A on 13 August 2026 as requiring mandatory pre-institution mediation for such disputes before a suit is filed, except where urgent relief is contemplated. The Act's Ninth Schedule restates section 12A with a mediation period of 120 days, extendable by 60 with the parties' consent, and with the mediation period excluded from limitation.
Section 27 of the Mediation Act makes a mediated settlement agreement signed by the parties and authenticated by the mediator final and binding and enforceable as if it were a court decree. Two cautions apply. Section 1(3) lets the Government commence provisions by notification, and we did not verify which have commenced. And whether a creator dispute is a "commercial dispute" of the specified value is a legal question, and we did not verify the value threshold either.
Arbitration
The Arbitration and Conciliation Act, 1996 gives an arbitration clause real force.
- Writing. Section 7 requires an arbitration agreement in writing, but allows it to be a clause in a contract, and counts exchanges of communication by electronic means that provide a record.
- Court must refer. Under section 8, a court before which an action is brought on a matter covered by an arbitration agreement must refer the parties to arbitration if a party applies no later than its first statement on the substance of the dispute, unless prima facie no valid arbitration agreement exists.
- Interim relief. Section 9 lets a party apply to a court for interim measures, including an injunction or a receiver, before, during or after the proceedings. If the court orders interim protection before arbitration starts, arbitration must begin within 90 days of the order, or such time as the court allows.
- Composition. Section 10 says the number of arbitrators must not be even, and defaults to one. Section 11(2) leaves the appointment procedure to the parties.
- Place and language. Sections 20 and 22 leave both to the parties.
- Speed. Section 29A requires a domestic award within 12 months of completion of pleadings, extendable by consent by up to six months, and after that only by a court, failing which the arbitrator's mandate terminates unless the court extends.
- Privacy and enforcement. Section 42A makes the arbitrator, the arbitral institution and the parties keep the proceedings confidential, except the award where disclosure is needed for enforcement. Under section 36, an award is enforced like a decree once the time for a challenge has passed.
For a brand, confidentiality is often the deciding point. A creator dispute fought in open court can become content.
The payment clock for small suppliers
PIB describes the MSMED Act, 2006 rule that a buyer who does not pay a registered micro or small enterprise supplier within 45 days of acceptance of the goods or services owes compound interest, with monthly rests, at three times the RBI bank rate. The Ministry of MSME's Samadhaan portal says a supplier can take a delayed payment to the Micro and Small Enterprise Facilitation Council, and that every reference shall be decided within 90 days. We found nothing applying this to creators specifically, but a creator who has registered as a micro or small enterprise could be a supplier. Ask about it before signing, as our due diligence checklist suggests.
A dispute clause to adapt
Disputes. This agreement is governed by the laws of India.
(a) Notice. A party alleging breach shall send written notice quoting the clause, the facts and the cure requested. The other party has [5] business days to cure or respond.
(b) Senior discussion. If not cured, a named senior person from each party shall speak within [5] business days and send a written summary.
(c) Mediation. If not resolved within [10] business days after that call, the parties shall try mediation with a mediator [agreed or appointed by [institution]] for up to [45] days. Any settlement shall be in writing and signed by the parties and the mediator.
(d) Arbitration. Any dispute not settled shall be referred to arbitration under the Arbitration and Conciliation Act, 1996 before a sole arbitrator. The seat shall be [city]. The language shall be [English]. The proceedings shall be confidential.
(e) Interim relief. Nothing prevents a party from asking a court at [city] for interim relief to protect content, marks or confidential information, or to stop use outside a licence.
(f) Continuing performance. Work and payment on undisputed parts continue during a dispute. A party may withhold only the disputed amount, by written notice quoting this clause.
Build the evidence file as you go
Disputes turn on documents. Keep the signed contract and licence schedule, the brief, the approved script and the approvals log, every message that changes a date or a claim, dated screenshots of the live post and its label, delivery proof, the invoice and payment trail, and the analytics the creator supplied. A dispute that begins with an organised file usually ends on rung 1 or 2.
