Arbitration and Conciliation Act, 1996
(1) This Act may be called the Arbitration and
Conciliation Act, 1996.
(2) It extends to the whole of India:
1* * *
(1) In this Part, unless the context otherwise requires,—
(a) "arbitration" means any arbitration whether or not administered by permanent arbitral
institution;
(b) "arbitration agreement" means an agreement referred to in section 7;
(c) "arbitral award" includes an interim award;
(d) "arbitral tribunal" means a sole arbitrator or a panel of arbitrators;
1[(e) "Court" means—
(1) Unless otherwise agreed by the parties,—
(a) any written communication is deemed to have been received if it is delivered to the addressee
personally or at his place of business, habitual residence or mailing address, and
(b) if none of the places referred to in clause (a) can be found after making a reasonable inquiry, a
written communication is deemed to have been received if it is sent to the addressee's last known
place of business, habitual residence or mailing address by registered letter or by any other means
which provides a record of the attempt to deliver it.
(2) The communication is deemed to have been received on the day it is so delivered.
A party who knows that—
(a) any provision of this Part from which the parties may derogate, or
(b) any requirement under the arbitration agreement,
has not been complied with and yet proceeds with the arbitration without stating his objection to such
non-compliance without undue delay or, if a time limit is provided for stating that objection, within that
period of time, shall be deemed to have waived his right to so object.
Notwithstanding anything contained in any other law for the
time being in force, in matters governed by this Part, no judicial authority shall intervene except where so
provided in this Part.
In order to facilitate the conduct of the arbitral proceedings, the
parties, or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance
by a suitable institution or person.
(1) In this Part, "arbitration agreement" means 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.
(2) An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of
a separate agreement.
(3) An arbitration agreement shall be in writing.
(4) An arbitration agreement is in writing if it is contained in
(a) a document signed by the parties;
(b) an exchange of letters, telex, telegrams or other m
1[(1) A
judicial authority, before which an action is brought in a matter which is the subject of an arbitration
agreement shall, if a party to the arbitration agreement or any person claiming through or under him, so
applies not later than the date of submitting his first statement on the substance of the dispute, then,
notwithstanding any judgment, decree or order of the Supreme Court or any Court, refer the parties to
arbitration unless it finds that prima facie no valid arbitration agreement exists.]
(2) The application referred to in sub-section (1) shall not be entertained unless it is accompanied by
the original arbitration agreement or a duly certified copy thereof:
2[Provided that where the original arbitration agreement or a certified copy thereof is not available
with
1[(1)] A party may, before or during arbitral proceedings or at
any time after the making of the arbitral award but before it is enforced in accordance with section 36,
apply to a court—
(i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of
arbitral proceedings; or
(ii) for an interim measure of protection in respect of any of the following matters, namely:—
(a) the preservation, interim custody or sale of any goods which are the subject-matter of the
arbitration agreement;
(1) The parties are free to determine the number of arbitrators,
provided that such number shall not be an even number.
(2) Failing the determination referred to in sub-section (1), the arbitral tribunal shall consist of a sole
arbitrator.
(1) A person of any nationality may be an arbitrator, unless
otherwise agreed by the parties.
(2) Subject to sub-section (6), the parties are free to agree on a procedure for appointing the arbitrator
or arbitrators.
(3) Failing any agreement referred to in sub-section (2), in an 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.
(4) If the appointment procedure in sub-section (3) applies and—
(a) a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so
from the other party; or
1[11A. Power of Central Government to amend Fourth Schedule.—(1) If the Central Government
Government is satisfied that it is necessary or expedient so to do, it may, by notification in the Official
Gazette, amend the Fourth Schedule and thereupon the Fourth Schedule shall be deemed to have been
amended accordingly.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft
before each House of Parliament, while it is in session, for a total period of thirty days which may be
comprised in one session or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses agree in
disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as
1[(1) When a person is approached in connection with his possible
appointment as an arbitrator, he shall disclose in writing any circumstances,—
(a) such as the existence either direct or indirect, of any past or present relationship with or
interest in any of the parties or in relation to the subject-matter in dispute, whether financial, business,
professional or other kind, which is likely to give rise to justifiable doubts as to his independence or
impartiality; and
(b) which are likely to affect his ability to devote sufficient time to the arbitration and in
particular his ability to complete the entire arbitration within a period of twelve months.
Explanation 1.—The groun
(1) Subject to sub-section (4), the parties are free to agree on a procedure
for challenging an arbitrator.
(2) Failing any agreement referred to in sub-section (1), a party who intends to challenge an arbitrator
shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or after
becoming aware of any circumstances referred to in sub-section (3) of section 12, send a written
statement of the reasons for the challenge to the arbitral tribunal.
