ARBITRATION LAW IN INDIA

Object
and
Reasons for the Enactment
Harmonisation
UNCITRAL Model Law
Investment Climate

Salient Features of Arbitration &

Conciliation Act 1996

Arbitration and Conciliation

Act,1996
Arbitration and Conciliation Act 1996 was enacted
based on UNCITRAL Model Rules
This Act repealed the Arbitration Act 1940,
Foreign Awards (recognition and Enforcement)
Act, 1961 and Arbitration (Protocol and
convention ) Act, 1937

Part I Arbitration

Part II Enforcement of Certain

Foreign Awards

10 Chapters

2 Chapters

Sections 1-43

Sections 44-60

Parts
Part III Conciliation
Sections 61-81

Part IV Supplementary
Provisions
Sections 82-86

Schedules

FIRST SCHEDULE
Convention on the
recognition and
enforcement of
foreign arbitral
awards

THIRD
SCHEDULE
SECOND SCHEDULE
Protocol on Arbitration
clauses

Convention
on the
execution of
Foreign
Arbitral
Awards

Departures from Arbitration Act,

1940

Award Unique
Court Intervention - Minimal

Important Provisions of the new

Arbitration & Conciliation Act,
1996
Arbitration Agreement (Sec.7)
Interim Measures by Court
(Sec.9)
Appointment of Arbitrator
(Sec.11)
Arbitrators jurisdiction
(Sec.16)
Interim measures by
Arb.Tribunal (Sec.17)
Rules of procedure (Sec.19)

Filing of pleadings (Sec.23)

Default of a party (Sec.25)
Settlement (Sec.30)
Challenge of Award
(Sec.34)
Enforcement (Sec.36)
Jurisdiction (Sec.42)
Limitation (Sec.43)

SECTION 7
Arbitration agreement

An agreement by the parties to submit to arbitration all or certain disputes which

have arisen or which may arise between them in respect of a defined legal
relationship, whether contractual or not.

an arbitration clause in a contract

a separate agreement

in writing and signed by the partiesexchange of letters, telex,

telegrams or other telecommunication

exchange of statements of claim and defence in which the existence of

the agreement is alleged by one party and not denied by the other.

The reference in a contract to a document containing an arbitration clause

constitutes an arbitration agreement if the contract is in writing and the
reference is such as to make that arbitration clause part of the contract.

SECTION 9
Interim measures by Court

Before, or during arbitral proceedings or at any time after the

making of the arbitral award but before it is enforced

appointment of a guardian for a minor or person of unsound mind

for the purposes of arbitral proceedings; or

interim measure or protection:

(a) the preservation, interim custody or sale of any goods

(b) securing the amount in dispute in the arbitration
(c) the detention, preservation or inspection of any property or thing which is the
subject-matter of the dispute in arbitration
(d) interim injunction or the appointment of a receiver

Section 11
Appointment of Arbitrators
A person of any nationality
Parties are free to agree on a procedure
Arbitration with three arbitrators, each party shall appoint
one arbitrator, and the two appointed arbitrators shall
appoint the third arbitrator who shall act as the presiding
arbitrator.

Default Provision
Sole Arbitrator & Presiding Arbitrator

SECTION 16
Competence of arbitral tribunal to rule on
its jurisdiction

The arbitral tribunal may rule on its own jurisdiction

Plea before filing defence statement
Rejection of plea Proceedings continue
A party aggrieved by such an arbitral award may make
an application for setting aside such an arbitral award in
accordance with section 34.

SECTION 17
Interim measures ordered by arbitral tribunal

Interim measure of protection and may require a party to

provide appropriate security in connection with a measure

SECTION 19
Determination of rules of procedure

Not bound by the Code of Civil Procedure, 1908 or the

Indian Evidence Act, 1872.
Parties are free to agree on the procedure
The power of the arbitral tribunal includes the power
to determine the admissibility , relevance, materiality
and weight of any evidence

SECTION 23
Statements of claim and defence

Statement of Claim and defence with documents

Parties may amend or supplement their claim or defence

Section 25
Default of a Party
Claimant fails to communicate his statement of claim, the arbitral
tribunal shall terminate the proceedings;
Respondent fails to communicate his statement of defence, the
arbitral tribunal shall continue the proceedings without treating
that failure in itself as an admission of the allegations by the
claimant.
A party fails to appear at an oral hearing or to produce
documentary evidence, the arbitral tribunal may continue the
proceedings and make the arbitral award on the evidence before
it.

SECTION 30
Settlement

Encourage settlement of the dispute and use mediation,

conciliation or other procedures
Record the settlement in the form of an arbitral award on
agreed terms in accordance with section 31

SECTION 34
Application for setting aside arbitral award
Arbitral award may be set aside by the Court only if the
party making the application furnishes proof that a party was under some incapacity, or
the arbitration agreement is not valid under the law; or
the party making the application was not given proper notice
of the appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to present his case; or

Contd
the arbitral award deals with a dispute not contemplated by
or not falling within the terms of the submission to arbitration,
or it contains decisions on matter beyond the scope of the
submission to arbitration; or
the composition of the arbitral tribunal or the arbitral procedure
was not in accordance with the agreement of the parties; or
(b) the Court finds that-- - the subject-matter of the dispute is not capable of settlement by
arbitration under the law for the time being in force, or
the arbitral award is in conflict with the public policy of India.
Setting aside application within three months

SECTION 36
Enforcement

Code of Civil Procedure, 1908 (5 of 1908) similar to a

decree of the Court.

SECTION 42
Jurisdiction

Any application under this Part has been made in a Court, that
Court alone shall have jurisdiction over the arbitration
proceedings and all subsequent applications

Section 43
Limitation
Limitation Act, 1963 (36 of 1963), shall, apply to
arbitrations as it applies to proceedings in court.
An arbitration shall be deemed to have commenced on the
date referred in section 21.
Where the Court orders that an arbitral award be set
aside, the period between the commencement of the
arbitration and the date of the order of the Court shall be
excluded in computing the time prescribed by the
Limitation Act, 1963 (36 of 1963), for the commencement
of the proceedings (including arbitration) with respect to
the dispute so submitted.