Statutory Arbitrations

 The dispute which may be the subject of an arbitration agreement need not necessarily arise out of a contract. They may also arise
out of statutory provisions.

 A reference can be made under the provisions of an act. There are many Acts of parliament which provide that any dispute about
their provisions shall be settled by arbitration. The Electricity Supply Act, 1948, for example, provides for disposal by arbitration the
disputes that may arise about its provisions.

 Dealing with statutory arbitrations, Section 46 of 1940 Act provided that the provisions of the act would apply to such arbitrations as
if the arbitration was the result of an agreement between the parties and as if the statute providing for arbitration was an agreement
for arbitration. But the arbitration act was not to apply to the extent to which its provisions were inconsistent with act providing for
arbitration.

 This subject-matter is now to be found in section 2(4) of the arbitration and Conciliation Act, 1996.

 The sub-section says that Part 1 of the act shall apply to every arbitration under any other enactment for the time being in force, as if
the arbitration were pursuant to an arbitration agreement and as if that other enactment were an arbitration agreement. In the case
of any inconsistency between the two enactments, the provisions of the other act apply.

The provisions of the act are applicable to every such arbitration to the same extent as if the arbitration is under an agreement of the
parties and the enactment is in itself an arbitration agreement.

Section 2(4) of The Arbitration and conciliation act.1996 provides for the application of the act to statutory arbitrations. It replaces Section
46 of the repealed 1940 act. The Provision is as follows:

 “(4) This part except sub-section (1) of Section 40.sections 41 and 43 shall apply to every arbitration under any other enactment for
the time being in force, as if the arbitration were pursuant to an arbitration agreement and as if that other enactment were an
arbitration agreement ,except insofar as the provisions of this part are inconsistent with that other enactment or with any rules there
under.
 (5) subject to the provisions of sub-section(4),and save insofar as is otherwise provided by any law for the time being in force or in
any agreement in force between India and any other country or countries, this part shall apply to all arbitrations and to al
proceedings relating thereto.

 The effect is that the provisions of the arbitration and conciliation act became applicable to every arbitration under any other
enactment for the time being in force. An arbitration under an enactment is known as statutory arbitration.

 The provisions of the act are applicable to every such arbitration to the same extent as if the arbitration is under an agreement of the
parties and the enactment is in itself an arbitration agreement.

 The section also refers to certain limitations as to the application of the act. The provisions of the act will not apply to the extent to
which they are inconsistent with those of the other act.

 Further sections 6(1), 7, 12 and 37 are also not applicable .Section 6(1) effect of death of a party and section 7 with insolvency of a
party. Section 12 indicates the power of the court where an arbitrator is removed or his authority revoked. Section 37 prescribes the
period of limitation. These provisions have been expressly declared to be not applicable to statutory arbitrations.