(3) Unless the arbitrator challenged under sub-section (2) withdraws from his office or the other party
agrees to the challenge, the arbitral tribunal shall decide on the challenge.
(4) If a challenge under any procedure agreed upon by the parties or under the procedure under
su
(1)
1[The mandate of an arbitrator shall terminate and he shall
be substituted by another arbitrator, if]—
(a) he becomes de jure or de facto unable to perform his functions or for other reasons fails to act
without undue delay; and
(b) he withdraws from his office or the parties agree to the termination of his mandate.
(2) If a controversy remains concerning any of the grounds referred to in clause (a) of sub-section (1),
a party may, unless otherwise agreed by the parties, apply to the Court to decide on the termination of the
mandate.
(3) If, under this section or sub-section (3) of section 13,
(1) In addition to the circumstances
referred to in section 13 or section 14, the mandate of an arbitrator shall terminate—
(a) where he withdraws from office for any reason; or
(b) by or pursuant to agreement of the parties.
(2) Where the mandate of an arbitrator terminates, a substitute arbitrator shall be appointed according
to the rules that were applicable to the appointment of the arbitrator being replaced.
(3) Unless otherwise agreed by the parties, where an arbitrator is replaced under sub-section (2), any
hearings previously held may be repeated at the discretion of the arbitral tribunal.
(1) The arbitral tribunal may rule
on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the
arbitration agreement, and for that purpose,—
(a) an arbitration clause which forms part of a contract shall be treated as an agreement
independent of the other terms of the contract; and
(b) a decision by the arbitral tribunal that the contract is null and void shall not entail ipso jure the
invalidity of the arbitration clause.
(2) A plea that the arbitral tribunal does not have jurisdiction shall be raised not later than the
submission of the statement of defence; however, a party shall not be precluded from raising such a plea
merely because
1[17. Interim measures ordered by arbitral tribunal.-- (1) A party may, during the arbitral
proceedings 2***, apply to the arbitral tribunal--
(i) for the appointment of a guardian for a minor or person of unsound mind for the purposes of
arbitral proceedings; or
(ii) for an interim measure of protection in respect of any of the following matters, namely:--
(a) the preservation, interim custody or sale of any goods which are the subject-matter of the
arbitration agreement;
The parties shall be treated with equality and each party shall be
given a full opportunity to present his case.
(1) The arbitral tribunal shall not be bound by the Code
of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872).
(2) Subject to this Part, the parties are free to agree on the procedure to be followed by the arbitral
tribunal in conducting its proceedings.
(3) Failing any agreement referred to in sub-section (2), the arbitral tribunal may, subject to this Part,
conduct the proceedings in the manner it considers appropriate.
(4) The power of the arbitral tribunal under sub-section (3) includes the power to determine the
admissibility, relevance, materiality and weight of any evidence.
(1) The parties are free to agree on the place of arbitration.
(2) Failing any agreement referred to in sub-section (1), the place of arbitration shall be determined
by the arbitral tribunal having regard to the circumstances of the case, including the convenience of the
parties.
(3) Notwithstanding sub-section (1) or sub-section (2), the arbitral tribunal may, unless otherwise
agreed by the parties, meet at any place it considers appropriate for consultation among its members, for
hearing witnesses, experts or the parties, or for inspection of documents, goods or other property.
Unless otherwise agreed by the parties, the arbitral
proceedings in respect of a particular dispute commence on the date on which a request for that dispute to
be referred to arbitration is received by the respondent.
(1) The parties are free to agree upon the language or languages to be used in the
arbitral proceedings.
(2) Failing any agreement referred to in sub-section (1), the arbitral tribunal shall determine the
language or languages to be used in the arbitral proceedings.
(3) The agreement or determination, unless otherwise specified, shall apply to any written statement
by a party, any hearing and any arbitral award, decision or other communication by the arbitral tribunal.
(4) The arbitral tribunal may order that any documentary evidence shall be accompanied by a
translation into the language or languages agreed upon by the parties or determined by the arbitral
tribunal.
(1) Within the period of time agreed upon by the parties or
determined by the arbitral tribunal, the claimant shall state the facts supporting his claim, the points at
issue and the relief or remedy sought, and the respondent shall state his defence in respect of these
particulars, unless the parties have otherwise agreed as to the required elements of those statements.
(2) The parties may submit with their statements all documents they consider to be relevant or may
add a reference to the documents or other evidence they will submit.
1[(2A) The respondent, in support of his case, may also submit a counterclaim or plead a set-off,
which shall be adjudicated upon by the arbitral tribunal, if such counterclaim or set-off falls within the
scope of the arbitration agreement.]
