The Arbitration and Conciliation Act, 1996

What the law governs

The Arbitration and Conciliation Act, 1996 provides a legal framework for resolving disputes through arbitration and conciliation. It covers domestic arbitration, international commercial arbitration, enforcement of certain foreign awards and settlement through conciliation.

The arbitration provisions generally apply when the place of arbitration is in India. Subject to an agreement to the contrary, specified provisions concerning court interim measures, assistance in taking evidence and certain appeals may also apply to an international commercial arbitration outside India where the award is recognised and enforceable under the foreign award provisions.

Who may be affected

The Arbitration and Conciliation Act, 1996 affects parties to an arbitration agreement and people involved in arbitral or conciliation proceedings. A property buyer, owner or professional may therefore need to consider it when a relevant agreement provides for disputes to be decided by arbitration.

The law defines an arbitral tribunal as either a sole arbitrator or a panel of arbitrators. It also identifies the courts that may deal with arbitration matters. For arbitration other than international commercial arbitration, the relevant court is generally the principal Civil Court of original jurisdiction in a district, including a High Court exercising ordinary original civil jurisdiction, but not an inferior Civil Court or Court of Small Causes.

Key provisions

The Arbitration and Conciliation Act, 1996 addresses:

• Arbitration agreements and referral of parties to arbitration.
• Interim measures granted by courts or arbitral tribunals.
• Appointment, challenge, replacement and jurisdiction of arbitrators.
• Equal treatment of parties, procedure, hearings, evidence, claims and defences.
• Time limits, fast track procedure, settlement, costs and the form of awards.
• Applications to set aside awards, enforcement and appeals.
• Confidentiality of information and limitation periods.
• Establishment and functions of the Arbitration Council of India.
• Recognition and enforcement of certain New York Convention and Geneva Convention awards.
• Appointment and role of conciliators, settlement agreements, confidentiality, costs and termination of conciliation.

Important procedural points

The Arbitration and Conciliation Act, 1996 treats an interim award as an arbitral award. A party that continues with arbitration without promptly objecting to a known failure to follow a provision that parties may vary, or a requirement of the arbitration agreement, may be treated as having waived that objection. The law also states that certain disputes may remain unavailable for arbitration under other laws.