Arbitration & Conciliation Act,

1996
Fazeel Kazi
Anshul Chadha
Sandip Saha
Sumitra Cardoz
Scarlet Almeida
Sumeet Kudal
Mihir Bhammar
Prashant Kokare
 Purpose & Object
• Purpose of Arbitration Act is to provide quick redressal to
commercial dispute by private Arbitration.
• the need of Alternate Dispute Resolution. (ADR).
• Arbitration Act makes provision for arbitration and
conciliation as ADR mechanisms.
• Object of arbitration is settlement of dispute in an
expeditious, convenient, inexpensive and private manner
so that they do not become the subject of future litigation
between the parties.
 Need for ADR Mechanism
• Shrinking Boundaries, Free trade & International
Commerce have become global necessities.
• Competitive often leads to conflicts between
entrepreneurs resulting in commercial disputes.
• Arbitration-means of effective consensual & sppedy
dispute resolution.
• Increasing FDI and other forms of collaboration by
foreign companies have witnessed between Indian &
foreign parties.
 The Arbitration & Conciliation Act, 1996
(26 OF 1996)

• An Act to consolidate and amend the law relating to

domestic arbitration, international commercial arbitration
and enforcement of foreign arbitral awards as also to
define the law relating to conciliation and for matters
connected therewith or incidental thereto.
 Earlier Acts
• The law on arbitration in India was
substantially contained in three
enactments, namely
• The Arbitration Act, 1940
• The Arbitration (Protocol & Convention)
Act, 1937
• The Foreign Awards (Recognition and
Enforcement) Act, 1961.
 Law Based on UNCITRAL Model Law

• The present Act is based on model law

drafted by United Nations Commission on
International Trade Laws (UNCITRAL),
both on domestic arbitration as well as
international commercial arbitration, to
provide uniformity and certainty to both
categories of cases.
 Scheme of the Act
• The Act is divided in to following parts
• (a) Part I - Domestic arbitration.
• (b) Part II - Enforcement of foreign awards.
• (c) Part III - Conciliation procedures.
• (d) Part IV - Supplementary provisions.
• (e)  First Schedule - Convention on recognition and enforcement of
foreign arbitral award as per New York convention
• (f)  Second Schedule - Protocol on Arbitration clauses
• (g) Third Schedule - Convention on the execution of foreign arbitral
awards as per Geneva Convention.
 Arbitration Agreement
• Arbitration Agreement
• Power to refer parties to arbitration when
there is an arbitration agreement.
• Interim Measures, etc by Court
 Appointment of Arbitrator
• The parties can agree on a procedure for appointing the arbitrator or
arbitrators.
• If they are unable to agree, each party will appoint one arbitrator
and the two appointed arbitrators will appoint the third arbitrator who
will act as a presiding arbitrator. [section 11(3)].
• the party can request Chief Justice to appoint an arbitrator. [section
11(4)].
• In case of international commercial dispute, the application for
appointment of arbitrator has to be made to Chief Justice of India.
• In case of other domestic disputes, application has to be
made to Chief Justice of High Court within whose
jurisdiction the parties are situated. [section 11(12)]
 Challenge to appointment of Arbitrator

Appointment of Arbitrator can be

challenged only if
• (a) Circumstances exist that give rise to
justifiable doubts as to his independence
or impartiality
• (b) He does not possess the qualifications
agreed to by the parties. [section 12(3)].
Conduct of Arbitral Proceedings
• The Arbitral Tribunal is not bound by Code of Civil Procedure, 1908
or Indian Evidence Act, 1872. [section 19(1)]. 
• The parties to arbitration are free to agree on the procedure to be
followed by the Arbitral Tribunal.
• Law of limitation applicable
• Flexibility in respect of procedure, place & language.
• Submission of statement of claim & defence.
• Hearings & Written Proceedings.
• Settlements during Arbitration.
 Arbitral Award
• The decision of Arbitral Tribunal will be by
majority.
• The arbitral award shall be in writing and signed
by the members of the tribunal.
• It must state the reasons for the award unless
the parties have agreed that no reason for the
award is to be given.
• The award should be dated and place where it
is made should be mentioned. Copy of award
should be given to each party. Tribunal can
make interim award also.
Cost of Arbitration
 Intervention by Court

• Arbitration has overriding effect

 Matters not referable to Arbitration
Certain matters which are not arbitrable
are –
• * Suits for divorce or restitution of
conjugal rights
• * Taxation
• * Non-payment of admitted liability
• * Criminal matters.
Conciliation
Offer for Conciliation
Enforcement of Foreign Awards
 Case Study
• Hypothetical Case Study for enforcement
of foreign awards as given in the PDF
Document.