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.

PREAMBLE

WHEREAS the United Nations Commission on International Trade Law (UNCITRAL) has adopted the UNCITRAL Model Law on International Commercial Arbitration in 1985;

AND WHEREAS the General Assembly of the United Nations has recommended that all countries give due consideration to the said Model Law, in view of the desirability of uniformity of the law of arbitral procedures and the specific needs of international commercial arbitration practice;

AND WHEREAS the UNCITRAL has adopted the UNCITRAL Conciliation Rules in 1980;

AND WHEREAS the General Assembly of the United Nations has recommended the use of the said Rules in cases where a dispute arises in the context of international commercial relations and the parties seek an amicable settlement of that dispute by recourse to conciliation;

AND WHEREAS the said Model Law and Rules make significant contribution to the establishment of a unified legal framework for the fair and efficient settlement of disputes arising in international commercial relations;

AND WHEREAS it is expedient to make law respecting arbitration and conciliation, taking into account the aforesaid Model Law and Rules;

BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows.

PRELIMINARY

1. Short title, extent and commencement.

(1) This Act may be called the Arbitration and Conciliation Act, 1996.

(2) It extends to the whole of India:

Explanation: In this sub-section, the expression “international commercial conciliation” shall have the same meaning as the expression “international commercial arbitration” in clause (f) of sub-section (1) of section 2, subject to the modification that for the word “arbitration” occurring therein, the word “conciliation” shall be substituted.

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

PART I – ARBITRATION

CHAPTER 1 – GENERAL PROVISIONS

2. Definitions.

(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;

(e) “Court” means—

(i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes;
(ii) in the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, and in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that High Court;

(f) “international commercial arbitration” means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India and where at least one of the parties is—

(i) an individual who is a national of, or habitually resident in, any country other than India; or
(ii) a body corporate which is incorporated in any country other than India; or
(iii) an association or a body of individuals whose central management and control is
exercised in any country other than India; or
(iv) the Government of a foreign country;

(g) “legal representative” means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased, and, where a party acts in a representative character, the person on whom the estate devolves on the death of the party so acting;

(h) “party” means a party to an arbitration agreement.

(2) This Part shall apply where the place of arbitration is in India:
Provided that subject to an agreement to the contrary, the provisions of sections 9, 27 and clause (a) of sub-section (1) and sub-section (3) of section 37 shall also apply to international commercial arbitration, even if the place of arbitration is outside India, and an arbitral award made or to be made in such place is enforceable and recognised under the provisions of Part II of this Act.

(3) This Part shall not affect any other law for the time being in force by virtue of which certain disputes may not be submitted to arbitration.

(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 in so far as the provisions of this Part are inconsistent with that other enactment or with any rules made thereunder.

(5) Subject to the provisions of sub-section (4), and save in so far 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 all proceedings relating thereto.

(6) Where this Part, except section 28, leaves the parties free to determine a certain issue, that freedom shall include the right of the parties to authorise any person including an institution, to determine that issue.

(7) An arbitral award made under this Part shall be considered as a domestic award.

(8) Where this Part—

(a) refers to the fact that the parties have agreed or that they may agree, or

(b) in any other way refers to an agreement of the parties,

that agreement shall include any arbitration rules referred to in that agreement.

(9) Where this Part, other than clause (a) of section 25 or clause (a) of sub-section (2) of section 32, refers to a claim, it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply to a defence to that counterclaim.

3. Receipt of written communications.

(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.

(3) This section does not apply to written communications in respect of proceedings of any judicial authority.

4. Waiver of right to object.

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.

5. Extent of judicial intervention.

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.

6. Administrative assistance.

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.

CHAPTER 2 – ARBITRATION AGREEMENT

7. Arbitration agreement.

(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 means of telecommunication including communication through electronic means which provide a record of the agreement; or

(c) an 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.

(5) 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.

8. Power to refer parties to arbitration where there is an arbitration agreement.

(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:
Provided that where the original arbitration agreement or a certified copy thereof is not available with the party applying for reference to arbitration under sub-section (1), and the said agreement or certified copy is retained by the other party to that agreement, then, the party so applying shall file such application along with a copy of the arbitration agreement and a petition praying the Court to call upon the other party to produce the original arbitration agreement or its duly certified copy before that Court.

(3) Notwithstanding that an application has been made under sub-section (1) and that the issue is pending before the judicial authority, an arbitration may be commenced or continued and an arbitral award made.

9. Interim measures, etc., by Court.

(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;
(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, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;
(d) interim injunction or the appointment of a receiver;
(e) such other interim measure of protection as may appear to the Court to be just and convenient,

and the Court shall have the same power for making orders as it has for the purpose of, and in relation to, any proceedings before it.

(2) Where, before the commencement of the arbitral proceedings, a Court passes an order for any interim measure of protection under sub-section (1), the arbitral proceedings shall be commenced within a period of ninety days from the date of such order or within such further time as the Court may determine.

(3) Once the arbitral tribunal has been constituted, the Court shall not entertain an application under sub-section (1), unless the Court finds that circumstances exist which may not render the remedy provided under section 17 efficacious.

CHAPTER 3 – COMPOSITION OF ARBITRAL TRIBUNAL

10. Number of arbitrators.

(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.

11. Appointment of arbitrators.

(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

(b) the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment,

the appointment shall be made, upon request of a party, by the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court;

(5) Failing any agreement referred to in sub-section (2), in an arbitration with a sole arbitrator, if the parties fail to agree on the arbitrator within thirty days from receipt of a request by one party from the other party to so agree the appointment shall be made, upon request of a party, by the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court.

(6) Where, under an appointment procedure agreed upon by the parties,—

(a) a party fails to act as required under that procedure; or

(b) the parties, or the two appointed arbitrators, fail to reach an agreement expected of them under that procedure; or

(c) a person, including an institution, fails to perform any function entrusted to him or it under that procedure,

a party may request the Supreme Court or, as the case may be, the High Court or any person or institution designated by such Court to take the necessary measure, unless the agreement on the appointment procedure provides other means for securing the appointment.

(6A) The Supreme Court or, as the case may be, the High Court, while considering any application under sub-section (4) or sub-section (5) or sub-section (6), shall, notwithstanding any judgment, decree or order of any Court, confine to the examination of the existence of an arbitration agreement.

(6B) The designation of any person or institution by the Supreme Court or, as the case may be, the High Court, for the purposes of this section shall not be regarded as a delegation of judicial power by the Supreme Court or the High Court.

(7) A decision on a matter entrusted by sub-section (4) or sub-section (5) or sub-section (6) to the Supreme Court or, as the case may be, the High Court or the person or institution designated by such Court is final and no appeal including Letters Patent Appeal shall lie against such decision.

(8) The Supreme Court or, as the case may be, the High Court or the person or institution designated by such Court, before appointing an arbitrator, shall seek a disclosure in writing from the prospective arbitrator in terms of sub-section (1) of section 12, and have due regard to—

(a) any qualifications required for the arbitrator by the agreement of the parties; and

(b) the contents of the disclosure and other considerations as are likely to secure the appointment of an independent and impartial arbitrator.

(9) In the case of appointment of sole or third arbitrator in an international commercial arbitration, the Supreme Court or the person or institution designated by that Court may appoint an arbitrator of a nationality other than the nationalities of the parties where the parties belong to different nationalities.

(10) The Supreme Court or, as the case may be, the High Court, may make such scheme as the said Court may deem appropriate for dealing with matters entrusted by sub-section (4) or sub-section (5) or sub-section (6), to it.

(11) Where more than one request has been made under sub-section (4) or sub-section (5) or sub-section (6) to the Chief Justices of different High Courts or their designates, different High Courts or their designates, the High Court or its designate to whom the request has been first made under the relevant sub-section shall alone be competent to decide on the request.

(12) (a) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and sub-section (10) arise in an international commercial arbitration, the reference to the “Supreme Court or, as the case may be, the High Court” in those sub-sections shall be construed as a reference to the “Supreme Court”; and

(b) Where the matters referred to in sub-sections (4), (5), (6), (7), (8) and sub-section (10) arise in any other arbitration, the reference to “the Supreme Court or, as the case may be, the High Court” in those sub-sections shall be construed as a reference to the “High Court” within whose local limits the principal Civil Court referred to in clause (e) of sub-section (1) of section 2 is situate, and where the High Court itself is the Court referred to in that clause, to that High Court.

(13) An application made under this section for appointment of an arbitrator or arbitrators shall be disposed of by the Supreme Court or the High Court or the person or institution designated by such Court, as the case may be, as expeditiously as possible and an endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party.

(14) For the purpose of determination of the fees of the arbitral tribunal and the manner of its payment to the arbitral tribunal, the High Court may frame such rules as may be necessary, after taking into consideration the rates specified in the Fourth Schedule.

Explanation: For the removal of doubts, it is hereby clarified that this sub-section shall not apply to international commercial arbitration and in arbitrations (other than international commercial arbitration) in case where parties have agreed for determination of fees as per the rules of an arbitral institution.

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 the case may be, shall be issued only in such modified form as may be agreed upon by the both Houses of Parliament.

12. Grounds for challenge.

(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 grounds stated in the Fifth Schedule shall guide in determining whether circumstances exist which give rise to justifiable doubts as to the independence or impartiality of an arbitrator.

Explanation 2: The disclosure shall be made by such person in the form specified in the Sixth Schedule.

(2) An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall, without delay, disclose to the parties in writing any circumstances referred to in sub-section (1) unless they have already been informed of them by him.

(3) An arbitrator may be challenged only if—

(a) circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or

(b) he does not possess the qualifications agreed to by the parties.

(4) A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made.

(5) Notwithstanding any prior agreement to the contrary, any person whose relationship, with the parties or counsel or the subject-matter of the dispute, falls under any of the categories specified in the Seventh Schedule shall be ineligible to be appointed as an arbitrator:
Provided that parties may, subsequent to disputes having arisen between them, waive the applicability of this sub-section by an express agreement in writing.

13. Challenge procedure.

(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 sub-section (2) is not successful, the arbitral tribunal shall continue the arbitral proceedings and make an arbitral award.

(5) Where an arbitral award is made under sub-section (4), the party challenging the arbitrator may make an application for setting aside such an arbitral award in accordance with section 34.

(6) Where an arbitral award is set aside on an application made under sub-section (5), the Court may decide as to whether the arbitrator who is challenged is entitled to any fees.

14. Failure or impossibility to act.

(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, an arbitrator withdraws from his office or a party agrees to the termination of the mandate of an arbitrator, it shall not imply acceptance of the validity of any ground referred to in this section or sub-section (3) of section 12.

15. Termination of mandate and substitution of arbitrator.

(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.

(4) Unless otherwise agreed by the parties, an order or ruling of the arbitral tribunal made prior to the replacement of an arbitrator under this section shall not be invalid solely because there has been a change in the composition of the arbitral tribunal.

CHAPTER 4 – JURISDICTION OF ARBITRAL TRIBUNALS

16. Competence of arbitral tribunal to rule on its jurisdiction.

(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 that he has appointed, or participated in the appointment of, an arbitrator.

(3) A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings.

(4) The arbitral tribunal may, in either of the cases referred to in sub-section (2) or sub-section (3), admit a later plea if it considers the delay justified.

(5) The arbitral tribunal shall decide on a plea referred to in sub-section (2) or sub-section (3) and, where the arbitral tribunal takes a decision rejecting the plea, continue with the arbitral proceedings and make an arbitral award.

(6) A party aggrieved by such an arbitral award may make an application for setting aside such an arbitral award in accordance with section 34.

17. Interim measures ordered by arbitral tribunal.

(1) A party may, during the arbitral proceedings, 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;
(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, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken, or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;
(d) interim injunction or the appointment of a receiver;
(e) such other interim measure of protection as may appear to the arbitral tribunal to be just and convenient,

and the arbitral tribunal shall have the same power for making orders, as the court has for the purpose of, and in relation to, any proceedings before it.

(2) Subject to any orders passed in an appeal under section 37, any order issued by the arbitral tribunal under this section shall be deemed to be an order of the Court for all purposes and shall be enforceable under the Code of Civil Procedure, 1908, in the same manner as if it were an order of the Court.

CHAPTER 5 – CONDUCT OF ARBITRAL PROCEEDINGS

18. Equal treatment of parties.

The parties shall be treated with equality and each party shall be given a full opportunity to present his case.

19. Determination of rules of procedure.

(1) The arbitral tribunal shall not be bound by the Code of Civil Procedure, 1908 or the Indian Evidence Act, 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.

20. Place of arbitration.

(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.

21. Commencement of arbitral proceedings.

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.

22. Language.

(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.

23. Statements of claim and defence.

(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.

(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.

(3) Unless otherwise agreed by the parties, either party may amend or supplement his claim or defence during the course of the arbitral proceedings, unless the arbitral tribunal considers it inappropriate to allow the amendment or supplement having regard to the delay in making it.

(4) The statement of claim and defence under this section shall be completed within a period of six months from the date the arbitrator or all the arbitrators, as the case may be, received notice, in writing of their appointment.

24. Hearings and written proceedings.

(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:
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.

(2) The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of documents, goods or other property.

(3) All statements, documents or other information supplied to, or applications made to the arbitral tribunal by one party shall be communicated to the other party, and any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties.

25. Default of a party.

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 and shall have the discretion to treat the right of the respondent to file such statement of defence as having been forfeited.

(c) 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.

26. Expert appointed by arbitral tribunal.

(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 issue.

(3) Unless otherwise agreed by the parties, the expert shall, on the request of a party, make available to that party for examination all documents, goods or other property in the possession of the expert with which he was provided in order to prepare his report.

27. Court assistance in taking evidence.

(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 of the testimony required;
(ii) the description of any document to be produced or property to be inspected.

(3) The Court may, within its competence and according to its rules on taking evidence, execute the
request by ordering that the evidence be provided directly to the arbitral tribunal.

(4) The Court may, while making an order under sub-section (3), issue the same processes to witnesses as it may issue in suits tried before it.

(5) Persons failing to attend in accordance with such process, or making any other default, or refusing to give their evidence, or guilty of any contempt to the arbitral tribunal during the conduct of arbitral proceedings, shall be subject to the like disadvantages, penalties and punishments by order of the Court on the representation of the arbitral tribunal as they would incur for the like offences in suits tried before the Court.

