The Arbitration and Conciliation Act, 1996

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 Table of content
1. Introduction 3

2. Objectives 4

3. Alternative Dispute Settlement Mechanism 5-6

4. Key Terms 7

5. Provisions 8

6. Cases 9

7. Conclusion 10
 Introduction

• Alternative Dispute Settlement Mechanism

• Enacted by Parliament of India in the year 1996 and amended in 2001,

2015

• Quick redressal to commercial disputes

• An Act to consolidate the law relating to:

 Domestic arbitration

 International commercial arbitration

 Enforcement of foreign arbitral awards

 Objectives

• To make provision for an arbitral procedure which is fair, efficient and capable of

meeting the needs of the specific arbitration

• To ensure that the arbitral tribunal gives reasons for its award given

• To ensure that the arbitral tribunal acts within its jurisdiction

• To minimize the supervisory role of courts

• To ensure that an arbitral award is enforceable as a decree of the court

• To strengthen institutional arbitration in the country

Alternative Dispute Settlement Mechanism
1. Conciliation
 May be voluntary, court ordered or required as part of a contract
 Conciliator helps people in a dispute to identify the disputed issues, develop options,
consider alternatives and try to reach an agreement. 

2. Mediation
 It is a voluntary, disputant-centered, non-binding method of ADR
 A neutral and credible third party facilitates a settlement between the parties
 confidential and structured process
Alternative Dispute Settlement Mechanism

3. Arbitration

 Submission of disputes to a neutral third party i.e. Arbitrator

 Parties present arguments and evidence to an Arbitrator

 Much more formal and structured process than mediation or conciliation

 More similar to court

 Binding dispute resolution, equivalent to court litigation

 Key Terms
1. Section 7 – Arbitration Agreement
 An agreement by the parties to submit to arbitration all or certain disputes
 which have arisen or which may arise
 in respect of a defined legal relationship, whether contractual or not

2. Arbitration Award
 Arbitral awards refer to the decision of an arbitral tribunal;
 whether in a domestic or international arbitration
 Arbitral awards include interim awards
 Provisions
• Section 11 - Appointment of Arbitrator(s)
 A person of any nationality may be an arbitrator, unless otherwise agreed by the
parties
• Section 10 - Number of Arbitrators
 Parties are free to determine the number of arbitrators, provided that such number
shall not be an even number
• Section 20 – Place of Arbitration
 The parties are free to agree on the place of arbitration
• Section 22 – Language of Arbitration
 Parties are free to agree upon the languages to be used in the arbitral proceedings
 Cases

• Purushottam S/o Tulsiram Badwaik v. Anil & Ors. Civil Appeal No.4664 of 2018
 
• M/S Emaar MGF Land Limited & Anr. v. Aftab Singh, 2018 SSC Online SC 2771
 
• R. V. Solutions Pvt. Ltd. v. Ajay Kumar Dixit & Ors. 2019 SSC Online Del 6531
CS Comm 745/2017
 Conclusion

• Time efficient and Cost effective ADR

• Administration of speedy, satisfying and effective system of grievance redressal

• Minimal judicial interference

• Choice of decision maker with expertise

• Maintains confidentiality

• Preservation of business relationships