Disputes that are not between you and the creator
An ASCI complaint or a regulator's direction is not a contract dispute, and it runs on its own clock; our ASCI influencer guidelines explainer covers the rules behind it. If it arrives, follow ASCI's steps in our ASCI complaint process post, and use your contract to make the creator move at the same speed. The contract fight over who pays for the fix comes second.
One creator right deserves a mention. Section 57 of the Copyright Act lets an author object to distortion that harms their honour or reputation, even after assigning copyright. A re-cut that changes a creator's meaning can start a dispute you did not expect.
What we could not source
We found no published figures on arbitration or mediation costs for creator-sized disputes, or on how long civil suits take. We did not verify the commencement status of the Mediation Act's provisions, the specified-value threshold for section 12A, or whether creators qualify as suppliers under the MSMED Act. The Commercial Courts Act text was not opened. Treat each as open and ask counsel.
To plan a campaign with the approvals, payment terms and dispute ladder written in before the first post, ask for a creator plan. Our influencer marketing strategy service covers the planning, and our micro-influencer marketing service shows how we run large creator programmes where disputes are most likely.
This is general information, not legal advice.
Sources
- The Arbitration and Conciliation Act, 1996, as on 14 May 2025 (sections 7, 8, 9, 10, 11, 20, 22, 29A, 36 and 42A), India Code, Legislative Department (as on 14 May 2025)
- The Mediation Act, 2023 (sections 1, 5 and 27; Ninth Schedule restating section 12A of the Commercial Courts Act, 2015), Gazette of India (14 Sep 2023)
- Government is promoting alternate dispute resolution mechanisms including mediation, PIB, Ministry of Law and Justice (13 Aug 2026)
- The Indian Contract Act, 1872 (sections 28 and 74), India Code, Legislative Department (undated, accessed 1 Nov 2026)
- All grievances and monitoring of the outstanding dues of MSEs facilitated through Samadhan Portal, PIB, Ministry of MSME (13 Mar 2023)
- MSME Samadhaan: delayed payment monitoring system, Ministry of MSME (undated, accessed 1 Nov 2026)
- The Copyright Act, 1957 (section 57: author's special rights), Copyright Office, DPIIT (undated, accessed 1 Nov 2026)
- ASCI Complaints Procedures (edition January 2025), ASCI (January 2025)
Frequently asked questions
How should a brand resolve a dispute with an influencer?
Start with a written notice that quotes the clause, gives a short cure period and asks for a named senior contact. If that fails, go to mediation, then arbitration or court as the contract provides. Keep working on the undisputed parts. Our guide to influencer contracts in India covers the clause in its fourteenth section.
Is arbitration better than court for creator disputes?
It depends on the dispute. Arbitration proceedings are confidential under section 42A of the Arbitration and Conciliation Act, and section 29A sets a 12-month target for the award. Courts remain available for interim relief under section 9. We found no sourced figures on cost or court delay, so weigh value, urgency and privacy.
Is mediation mandatory before we sue a creator?
For commercial disputes of specified value, section 12A of the Commercial Courts Act requires pre-institution mediation before a suit, except where urgent relief is contemplated, as PIB described on 13 August 2026. Whether a creator dispute is a commercial dispute of that value is a legal question, and we did not verify the value threshold. Ask counsel.
Can we withhold payment during a dispute?
Only if the contract lets you, and then only the disputed amount, in writing, citing the clause. Pay the undisputed part on time. If the creator is a registered micro or small enterprise, late payment carries statutory interest. See our post on influencer payment terms for the structure.
What happens to a mediated settlement?
Under section 27 of the Mediation Act, 2023, a mediated settlement agreement signed by the parties and authenticated by the mediator is final and binding and enforceable like a court decree. The Act comes into force by notification, and we did not verify which provisions have commenced, so confirm that before relying on it.
Where should the arbitration sit, and in what language?
The parties are free to agree the place under section 20 and the language under section 22. Pick a seat both sides can reach and a language both read. Section 10 requires an odd number of arbitrators and defaults to one if the parties say nothing. A sole arbitrator is usual for creator-sized disputes.