(1) Unless otherwise agreed by the parties, the arbitral
tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument,
or whether the proceedings shall be conducted on the basis of documents and other materials:
Provided that the arbitral tribunal shall hold oral hearings, at an appropriate stage of the proceedings,
on a request by a party, unless the parties have agreed that no oral hearing shall be held:
1[Provided further that the arbitral tribunal shall, as far as possible, hold oral hearings for the
presentation of evidence or for oral argument on day-to-day basis, and not grant any adjournments unless
sufficient cause is made out, and may impose costs including exemplary costs on the party seeking
adjournment without any sufficient cause.]
Unless otherwise agreed by the parties, where, without showing sufficient
cause,—
(a) the claimant fails to communicate his statement of claim in accordance with sub-section (1) of
section 23, the arbitral tribunal shall terminate the proceedings;
(b) the respondent fails to communicate his statement of defence in accordance with
sub-section (1) of section 23, the arbitral tribunal shall continue the proceedings without treating that
failure in itself as an admission of the allegations by the claimant 1[and shall have the discretion to
treat the right of the respondent to file such statement of defence as having been forfeited].
(c) a par
(1) Unless otherwise agreed by the parties, the arbitral
tribunal may—
(a) appoint one or more experts to report to it on specific issues to be determined by the arbitral
tribunal, and
(b) require a party to give the expert any relevant information or to produce, or to provide access
to, any relevant documents, goods or other property for his inspection.
(2) Unless otherwise agreed by the parties, if a party so requests or if the arbitral tribunal considers it
necessary, the expert shall, after delivery of his written or oral report, participate in an oral hearing where
the parties have the opportunity to put questions to him and to present expert witnesses in order to testify
on the points at
(1) The arbitral tribunal, or a party with the approval of
the arbitral tribunal, may apply to the Court for assistance in taking evidence.
(2) The application shall specify—
(a) the names and addresses of the parties and the arbitrators;
(b) the general nature of the claim and the relief sought;
(c) the evidence to be obtained, in particular,—
(i) the name and address of any person to be heard as witness or expert witness and a
statement of the subject-matter o
(1) Where the place of arbitration is situate in
India,—
(a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall
decide the dispute submitted to arbitration in accordance with the substantive law for the time being
in force in India;
(b) in international commercial arbitration,—
(i) the arbitral tribunal shall decide the dispute in accordance with the rules of law designated
by the parties as applicable to the substance of the dispute;
(
(1) Unless otherwise agreed by the parties, in
arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made by a
majority of all its members.
(2) Notwithstanding sub-section (1), if authorised by the parties or all the members of the arbitral
tribunal, questions of procedure may be decided by the presiding arbitrator.
1[29A.Time limit for arbitral award.--2[(1) The award in matters other than international
commercial arbitration shall be made by the arbitral tribunal within a period of twelve months from the
date of completion of pleadings under sub-section (4) of section 23:
Provided that the award in the matter of international commercial arbitration may be made as
expeditiously as possible and endeavor may be made to dispose of the matter within a period of twelve
months from the date of completion of pleadings under sub-section (4) of section 23.]
(2) If the award is made within a period of six months from the date the arbitral tribunal enters upon
the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties
may agree.
1[29B. Fast track procedure.-- (1) Notwithstanding anything contained in this Act, the parties to an
arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal,
agree in writing to have their dispute resolved by fast track procedure specified in sub-section (3).
(2) The parties to the arbitration agreement, while agreeing for resolution of dispute by fast track
procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the
parties.
(3) The arbitral tribunal shall follow the following procedure while conducting arbitration
proceedings under sub-section (1):--
(a) The arbitral tribunal shall decide the dispute on
(1) It is not incompatible with an arbitration agreement for an arbitral tribunal to
encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use
mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage
settlement.
(2) If, during arbitral proceedings, the parties settle the dispute, the arbitral tribunal shall terminate the
proceedings and, if requested by the parties and not objected to by the arbitral tribunal, record the
settlement in the form of an arbitral award on agreed terms.
(3) An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that
it is an arbitral award.
(4) An arbitral award on agreed terms shall have the same status and effect
(1) An arbitral award shall be made in writing and shall
be signed by the members of the arbitral tribunal.
(2) For the purposes of sub-section (1), in arbitral proceedings with more than one arbitrator, the
signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the
reason for any omitted signature is stated.
(3) The arbitral award shall state the reasons upon which it is based, unless—
(a) the parties have agreed that no reasons are to be given, or
(b) the award is an arbitral award on agreed terms under section 30.
(4) Th
1[31A. Regime for costs.-- (1) In relation to any arbitration proceeding or a proceeding under any of
the provisions of this Act pertaining to the arbitration, the Court or arbitral tribunal, notwithstanding
anything contained in the Code of Civil Procedure, 1908 (5 of 1908), shall have the discretion to
determine--
(a) whether costs are payable by one party to another;
(b) the amount of such costs; and
(c) when such costs are to be paid.