(6) In this section the expression “Processes” includes summonses and commissions for the examination of witnesses and summonses to produce documents.

CHAPTER 6 – MAKING OF ARBITRAL AWARD AND TERMINATION OF PROCEEDINGS

28. Rules applicable to substance of dispute.

(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;
(ii) any designation by the parties of the law or legal system of a given country shall be construed, unless otherwise expressed, as directly referring to the substantive law of that country and not to its conflict of laws rules;
(iii) failing any designation of the law under clause (a) by the parties, the arbitral tribunal shall apply the rules of law it considers to be appropriate given all the circumstances surrounding the dispute.

(2) The arbitral tribunal shall decide ex aequo et bono or as amiable compositeur only if the parties have expressly authorised it to do so.

(3) While deciding and making an award, the arbitral tribunal shall, in all cases, take into account the terms of the contract and trade usages applicable to the transaction.

29. Decision making by panel of arbitrators.

(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.

29A.Time limit for arbitral award.

(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 endeavour 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.

(3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a further period not exceeding six months.

(4) If the award is not made within the period specified in sub-section (1) or the extended period specified under sub-section (3), the mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period:
Provided that while extending the period under this sub-section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may order reduction of fees of arbitrator(s) by not exceeding five per cent. for each month of such delay.
Provided further that where an application under sub-section (5) is pending, the mandate of the arbitrator shall continue till the disposal of the said application:
Provided also that the arbitrator shall be given an opportunity of being heard before the fees is reduced.

(5) The extension of period referred to in sub-section (4) may be on the application of any of the parties and may be granted only for sufficient cause and on such terms and conditions as may be imposed by the Court.

(6) While extending the period referred to in sub-section (4), it shall be open to the Court to substitute one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall continue from the stage already reached and on the basis of the evidence and material already on record, and the arbitrator(s) appointed under this section shall be deemed to have received the said evidence and material.

(7) In the event of arbitrator(s) being appointed under this section, the arbitral tribunal thus reconstituted shall be deemed to be in continuation of the previously appointed arbitral tribunal.

(8) It shall be open to the Court to impose actual or exemplary costs upon any of the parties under this section.

(9) An application filed under sub-section (5) shall be disposed of by the Court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party.

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 the basis of written pleadings, documents and submissions filed by the parties without any oral hearing;

(b) The arbitral tribunal shall have power to call for any further information or clarification from the parties in addition to the pleadings and documents filed by them;

(c) An oral hearing may be held only, if, all the parties make a request or if the arbitral tribunal considers it necessary to have oral hearing for clarifying certain issues;

(d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for expeditious disposal of the case.

(4) The award under this section shall be made within a period of six months from the date the arbitral tribunal enters upon the reference.

(5) If the award is not made within the period specified in sub-section (4), the provisions of sub-sections (3) to (9) of section 29A shall apply to the proceedings.

(6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be agreed between the arbitrator and the parties.

30. Settlement.

(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 as any other arbitral award on the substance of the dispute.

31. Form and contents of arbitral award.

(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) The arbitral award shall state its date and the place of arbitration as determined in accordance with section 20 and the award shall be deemed to have been made at that place.

(5) After the arbitral award is made, a signed copy shall be delivered to each party.

(6) The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award.

(7) (a) Unless otherwise agreed by the parties, where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made.

(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of interest prevalent on the date of award, from the date of award to the date of payment.

Explanation: The expression “current rate of interest” shall have the same meaning as assigned to it under clause (b) of section 2 of the Interest Act, 1978 (14 of 1978).

(8) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A.

Explanation: For the purpose of clause (a), “costs” means reasonable costs relating to—

(i) the fees and expenses of the arbitrators and witnesses,
(ii) legal fees and expenses,
(iii) any administration fees of the institution supervising the arbitration, and
(iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral award.

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, 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—

(i) the fees and expenses of the arbitrators, Courts and witnesses;
(ii) legal fees and expenses;
(iii) any administration fees of the institution supervising the arbitration; and
(iv) any other expenses incurred in connection with the arbitral or Court proceedings and the arbitral award.

(2) If the Court or arbitral tribunal decides to make an order as to payment of costs,—

(a) the general rule is that the unsuccessful party shall be ordered to pay the costs of the successful party; or

(b) the Court or arbitral tribunal may make a different order for reasons to be recorded in writing.

(3) In determining the costs, the Court or arbitral tribunal shall have regard to all the circumstances, including—

(a) the conduct of all the parties;

(b) whether a party has succeeded partly in the case;

(c) whether the party had made a frivolous counterclaim leading to delay in the disposal of the arbitral proceedings; and

(d) whether any reasonable offer to settle the dispute is made by a party and refused by the other party.

(4) The Court or arbitral tribunal may make any order under this section including the order that a party shall pay—

(a) a proportion of another party’s costs;

(b) a stated amount in respect of another party’s costs;

(c) costs from or until a certain date only;

(d) costs incurred before proceedings have begun;

(e) costs relating to particular steps taken in the proceedings;

(f) costs relating only to a distinct part of the proceedings; and

(g) interest on costs from or until a certain date.

(5) An agreement which has the effect that a party is to pay the whole or part of the costs of the arbitration in any event shall be only valid if such agreement is made after the dispute in question has arisen.

32. Termination of proceedings.

(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 reason become unnecessary or impossible.

(3) Subject to section 33 and sub-section (4) of section 34, the mandate of the arbitral tribunal shall terminate with the termination of the arbitral proceedings.

33. Correction and interpretation of award; additional award.

(1) Within thirty days from the receipt of the arbitral award, unless another period of time has been agreed upon by the parties—

(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 the receipt of the request and the interpretation shall form part of the arbitral award.

(3) The arbitral tribunal may correct any error of the type referred to in clause (a) of sub-section (1), on its own initiative, within thirty days from the date of the arbitral award.

(4) Unless otherwise agreed by the parties, a party with notice to the other party, may request, within thirty days from the receipt of the arbitral award, the arbitral tribunal to make an additional arbitral award as to claims presented in the arbitral proceedings but omitted from the arbitral award.

(5) If the arbitral tribunal considers the request made under sub-section (4) to be justified, it shall make the additional arbitral award within sixty days from the receipt of such request.

(6) The arbitral tribunal may extend, if necessary, the period of time within which it shall make a correction, give an interpretation or make an additional arbitral award under sub-section (2) or sub-section (5).

(7) Section 31 shall apply to a correction or interpretation of the arbitral award or to an additional arbitral award made under this section.

CHAPTER 7 – RECOURSE AGAINST ARBITRAL AWARD

34. Application for setting aside arbitral award.

(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).

(2) An arbitral award may be set aside by the Court only if—

(a) the party making the application 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 indication thereon, under the law for the time being in force; or
(iii) 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
(iv) 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 matters beyond the scope of the submission to arbitration:
Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside; or
(v) the composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of this Part from which the parties cannot derogate, or, failing such agreement, was not in accordance with this Part; or

(b) the Court finds that—

(i) the subject-matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or

(ii) the arbitral award is in conflict with the public policy of India.

Explanation 1: For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,—

(i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or
(ii) it is in contravention with the fundamental policy of Indian law; or
(iii) it is in conflict with the most basic notions of morality or justice.

Explanation 2: For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute.

(2A) An arbitral award arising out of arbitrations other than international commercial arbitrations, may also be set aside by the Court, if the Court finds that the award is vitiated by patent illegality appearing on the face of the award:
Provided that an award shall not be set aside merely on the ground of an erroneous application of the law or by reappreciation of evidence.

(3) An application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had been disposed of by the arbitral tribunal:
Provided that if the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months it may entertain the application within a further period of thirty days, but not thereafter.

(4) On receipt of an application under sub-section (1), the Court may, where it is appropriate and it is so requested by a party, adjourn the proceedings for a period of time determined by it in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take such other action as in the opinion of arbitral tribunal will eliminate the grounds for setting aside the arbitral award.

(5) An application under this section shall be filed by a party only after issuing a prior notice to the other party and such application shall be accompanied by an affidavit by the applicant endorsing compliance with the said requirement.

(6) An application under this section shall be disposed of expeditiously, and in any event, within a period of one year from the date on which the notice referred to in sub-section (5) is served upon the other party.

CHAPTER 8 – FINALITY AND ENFORCEMENT OF ARBITRAL AWARDS

35. Finality of arbitral awards.

Subject to this Part an arbitral award shall be final and binding on the parties and persons claiming under them respectively.

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 operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing:
Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).
Provided further that where the Court is satisfied that a prima facie case is made out that,—

(a) the arbitration agreement or contract which is the basis of the award; or
(b) the making of the award,

was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the challenge under section 34 to the award.

Explanation: For the removal of doubts, it is hereby clarified that the above proviso shall apply to all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or court proceedings were commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015.

CHAPTER 9 – APPEALS

37. Appealable orders.

(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—

(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—

(a) accepting the plea referred to in sub-section (2) or sub-section (3) of section 16; or

(b) granting or refusing to grant an interim measure under section 17.

(3) 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.

CHAPTER 10 – MISCELLANEOUS

38. Deposits.

(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 arbitral tribunal may suspend or terminate the arbitral proceedings in respect of such claim or counter-claim, as the case may be.

(3) Upon termination of the arbitral proceedings, the arbitral tribunal shall render an accounting to the parties of the deposits received and shall return any unexpended balance to the party or parties, as the case may be.

39. Lien on arbitral award and deposits as to costs.

(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 application under sub-section (2) may be made by any party unless the fees demanded have been fixed by written agreement between him and the arbitral tribunal, and the arbitral tribunal shall be entitled to appear and be heard on any such application.

(4) The Court may make such orders as it thinks fit respecting the costs of the arbitration where any question arises respecting such costs and the arbitral award contains no sufficient provision concerning them.

40. Arbitration agreement not to be discharged by death of party thereto.

(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.

41. Provisions in case of insolvency.

(1) Where it is provided by a term in a contract to which an insolvent is a party that any dispute arising there out 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 accordance with the arbitration agreement, and the judicial authority may, if it is of opinion that, having regard to all the circumstances of the case, the matter ought to be determined by arbitration, make an order accordingly.

(3) In this section, the expression “receiver” includes an Official Assignee.

42. Jurisdiction.

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 subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that Court and in no other Court.

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.

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.

43. Limitations.

(1) The Limitation Act, 1963, shall apply to arbitrations as it applies to proceedings in court.

(2) For the purposes of this section and the Limitation Act, 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 as it thinks proper.

(4) 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, for the commencement of the proceedings (including arbitration) with respect to the dispute so submitted.

PART IA – ARBITRATION COUNCIL OF INDIA

43A. Definitions.

In this Part, unless the context otherwise requires,—

(a) “Chairperson” means the Chairperson of the Arbitration Council of India appointed under clause (a) of sub-section (1) of section 43C;

(b) “Council” means the Arbitration Council of India established under section 43B;

(c) “Member” means a Member of the Council and includes the Chairperson.

43B. Establishment and incorporation of Arbitration Council of India.

(1) The Central Government shall, by notification in the Official Gazette, establish, for the purposes of this Act, a Council to be known as the Arbitration Council of India to perform the duties and discharge the functions under this Act.

(2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued.

(3) The head office of the Council shall be at Delhi.

(4) The Council may, with the prior approval of the Central Government, establish offices at other places in India.

43C. Composition of Council.

(1) The Council shall consist of the following Members, namely,—

(a) a person, who has been, a Judge of the Supreme Court or, Chief Justice of a High Court or, a Judge of a High Court or an eminent person, having special knowledge and experience in the conduct or administration of arbitration, to be appointed by the Central Government in consultation with the Chief Justice of India–Chairperson;

(b) an eminent arbitration practitioner having substantial knowledge and experience in institutional arbitration, both domestic and international, to be nominated by the Central Government–Member;

(c) an eminent academician having experience in research and teaching in the field of arbitration and alternative dispute resolution laws, to be appointed by the Central Government in consultation with the Chairperson–Member;

(d) Secretary to the Government of India in the Department of Legal Affairs, Ministry of Law and Justice or his representative not below the rank of Joint Secretary–Member, ex officio;

(e) Secretary to the Government of India in the Department of Expenditure, Ministry of Finance or his representative not below the rank of Joint Secretary– Member, ex officio;

(f) one representative of a recognised body of commerce and industry, chosen on rotational basis by the Central Government–Part-time Member; and

(g) Chief Executive Officer-Member-Secretary, ex officio.

(2) The Chairperson and Members of the Council, other than ex officio Members, shall hold office as such, for a term of three years from the date on which they enter upon their office:
Provided that no Chairperson or Member, other than ex officio Member, shall hold office as such after he has attained the age of seventy years in the case of Chairperson and sixty-seven years in the case of Member.

(3) The salaries, allowances and other terms and conditions of the Chairperson and Members referred to in clauses (b) and (c) of sub-section (1) shall be such as may be prescribed by the Central Government.

(4) The Part-time Member shall be entitled to such travelling and other allowances as may be prescribed by the Central Government.

43D. Duties and functions of Council.

(1) It shall be the duty of the Council to take all such measures as may be necessary to promote and encourage arbitration, mediation, conciliation* or other alternative dispute resolution mechanism and for that purpose to frame policy and guidelines for the establishment, operation and maintenance of uniform professional standards in respect of all matters relating to arbitration.

*: The words “mediation, conciliation” omitted by the Mediation Act of 2023.

(2) For the purposes of performing the duties and discharging the functions under this Act, the Council may—

(a) frame policies governing the grading of arbitral institutions;

(b) recognise professional institutes providing accreditation of arbitrators;

(c) review the grading of arbitral institutions and arbitrators;

(d) hold training, workshops and courses in the area of arbitration in collaboration of law firms, law universities and arbitral institutes;

(e) frame, review and update norms to ensure satisfactory level of arbitration and conciliation**;

(f) act as a forum for exchange of views and techniques to be adopted for creating a platform to make India a robust centre for domestic and international arbitration and conciliation**;

(g) make recommendations to the Central Government on various measures to be adopted to make provision for easy resolution of commercial disputes;

(h) promote institutional arbitration by strengthening arbitral institutions;

(i) conduct examination and training on various subjects relating to arbitration and conciliation** and award certificates thereof;

(j) establish and maintain depository of arbitral awards made in India;

(k) make recommendations regarding personnel, training and infrastructure of arbitral institutions; and

(l) such other functions as may be decided by the Central Government.

