Arbitration & Conciliation Act, 1996

Fazeel Kazi Anshul Chadha Sandip Saha Sumitra Cardoz Scarlet Almeida Sumeet Kudal Mihir Bhammar Prashant Kokare

convenient. ‡ Arbitration Act makes provision for arbitration and conciliation as ADR mechanisms. (ADR). inexpensive and private manner so that they do not become the subject of future litigation between the parties. ‡ Object of arbitration is settlement of dispute in an expeditious. .Purpose & Object ‡ Purpose of Arbitration Act is to provide quick redressal to commercial dispute by private Arbitration. ‡ the need of Alternate Dispute Resolution.

Free trade & International Commerce have become global necessities. ‡ Arbitration-means of effective consensual & sppedy dispute resolution. .Need for ADR Mechanism ‡ Shrinking Boundaries. ‡ Competitive often leads to conflicts between entrepreneurs resulting in commercial disputes. ‡ Increasing FDI and other forms of collaboration by foreign companies have witnessed between Indian & foreign parties.

The Arbitration & Conciliation Act. . 1996 (26 OF 1996) ‡ 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.

1937 ‡ The Foreign Awards (Recognition and Enforcement) Act. 1940 ‡ The Arbitration (Protocol & Convention) Act. namely ‡ The Arbitration Act. . 1961.Earlier Acts ‡ The law on arbitration in India was substantially contained in three enactments.

Law Based on UNCITRAL Model Law ‡ The present Act is based on model law drafted by United Nations Commission on International Trade Laws (UNCITRAL). to provide uniformity and certainty to both categories of cases. . both on domestic arbitration as well as international commercial arbitration.

Convention on recognition and enforcement of foreign arbitral award as per New York convention ‡ (f) Second Schedule .Conciliation procedures.Protocol on Arbitration clauses ‡ (g) Third Schedule .Enforcement of foreign awards. (d) Part IV . (b) Part II .Domestic arbitration.Convention on the execution of foreign arbitral awards as per Geneva Convention.Supplementary provisions. . (e) First Schedule . (c) Part III .Scheme of the Act ‡ ‡ ‡ ‡ ‡ ‡ The Act is divided in to following parts (a) Part I .

etc by Court . ‡ Interim Measures.Arbitration Agreement ‡ Arbitration Agreement ‡ Power to refer parties to arbitration when there is an arbitration agreement.

‡ the party can request Chief Justice to appoint an arbitrator. ‡ In case of international commercial dispute.Appointment of Arbitrator ‡ The parties can agree on a procedure for appointing the arbitrator or arbitrators. ‡ If they are unable to agree. [section 11(4)]. the application for appointment of arbitrator has to be made to Chief Justice of India. [section 11(3)]. [section 11(12)] . ‡ In case of other domestic disputes. each party will appoint one arbitrator and the two appointed arbitrators will appoint the third arbitrator who will act as a presiding arbitrator. application has to be made to Chief Justice of High Court within whose jurisdiction the parties are situated.

Challenge to appointment of Arbitrator Appointment of Arbitrator can be challenged only if ‡ (a) Circumstances exist that give rise to justifiable doubts as to his independence or impartiality ‡ (b) He does not possess the qualifications agreed to by the parties. [section 12(3)]. .

1908 or Indian Evidence Act. 1872. ‡ The parties to arbitration are free to agree on the procedure to be followed by the Arbitral Tribunal. ‡ Settlements during Arbitration. ‡ Law of limitation applicable ‡ Flexibility in respect of procedure. ‡ Submission of statement of claim & defence. ‡ Hearings & Written Proceedings. . place & language.Conduct of Arbitral Proceedings ‡ The Arbitral Tribunal is not bound by Code of Civil Procedure. [section 19(1)].

Copy of award should be given to each party. ‡ It must state the reasons for the award unless the parties have agreed that no reason for the award is to be given. Tribunal can make interim award also. ‡ The award should be dated and place where it is made should be mentioned.Arbitral Award ‡ The decision of Arbitral Tribunal will be by majority. . ‡ The arbitral award shall be in writing and signed by the members of the tribunal.

Cost of Arbitration .

Intervention by Court ‡ Arbitration has overriding effect .

Matters not referable to Arbitration Certain matters which are not arbitrable are ± * Suits for divorce or restitution of conjugal rights * Taxation * Non-payment of admitted liability * Criminal matters. ‡ ‡ ‡ ‡ .

Conciliation .

Offer for Conciliation .

Enforcement of Foreign Awards .

.Case Study ‡ Hypothetical Case Study for enforcement of foreign awards as given in the PDF Document.

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