Explanation.--For the purpose of this sub-section, "costs" means reasonable costs relating to--
(1) The arbitral proceedings shall be terminated by the final
arbitral award or by an order of the arbitral tribunal under sub-section (2).
(2) The arbitral tribunal shall issue an order for the termination of the arbitral proceedings
where—
(a) the claimant withdraws his claim, unless the respondent objects to the order and the
arbitral tribunal recognises a legitimate interest on his part in obtaining a final settlement of the
dispute,
(b) the parties agree on the termination of the proceedings, or
(c) the arbitral tribunal finds that the continuation of the proceedings has for any other
Subject to this Part an arbitral award shall be final and binding on
the parties and persons claiming under them respectively.
1[36. Enforcement--(1) Where the time for making an application to set aside the arbitral award
under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be
enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same
manner as if it were a decree of the court.
(2) Where an application to set aside the arbitral award has been filed in the Court under section 34,
the filing of such an application shall not by itself render that award unenforceable, unless the Court
grants an order of stay of the operation of the said arbitral award in accordance with the provisions of
sub-section (3), on a separate application made for that purpose.
(3) Upon filing of an application under sub-section (2) for stay of the opera
(1) 1[Notwithstanding anything contained in any other law for the time
being in force, an appeal] shall lie from the following orders (and from no others) to the Court authorised
by law to hear appeals from original decrees of the Court passing the order, namely:--
2[(a) refusing to refer the parties to arbitration under section 8;
(b) granting or refusing to grant any measure under section 9;
(c) setting aside or refusing to set aside an arbitral award under section 34.]
(2) Appeal shall also lie to a court from an order of the arbitral tribunal--
(1) The arbitral tribunal may fix the amount of the deposit or supplementary deposit,
as the case may be, as an advance for the costs referred to in sub-section (8) of section 31, which it
expects will be incurred in respect of the claim submitted to it:
Provided that where, apart from the claim, a counter-claim has been submitted to the arbitral tribunal,
it may fix separate amount of deposit for the claim and counter-claim.
(2) The deposit referred to in sub-section (1) shall be payable in equal shares by the parties:
Provided that where one party fails to pay his share of the deposit, the other party may pay that share:
Provided further that where the other party also does not pay the aforesaid share in respect of the
claim or the counter-claim, the arbi
(1) Subject to the provisions of
sub-section (2) and to any provision to the contrary in the arbitration agreement, the arbitral tribunal shall
have a lien on the arbitral award for any unpaid costs of the arbitration.
(2) If in any case an arbitral tribunal refuses to deliver its award except on payment of the costs
demanded by it, the Court may, on an application in this behalf, order that the arbitral tribunal shall
deliver the arbitral award to the applicant on payment into Court by the applicant of the costs demanded,
and shall, after such inquiry, if any, as it thinks fit, further order that out of the money so paid into Court
there shall be paid to the arbitral tribunal by way of costs such sum as the Court may consider reasonable
and that the balance of the money, if any, shall be refunded to the applicant.
(3) An
(1) An arbitration
agreement shall not be discharged by the death of any party thereto either as respects the deceased or as
respects any other party, but shall in such event be enforceable by or against the legal representative of
the deceased.
(2) The mandate of an arbitrator shall not be terminated by the death of any party by whom he was
appointed.
(3) Nothing in this section shall affect the operation of any law by virtue of which any right of action
is extinguished by the death of a person.
(1) Where it is provided by a term in a contract to which an
insolvent is a party that any dispute arising thereout or in connection therewith shall be submitted to
arbitration, the said term shall, if the receiver adopts the contract, be enforceable by or against him so far
as it relates to any such dispute.
(2) Where a person who has been adjudged an insolvent had, before the commencement of the
insolvency proceedings, become a party to an arbitration agreement, and any matter to which the
agreement applies is required to be determined in connection with, or for the purposes of, the insolvency
proceedings, then, if the case is one to which sub-section (1) does not apply, any other party or the
receiver may apply to the judicial authority having jurisdiction in the insolvency proceedings for an order
directing that the matter in question shall be submitted to arbitration in accord
Notwithstanding anything contained elsewhere in this Part or in any other law for
the time being in force, where with respect to an arbitration agreement any application under this Part has
been made in a Court, that Court alone shall have jurisdiction over the arbitral proceedings and all sequent applications arising out of that agreement and the arbitral proceedings shall be made in that
Court and in no other Court.