**: The words “and conciliation” omitted by the Mediation Act of 2023.

43E. Vacancies, etc., not to invalidate proceedings of Council.

No act or proceeding of the Council shall be invalid merely by reason of—

(a) any vacancy or any defect in the constitution of the Council;

(b) any defect in the appointment of a person acting as a Member of the Council; or

(c) any irregularity in the procedure of the Council not affecting the merits of the case.

43F. Resignation of Members.

The Chairperson or the Full-time or Part-time Member may, by notice in writing, under his hand addressed to the Central Government, resign his office:
Provided that the Chairperson or the Full-time Member shall, unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlier.

43G. Removal of Member.

(1) The Central Government may, remove a Member from his office if he—

(a) is an undischarged insolvent; or

(b) has engaged at any time (except Part-time Member), during his term of office, in any paid employment; or

(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral turpitude; or

(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a Member; or

(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or

(f) has become physically or mentally incapable of acting as a Member.

(2) Notwithstanding anything contained in sub-section (1), no Member shall be removed from his office on the grounds specified in clauses (d) and (e) of that sub-section unless the Supreme Court, on a reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the Supreme Court, reported that the Member, ought on such ground or grounds to be removed.

43H. Appointment of experts and constitution of Committees thereof.

The Council may, appoint such experts and constitute such Committees of experts as it may consider necessary to discharge its functions on such terms and conditions as may be specified by the regulations.

43I. General norms for grading of arbitral institutions.

The Council shall make grading of arbitral institutions on the basis of criteria relating to infrastructure, quality and calibre of arbitrators, performance and compliance of time limits for disposal of domestic or international commercial arbitrations, in such manner as may be specified by the regulations.

43J. Norms for accreditation of arbitrators.

The qualifications, experience and norms for accreditation of arbitrators shall be such as may be specified by the regulations.

43K. Depository of awards.

The Council shall maintain an electronic depository of arbitral awards made in India and such other records related thereto in such manner as may be specified by the regulations.

43L. Power to make regulations by Council.

The Council may, in consultation with the Central Government, make regulations, consistent with the provisions of this Act and the rules made thereunder, for the discharge of its functions and perform its duties under this Act.

43M. Chief Executive Officer.

(1) There shall be a Chief Executive Officer of the Council, who shall be responsible for day-to-day administration of the Council.

(2) The qualifications, appointment and other terms and conditions of the service of the Chief Executive Officer shall be such as may be prescribed by the Central Government.

(3) The Chief Executive Officer shall discharge such functions and perform such duties as may be specified by the regulations.

(4) There shall be a Secretariat to the Council consisting of such number of officers and employees as may be prescribed by the Central Government.

(5) The qualifications, appointment and other terms and conditions of the service of the employees and other officers of the Council shall be such as may be prescribed by the Central Government.

PART II – ENFORCEMENT OF CERTAIN FOREIGN AWARDS

CHAPTER 1 – NEW YORK CONVENTION AWARDS

44. Definition.

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.

45. Power of judicial authority to refer parties to arbitration.

Notwithstanding anything contained in Part I or in the Code of Civil Procedure, 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, unless it prima facie finds that the said agreement is null and void, inoperative or incapable of being performed.

46. When foreign award binding.

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.

47. Evidence.

(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 certified as correct by a diplomatic or consular agent of the country to which that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in India.

Explanation: In this section and in the sections following in this Chapter, “Court” means the High Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award if the same had been the subject-matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.

48. Conditions for enforcement of foreign awards.

(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) the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration:
Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be enforced; or

(d) the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place ; or

(e) the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made.

(2) Enforcement of an arbitral award may also be refused if the Court finds that—

(a) the subject-matter of the difference is not capable of settlement by arbitration under the law of India; or

(b) the enforcement of the award would be contrary to the public policy of India.

Explanation 1: For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,—

(i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or
(ii) it is in contravention with the fundamental policy of Indian law; or
(iii) it is in conflict with the most basic notions of morality or justice.

Explanation 2: For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute.

(3) If an application for the setting aside or suspension of the award has been made to a competent authority referred to in clause (e) of sub-section (1) the Court may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to give suitable security.

49. Enforcement of foreign awards.

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.

50. Appealable orders.

(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.

51. Saving.

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.

52. Chapter II not to apply.

Chapter II of this Part shall not apply in relation to foreign awards to which this Chapter applies.

CHAPTER 2 – GENEVA CONVENTION AWARDS

53. Interpretation.

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

(c) in one of such territories as the Central Government, being satisfied that reciprocal provisions have been made, may, by like notification, declare to be territories to which the said Convention applies,

and for the purposes of this Chapter an award shall not be deemed to be final if any proceedings for the purpose of contesting the validity of the award are pending in the country in which it was made.

54. Power of judicial authority to refer parties to arbitration.

Notwithstanding anything contained in Part I or in the Code of Civil Procedure, 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.

55. Foreign awards when binding.

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.

56. Evidence.

(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 enforce the award shall produce a translation into English certified as correct by a diplomatic or consular agent of the country to which that party belongs or certified as correct in such other manner as may be sufficient according to the law in force in India.

Explanation: In this section and in the sections following in this Chapter, “Court” means the High Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award if the same had been the subject-matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.

57. Conditions for enforcement of foreign awards.

(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 become final in the country in which it has been made, in the sense that it will not be considered as such if it is open to opposition or appeal or if it is proved that any proceedings for the purpose of contesting the validity of the award are pending;

(e) the enforcement of the award is not contrary to the public policy or the law of India.

Explanation 1: For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,—

(i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or
(ii) it is in contravention with the fundamental policy of Indian law; or
(iii) it is in conflict with the most basic notions of morality or justice.

Explanation 2: For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute.

(2) Even if the conditions laid down in sub-section (1) are fulfilled, enforcement of the award shall be refused if the Court is satisfied that—

(a) the award has been annulled in the country in which it was made;

(b) the party against whom it is sought to use the award was not given notice of the arbitration proceedings in sufficient time to enable him to present his case; or that, being under a legal incapacity, he was not properly represented;

(c) the award does not deal with the differences contemplated by or falling within the terms of the submission to arbitration or that it contains decisions on matters beyond the scope of the submission to arbitration:

Provided that if the award has not covered all the differences submitted to the arbitral tribunal, the Court may, if it thinks fit, postpone such enforcement or grant it subject to such guarantee as the Court may decide.

(3) If the party against whom the award has been made proves that under the law governing the arbitration procedure there is a ground, other than the grounds referred to in clauses (a) and (c) of sub-section (1) and clauses (b) and (c) of sub-section (2) entitling him to contest the validity of the award, the Court may, if it thinks fit, either refuse enforcement of the award or adjourn the consideration thereof, giving such party a reasonable time within which to have the award annulled by the competent tribunal.

58. Enforcement of foreign awards.

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.

59. Appealable orders.

(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.

60. Saving.

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.

PART III – CONCILIATION

The new Mediation Act of 2023 has substituted old sections 61 to 81 with just these two sections:—

61. Reference of conciliation in enactments.

(1) Any provision, in any other enactment for the time being in force, providing for resolution of disputes through conciliation in accordance with the provisions of this Act, shall be construed as reference to mediation as provided under the Mediation Act, 2023.

(2) Conciliation as provided under this Act and the Code of Civil Procedure, 1908, shall be construed as mediation referred to in clause (h) of section 3 of the Mediation Act, 2023.

62. Saving.

Notwithstanding anything contained in section 61, any conciliation proceeding initiated in pursuance of sections 61 to 81 of this Act as in force before the commencement of the Mediation Act, 2023, shall be continued as such, as if the Mediation Act, 2023, had not been enacted.

PART IV – SUPPLEMENTARY PROVISIONS

82. Power of High Court to make rules.

The High Court may make rules consistent with this Act as to all proceedings before the Court under this Act.

83. Removal of difficulties.

(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.

84. Power to make rules.

(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.

85. Repeal and savings.

(1) The Arbitration (Protocol and Convention) Act, 1937, the Arbitration Act, 1940 and the Foreign Awards (Recognition and Enforcement) Act, 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 been made or issued under this Act.

86. Repeal and saving.

(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.

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 Conciliation (Amendment) Act, 2015;

(b) apply only to arbitral proceedings commenced on or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 and to court proceedings arising out of or in relation to such arbitral proceedings.

THE FIRST SCHEDULE

(See section 44)
CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS

Article I

1. This Convention shall apply to the recognition and enforcement of arbitral awards made in the territory of a State other than the State where the recognition and enforcement of such awards are sought, and arising out of differences between persons, whether physical or legal. It shall also apply to arbitral awards not considered as domestic awards in the State where their recognition and enforcement are sought.

2. The term “arbitral awards” shall include not only awards made by arbitrators appointed for each case but also those made by permanent arbitral bodies to which the parties have submitted.

3. When signing, ratifying or acceding to this Convention, or notifying extension under article X hereof, any State may on the basis of reciprocity declare that it will apply the Convention to the recognition and enforcement of awards made only in the territory of another Contracting State. It may also declare that it will apply the Convention only to differences arising out of legal relationships, whether contractual or not, which are considered as commercial under the national law of the State making such declaration.

Article II

1. Each Contracting State shall recognise an agreement in writing under which the parties undertake to submit to arbitration all or any differences which have arisen or which may arise between them in respect of defined legal relationship, whether contractual or not, concerning a subject-matter capable of settlement by arbitration.

2. The term “agreement in writing” shall include an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange of letters or telegrams.

3. The court of a Contracting State, when seized of an action in a matter in respect of which the parties have made an agreement within the meaning of this article, shall, at the request of one of the parties, refer the parties to arbitration, unless in finds that the said agreement is null and void, inoperative of incapable of being performed.

Article III

Each Contracting State shall recognize arbitral awards as binding and enforce them in accordance with the rules of procedure of the territory where the award is relied upon, under the conditions laid down in the following articles. There shall not be imposed substantially more onerous conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are imposed on the recognition or enforcement of domestic arbitral awards.

Article IV

1. To obtain the recognition and enforcement mentioned in the preceding article, the party applying for recognition and enforcement shall, at the time of the application, supply—

(a) the duly authenticated original award or a duly certified copy thereof;

(b) the original agreement referred to in article II or a duly certified copy thereof.

2. If the said award or agreement is not made in an official language of the country in which the award is relied upon, the party applying for recognition and enforcement of the award shall produce a translation of these documents into such language. The translation shall be certified by an official or sworn translator or by a diplomatic or consular agent.

Article V

1. Recognition and enforcement of the award may be refused, at the request of the party against whom it is invoked, only if that party furnishes to the competent authority where the recognition and enforcement is sought, proof that—

(a) the parties to the agreement referred to in article II 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 arbitration proceedings or was otherwise unable to present his case; or

(c) the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the scope of the submission to arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of the award which contains decisions on matters submitted to arbitration may be recognised and enforced; or

(d) the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in accordance with the law of the country where the arbitration took place; or

(e) the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which, that award was made.

2. Recognition and enforcement of an arbitral award may also be refused if the competent authority in the country where recognition and enforcement is sought finds that—

(a) the subject-matter of the difference is not capable of settlement by arbitration under the law of that country; or

(b) the recognition or enforcement of the award would be contrary to the public policy of that country.

Article VI

If an application for the setting aside or suspension of the award has been made to a competent authority referred to in article V(1)(e), the authority before which the award is sought to be relied upon may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to give suitable security.

Article VII

1. The provisions of the present Convention shall not affect the validity of multilateral or bilateral agreements concerning the recognition and enforcement of arbitral awards entered into by the Contracting States nor deprive any interested party of any right the may have to avail himself of an arbitral award in the manner and to the extent allowed by the law or the treaties of the country where such award is sought to be relied upon.

2. The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the Execution of Foreign Arbitral Awards of 1927 shall cease to have effect between Contracting States on their becoming bound and to the extent that they become bound by this Convention.

Article VIII

1. This Convention shall be open until 31st December, 1958 for signature on behalf of any Member of the United Nations and also on behalf of any other State which is or hereafter becomes member of any specialised agency of the United Nations, or which is or hereafter becomes a party to the Statute of the International Court of Justice, or any other State to which an invitation has been addressed by the General Assembly of the United Nations.

2. This Convention shall be ratified and the instrument of ratification shall be deposited with the Secretary-General of the United Nations.

Article IX

1. This Convention shall be open for accession to all States referred to in Article VIII. 2. Accession shall be effected by the deposit of an instrument of accession with the Secretary-General of the United Nations.

Article X

1. Any State may, at the time of signature, ratification or accession, declare that this Convention shall extend to all or any of the territories for the international relations of which it is responsible. Such a declaration shall take effect when the Convention enters into force for the State concerned.

2. At any time thereafter any such extension shall be made by notification addressed to the Secretary-General of the United Nations and shall take effect as from the ninetieth day after the day of receipt by the Secretary-General of the United Nations of this notification, or as from the date of entry into force of the Convention for the State concerned, whichever is the later.

3. With respect to those territories to which this Convention is not extended at the time of signature, ratification or accession, each State concerned shall consider the possibility of taking the necessary steps in order to extend the application of this Convention to such territories, subject, where necessary for constitutional reasons, to the consent of the Governments of such territories.

Article XI

In the case of a federal or non-unitary State, the following provisions shall apply:—

(a) with respect of those articles of this Convention that come within the legislative jurisdiction of the federal authority, the obligations of the federal Government shall to this extent be the same as those of Contracting States which are not federal States;

(b) with respect to those articles of this Convention that come within the legislative jurisdiction of constituent States or provinces which are not, under the constitutional system of the federation, bound to take legislative action, the federal Government shall bring such articles with a favourable recommendation to the notice of the appropriate authorities of constituent States or provinces at the earliest possible moment;

(c) a federal State Party to this Convention shall, at the request of any other Contracting State transmitted through the Secretary-General of the United Nations, supply a statement of the law and practice of the federation and its constituent units in regard to any particular provision of this Convention, showing the extent to which effect has been given to that provision by legislative or other action.

