The Arbitration and Conciliation Act, 1996


What Is Arbitration?  Arbitrate means to decide or determine. In case a dispute arises. the matter is referred to an arbitrator to resolve the dispute.  2 .

Preliminary Information  It extends to the whole of India: except that certain parts are applicable within the State of Jammu and Kashmir only if they relate to international commercial arbitration.  3 . Came into force on 25th January 1996.

telegram. telex. letters.Arbitration Agreement    ³Arbitration 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. etc. i. Shall be in writing. It may be a separate agreement or may be a clause in the contractual agreement. whether contractual or not. email. 4 . signed by both parties.e.

else a single arbitrator may be appointed.Composition Of Arbitral Tribunal     Number of arbitrators: Any number. 5 . One or more experts may be appointed to report on specific issues. as long as it is an even number. Impartial and independent. Any nationality unless otherwise agreed by the parties. Each party may appoint one arbitrator. and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator.

Chief Justice of High Court will pay due regard to any qualifications required of the arbitrator by the agreement of the parties and any other considerations required to appoint an independent and impartial arbitrator.   If one party fails to appoint arbitrator within 30 days. CJ will be CJ of India 6 . then the Chief Justice of High Court may appoint any person or institution. or if the two appointed arbitrators fail to agree on the third arbitrator. In case of International commercial arbitration.

7 .Jurisdiction Of Arbitral Tribunals    ³Arbitral tribunal´ means a sole arbitrator or a panel of arbitrators.e. So arbitration clause is an agreement that is independent of other terms of contract. It can rule on its own jurisdiction.T. i. that does imply invalidity of the arbitration clause. So if A. rules that contract is null and void. for questions regarding existence or validity of arbitration agreement.

the A. Failing any agreement. It has the power to determine admissibility. T. may conduct the proceedings in the manner it considers appropriate. The parties are free to agree on the procedure to be followed by the arbitral tribunal in conducting its proceedings.Conduct Of Arbitral Proceedings     The parties shall be treated with equality and each party shall be given a full opportunity to present their case. materiality and weight of any evidence 8 . relevance.

Any language/s. 9 . decision may be taken by A. may order any documentary evidence to be accompanied by translation. A. The arbitral proceedings for a particular dispute shall commence on the date on which a request for arbitration is received by the respondent.    Location may be decided by parties. T.T. failing which. failing which A. may decide.T.

any references or any other evidence.t these particulars.T.r. 10 . Any amends or supplements may be made to claim/defense if permitted by A.Claim And Defense  Claimant shall (within certain time period): State facts supporting his claim Points of dispute Relief/remedy sought    The respondent shall state his defense w. Parties may submit all relevant documents.

may rely in making its decision shall be communicated to the parties. may decide whether to conduct oral or written proceedings. Any expert report or evidentiary document on which the A.Hearings And Written Proceedings     A. All statements/documents/applications/other information supplied to the A. Parties shall be given sufficient advance notice of any hearing/meeting of the arbitral tribunal for inspecting documents.T.T. by one party shall be communicated to the other party. 11 . goods or other evidence.T.

proceedings will continue. without assuming admission of claim. 12 .   If claimant fails to communicate his claim. If the respondent fails to communicate his defense. may continue the proceedings and make the arbitrat award on the evidence before it.T. will terminate the proceedings. If a party fails to appear at an oral hearing or to produce documentary evidence. A. the A.T.

T.T.  13 .  If A. decision will be made by majority of all its members.T. has more than one arbitrator. If authorized by the parties or all the members of the A..Decision Making by A. procedure may be decided by the presiding arbitrator.

14 .Form And Contents Of Award    An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal. The arbitral award shall state its date and the place of arbitration. An arbitral award shall state the reasons upon which it is based unless so agreed by parties.

for whole or any part of period between cause of action and date of award. interest will be 18%p. If arbitral award is for the payment of money.T. the A. may include interest at reasonable rate on whole or part of the sum. may.    After the arbitral award is made. from date of award to date of payment.T.a. 15 . make an interim award on any matter. a signed copy shall be delivered to each party. The A. If not stated.

 Costs will include: Legal fees/expenses Fees/expenses of arbitrators/witnesses Fees of the institution supervising the arbitration. will specify: Party entitled to costs Party which will pay costs Amount and method of calculating it Manner in which it shall be paid. A.T.T. 16 .  Cost of arbitration shall be fixed by A.

or it contains decisions on matters beyond the scope of the submission to arbitration (v) The composition of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties 17 . or (ii) The arbitration agreement is not valid under the law to which the parties have subjected it 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.Recourse Against Arbitral Award  An arbitral award may be set aside by the court only if(a) The party making the application furnishes proof that(i) A party was under some incapacity. or (iv) The arbitral award deals with a dispute not contemplated by or not falling within the terms of the submission to arbitration.

(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.  An award is in conflict with the public policy of India if the making of the award was induced or affected by fraud or corruption. 18 .

  An application for setting aside may not be made after three months have elapsed from the of the arbitral award On receipt of an application the court may adjourn the proceedings for a period of time. 19 . in order to give the A.T. an opportunity to take such action that will eliminate the grounds for setting aside the arbitral award.

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