1[42A. Confidentiality of information.-- Notwithstanding anything contained by any other law for
the time being in force, the arbitrator, the arbitral institution and the parties to the arbitration agreement
shall maintain confidentially of all arbitral proceedings except award where its disclosure is necessary for
the purpose of implementation and enforcement of award.]
1[42B. Protection of action taken in good faith.-- No suit or other legal proceedings shall lie against
the arbitrator for anything which is in good faith done or intended to be done under this Act or the rules or
regulations made thereunder.]
(1) The Limitation Act, 1963 (36 of 1963), shall apply to arbitrations as it applies
to proceedings in court.
(2) For the purposes of this section and the Limitation Act, 1963 (36 of 1963), an arbitration shall be
deemed to have commenced on the date referred to in section 21.
(3) Where an arbitration agreement to submit future disputes to arbitration provides that any claim to
which the agreement applies shall be barred unless some step to commence arbitral proceedings is taken
within a time fixed by the agreement, and a dispute arises to which the agreement applies, the Court, if it
is of opinion that in the circumstances of the case undue hardship would otherwise be caused, and
notwithstanding that the time so fixed has expired, may on such terms, if any, as the justice of the case
may require, extend the time for such period
In this Chapter, unless the context otherwise requires, "foreign award" means an
arbitral award on differences between persons arising out of legal relationships, whether contractual or
not, considered as commercial under the law in force in India, made on or after the 11th day of
October, 1960—
(a) in pursuance of an agreement in writing for arbitration to which the Convention set forth in
the First Schedule applies, and
(b) in one of such territories as the Central Government, being satisfied that reciprocal provisions
have been made may, by notification in the Official Gazette, declare to be territories to which the said
Convention applies.
Notwithstanding anything contained in Part I
or in the Code of Civil Procedure, 1908 (5 of 1908), a judicial authority, when seized of an action in a matter in
respect of which the parties have made an agreement referred to in section 44, shall, at the request of one of the
parties or any person claiming through or under him, refer the parties to arbitration, 1[unless it prima facie finds] that
the said agreement is null and void, inoperative or incapable of being performed.
Any foreign award which would be enforceable under this
Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and
may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal
proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as
including references to relying on an award.
(1) The party applying for the enforcement of a foreign award shall, at the time of the
application, produce before the court—
(a) the original award or a copy thereof, duly authenticated in the manner required by the law of
the country in which it was made;
(b) the original agreement for arbitration or a duly certified copy thereof; and
(c) such evidence as may be necessary to prove that the award is a foreign award.
(2) If the award or agreement to be produced under sub-section (1) is in a foreign language, the party
seeking to enforce the award shall produce a translation into English ce
(1) Enforcement of a foreign award may be
refused, at the request of the party against whom it is invoked, only if that party furnishes to the court
proof that—
(a) the parties to the agreement referred to in section 44 were, under the law applicable to them,
under some incapacity, or the said agreement is not valid under the law to which the parties have
subjected it or, failing any indication thereon, under the law of the country where the award was
made; or
(b) the party against whom the award is invoked was not given proper notice of the appointment
of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
(c) th
Where the Court is satisfied that the foreign award is
enforceable under this Chapter, the award shall be deemed to be a decree of that Court.
(1) 1[Notwithstanding anything contained in any other law for the time
being in force, an appeal] shall lie from the order refusing to--
(a) refer the parties to arbitration under section 45;
(b) enforce a foreign award under section 48,
to the court authorised by law to hear appeals from such order.
(2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this
section shall affect or take away any right to appeal to the Supreme Court.
Nothing in this Chapter shall prejudice any rights which any person would have had of
enforcing in India of any award or of availing himself in India of any award if this Chapter had not been
enacted.
Chapter II of this Part shall not apply in relation to foreign awards to
which this Chapter applies.
In this Chapter "foreign award" means an arbitral award on differences relating
to matters considered as commercial under the law in force in India made after the 28th day of July,
1924,—
(a) in pursuance of an agreement for arbitration to which the Protocol set forth in the Second
Schedule applies, and
(b) between persons of whom one is subject to the jurisdiction of some one of such Powers as the
Central Government, being satisfied that reciprocal provisions have been made, may, by notification
in the Official Gazette, declare to be parties to the Convention set forth in the Third Schedule, and of
whom the other is subject to the jurisdiction of some other of the Powers aforesaid, and
Notwithstanding anything
contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicial authority, on being
seized of a dispute regarding a contract made between persons to whom section 53 applies and including
an arbitration agreement, whether referring to present or future differences, which is valid under that
section and capable of being carried into effect, shall refer the parties on the application of either of them
or any person claiming through or under him to the decision of the arbitrators and such reference shall not
prejudice the competence of the judicial authority in case the agreement or the arbitration cannot proceed
or becomes inoperative.