Article XII

1. This Convention shall come into force on the ninetieth day following the date of deposit of the third instrument of ratification or accession.

2. For each State ratifying or acceding to this Convention after the deposit of the third instrument of ratification or accession, this Convention shall enter into force on the ninetieth day after deposit by such State of its instrument of ratification or accession.

Article XIII

1. Any Contracting State may denounce this Convention by a written notification to the Secretary-General of the United Nations. Denunciation shall take effect one year after the date of receipt of the notification by the Secretary-General.

2. Any State which has made a declaration or notification under Article X may, at any time thereafter, by notification to the Secretary-General of the United Nations, declare that this Convention shall cease to extend to the territory concerned one year after the date of the receipt of the notification by the Secretary-General.

3. This Convention shall continue to be applicable to arbitral awards in respect of which recognition or enforcement proceedings have been instituted before the denunciation takes effect.

Article XIV

A Contracting State shall not be entitled to avail itself of the present Convention against other Contracting States except to the extent that it is itself bound to apply the Convention.

Article XV

The Secretary-General of the United Nations shall notify the States contemplated in Article VIII of the following—

(a) signatures and ratifications in accordance with Article VIII;

(b) accessions in accordance with Article IX;

(c) declarations and notifications under Articles I, X and XI;

(d) the date upon which this Convention enters into force in accordance with Article XII;

(e) denunciations and notifications in accordance with Article XIII.

Article XVI

1. This Convention, of which the Chinese, English, French, Russian and Spanish texts shall be equally authentic, shall be deposited in the archives of the United Nations.

2. The Secretary-General of the United Nations shall transmit a certified copy of this Convention to the States contemplated in Article XIII.

THE SECOND SCHEDULE

(See section 53)

PROTOCOL ON ARBITRATION CLAUSES

The undersigned, being duly authorised, declare that they accept, on behalf of the countries which they represent, the following provisions:—

1. Each of the Contracting States recognises the validity of an agreement whether relating to existing or future differences between parties subject respectively to the jurisdiction of different Contracting States by which the parties to a contract agree to submit to arbitration all or any differences that may arise in connection with such contract relating to commercial matters or to any other matter capable of settlement by arbitration, whether or not the arbitration is to take place in a country to whose jurisdiction none of the parties is subject.

Each Contracting State reserves the right to limit the obligation mentioned above to contracts which are considered as commercial under its national law. Any Contracting State which avails itself of this right will notify the Secretary-General of the League of Nations in order that the other Contracting States may be so informed.

2. The arbitral procedure, including the constitution of the Arbitral Tribunal, shall be governed by the will of the parties and by the law of the country in whose territory the arbitration takes place.

The Contracting States agree to facilitate all steps in the procedure which require to be taken in their own territories, in accordance with the provisions of their law governing arbitral procedure applicable to existing differences.

3. Each Contracting State undertakes to ensure the execution by its authorities and in accordance with the provisions of its national laws of arbitral awards made in its own territory under the preceding articles.

4. The Tribunals of the Contracting Parties, on being seized of a dispute regarding a contract made between persons to whom Article I applies and including an Arbitration Agreement whether referring to present or future differences which is valid in virtue of the said article and capable of being carried into effect, shall refer the parties on the application of either of them to the decision of the Arbitrators.

Such reference shall not prejudice the competence of the judicial tribunals in case the agreement or the arbitration cannot proceed or becomes inoperative.

5. The present Protocol, which shall remain open for signature by all States, shall be ratified. The ratification shall be deposited as soon as possible with the Secretary-General of the League of Nations, who shall notify such deposit to all the Signatory States.

6. The present Protocol will come into force as soon as two ratifications have been deposited. Thereafter it will take effect, in the case of each Contracting State, one month after the notification by the Secretary-General of the deposit of its ratification.

7. The present Protocol may be denounced by any Contracting State on giving one year’s notice. Denunciation shall be effected by a notification addressed to the Secretary-General of the League, who will immediately transmit copies of such notification to all the other Signatory States and inform them of the date on which it was received. The denunciation shall take effect one year after the date on which it was notified to the Secretary-General, and shall operate only in respect of the notifying State.

8. The Contracting States may declare that their acceptance of the present Protocol does not include any or all of the under mentioned territories: that is to say, their colonies, overseas possessions or territories, protectorates or the territories over which they exercise a mandate.

The said States may subsequently adhere separately on behalf of any territory thus excluded. The Secretary-General of the League of Nations shall be informed as soon as possible of such adhesions. He shall notify such adhesions to all Signatory States. They will take effect one month after the notification by the Secretary-General to all Signatory States.

The Contracting States may also denounce the Protocol separately on behalf of any of the territories referred to above. Article 7applies to such denunciation.

THE THIRD SCHEDULE

(See section 53)

CONVENTION ON THE EXECUTION OF FOREIGN ARBITRAL AWARDS

Article 1

(1) In the territories of any High Contracting Party to which the present Convention applies, an arbitral award made in pursuance of an agreement whether relating to existing or future differences (hereinafter called “a submission to arbitration”) covered by the Protocol on Arbitration Clauses opened at Geneva on September 24th,1923, shall be recognised as binding and shall be enforced in accordance with the rules of the procedure of the territory where the award is relied upon, provided that the said award has been made in a territory of one of the High Contracting Parties to which the present Convention applies and between persons who are subject to the jurisdiction of one of the High Contracting Parties.

(2) To obtain such recognition or enforcement, it shall, further, be necessary—

(a) that the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto;

(b) that the subject-matter of the award is capable of settlement by arbitration under the law of the country in which the award is sought to be relied upon;

(c) that 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) that the award has become final in the country in which it has been made, in the sense that it will not be considered as such if it is open to opposition, appeal or pourvoi en cassation (in the countries where such forms of procedure exist) or if it is proved that any proceedings for the purpose of contesting the validity of the award are pending;

(e) that the recognition or enforcement of the award is not contrary to the public policy or to the principles of the law of the country in which it is sought to be relied upon.

Article 2

Even if the conditions laid down in Article 1 hereof are fulfilled, recognition and enforcement of the award shall be refused if the Court is satisfied—

(a) that the award has been annulled in the country in which it was made;

(b) that the party against whom it is sought to use the award was not given notice of the arbitration proceedings in sufficient time to enable him to present his case; or that, being under a legal incapacity, he was not properly represented;

(c) that the award does not deal with the differences contemplated by or falling within the terms of the submission to arbitration or that it contains decisions on matters beyond the scope of the submission to arbitration.

If the award has not covered all the questions submitted to the arbitral tribunal, the competent authority of the country where recognition or enforcement of the award is sought can, if it thinks fit, postpone such recognition or enforcement or grant it subject to such guarantee as that authority may decide.

Article 3

If the party against whom the award has been made proves that, under the law governing the arbitration procedure, there is aground, other than the grounds referred to in Article 1(a) and (c), and Article 2(b) and (c), entitling him to contest the validity of the award in a Court of Law, the Court may, if it thinks fit, either refuse recognition or enforcement of the award or adjourn the consideration thereof, giving such party a reasonable time within which to have the award annulled by the competent tribunal.

Article 4

The party relying upon an award or claiming its enforcement must supply, in particular—

(1) the original award or a copy thereof duly authenticated, according to the requirements of the law of the country in which it was made;

(2) documentary or other evidence to prove that the award has become final, in the sense defined in Article 1(d), in the country in which it was made;

(3) when necessary, documentary or other evidence to prove that the conditions laid down in Article 1, paragraph (1) and paragraph (2) (a) and (c), have been fulfilled.

A translation of the award and of the other documents mentioned in this Article into the official language of the country where the award is sought to be relied upon may be demanded. Such translations must be certified correct by a diplomatic or consular agent of the country to which the party who seeks to rely upon the award belongs or by a sworn translator of the country where the award is sought to be relied upon.

Article 5

The provisions of the above Articles shall not deprive any interested party of the right of availing himself of an arbitral award in the manner and to the extent allowed by the law or the treaties of the country where such award is sought to be relied upon.

Article 6

The present Convention applies only to arbitral awards made after the coming into force of the Protocol on Arbitration Clauses opened at Geneva on September 24th, 1923.

Article 7

The present Convention, which will remain open to the signature of all the signatories of the Protocol of 1923 on Arbitration Clauses, shall have been ratified.

It may be ratified only on behalf of those Members of the League of Nations and Non-Member States on whose behalf the Protocol of 1923 shall have been ratified.

Ratification shall be deposited as soon as possible with the Secretary-General of the League of Nations, who will notify such deposit to all the signatories.

Article 8

The present Convention shall come into force three months after it shall have been ratified on behalf of two High Contracting Parties. Thereafter, it shall take effect, in the case of each High Contracting Party, three months after the deposit of the ratification on its behalf with the Secretary-General of the League of Nations.

Article 9

The present Convention may be denounced on behalf of any Member of the League or Non-Member State. Denunciation shall be notified in writing to the Secretary-General of the League of Nations, who will immediately send a copy thereof, certified to be inconformity with the notifications, to all the other Contracting Parties, at the same time informing them of the date on which he received it.

The denunciation shall come into force only in respect of the High Contracting Party which shall have notified it and one year after such notification shall have reached the Secretary-General of the League of Nations.

The denunciation of the Protocol on Arbitration Clauses shall entail, ipso facto, the denunciation of the present Convention.

Article 10

The present Convention does not apply to the colonies, protectorates or territories under suzerainty or mandate of any High Contracting Party unless they are specially mentioned.

The application of this Convention to one or more of such colonies, protectorates or territories to which the Protocol on Arbitration Clauses opened at Geneva on September 24th, 1923, applies, can be effected at any time by means of a declaration addressed to the Secretary-General of the League of Nations by one of the High Contracting Parties.

Such declaration shall take effect three months after the deposit thereof.

The High Contracting Parties can at any time denounce the Convention for all or any of the colonies, protectorates or territories referred to above. Article 9 hereof applied to such denunciation.

Article 11

A certified copy of the present Convention shall be transmitted by the Secretary-General of the League of Nations of every Member of the League of Nations and to every Non-Member State which signs the same.

THE FOURTH SCHEDULE

[See section 11(14)]

Sum in dispute — Model fee

• Up to Rs. 5,00,000 — Rs. 45,000
• Above Rs. 5,00,000 and up to Rs. 20,00,000 — Rs. 45,000 plus 3.5 per cent. of the claim amount over and above Rs. 5,00,000
• Above Rs. 20,00,000 and up to Rs. 1,00,00,000 — Rs. 97,500 plus 3 per cent. of the claim amount
  over and above Rs. 20,00,000
• Above Rs. 1,00,00,000 and up to Rs. 10,00,00,000 — Rs. 3,37,500 plus 1 per cent. of the claim amount
  over and above Rs. 1,00,00,000
• Above Rs. 10,00,00,000 and up to Rs. 20,00,00,000 — Rs. 12,37,500 plus 0.75 per cent. of the claim amount over and above Rs. 1,00,00,000
• Above Rs. 20,00,00,000 — Rs. 19,87,500 plus 0.5 per cent. of the claim amount over and above Rs. 20,00,00,000 with a ceiling of Rs. 30,00,000

Note: In the event, the arbitral tribunal is a sole arbitrator, he shall be entitled to an additional amount of twenty-five per cent. on the fee payable as per the table set out above.

THE FIFTH SCHEDULE

[See section 12(1)(b)]

The following grounds give rise to justifiable doubts as to the independence or impartiality of arbitrators:

Arbitrator’s relationship with the parties or counsel

1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party.

2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties.

3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties.

4. The arbitrator is a lawyer in the same law firm which is representing one of the parties.

5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration.

6. The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself.

7. The arbitrator’s law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties.

8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant financial income therefrom.

9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the persons in the management and controlling the company.

10. A close family member of the arbitrator has a significant financial interest in one of the parties or an affiliate of one of the parties.

11. The arbitrator is a legal representative of an entity that is a party in the arbitration.

12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties.

13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case.

14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom.

Relationship of the arbitrator to the dispute

15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties.

16. The arbitrator has previous involvement in the case.

Arbitrator’s direct or indirect interest in the dispute

17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held.

18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute.

19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute.

Previous services for one of the parties or other involvement in the case

20. The arbitrator has within the past three years served as counsel for one of the parties or an affiliate of one of the parties or has previously advised or been consulted by the party or an affiliate of the party making the appointment in an unrelated matter, but the arbitrator and the party or the affiliate of the party have no ongoing relationship.

21. The arbitrator has within the past three years served as counsel against one of the parties or an affiliate of one of the parties in an unrelated matter.

22. The arbitrator has within the past three years been appointed as arbitrator on two or more occasions by one of the parties or an affiliate of one of the parties.

23. The arbitrator’s law firm has within the past three years acted for one of the parties or an affiliate of one of the parties in an unrelated matter without the involvement of the arbitrator.

24. The arbitrator currently serves, or has served within the past three years, as arbitrator in another arbitration on a related issue involving one of the parties or an affiliate of one of the parties.

Relationship between an arbitrator and another arbitrator or counsel

25. The arbitrator and another arbitrator are lawyers in the same law firm.

26. The arbitrator was within the past three years a partner of, or otherwise affiliated with, another arbitrator or any of the counsel in the same arbitration.

27. A lawyer in the arbitrator’s law firm is an arbitrator in another dispute involving the same party or parties or an affiliate of one of the parties.

28. A close family member of the arbitrator is a partner or employee of the law firm representing one of the parties, but is not assisting with the dispute.

29. The arbitrator has within the past three years received more than three appointments by the same counsel or the same law firm.

Relationship between arbitrator and party and others involved in the arbitration

30. The arbitrator’s law firm is currently acting adverse to one of the parties or an affiliate of one of the parties.

31. The arbitrator had been associated within the past three years with a party or an affiliate of one of the parties in a professional capacity, such as a former employee or partner.

Other circumstances

32. The arbitrator holds shares, either directly or indirectly, which by reason of number or denomination constitute a material holding in one of the parties or an affiliate of one of the parties that is publicly listed.

33. The arbitrator holds a position in an arbitration institution with appointing authority over the dispute.

34. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties, where the affiliate is not directly involved in the matters in dispute in the arbitration.

Explanation 1: The term “close family member” refers to a spouse, sibling, child, parent or life partner.

