Arbitration and Conciliation Act,

1996)

-GARIMA SINGH
 Advantages of Arbitration
* The decision of arbitral tribunal is final and binding on the
parties.
* Arbitral awards enjoy much greater international recognition
than judgments of national courts.
* Neutrality and mutuality are perhaps the most redeeming
features of arbitration process.
* Arbitration offers parties a unique opportunity to designate
person of their choice as arbitrators, which is not possible in
case of courts.
* Arbitration is faster and less expensive than litigation in courts.
* Arbitration hearings are not public and only the parties receive
the copies of the arbitral award.
 Background of the act
* The Statement of Objects and Reasons set forth the main
objectives of the Act are as follows:

* (i) to comprehensively cover international and commercial

arbitration and conciliation as also domestic arbitration and
conciliation;
* ii) to make provision for an arbitral procedure which is fair,
efficient and capable of meeting the needs of the specific
arbitration;
* iii) to provide that the arbitral tribunal gives reasons for its arbitral
award;
* iv) to ensure that the arbitral tribunal remains within the limits of
its jurisdiction;
* v) to minimise the supervisory role of courts in the arbitral
process;
 Conti……
* vi) to permit an arbitral tribunal to use mediation, conciliation or
other procedures during the arbitral proceedings to encourage
settlement of disputes;
* vii) to provide that every final arbitral award is enforced in the
same manner as if it were a decree of the court;
* viii) to provide that a settlement agreement reached by the parties
as a result of conciliation proceedings will have the same status
and effect as an arbitral award on agreed terms on the substance
of the dispute rendered by an arbitral tribunal; and
* ix) to provide that, for purposes of enforcement of foreign
awards, every arbitral award made in a country to which one of
the two International Conventions relating to foreign arbitral
awards to which India is a party applies, will be treated as a foreign
award.”
 Salient features of the act-
* conciliation as a means of settling commercial disputes in addition to
arbitration.
* more comprehensive than the earlier act of 1940. It consists of 86 sections
spread over four parts.
* Part I - arbitration in India
* Part II - enforcement of foreign awards
* Part III - conciliation
* Part IV - supplementary provisions empowering the High Court to make rules
regarding arbitration which are consistent with the Act
* The act specifically defines the term ‘international commercial
arbitration’.
* qualification of the arbitrator.
* the abolition of the Umpire system. Only limitation now is that Even
number of arbitrators shall not be appointed
* the arbitral award and the settlement arrived at during conciliation
proceedings have been treated at par with the decree of the court.
* Powers of the court have been considerably curtained.
 Conti…..
* contains a salutary provision making it mandatory for the
arbitrator to give reasons for the award
* The arbitral tribunals shall not be bound by the CPC or the
Evidence Act, 1872 but the provisions of the Limitation Act, 1963
shall, however, apply to arbitration proceeding.
* provision relating to the interim measures which empower the
arbitrator or arbitral tribunal to pass interim orders.
* a specific provision in the act that an arbitral award which is in
conflict with the public policy in India shall not be valid in law
being null and void.
* act provides for enforcement of certain foreign awards made
under the New York convention and the Geneva Convention
 Characteristics of act of 1996
1. An extensive act
2. A self-explanatory statute
3. Restriction on judicial powers
4. Detailed procedure for conduct of arbitration
5. Summary court’s powers
6. Enhancing the power of arbitrations
7. Specific conciliation provision
8. Internalization of arbitration law
 Type of arbitration-
* Domestic Arbitration
* International Arbitration
* International Commercial Arbitration
* Institutional Arbitration
* ADHOC Arbitration
* Specialized Arbitration
* Statutory Arbitration
* Flip-flop Arbitration
* Fast track Arbitration