Any foreign award which would be enforceable under this
Chapter shall be treated as binding for all purposes on the persons as between whom it was made, and
may accordingly be relied on by any of those persons by way of defence, set off or otherwise in any legal
proceedings in India and any references in this Chapter to enforcing a foreign award shall be construed as
including references to relying on an award.
(1) The party applying for the enforcement of a foreign award shall, at the time of
application produce before the Court—
(a) the original award or a copy thereof duly authenticated in the manner required by the law of
the country in which it was made;
(b) evidence proving that the award has become final; and
(c) such evidence as may be necessary to prove that the conditions mentioned in
clauses (a) and (c) of sub-section (1) of section 57 are satisfied.
(2) Where any document requiring to be produced under sub-section (1) is in a foreign language, the
party seeking to
(1) In order that a foreign award may be
enforceable under this Chapter, it shall be necessary that—
(a) the award has been made in pursuance of a submission to arbitration which is valid under the
law applicable thereto;
(b) the subject-matter of the award is capable of settlement by arbitration under the law of India;
(c) the award has been made by the arbitral tribunal provided for in the submission to arbitration
or constituted in the manner agreed upon by the parties and in conformity with the law governing the
arbitration procedure;
(d) the award has be
Where the Court is satisfied that the foreign award is
enforceable under this Chapter, the award shall be deemed to be a decree of the Court.
(1) An appeal shall lie from the order refusing—
(a) to refer the parties to arbitration under section 54; and
(b) to enforce a foreign award under section 57,
to the court authorised by law to hear appeals from such order.
(2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this
section shall affect or take away any right to appeal to the Supreme Court.
Nothing in this Chapter shall prejudice any rights which any person would have had of
enforcing in India of any award or of availing himself in India of any award if this Chapter had not been
enacted.
(1) Save as otherwise provided by any law for the time being in force
and unless the parties have otherwise agreed, this Part shall apply to conciliation of disputes arising out of
legal relationship, whether contractual or not and to all proceedings relating thereto.
(2) This Part shall not apply where by virtue of any law for the time being in force certain disputes
may not be submitted to conciliation.
(1) The party initiating conciliation shall send to
the other party a written invitation to conciliate under this Part, briefly identifying the subject of the
dispute.
(2) Conciliation proceedings, shall commence when the other party accepts in writing the invitation to
conciliate.
(3) If the other party rejects the invitation, there will be no conciliation proceedings.
(4) If the party initiating conciliation does not receive a reply within thirty days from the date on
which he sends the invitation, or within such other period of time as specified in the invitation, he may
elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing
the other party accordingly.
(1) There shall be one conciliator unless the parties agree that there
shall be two or three conciliators.
(2) Where there is more than one conciliator, they ought, as a general rule, to act jointly.
(1) Subject to sub-section (2)—
(a) in conciliation proceedings, with one conciliator, the parties may agree on the name of a sole
conciliator;
(b) in conciliation proceedings with two conciliators, each party may appoint one conciliator;
(c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and
the parties may agree on the name of the third conciliator who shall act as the presiding conciliator.
(2) Parties may enlist the assistance of a suitable institution or person in connection with the
appointment of conciliators, and in particular,—
(1) The conciliator, upon his appointment, may
request each party to submit to him a brief written statement describing the general nature of the dispute
and the points at issue. Each party shall send a copy of such statement to the other party.
(2) The conciliator may request each party to submit to him a further written statement of his position
and the facts and grounds in support thereof, supplemented by any documents and other evidence that
such party deems appropriate. The party shall send a copy of such statement, documents and other
evidence to the other party.
(3) At any stage of the conciliation proceedings, the conciliator may request a party to submit to him
such additional information as he deems appropriate.
Explanation.—In this section and all the fo
The conciliator is not bound by the Code of
Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872).
(1) The conciliator shall assist the parties in an independent and impartial
manner in their attempt to reach an amicable settlement of their dispute.
(2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving
consideration to, among other things, the rights and obligations of the parties, the usages of the trade
concerned and the circumstances surrounding the dispute, including any previous business practices
between the parties.
(3) The conciliator may conduct the conciliation proceedings in such a manner as he considers
appropriate, taking into account the circumstances of the case, the wishes the parties may express,
including any request by a party that the conciliator hear oral statements, and the need for a speedy
settlement of the dispute.
In order to facilitate the conduct of the conciliation proceedings, the
parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a
suitable institution or person.
(1) The conciliator may invite the parties to
meet him or may communicate with them orally or in writing. He may meet or communicate with the
parties together or with each of them separately.
(2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held,
such place shall be determined by the conciliator, after consultation with the parties, having regard to the
circumstances of the conciliation proceedings.