Explanation 2: The term “affiliate” encompasses all companies in one group of companies including the parent company.

Explanation 3: For the removal of doubts, it is clarified that it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above.

THE SIXTH SCHEDULE

[See section 12(1)(b)]

• NAME:
• CONTACT DETAILS:
• PRIOR EXPERIENCE (INCLUDING EXPERIENCE WITH ARBITRATIONS):
• NUMBER OF ONGOING ARBITRATIONS:
• CIRCUMSTANCES DISCLOSING ANY PAST OR PRESENT RELATIONSHIP WITH ORINTEREST IN ANY OF THE PARTIES OR IN RELATION TO THE SUBJECT-MATTER INDISPUTE, WHETHER FINANCIAL, BUSINESS, PROFESSIONAL OR OTHER KIND, WHICH IS LIKELY TO GIVE RISE TO JUSTIFIABLE DOUBTS AS TO YOURINDEPENDENCE OR IMPARTIALITY (LIST OUT):
• CIRCUMSTANCES WHICH ARE LIKELY TO AFFECT YOUR ABILITY TO DEVOTE SUFFICIENT TIME TO THE ARBITRATION AND IN PARTICULAR YOUR ABILITY TO FINISH THE ENTIRE ARBITRATION WITHIN TWELVE MONTHS (LIST OUT):

THE SEVENTH SCHEDULE

[See section 12(5)]

Arbitrator’s relationship with the parties or counsel

1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party.

2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties.

3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties.

4. The arbitrator is a lawyer in the same law firm which is representing one of the parties.

5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration.

6. The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself.

7. The arbitrator’s law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties.

8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant financial income therefrom.

9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the persons in the management and controlling the company.

10. A close family member of the arbitrator has a significant financial interest in one of the parties or an affiliate of one of the parties.

11. The arbitrator is a legal representative of an entity that is a party in the arbitration.

12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties.

13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case.

14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom.

Relationship of the arbitrator to the dispute

15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties.

16. The arbitrator has previous involvement in the case.

Arbitrator’s direct or indirect interest in the dispute

17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held.

18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute.

19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute.

Explanation 1: The term “close family member” refers to a spouse, sibling, child, parent or life partner.

Explanation 2: The term “affiliate” encompasses all companies in one group of companies including the parent company.

Explanation 3: For the removal of doubts, it is clarified that it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above.

THE EIGHTH SCHEDULE

Omitted by the Arbitration and Conciliation (Amendment) Act, 2021 (3 of 2021), s. 4 (w.e.f. 4-11-2020).

APPENDIX

EXTRACTS FROM THE ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2015 (3 OF 2016)

1. Short title and commencement.

(1) This Act may be called the Arbitration and Conciliation (Amendment) Act, 2015.

(2) It shall be deemed to have come into force on the 23rd October, 2015.

26. Act not to apply to pending arbitral proceedings.

Nothing contained in this Act shall apply to the arbitral proceedings commenced, in accordance with the provisions of section 21 of the principal Act, before the commencement of this Act unless the parties otherwise agree but this Act shall apply in relation to arbitral proceedings commenced on or after the date of commencement of this Act.

27. Repeal and savings.

(1) The Arbitration and Conciliation (Amendment) Ordinance, 2015, is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.

Arbitration and Conciliation Act, 1996 Updated Bare Act
WritingLaw

Arbitration is a widely used method for resolving disputes outside the traditional court system. The authority and jurisdiction vested in the arbitral tribunal are central to the effectiveness of arbitration.

Understanding the powers and jurisdiction of this tribunal is crucial for both parties involved in arbitration proceedings. Whether you are a party to an arbitration agreement or simply interested in the arbitration process, a comprehensive understanding of the arbitral tribunal’s powers and jurisdiction is essential for navigating the complex terrain of dispute resolution through arbitration.

In the article, we will tell you about the key aspects of the arbitral tribunal’s authority, its jurisdictional boundaries, and its pivotal role in rendering decisions that bind the parties.

Key Features

An arbitral tribunal is a fundamental component of the arbitration process, serving as the decision-making body responsible for resolving disputes between parties in a private and alternative manner. Here are ten key features of an arbitral tribunal.

1. Impartiality and Neutrality

Arbitrators must be impartial and neutral. They should not have any bias or conflicts of interest that could affect their judgment. Parties typically select arbitrators with expertise in the dispute’s subject matter.

2. Party Appointment

Arbitrators are often chosen by the parties or through an agreed-upon selection process. This gives the parties some control over who will decide their dispute.

3. Limited Number

Arbitration typically involves a panel of one or three arbitrators, although other configurations are possible. The number of arbitrators is usually specified in the arbitration agreement.

4. Expertise

Arbitrators are often selected based on their expertise in the relevant field, such as commercial law, construction, or international trade. This expertise helps ensure that the arbitrators understand the technical and legal aspects of the dispute.

5. Decision-Making Authority

The arbitral tribunal can make decisions and render awards on the disputes the parties submit. This authority includes determining the scope of the dispute, the applicable rules and procedures, and the final resolution of the matter.

6. Flexibility

Arbitrators can conduct proceedings that suit the parties and the nature of the dispute. This flexibility is one of the advantages of arbitration over traditional litigation.

7. Confidentiality

Arbitrators often maintain confidentiality regarding the proceedings and awards, as agreed upon by the parties. This confidentiality can be crucial, especially in commercial and sensitive disputes.

8. Adjudication

Arbitrators act as quasi-judicial authorities, listening to the arguments and evidence presented by the parties, issuing rulings, and ultimately rendering an award. Their role is similar to that of a judge in a court proceeding.

9. Enforcement

Arbitral awards are generally enforceable in accordance with international conventions, such as the New York Convention. This means that parties can seek the enforcement of an award in multiple countries.

10. Finality

Arbitral awards are usually final and binding on the parties, with limited grounds for challenging them. This finality contributes to the efficiency of the arbitration process.

Overall, the arbitral tribunal plays a crucial role in the arbitration process by providing a forum for resolving disputes tailored to the parties’ needs, efficient, and often more cost-effective than traditional litigation. Its impartiality, expertise, and decision-making authority are essential features that ensure fairness and effectiveness in dispute resolution.

Jurisdiction of Arbitral Tribunal

The jurisdictional boundaries of an arbitral tribunal are crucial to understanding the limits of its authority in arbitration proceedings. Here are five key aspects of the jurisdictional boundaries of an arbitral tribunal.

1. Agreement-Based Jurisdiction

The primary source of an arbitral tribunal’s jurisdiction is the parties’ agreement. Arbitration can only proceed if the parties have a valid and enforceable arbitration agreement or clause in their contract. The tribunal’s authority is limited to the scope of this agreement.

2. Subject Matter Jurisdiction

The arbitral tribunal’s jurisdiction extends only to disputes that fall within the scope of the arbitration agreement. If a dispute does not relate to matters covered by the agreement, the tribunal lacks jurisdiction to arbitrate that issue.

3. Temporal Jurisdiction

The temporal jurisdiction of a tribunal relates to the time frame in which it can consider disputes. It typically extends to disputes that arise during the term of the underlying contract or during a specified period as defined in the arbitration agreement.

4. Personal Jurisdiction

The tribunal’s jurisdiction is often limited to the parties named in the arbitration agreement. In some cases, it may extend to third parties if they are explicitly mentioned in the agreement or if they consent to arbitration.

5. Territorial Jurisdiction

The arbitration agreement determines the geographical scope of the tribunal’s jurisdiction. Depending on the parties ‘ preferences, it can be limited to a specific jurisdiction or extend internationally.

Pivotal Role Played by an Arbitral Tribunal in Rendering Decisions That Bind the Parties

The pivotal role played by an arbitral tribunal in rendering decisions that bind the parties cannot be overstated. Here’s an elaboration on this crucial aspect.

1. Impartial Decision-Making

The arbitral tribunal is an impartial and neutral body that resolves disputes between parties. Its decisions are based on thoroughly examining the evidence, arguments, and applicable law. This impartiality ensures fairness in the decision-making process.

2. Binding Awards

When the arbitral tribunal decides, it issues an award. This award is a legally binding document that outlines the tribunal’s findings, determinations, and any remedies or damages awarded to the parties. Parties are obligated to comply with the terms of the award, as agreed upon in the arbitration agreement.

3. Enforceability

One of the key strengths of arbitration is the enforceability of arbitral awards. Awards rendered by an arbitral tribunal can be enforced in accordance with international conventions, such as the New York Convention. This means that parties cannot easily evade their obligations, as the award can be enforced like a court judgment in multiple jurisdictions.

4. Finality

Arbitral awards are typically considered final and conclusive. Once issued, they bring closure to the dispute, allowing parties to move forward with certainty. The finality of awards is a significant advantage over lengthy court litigation, which can involve multiple appeals.

5. Expertise and Specialization

Arbitral tribunals are often composed of experts in the relevant field or industry, ensuring that decisions are well-informed and based on specialized knowledge. This expertise enhances the quality of the decisions and contributes to their credibility.

Powers and Jurisdictions of Arbitral Tribunals
Suhani Dhariwal

Arbitration is a process of determining disputes between parties without going to court.

The testimony and evidence presented by the disputing parties are reviewed by an arbitrator, who then makes a decision that may include a monetary award.

Like a judge in a court case, an arbitrator acts as the decision-maker and referee in an arbitration proceeding. An arbitrator is an impartial, disinterested third person who decides the dispute between the conflicting parties on their will.

Appointment of Arbitrator

According to the Arbitration and Conciliation Act of 1996, the parties can choose an arbitrator together. Further, according to the same Act, the parties are entitled to select the number of arbitrators, but they must ensure that it is not an even number. However, there can also be a sole arbitrator in case of failure to do this.

Section 11 of the Arbitration and Conciliation Act outlines the process for appointing an arbitrator(s). Accordingly, unless specifically stated by the parties, any individual of any nationality can serve as an arbitrator.

The section mentioned above also discusses the circumstances in which the parties or the two arbitrators (in the case of a tribunal with three arbitrators) cannot mutually agree upon appointing an arbitrator. In such a situation, if the matter involves international commercial arbitration, the Supreme Court or any individual or organization authorized by such Court can appoint the arbitrator at the request of a party. In domestic arbitration, the High Court or any individual or organization chosen by that court appoints the arbitrator.

Further, if arbitral institutions are unavailable in any case, the Chief Justice of the High Court in question may maintain a panel of arbitrators available to carry out the duties of the arbitral institutions. A decision on an application for the appointment of an arbitrator must be made within 30 days.

Functions of Arbitrator

The role of an arbitrator in arbitration is similar to that of a judge in a lawsuit. The arbitrator plays the role of a private judge. The principal responsibilities of the arbitrators include:

1. Interpreting and putting into practice the applicable laws and norms for arbitration
2. Presiding over the arbitration proceeding during which testimony of both parties is presented
3. Properly examining the testimonials and supporting evidence
4. Deciding to resolve the conflict
5. Managing the investigation’s scope to ensure that every piece of evidence and every witness has been thoroughly examined

The arbitrator must be fair and objective and should reveal every piece of information the parties must be aware of before the proceedings start.

Powers of the Arbitrator

Along with the responsibilities, the Arbitration and Conciliation Act gives the arbitrator certain powers to help them decide a dispute and deliver the award. These powers include the following:

1. Power to Administer an Oath to the Parties and Witnesses

The arbitrators have the authority to put all witnesses and the parties under oath. They may also issue interrogatories to the parties. The arbitrator performs this duty since they serve in a quasi-judicial capacity.

2. Power to Take Interim Measures

The arbitrators can take an interim measure when a party to the dispute approaches the tribunal. The arbitral tribunal may impose interim measures such as appointing a guardian for a juvenile or mentally unable person for arbitration, securing the amount in dispute in the arbitration, or such other interim measures as the arbitrator(s) may consider appropriate and effective.

3. Power to Appoint an Expert

If the arbitral tribunal thinks it is essential in any situation, he may appoint one or more experts to help him with a particular subject. He can also provide the experts with relevant data, documents, or objects for inspection and appoint the expert as a witness in a hearing if necessary.

4. Power to Proceed Ex-Parte

The arbitration tribunal has the power to proceed ex parte (an order which is given in the absence of one of the parties caused on their own will) in the following conditions:

• In cases where the claimant fails to submit or communicate their statements under section 23 of the Arbitration and Conciliation Act, 1996.
• In cases where the respondent fails to submit or communicate their statements under section 23 of the Arbitration and Conciliation Act, 1996.
• In cases where one or more disputing parties fail to attend an oral hearing or provide the document or other type of documentary evidence that the tribunal has requested.

5. Power to Make Awards

An arbitral award is identical to a judicial decision or judgment of the court. Declaring an arbitral judgment is not simply a power granted to arbitral tribunals. It is also a duty on their part to consider all the relevant evidence before making a decision.

Removal of Arbitrator

Section 12(3) of the Arbitration and Conciliation Act mentions the provisions for removing arbitrators. Following section 12(3), removal proceedings can be brought against an arbitrator if it seems that they are linked to one of the parties or have a personal stake in the outcome of the dispute, making it impossible for them to act impartially throughout the proceedings.

An arbitrator may also leave the case midway if certain unique circumstances prevent him from acting in accordance with the needs of the case, and a new arbitrator is then appointed. An arbitrator can also be dismissed if they engage in misconduct during the arbitration.

Grounds for Challenging the Appointment of the Arbitrator

An appointment of an arbitrator can only be questioned under the following two conditions:

1. Circumstances exist that give rise to justified suspicions about his independence or impartiality, or
2. He lacks the qualifications recognized by the parties.

Let me explain both conditions.

1. Non-Disclosure of Certain Circumstances

Before being appointed as an arbitrator, a prospective arbitrator must inform the parties to the dispute in writing of any circumstances likely to give rise to reasonable doubts about his impartiality or independence. The arbitrator must fulfil this obligation immediately, that is, before assuming his role as arbitrator. And an arbitrator can be contested if he fails to do so.

2. Non-Qualification

Although the Arbitration and Conciliation Act makes no explicit requirements for arbitrators. He must, however, possess specialized knowledge in the subject matter of the dispute at hand. In other words, an arbitrator should be well-versed in the subject area of the dispute. And, if he doesn’t possess the necessary qualifications the parties agreed to, his appointment can be challenged.

