The Arbitration and Conciliation Act, 1996

In force 106 sections Law and Justice

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.

Act 26 of 1996 Enacted 16 Aug 1996 In force 22 Aug 1996 Department Department of Legal Affairs

Administered by. Ministry of Law and Justice, Department of Legal Affairs · Other Acts of 1996

Preamble

THE ARBITRATION AND CONCILIATION ACT, 1996
ACT No. 26 OF 1996
[16th August, 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.
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:--

What this Act covers

Summary of the Arbitration and Conciliation Act, 1996

Objectives of the Act

• To provide a comprehensive legal framework for domestic and international commercial arbitration.

• To facilitate the speedy and efficient resolution of disputes through arbitration and conciliation.

• To minimise judicial intervention in arbitral proceedings.

• To ensure the recognition and enforcement of domestic and foreign arbitral awards.

• To promote India as an arbitration-friendly jurisdiction.

Key Provisions

• Arbitration Agreement: The Act recognises and enforces written arbitration agreements, under which parties agree to refer disputes to arbitration instead of litigation.

• Appointment of Arbitrators: It lays down the procedure for the appointment, challenge, replacement, and termination of arbitrators, while ensuring their independence and impartiality.

• Conduct of Arbitral Proceedings: The Act provides flexibility to parties in determining the procedure for arbitration, subject to the principles of fairness, equality, and natural justice.

• Arbitral Award: Arbitral tribunals are empowered to make final and binding awards. The Act specifies the form, contents, and grounds for correction, interpretation, and challenge of awards.

• Court Assistance and Limited Judicial Intervention: Courts may assist in matters such as appointment of arbitrators, grant of interim measures, and enforcement of awards, but judicial intervention is otherwise limited to the circumstances expressly provided in the Act.

• Enforcement of Awards: Domestic arbitral awards are enforceable as decrees of a court. The Act also provides for the recognition and enforcement of foreign arbitral awards under the New York Convention and the Geneva Convention, subject to specified conditions.

• Conciliation: The Act establishes a statutory framework for conciliation, enabling parties to resolve disputes amicably with the assistance of an impartial conciliator. A settlement agreement reached through conciliation has the same status and effect as an arbitral award on agreed terms.

• Rule-making Power: The Central Government is empowered to make rules for carrying out the provisions of the Act.

Sections

Type to filter. 106 sections.

Schedules

This Act has 8 schedules. A schedule is published as a document of its own; the text is reproduced on its page where it has been read, and the document is mirrored here either way.

Amending Acts

3 Acts amending this enactment, passed by Parliament of India. The text above is the consolidated text as published.

The Arbitration and Conciliation Act, 199626 of 2021
The Arbitration and Conciliation Act, 199626 of 2019
The Arbitration and Conciliation (Amendment) Act, 201526 of 2016

Rules made under this Act

5 sets of Rules. India Code publishes Rules as a record and a document rather than as text, so these are indexed here and not reproduced. All Rules.

Arbitration Council of India (Number of officers and other Employees, their qualifications, appointment and other Terms and Conditions) Rules, 20222022
Arbitration Council of India (Qualifications, Appointment and other Terms and Conditions of the Service of Chief Executive Officer) Rules, 20222022
Arbitration Council of India (Terms and Conditions and salary and allowances payable to the Chairperson and Members) Rules, 2022.2022
Arbitration Council of India (Travelling and other Allowances Payable to Part-time Members) Rules, 20222022
APPENDIX1996

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The Delimitation Act, 200214 sections
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The Muslim Women (Protection of Rights on Divorce) Act, 19867 sections
The Andhra Pradesh Legislative Council Act, 20055 sections
The Judges (Protection) Act, 19854 sections

Ordinances

India Code records no parent Act for an ordinance, so these are tied to this Act by their own titles and their dates rather than by anything the source states. An ordinance is made when Parliament is not sitting and lapses six weeks into the next session unless it is enacted.

The Arbitration and Conciliation (Amendment) Ordinance, 2015amended this Act · 2015
The Arbitration and Conciliation Ordinance, 1996.enacted as this Act · 1996

All Ordinances

Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. 93 of 106 sections have their own page; for the remaining 13 the source gave us a heading and no text, so their pages carry the heading and say so rather than showing words we do not hold. This page is not a substitute for legal advice.