When the conciliator receives factual information concerning the
dispute from a party, he shall disclose the substance of that information to the other party in order that the
other party may have the opportunity to present any explanation which he considers appropriate:
Provided that when a party gives any information to the conciliator subject to a specific condition that
it be kept confidential, the conciliator shall not disclose that information to the other party.
The parties shall in good faith co-operate with the
conciliator and, in particular, shall endeavour to comply with requests by the conciliator to submit written
materials, provide evidence and attend meetings.
Each party may, on his own initiative or at
the invitation of the conciliator, submit to the conciliator suggestions for the settlement of the dispute.
(1) When it appears to the conciliator that there exist elements of a
settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement
and submit them to the parties for their observations. After receiving the observations of the parties, the
conciliator may reformulate the terms of a possible settlement in the light of such observations.
(2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written
settlement agreement. If requested by the parties, the conciliator may draw up, or assist the parties in
drawing up, the settlement agreement.
(3) When the parties sign the settlement agreement, it shall be final and binding on the parties and
persons claiming under them respectively.
(4) The con
The settlement agreement shall have the same
status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by
an arbitral tribunal under section 30.
Notwithstanding anything contained in any other law for the time being in
force, the conciliator and the parties shall keep confidential all matters relating to the conciliation
proceedings. Confidentiality shall extend also to the settlement agreement, except where its disclosure is
necessary for purposes of implementation and enforcement.
The conciliation proceedings shall be terminated—
(a) by the signing of the settlement agreement by the parties, on the date of the agreement; or
(b) by a written declaration of the conciliator, after consultation with the parties, to the effect that
further efforts at conciliation are no longer justified, on the date of the declaration; or
(c) by a written declaration of the parties addressed to the conciliator to the effect that the
conciliation proceedings are terminated, on the date of the declaration; or
(d) by a written declaration of a party to the oth
The parties shall not initiate, during the
conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the
subject-matter of the conciliation proceedings except that a party may initiate arbitral or judicial
proceedings where, in his opinion, such proceedings are necessary for preserving his rights.
(1) Upon termination of the conciliation proceedings, the conciliator shall fix the costs of
the conciliation and give written notice thereof to the parties.
(2) For the purpose of sub-section (1), "costs" means reasonable costs relating to—
(a) the fee and expenses of the conciliator and witnesses requested by the conciliator with the
consent of the parties;
(b) any expert advice requested by the conciliator with the consent of the parties;
(c) any assistance provided pursuant to clause (b) of sub-section (2) of section 64 and section 68.
(1) The conciliator may direct each party to deposit an equal amount as an advance
for the costs referred to in sub-section (2) of section 78 which he expects will be incurred.
(2) During the course of the conciliation proceedings, the conciliator may direct supplementary
deposits in an equal amount from each party.
(3) If the required deposits under sub-sections (1) and (2) are not paid in full by both parties within
thirty days, the conciliator may suspend the proceedings or may make a written declaration of termination
of the proceedings to the parties, effective on the date of that declaration.
(4) Upon termination of the conciliation proceedings, the conciliator shall render an accounting to the
parties of the deposits received and shall return
Unless otherwise agreed by the parties,—
(a) the conciliator shall not act as an arbitrator or as a representative or counsel of a party in any
arbitral or judicial proceeding in respect of a dispute that is the subject of the conciliation
proceedings;
(b) the conciliator shall not be presented by the parties as a witness in any arbitral or judicial
proceedings.
The parties shall not rely on or introduce as
evidence in arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is
the subject of the conciliation proceedings,—
(a) views expressed or suggestions made by the other party in respect of a possible settlement of
the dispute;
(b) admissions made by the other party in the course of the conciliation proceedings;
(c) proposals made by the conciliator;
(d) the fact that the other party had indicated his willingness to accept a proposal for settlement
made by the conciliator.
<
The High Court may make rules consistent with this Act
as to all proceedings before the Court under this Act.
(1) If any difficulty arises in giving effect to the provisions of this Act,
the Central Government may, by order published in the Official Gazette, make such provisions, not
inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the
difficulty:
Provided that no such order shall made be after the expiry of a period of two years from the date of
commencement of this Act.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before each
Houses of Parliament.
(1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Act.
(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be, after
it is made before each House of Parliament while it is in session, for a total period of thirty days which
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity of anything previously done
under that rule.
(1) The Arbitration (Protocol and Convention) Act, 1937 (6 of 1937), the
Arbitration Act, 1940 (10 of 1940) and the Foreign Awards (Recognition and Enforcement)
Act, 1961 (45 of 1961) are hereby repealed.