Further, any arbitrator who fits into one of the categories listed in the seventh schedule of the Arbitration and Conciliation Act is automatically disqualified, according to new section 12(5), inserted by the amendment in 2015.

The Seventh Schedule of the Arbitration and Conciliation Act includes the following:

1. Relationship of the arbitrator to the conflicting parties
2. Relationship of the arbitrator to the dispute
3. The interest of the arbitrator in the dispute

Conclusion

An arbitrator is a decision-maker in the arbitration proceedings. The parties can mutually choose the number of arbitrators. However, they must ensure that it is not an even number. The arbitrator tribunal will always consist of either an odd number or sole arbitrators.

Furthermore, the arbitrator can be removed on the grounds mentioned in the Arbitration and Conciliation Act.

Appointment, Removal, Functions, and Powers of Arbitrators
Subhashini Parihar

Alternative Dispute Resolution (ADR) refers to a set of processes and techniques used to resolve conflicts and disputes outside the traditional court system.

ADR methods are often faster, less formal, and more flexible than litigation. They aim to help parties reach mutually acceptable solutions to their disputes. It serves several important purposes and offers numerous advantages, making it a valuable and often necessary component of the modern legal system.

Disputes That Can Be Settled by Alternative Dispute Resolution

Alternative Dispute Resolution (ADR) can be used to settle a wide range of disputes in various contexts. While not all disputes are suitable for ADR, many types of conflicts can be resolved using ADR methods. Some common examples of disputes that can be settled through ADR include the following.

1. Contract Disputes

ADR is often used to resolve conflicts arising from business contracts, employment agreements, construction contracts, and more. Mediation and arbitration are common ADR methods for contract disputes.

2. Family Disputes

ADR can be used to address family-related issues, such as divorce and child custody disputes. Mediation is frequently employed to help divorcing couples reach agreements on property division, alimony, and child custody.

3. Employment Disputes

Workplace conflicts, including wrongful termination, workplace harassment, and discrimination cases, can be resolved through ADR methods like mediation and arbitration. Some employment contracts require ADR before pursuing litigation.

4. Business Disputes

ADR is often used in resolving business disputes, including disagreements between partners or shareholders, disputes with suppliers or customers, and conflicts related to mergers and acquisitions.

5. Consumer Disputes

ADR can be employed to settle disputes between consumers and businesses, such as disputes over product warranties, service quality, or billing issues.

6. Real Estate Disputes

Property disputes, landlord-tenant issues, and disagreements over property boundaries can often be resolved through ADR processes, including negotiation and mediation.

7. Intellectual Property Disputes

ADR can be used to settle conflicts related to patents, trademarks, copyrights, and other intellectual property rights. Arbitration is a common method in IP disputes.

8. Environmental and Public Policy Disputes

ADR can be employed to address environmental conflicts, land use disputes, and other public policy issues, often involving multiple stakeholders and government agencies.

9. Personal Injury Claims

ADR methods like mediation or settlement conferences can be used in personal injury cases to reach compensation agreements outside of court.

10. Community and Neighbor Disputes

ADR can be used to resolve conflicts between neighbours, community associations, and local organizations, such as noise complaints, property boundary disputes, and shared resource conflicts.

Benefits of Alternative Dispute Resolution

Alternative Dispute Resolution (ADR) offers several benefits, making it an attractive option for resolving conflicts and disputes. Some of the key advantages of ADR include:

• Cost-effective
• Speedy resolution
• Flexibility
• Preservation of relationships
• Confidentiality
• High success rate
• Reduced court backlogs
• Reduction of stress

Types of Alternative Dispute Resolution

There are several types of Alternative Dispute Resolution (ADR) methods that can be used to resolve disputes and conflicts. The choice of ADR method often depends on the nature of the dispute, the preferences of the parties involved, and any contractual agreements. Here are five common types of ADR.

1. Negotiation

Negotiation is a direct and informal ADR method where the parties involved in the dispute communicate directly to reach a resolution. It’s often the first step in attempting to resolve a dispute and can be used in various contexts, including contract negotiations and settlement discussions.

2. Mediation

In mediation, a neutral third party, known as the mediator, assists the disputing parties in reaching a voluntary and mutually acceptable agreement. The mediator facilitates communication and negotiation but does not make decisions. Mediation is widely used in family disputes, workplace conflicts, and various other contexts.

3. Arbitration

Arbitration is another prevalent ADR method, especially in commercial and contractual disputes. In arbitration, a neutral third party, the arbitrator, listens to the arguments and evidence presented by each side and then makes a binding or non-binding decision, depending on the agreement of the parties. Arbitration can be less formal and more streamlined than a court trial.

4. Online Dispute Resolution (ODR)

ODR utilizes technology to facilitate dispute resolution over the Internet. It can involve various ADR methods, such as online mediation, arbitration, and negotiation. ODR is becoming increasingly common for resolving disputes in online commerce and e-commerce.

5. Early Neutral Evaluation (ENE)

ENE is a process in which a neutral expert evaluates the merits of a case early in the legal proceedings. This evaluation can help the parties understand the strengths and weaknesses of their positions and may encourage settlement.

The choice of which ADR method to use depends on the specific circumstances of the dispute and the preferences of the parties involved. Additionally, many legal systems and contracts may require or encourage the use of ADR before proceeding to court litigation.

10 Types of Disputes That Can Be Settled by ADR
Sravani Ravinuthala

In this article, you will read about International Commercial Arbitration, UNCITRAL Model Law, Arbitration Agreement and steps involved in International Commercial Arbitration.

Introduction

International Commercial Arbitration has been gaining a lot of importance in recent times. With the increase in globalisation, there has been an increase in international trade and commerce. As a result, there have been many disputes that have arisen between parties from different countries. International Commercial Arbitration provides an efficient and effective solution to resolve such disputes.

Arbitration is a form of alternative dispute resolution (ADR) where the parties agree to resolve their dispute through an impartial third party called the arbitrator. In International Commercial Arbitration, the parties to a dispute come from different countries. The arbitration can take place in any country, and the parties can choose any law to govern the arbitration.

International Commercial Arbitration is also a form of alternative dispute resolution (ADR) that involves resolving disputes between parties from different countries through an impartial third party called the arbitrator. It is a private and consensual process that provides an efficient and effective means of resolving international trade and commerce disputes.

India has been one of the leading countries in promoting International Commercial Arbitration. The Indian Arbitration and Conciliation Act, 1996 (the Act) governs arbitration in India. The Act is based on the UNCITRAL Model Law on International Commercial Arbitration, the internationally accepted arbitration standard.

UNCITRAL Model Law

The UNCITRAL Model Law on International Commercial Arbitration is a set of internationally recognised rules that provide a uniform framework for conducting International Commercial Arbitration. It was first adopted by the United Nations Commission on International Trade Law (UNCITRAL) in 1985 and has since been adopted by numerous countries worldwide.

The Model Law is designed to ensure that International Commercial Arbitration is conducted fairly, efficiently, and effectively, and it provides a clear and comprehensive set of rules for the conduct of arbitration proceedings. The Model Law has been instrumental in promoting the use of International Commercial Arbitration to resolve disputes arising from international trade and commerce.

The UNCITRAL Model Law on International Commercial Arbitration consists of four parts.

• Part I of the Model Law sets out the general provisions governing International Commercial Arbitration. This includes provisions on the scope of application of the Model Law, the definition of an arbitration agreement, the composition of the arbitral tribunal, and the procedures for conducting the arbitration.
• Part II of the Model Law deals with recognising and enforcing foreign arbitral awards. This part sets out the procedures for enforcing foreign arbitral awards in the country where they are being enforced and provides guidance on the grounds for refusing the enforcement of a foreign arbitral award.
• Part III of the Model Law deals with the conciliation of international commercial disputes. It guides the procedures for conducting conciliation proceedings, including the appointment of conciliators, the role of the conciliator, and the effect of a settlement agreement reached through conciliation.
• Part IV of the Model Law deals with recognising and enforcing arbitral awards. This part sets out the procedures for enforcing arbitral awards in the country where they were made and in other countries that are signatories to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.

Together, these four parts of the UNCITRAL Model Law provide a comprehensive framework for the conduct of International Commercial Arbitration and conciliation and the recognition and enforcement of arbitral awards. The Model Law has been widely adopted by countries worldwide and is considered one of the most important legal instruments governing international commercial dispute resolution.

Arbitration Agreement Under International Commercial Arbitration

An arbitration agreement is a contract between the parties to a commercial dispute that provides for the resolution of the dispute through arbitration. In International Commercial Arbitration, the agreement must meet certain requirements to be enforceable under the laws of different countries.

Under the UNCITRAL Model Law on International Commercial Arbitration, which has been adopted by many countries, including India, an arbitration agreement must meet the following requirements:

• The agreement must be in writing: The agreement can be in any form, such as a separate agreement or a clause in a larger contract. It must be in writing, including electronic communication, and signed by the parties or contained in an exchange of letters, telexes, telegrams, or other means of communication.
• The agreement must relate to a commercial dispute: The agreement must relate to a dispute arising out of a commercial relationship, which includes any transaction for the supply or exchange of goods or services, distribution agreements, licensing agreements, and other commercial relationships.
• The parties must have intended to submit their dispute to arbitration: The parties must have intended to submit their dispute to arbitration, which can be demonstrated by the inclusion of an arbitration clause in the contract or by an express agreement to arbitrate.
• The arbitration agreement must be valid: The arbitration agreement must be valid under the law applicable to it, which may be the law chosen by the parties or the law of the country where the arbitration takes place.

Legal Framework for Arbitration in India

The Arbitration and Conciliation Act of 1996 sets out the legal framework for arbitration in India.

Section 7 of the Arbitration and Conciliation Act defines an arbitration agreement as an agreement by the parties to submit their disputes to arbitration. Section 7 also requires the agreement to be in writing and may be contained in exchanging letters, telexes, telegrams, or other means of communication.

Section 8 of the Arbitration and Conciliation Act provides for the judicial reference of parties to arbitration in accordance with an arbitration agreement.

Section 11 of the Arbitration and Conciliation Act provides for the appointment of arbitrators in cases where the parties are unable to agree on the appointment of an arbitrator or the appointment procedure.

Overall, an arbitration agreement is a key element in International Commercial Arbitration, as it provides the framework for resolving disputes in a manner that is efficient, flexible, and cost-effective.

Related: Arbitration Council of India – Composition, Functions, and More

Where the Term “International Commercial Arbitration” Is Defined in India?

Section 2(1)(f) of the Indian Arbitration and Conciliation Act of 1996 defines the term “International Commercial Arbitration” and sets out the essential criteria that arbitration must meet to be considered as an International Commercial Arbitration under Indian law. According to this section, arbitration is considered an International Commercial Arbitration if:

• At least one of the parties to the arbitration agreement is a person who is not a citizen of India or is a resident of a foreign country.
• The place of arbitration, as agreed by the parties in the arbitration agreement, is outside India.
• The subject matter of the dispute is commercial.

This definition is important because it determines the applicability of certain provisions of the Arbitration and Conciliation Act. For example, Part II of the Act, which deals with the enforcement of foreign arbitral awards, only applies to International Commercial Arbitrations.

Additionally, the Act provides a separate set of procedures for the conduct of International Commercial Arbitrations, which are designed to ensure that the arbitration is conducted in accordance with international best practices and is efficient, effective, and fair.

Steps Involved in International Commercial Arbitration

International Commercial Arbitration is a widely recognised method for resolving disputes that arise in cross-border commercial transactions. The steps involved in an International Commercial Arbitration proceeding typically include the following:

• Drafting the arbitration agreement: The first step in International Commercial Arbitration is drafting an arbitration agreement, which is a contract between the parties that provides for resolving disputes through arbitration. The agreement should specify the rules that will apply to the arbitration, the language in which the arbitration will be conducted, and the place of arbitration.
• Selection of arbitrators: Once a dispute arises, the parties must select an arbitrator or a panel of arbitrators to hear the case. The selection of arbitrators is typically governed by the rules of the chosen arbitral institution or by the parties’ agreement.
• Preliminary conference: The arbitrator(s) will typically hold a preliminary conference with the parties to discuss procedural matters such as the exchange of evidence, the timetable for the proceedings, and the conduct of the hearing.
• Exchange of evidence: The parties will exchange evidence, including witness statements, expert reports, and documentary evidence.
• Hearing: The arbitration hearing is conducted in accordance with the rules agreed upon by the parties. The hearing may take place in person or by video conference and will typically involve the presentation of evidence and arguments by the parties and witnesses.
• Issuance of the award: Once the hearing is concluded, the arbitrator(s) will deliberate and issue a written award, which is final and binding on the parties. The award will typically include the reasons for the decision and any remedies ordered by the arbitrator(s).
• Enforcement of the award: The final step in International Commercial Arbitration is the enforcement of the award. Suppose the parties are unable to settle. In that case, the successful party may seek to enforce the award in courts where the unsuccessful party has assets in accordance with the relevant laws and conventions.

These steps provide a general overview of the typical process involved in International Commercial Arbitration. However, the specific steps and procedures may vary depending on the rules and procedures agreed upon by the parties or the arbitral institution administering the arbitration.

Advantages of International Commercial Arbitration

The parties involved in International Commercial Arbitration have the freedom to choose the law governing the arbitration, where the arbitration will be held, and the arbitrator deciding the dispute. This flexibility ensures that the parties are governed by a law they are comfortable with and that the arbitrator has the necessary expertise to decide the dispute.

International Commercial Arbitration provides several advantages over traditional litigation in national courts, such as confidentiality, flexibility, and speed. The parties can keep the arbitration proceedings and award confidential, which is particularly important in commercial disputes where they do not want their dispute to become public. The parties can also choose the place of arbitration and the law that will govern the arbitration, which ensures that the arbitration is conducted in a manner that is convenient for the parties and tailored to their specific needs.

International Commercial Arbitration has become an essential tool for resolving international trade and commerce disputes. It provides a means of resolving disputes that is efficient, effective, and flexible, and parties from different countries are increasingly using it to resolve their disputes.

Closing Thoughts

A rapidly expanding economy requires a dependable and consistent conflict resolution mechanism to draw foreign investment. Given the significant number of cases awaiting resolution in Indian courts, domestic and international business entities have developed a firm inclination towards resolving disputes through arbitration.

International Commercial Arbitration has emerged as a preferred method for resolving commercial disputes between parties from different countries. It offers a flexible, efficient, and neutral means of dispute resolution that is often preferred over traditional litigation.

The UNCITRAL Model Law on International Commercial Arbitration provides a widely accepted framework for international arbitration, which many countries, including India, have adopted.

The Arbitration and Conciliation Act of 1996 is a key legislation in India that sets out the legal framework for arbitration. With the growing need for global trade and investment, International Commercial Arbitration’s importance will likely increase in the coming years.

Read Next: Arbitration In Sports in India – Court of Arbitration for Sport (CAS)

International Commercial Arbitration With Respect to India
Suhani Dhariwal

Arbitration is increasingly used in sports to resolve disputes between athletes, teams, and governing bodies. Sports arbitration is a form of alternative dispute resolution often used instead of traditional litigation to resolve disputes in the sports industry.

One of the main advantages of arbitration in sports is that it is a faster and less expensive process than traditional litigation. Arbitration proceedings can be concluded within a few months, whereas court proceedings can take years. Additionally, arbitration allows for more flexibility in scheduling and procedures, which can be especially important in the fast-paced world of sports.

Arbitration can be used in various sports-related disputes, including contract disputes between athletes and teams, disputes between athletes and their national governing bodies, and disputes between teams and their leagues or federations. For example, arbitration can resolve disputes over player transfers, disciplinary actions, and anti-doping violations.

In this article, you will read about the Court of Arbitration for Sport, its functions, the types of cases it handles, and how using arbitration for disputes arising in sports can benefit India.

Court of Arbitration for Sport

The Court of Arbitration for Sport (CAS) is an independent judicial body established to resolve sports-related disputes through arbitration. The CAS was created in 1984 by the International Olympic Committee (IOC) to provide a forum for athletes, teams, and governing bodies to resolve disputes outside of national courts.

The Court of Arbitration for Sport is an independent judicial body established to resolve sports and is based in Lausanne, Switzerland, under Swiss law. It is recognized as the highest court for sports disputes, and its decisions are final and binding.

The CAS has jurisdiction over disputes related to all Olympic sports and many other international sports, including soccer, basketball, and tennis.

The Court of Arbitration for Sport operates through a system of ad hoc arbitration, which means it is convened on a case-by-case basis. Parties can submit disputes to the CAS by agreement, or they may be required to do so by the rules of their sport or their national governing body.

The Court of Arbitration for Sport operates several different procedures for resolving disputes, including full hearings with oral arguments and written submissions, expedited procedures for urgent cases, and appeals from decisions of national governing bodies.

Functions of CAS

The Court of Arbitration for Sport serves several functions to resolve sports-related disputes through arbitration. Here are some of its critical functions:

1. Resolving Disputes

The primary function of the CAS is to resolve sports-related disputes through arbitration. This includes conflicts between athletes, teams, and governing bodies and disputes related to doping, match-fixing, and other sports-related issues.

2. Providing a Neutral Forum

The Court of Arbitration for Sport provides a neutral platform for resolving sports-related disputes outside national courts. CAS contributes to resolving conflicts fairly and unbiasedly, free of bias or interference from national or local interests.

3. Ensuring Consistency

The Court of Arbitration for Sport helps ensure consistency in applying sports rules and regulations across different countries and sports. This is particularly important in international sports, where other governing bodies often have competing rules and regulations.

4. Upholding the Integrity of Sports

The Court of Arbitration for Sport plays a key role in upholding the integrity of sports by enforcing anti-doping regulations and rules related to fair play and sportsmanship.

5. Providing Expertise

The Court of Arbitration for Sport provides expertise in sports law and the unique issues that arise in the sports industry. This expertise helps to ensure that decisions are made with a deep understanding of the specific needs and characteristics of the sports industry.

Types of Cases Handled by CAS

Various types of cases are handled by the Court of Arbitration for Sport, and these cases are briefly explained below.

1. Ordinary Cases

These types of disputes are arbitrated by a panel of three arbitrators, with one arbitrator chosen by each party from the CAS list and the third arbitrator selected by the other two arbitrators. A single arbitrator may resolve the dispute if both parties consent or the CAS approves it.

Arbitrators need to be fair. Swiss law often governs certain circumstances unless the parties voluntarily agree to another law. It usually takes six to nine months from the time the arbitration request is initiated until a decision is made.

2. Appeal Cases

The entire procedure, from submitting the statement of appeal to the verdict, takes only four months. A panel of three arbitrators hears these matters. The case is determined in line with the legislation agreed upon by the parties. If such a decision is not made, the situation will be resolved following the nation’s regulations in which the federation is headquartered. As previously stated, the award is decided by a majority vote or, in the absence of a majority vote, by the President alone.

3. Ad Hoc Division Cases

The ad hoc division (AHD) of the Court of Arbitration for Sport is a special division that is set up for specific international sporting events. It is designed to handle disputes and appeals related to the event. It is typically comprised of a panel of arbitrators selected by the CAS and with expertise in the specific sport or event in question.

The ad hoc division is set up for each major international sporting event, such as the Olympic Games, the World Cup, and the Commonwealth Games. It is designed to provide a quick and efficient means of resolving disputes related to the event and to ensure that the event is conducted fairly and transparently.

Cases handled by the Court of Arbitration for Sport’s ad hoc division can include disputes related to athlete eligibility, doping violations, and disputes over decisions made by event officials. The decisions of the ad hoc division are final and binding and cannot be appealed to any other court or tribunal.

Sports Arbitration in India

Currently, India lacks any specific legislation on sports law, and there is no independent authority to resolve sports-related disputes and issue binding decisions. As professional sports in India become more competitive and the stakes increase, there is an increasing need for alternate dispute resolution methods such as arbitration.

In November 2010, two franchises of the Indian Premier League, Rajasthan Royals and Kings XI Punjab, opted for arbitration with the Board of Control for Cricket in India after being issued termination notices for violating ownership norms. However, while Rajasthan Royals was granted a stay on the termination of their contract with IPL, Justice Srikrishna withdrew from the arbitration proceedings in the Kings XI Punjab case.

The author (I, Suhani) believes India needs a sports dispute resolution panel, similar to the Sports Dispute Resolution Panel (United Kingdom) and the Court of Arbitration for Sport, to provide a simple, independent, and effective mechanism for resolving sports-related disputes.

One possible solution is the creation of the National Arbitration for Sport (NAS), which would offer binding arbitration, non-binding advisory opinions, and mediation services.

For instance, the NAS could resolve disputes between athletes and governing bodies over contractual terms or elite athlete funding agreements. By doing so, the tribunal can ensure that disputes are resolved fairly, speedily, and cost-effectively, allowing athletes to focus on their sport and compete at the highest level.

Conclusion

Sports arbitration is essential to resolving sports-related disputes fairly and impartially. With the increasing professionalization of sports and higher stakes, the need for independent authorities specializing in sports-related disputes is more important than ever.

In India, there is currently no legislation on sports law, and the establishment of a sports dispute resolution panel is needed to provide a simple, independent, and effective mechanism for resolving disputes fairly, quickly, and cost-effectively.

Creating a National Arbitration for Sport (NAS) in India would ensure that sports governing bodies, commercial organizations, and individuals can access a credible and efficient tribunal to resolve disputes.

Such a tribunal could provide binding arbitration, non-binding advisory opinions, and mediation to help parties reach acceptable agreements and ensure that athletes can return to their sports and compete at the highest level.

Read Next:
1. What Are Arbitral Awards Under Arbitration?
2. Arbitration Council of India – Composition, Functions, and More

Arbitration In Sports in India – Court of Arbitration for Sport (CAS)
Suhani Dhariwal

The Indian Arbitration Act of 1940, the Arbitration (Protocol and Convention) Act of 1937, and the Foreign Awards (Recognition and Enforcement) Act of 1961 were the laws that controlled the annulment of domestic awards and the enforcement of foreign awards before the enactment of the Arbitration and Conciliation Act, 1996. The Indian Legislature passed the Arbitration and Conciliation Act, 1961 to put the New York Convention into effect.

This Act was passed in response to the Government of India’s pledge to introduce suitable legislation modifying and reorganising the law under UNCITRAL Model Law and Rules.

In this law note, we will study the concept of foreign awards under ADR and how it differs from domestic awards.

Difference Between Foreign and Domestic Award

To differentiate “international awards” from “foreign awards,” the concept of “domestic awards” has evolved. In the nation where the award is made, a “foreign award” might be viewed as a domestic award. The Act is designed to treat awards made in India and those made outside India differently. All “domestic arbitrations” and “international arbitrations” with a seat in India are subject to Part I of the Arbitration and Conciliation Act.  A “challenge” to an award made under section 34 of the Arbitration and Conciliation Act, 1996 may be filed in the case of a domestic award, but no “challenge” action is intended for an award made abroad.

On the other hand, a foreign award is made in an arbitration hearing held outside of India. The term “foreign award” typically only has meaning when used to refer to a contract that will be enforced outside of its country of origin.

Article V of the New York Convention is analogous (comparable in certain aspects) to section 48 of the Arbitration and Conciliation Act, 1996. A party may object to an application for the implementation of a foreign judgement on the few grounds allowed by section 48 of the Arbitration and Conciliation Act, 1996.

Must Read: What Is Arbitral Award and Where Is It Applicable?

Requirements of a Foreign Award

The requirements that an award must fulfil to be called a foreign award are given below:

1. The arbitral award must be based on the disagreements between the parties resulting from their legal connection, whether or not that relationship is contractual.
2. The arbitral award must be made under a written contract.
3. The arbitral award must be made in accordance with a contract to which the Geneva Convention or New York Convention apply.
4. The prize must be presented in a nation designated by the Central Government as a “convention country.”

If it meets the requirements for a foreign award’s enforcement, it may then be carried out in India.

Enforcement of a Foreign Award

If certain requirements are met after a foreign award has been recognised by Indian law, it may be enforced.

New York Convention

Section 48 of the Arbitration and Conciliation Act, 1996, contains the requirements for enforcing a New York Convention award. These are:

1. Unless the parties to the arbitration agreement were physically or mentally disabled, a foreign award is enforceable.
2. Unless the arbitration agreement is found to be unenforceable under the body of law governing its recognition and enforcement, a foreign award shall be enforceable.
3. Unless the party against whom the award has been rendered can demonstrate that they were not properly informed of the appointment of the arbitrators or the conduct of the arbitration processes, a foreign award will be enforceable. They must be able to demonstrate that the arbitral panel did not provide them with a fair opportunity to submit their case.
4. A foreign award is enforceable unless it resolves a matter/issue unrelated to the one brought before the tribunal. The tribunal must have concluded a matter that was brought before it for consideration.
5. A foreign award would not be voidable unless the way the arbitral tribunal was established or the way the arbitration was handled violated the terms of the parties’ agreement or the rules of the law that was adopted to govern the arbitration.

Geneva Convention

Section 57 of the Arbitration and Conciliation Act, 1996, contains the requirements for enforcing a judgement. A foreign judgement will only be enforceable if:

1. When compared to the law controlling its enforcement and recognition, the arbitration agreement under which the dispute is brought to arbitration has been deemed to be legal.
2. The dispute’s subject matter qualifies for arbitration under Indian law, and as a result of that award, the dispute’s subject matter qualifies as such.
3. The tribunal was established, and the procedures were handled in a way that was consistent with the terms of the parties’ agreement or with the law that was selected to regulate the arbitration.
4. The award has reached finality, which means it can no longer be contested as to its legitimacy.
5. The award’s enforcement won’t conflict with Indian public policy.

Conclusion

The new Act’s (Arbitration and Conciliation Act, 1996) structure is founded on the idea that “it will provide an efficient and speedy way of dispute settlement for both the domestic as well as the international investors.” The statement made by Sir LJ Earl Warren that “the spirit of the law, not its structure, keeps the justice alive” is appropriate. Even while there have been decisions that have agitated the arbitration’s tranquil waters, the overall effort “should be to preserve the spirit underlying the Act, which is precisely the purpose of the new amendment Act”.

Read Next:
1. Arbitration Council of India – Composition, Functions, and More
2. Meaning, Objects, and Essentials of Arbitration Agreement
3. Concept of Conciliation Under ADR – Arbitration and Conciliation Act, 1996

What Is a Foreign Award and Its Enforcement in India?
Anushka Saxena

When two parties sign an arbitration agreement according to section 7 of the Arbitration and Conciliation Act, 1996, both parties are bound by the terms of the agreement. If a disagreement occurs in the future and the parties choose arbitration, the arbitrator’s decision will be final and binding on both parties.

However, there are situations where either one party or both parties are unhappy with the decision. The Arbitration and the Conciliation Act offers a remedy in such a case. The parties have the choice to address their concerns in such situations. Section 34 of the Arbitration and Conciliation Act specifies a few justifications whereby the parties can request the annulment of an award. Further, section 37 of the Arbitration and Conciliation Act specifies the conditions under which certain rulings may be appealed.

In this law note, you will study the grounds on which the court can set aside the arbitral award.

Setting Aside Arbitral Award

A court cannot intervene on the merits of an arbitral award, nor can the parties appeal against it. The Supreme Court stated, “An arbitrator is a judge designated by the parties, and no one can tamper the award given by him”. However, this does not imply that the arbitrator’s actions are not reviewed. The law permits certain remedies against an award for easy conduct of the procedure.

The Arbitration Act of 1940, which was abolished, provided three ways to challenge an award: modification, remission, and setting aside. Whereas the Arbitration and Conciliation Act of 1996 divided these remedies into two categories (i.e., modification and setting aside). The remedy has been given to the parties, and the tribunal was intended to correct mistakes. Returning the award to the tribunal for correction of errors has been modified as the remedy for setting aside.

Grounds on Which the Court Can Set Aside an Arbitral Award

A court may set aside an arbitral award on the grounds listed in section 34 of the Arbitration and Conciliation Act, 1996. These factors include:

Here is more about these grounds.

1. Incapacity of Parties

The award will not be binding on a party to the arbitration who is incapable of protecting his own interests and who is not represented by a person who can do so, and in such a situation, it may be set aside on that party’s application.