(2) Notwithstanding such repeal,—
(a) the provisions of the said enactments shall apply in relation to arbitral proceedings which
commenced before this Act came into force unless otherwise agreed by the parties but this Act shall
apply in relation to arbitral proceedings which commenced on or after this Act comes into force;
(b) all rules made and notifications published, under the said enactments shall, to the extent to
which they are not repugnant to this Act, be deemed respectively to have
(1) The Arbitration and Conciliation (Third) Ordinance, 1996 (Ord. 27 of
1996) is hereby repealed.
(2) Notwithstanding such repeal, any order, rule, notification or scheme made or anything done or
any action taken in pursuance of any provision of the said Ordinance shall be deemed to have been
made, done or taken under the corresponding provisions of this Act.
1[87. Effect of arbitral and related court proceedings commenced.-- Unless the parties otherwise
agree, the amendments made to this Act by the Arbitration and Conciliation (Amendment) Act, 2015
shall--
(a) not apply to--
(i) arbitral proceedings commenced before the commencement of the Arbitration and Conciliation
(Amendment) Act, 2015 (23rd October, 2015);
(ii) court proceedings arising out of or in relation to such arbitral proceedings irrespective of
whether such court proceedings are commenced prior to or after the commencement of the
Arbitration and Conc
(1) Within thirty days from the
receipt of the arbitral award, unless another period of time has been agreed upon by the parties— Section 33 of the Arbitration and Conciliation Act, 1996 provides a mechanism for arbitral tribunals to correct, interpret, or add to their awards within a specified period, ensuring accuracy and clarity in arbitral awards. It aims to facilitate the finality and correctness of arbitral awards while balancing the rights of parties to seek clarifications or corrections. Section 33 of the Arbitration and Conciliation Act, 1996, is a strict, procedural provision aimed at ensuring the finality and accuracy of arbitral awards through minor corrections and interpretations within a 30-day window. Its mandatory nature underscores the importance of adhering to time limits and limiting judicial or arbitral interference in the merits of the award. Courts and tribunals are bound by these provisions, which serve to streamline arbitration proceedings, uphold finality, and prevent unnecessary delays. Note: All references are based on judicial pronouncements, statutory provisions, and authoritative legal commentaries as per the provided sources.
(a) a party, with notice to the other party, may request the arbitral tribunal to correct any
computation errors, any clerical or typographical errors or any other errors of a similar nature
occurring in the award;
(b) if so agreed by the parties, a party, with notice to the other party, may request the arbitral
tribunal to give an interpretation of a specific point or part of the award.
(2) If the arbitral tribunal considers the request made under sub-section (1) to be justified, it shall
make the correction or give the interpretation within thirty days from Legal Commentary on Section 33 of The Arbitration and Conciliation Act, 1996
Introduction
What Section Says
Essential Ingredients
Scope of Section 33
Punishment for Section 33
Legal Comments (Bullet Point Summary)
Conclusion
(1) Recourse to a Court against an arbitral award
may be made only by an application for setting aside such award in accordance with sub-section (2) and
sub-section (3). Section 34 of the Arbitration and Conciliation Act, 1996, provides the legal mechanism for challenging arbitral awards in courts. It aims to balance the finality of arbitration with judicial oversight to prevent awards that violate public policy or fundamental legal principles. The section delineates the grounds, procedure, and limitations for setting aside an arbitral award, emphasizing limited judicial intervention to uphold arbitration's efficacy and integrity. Section 34 empowers a party to apply to a court for setting aside an arbitral award on specific grounds such as incapacity, invalid arbitration agreement, violation of public policy, or procedural irregularities. The application must be filed within a strict time limit of 3 months from the date of receipt of the award, with a possible extension of 30 days under certain conditions. The section also specifies the scope of judicial review, emphasizing that courts do not re-examine the merits of the award but only assess whether it conforms to the grounds specified. While Section 34 itself does not prescribe punishments, courts may impose costs or dismiss frivolous or malicious applications to discourage abuse of the process. The primary consequence of a successful challenge is the setting aside of the award, which may lead to re-arbitration or litigation on the dispute. This concise commentary underscores the limited but crucial role of Section 34 in arbitration law, emphasizing the importance of procedural compliance, timely filing, and adherence to public policy, while respecting the finality of arbitral awards.
(2) An arbitral award may be set aside by the Court only if--
(a) the party making the application 1[establishes on the basis of the record of the arbitral tribunal
that]--
(i) a party was under some incapacity, or
(ii) the arbitration agreement is not valid under the law to which the parties have subjected it
or, failing any indLegal Commentary on Section 34 of The Arbitration and Conciliation Act, 1996
Introduction
What does Section 34 Say
Essential Ingredients
Scope of Section 34
Punishment for Section 34
Legal Comments
Elevate your legal practice with advanced AI-driven research and drafting solutions. Experience unmatched efficiency, precision, and security, tailored exclusively for legal professionals.