A party who is a juvenile or a person of unsound mind must be appropriately represented by a guardian for the award to be upheld. The court will have to appoint a guardian for a youngster or a person who is mentally ill for the purpose of arbitral proceedings under section 9 of the Arbitration and Conciliation Act, 1996. When a guardian represents the incapacitated individual, the basis for the incapacity will no longer be valid.

2. Invalidity of Agreement

An agreement’s legality may be contested on any of the grounds on which the legality of the contract may be contested. When an arbitration clause is part of a contract, the contract’s invalidity renders the arbitration clause ineffective.

In State of UP vs Allied Constructions (2003), the court ruled that an agreement’s legality must be determined in accordance with the laws that the parties have submitted. If there is no such indication, the legality will be assessed under the applicable legislation.

3. Notice Not Given to Parties

As per section 34(2)(a)(iii) of the Arbitration and Conciliation Act, 1996, an award may be challenged if a party did not get appropriate notice of the appointment of the arbitrator, the arbitral procedures, or the party’s inability to submit his case for any other reason.

Dulal Poddar vs Executive Engineer, Dona Canal Division (2003) [AIR 2004 SC 1049]: In this case, the court determined that the appellant’s request for the appointment of an arbitrator without notifying the respondent, as well as the arbitrator’s ex-parte decision, were unconstitutional and subject to review.

4. Award Beyond the Scope of Reference

The scope of the arbitrator’s power and jurisdiction is specified by the reference of a dispute under a contract. The award would be illegal and subject to modification if the arbitrator claimed jurisdiction over matters which is not under his authority.

5. Illegality of Arbitral Procedure

According to section 34(2)(a)(v) of the Arbitration and Conciliation Act, 1996, an award may be challenged if the tribunal’s membership did not follow the parties’ agreement, or the parties’ agreed-upon procedure was not followed in the conduct of the proceedings, or in the absence of a procedure agreement, or if the prescribed procedure of the Act was not followed.

Procedure misconduct occurs when the agreed-upon procedure or the procedure outlined in the Act is not followed. If the arbitral tribunal decides to pursue an issue that is obviously outside the purview of its jurisdiction, this will constitute arbitrator misconduct. Arbitrator misconduct will be proven by an award in which the arbitrator willfully departed from the arbitration agreement and terms of reference.

6. Award Against Public Policy

If an arbitral award is at odds with Indian public policy, an application to set it aside may be submitted, according to section 34(2)(b)(ii) of the Arbitration and Conciliation Act, 1996.

An award obtained by fraud or corruption will likewise be considered against Indian public policy, as is made clear in the explanation of clause (b) of section 34(2)(b) of the Arbitration and Conciliation Act.

An award that was gained by concealing information, misrepresenting or manipulating the arbitrator, buying their favour, applying pressure to the arbitrator, etc., is also likely to be set aside.

Conclusion

As per the provisions of the Arbitration and Conciliation Act of 1996, the court can set aside the arbitral award on certain specified grounds. Either of the parties can file for setting aside the arbitral award before the court of law, and then the court decides whether to set aside the award or not.

Read Next:
1. Meaning, Objects, and Essentials of Arbitration Agreement
2. Arbitration Council of India – Composition, Functions, and More
3. Arbitration In Sports in India – Court of Arbitration for Sports (CAS)

Grounds on Which the Court Can Set Aside an Arbitral Award
Anushka Saxena

Arbitration is a means for resolving disputes between parties using an arbitral tribunal. Moreover, such an arbitral tribunal is either chosen by the parties to the dispute or by the court at a party’s request. In other words, it is a different approach for resolving disputes than going to court.

The English Arbitration Law serves as the foundation for Indian arbitration law. The Arbitration Act of 1940 served as the Indian law governing arbitration until it was amended in 1996 by the new Arbitration and Conciliation Act.

The United Nations Commission on International Trade Law serves as the foundation for Indian arbitration law (UNCITRAL Model Law). The law of arbitration is based on the idea that the parties should be given the option to replace the regular court system with a domestic tribunal made up of arbitrators of their choice.

In this law note, we will study the concept of arbitral award under the Arbitration Act, starting from its meaning to its enforcement.

Meaning of Arbitral Award

The arbitral award and the court’s ruling are treated equally. The arbitral award has the same legal power and effect as a judicial order. In several arbitration-related domains, the adjustment between the parties eliminates the need for litigation.

An arbitral ruling is final and binding on the parties, and there is no possibility of appeal. However, an aggrieved party has the option of going to court to set aside the arbitral award for one or more of the reasons listed in section 34 of the Arbitration and Conciliation Act, 1996.

A temporary, interlocutory, or partial arbitral decision is included in the definition of an arbitral award. It is the decision of the arbitral tribunal about the nature of the case that was presented to it.

At any time throughout the arbitral procedures, the arbitral tribunal may issue an interim arbitral award on any topic for which it will issue a final arbitral decision. The interim award may be used in the same manner as the arbitration’s final award. Within 30 days of receiving the arbitral award, a party may request the arbitral tribunal to make an extra arbitral award for the matters brought in the arbitration procedures which are not covered under the award unless the parties agree differently.

Must See: 6 Grounds on Which the Court Can Set Aside an Arbitral Award

Evolution of Arbitral Awards in India

The Arbitration and Conciliation Act, 1996 and the Code of Civil Procedure, 1908, govern the recognition and execution of arbitral awards (CPC).

Domestic and foreign awards are enforceable in the same way as a court order in India. Even consent awards are issued as a result of a settlement between parties that are valid in this situation. However, depending on where the arbitration took place, there are differences in the procedures for enforcing a judgement. The provisions of the Arbitration and Conciliation Act apply to the enforcement and execution of an arbitral award seated in India (a domestic award). In comparison, the same provisions do not apply to the enforcement of foreign-seated awards (or foreign awards).

The provisions of the Convention on the Recognition and Enforcement of Foreign Arbitral Awards, 1958 (the New York Convention) and the Convention on the Execution of Foreign Arbitral Awards (the Geneva Convention), both of which have been ratified by India, are incorporated into and given effect by Part II of the Arbitration and Conciliation Act, 1996. No other treaty governing the execution of foreign awards has India as a signatory.

The Civil Procedure Code governs the issuance and execution of decrees in India. Whereas the Arbitration and Conciliation Act and the CPC primarily control the application of arbitral awards.

Related: What Is Patent Illegality in India?

Categories of Arbitral Award

An arbitral award can be classified into two broad categories: domestic award and foreign award.

Domestic Award

Part I of the Arbitration and Conciliation Act governs domestic awards. A domestic award is one that was made in accordance with sections 2 to 43 of the Act.

Awards that arise through domestic arbitration are referred to as domestic awards. It is limited to the Indian territory. Herein, the parties must share a connection to India or be of Indian ancestry, and the area is primarily relevant for domestic arbitration reasons. Domestic arbitration includes decisions made by arbitral tribunals in India as well as decisions made by a foreign government in cases where both parties are Indian, and their nationality is subject to Indian law.

Foreign Award

International arbitration, often known as foreign arbitration, is covered under Part II of the Arbitration and Conciliation Act of 1996. Section 44 of the Arbitration and Conciliation Act defines the term “foreign award”. The result of a foreign arbitration is a foreign award. The award made during such proceedings shall be referred to as a foreign award if the parties decide to use a foreign arbitration institution or consent to an ad hoc arbitration abroad.

Related: International Commercial Arbitration With Respect to India

Essential Elements of Arbitral Award

These are the main essentials of an arbitral award:

• An award must be in writing.
• All the members of the arbitral tribunal must sign the award.
• The award must provide the justification for its decision.
• The award should include the date and place of the arbitration.

Enforcement of Arbitral Award

The Civil Procedure Code governs the enforcement of judgments in India. Whereas the Arbitration & Conciliation Act and the CPC primarily manage the process for enforcing arbitral awards.

Domestic and foreign awards are enforced in the same manner as an Indian court order. Nevertheless, there are variations based on the location of the arbitration. Part I of the Arbitration and Conciliation Act regulate seated arbitral awards (domestic award), and Part II of the Act regulates the enforcement of overseas seated decisions (international award).

Conclusion

An arbitral award is basically an award or result that arises out of an arbitration proceeding. Moreover, this arbitral award is enforceable in the court of law, and it is treated equally to the order of a court. Whereas for an arbitral award to be enforceable, it has to fulfil a certain requirement, and only the court of law has the power to set aside the arbitral award on appeal of either of the party.

Read Next:
1. Meaning, Objects, and Essentials of Arbitration Agreement
2. Arbitration Council of India – Composition, Functions, and More
3. Concept of Conciliation Under ADR – Arbitration and Conciliation Act, 1996

What Are Arbitral Awards Under Arbitration?
Anushka Saxena

The Amendment Act of 2019 introduced Part 1A in the Arbitration and Conciliation Act, 1996. It talks about the Arbitration Council of India (ACI). Part 1A gives power to the central government to create an independent body known as Arbitration Council.

In this law note, let us learn about the Arbitration Council of India, its establishment, composition, removal, functions, and more.

Establishment and Incorporation of Arbitration Council of India

As per section 43B of the Arbitration and Conciliation Act, 1996, the central government has the power to establish the Arbitration Council of India for performing the duties and functions as prescribed under the Arbitration and Conciliation Act.

ACI, i.e. the Arbitration Council of India, is a body incorporated with perpetual succession, a common seal, and with the same ability to acquire, hold, and dispose of both movable and immovable property as specified in the Arbitration and Conciliation Act, 1996.

The council can also enter into contracts by its own name and can also sue and be sued. The head office of the council is in Delhi. If required, the council can also establish offices at other places in India with the prior approval of the central government.

Composition of Arbitration Council of India

The Arbitration Council shall be composed of the following members, as per section 43C of the Arbitration and Conciliation Act, 1996:

1. Chairperson of the council shall be a person who has been the judge of Supreme Court or chief justice of any High Court or a judge of High Court or any other eminent person having special knowledge and experience in the working and administration of arbitration. The central government appoints the chairperson after consultation with the chief justice of India.

2. An esteemed practitioner of arbitration having excellent knowledge and experience in both domestic and international institutional arbitration shall be nominated by the central government as a member of the council.

3. An esteemed academician having experience of arbitration and alternative dispute resolution laws in research and teaching shall be appointed as a member by the central government after consultation with the chairperson.

4. A person who has been secretary to the government of India in the legal affairs department, Ministry of Law and Justice, or his representatives not below the rank of the joint secretary shall be appointed as a member or ex-officio member of the council.

5. Government secretary in expenditure department, ministry of finance or his representatives not below the rank of joint member can be appointed as a member or ex-officio member of the council.

6. One representative of a recognised body of commerce and industry can be selected as a part-time member on a rotational basis by the central government.

The chairperson of the Arbitration Council of India and council members, except ex-officio members, shall hold office for a term of three years commencing on the date from which they hold the office.

The chairperson shall not hold the office after he has attained the age of seventy years, and a member other than an ex-officio member shall not hold the office after he has reached the age of sixty-seven years.

Must See: 6 Grounds on Which the Court Can Set Aside an Arbitral Award

Chief Executive Officer of Arbitration Council of India

The council will have a Chief Executive Officer (CEO) who will be in charge of the day-to-day operations of the council.

His educational qualification, appointment, and other terms and conditions of employment shall be as defined by the central government.

The CEO of the Arbitration Council of India is responsible for carrying out the activities and obligations as provided in the regulations.

The council shall have a secretariat consisting of the number of officers and staff determined by the central government.

The qualifications, appointment, and other terms & conditions of service of the staff of the arbitration council shall be specified by the central government.

Duties and Functions of Arbitration Council

As per section 43D of the Arbitration and Conciliation Act, 1996, the Arbitration Council of India must take all necessary steps to promote and encourage arbitration, mediation, conciliation, or other forms of alternative dispute resolution, as well as make policy and guidelines for the establishment, operation, and maintenance of uniform professional standards in all aspects of arbitration.

The council may follow the below-mentioned criteria to carry out the duties and functions imposed by this Act:

1. Establish policies controlling arbitral institution grading.

2. Recognise professional institutes that provide a mandate to the arbitrator.

3. Hold arbitration training, workshops, and courses in collaboration with law firms, law universities, and arbitral institutes.

4. Organise workshops, training programs, etc., in collaboration with law universities and law firms.

5. Make recommendations to the central government.

6. Give recommendations about staff, training, and infrastructure of the Arbitral Council of India.

7. Such additional functions as the central government may determine.

Resignation of the Members of ACI

As given under section 43F of the Arbitration and Conciliation Act, 1996, the chairperson or the full-time or part-time member of ACI may resign from his office by giving written notice to the central government provided that until the central government permits him to do so, the chairperson or the full-time member shall continue to hold office until the expiration of three months from the date of receipt of such notice or until a person appointed in his place enters the office, whichever happens first.

Removal of the Member of Arbitration Council

As per section 43G (1) of the Arbitration and Conciliation Act, 1996, the central government has the power to remove any member from the office if he:

(a) Is an undischarged insolvent.

(b) Has engaged in any paid employment during his term of office (except part-time member).

(c) Has been convicted of an offence that is considered a serious offence in the opinion of the central government.

(d) Has acquired such financial or other interest likely to affect his functions maliciously as a member.

(e) Has abused his position in the office to the extent that he cannot continue being in the office for the public interest.

(f) Has become physically or mentally incapable of carrying out the responsibilities as a member.

According to Section 43G (2) of the Arbitration and Conciliation Act, no member shall be removed from the office on the grounds given under clauses (d) and (e) of sub-section (1) as mentioned above, until the Supreme Court conducts an inquiry on behalf of the central government on the matter and reports the member to be guilty on that particular ground.

Conclusion

The amendment act of 2019 aims to ease some of the issues that the amendment act of 2015 created in the conduct of arbitration and court procedures by giving the provision and empowering the government to form an independent body of the Arbitration Council of India.

The ACI has its headquarter in Delhi and can also have other offices in different cities with the approval of the central government.

Read Next:
1. Meaning, Objects, and Essentials of Arbitration Agreement
2. Concept of Conciliation Under ADR – Arbitration and Conciliation Act
3. What Is Arbitral Award, and Where Is It Applicable?

Arbitration Council of India – Composition, Functions, and More
Anushka Saxena