Definitions
Section 2 of the Arbitration and Conciliation Act, 1996 deals with definitions. In this Part, unless the context otherwise requires,— (a) "arbitration" means any arbitration whether or not administered by permanent arbitral institution; The Act came into force on 22 Aug 1996.
(1) In this Part, unless the context otherwise requires,—
(a) "arbitration" means any arbitration whether or not administered by permanent arbitral institution;
(b) "arbitration agreement" means an agreement referred to in section 7;
(c) "arbitral award" includes an interim award;
(d) "arbitral tribunal" means a sole arbitrator or a panel of arbitrators;
1[(e) "Court" means—
(i) in the case of an arbitration other than international commercial arbitration, the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, but does not include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small Causes;
(ii) in the case of international commercial arbitration, the High Court in exercise of its ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-matter of a suit, and in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that High Court;]
(f) "international commercial arbitration" means an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered as commercial under the law in force in India and where at least one of the parties is—
(i) an individual who is a national of, or habitually resident in, any country other than India; or
(ii) a body corporate which is incorporated in any country other than India; or
(iii) 2 *** an association or a body of individuals whose central management and control is exercised in any country other than India; or
(iv) the Government of a foreign country;
(g) "legal representative" means a person who in law represents the estate of a deceased person, and includes any person who intermeddles with the estate of the deceased, and, where a party acts in a representative character, the person on whom the estate devolves on the death of the party so acting;
(h) "party" means a party to an arbitration agreement.
(2) This Part shall apply where the place of arbitration is in India:
3[Provided that subject to an agreement to the contrary, the provisions of sections 9, 27 and clause (a) of sub-section (1) and sub-section (3) of section 37 shall also apply to international commercial arbitration, even if the place of arbitration is outside India, and an arbitral award made or to be made in such place is enforceable and recognised under the provisions of Part II of this Act.]
(3) This Part shall not affect any other law for the time being in force by virtue of which certain disputes may not be submitted to arbitration.
(4) This Part except sub-section (1) of section 40, sections 41 and 43 shall apply to every arbitration under any other enactment for the time being in force, as if the arbitration were pursuant to an arbitration agreement and as if that other enactment were an arbitration agreement, except in so far as the provisions of this Part are inconsistent with that other enactment or with any rules made thereunder.
(5) Subject to the provisions of sub-section (4), and save in so far as is otherwise provided by any law for the time being in force or in any agreement in force between India and any other country or countries, this Part shall apply to all arbitrations and to all proceedings relating thereto.
(6) Where this Part, except section 28, leaves the parties free to determine a certain issue, that freedom shall include the right of the parties to authorise any person including an institution, to determine that issue.
(7) An arbitral award made under this Part shall be considered as a domestic award.
(8) Where this Part—
(a) refers to the fact that the parties have agreed or that they may agree, or
(b) in any other way refers to an agreement of the parties, that agreement shall include any arbitration rules referred to in that agreement.
(9) Where this Part, other than clause (a) of section 25 or clause (a) of sub-section (2) of section 32, refers to a claim, it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply to a defence to that counterclaim.
Section 2, The Arbitration and Conciliation Act, 1996 (Act 26 of 1996).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
- s. 7 Arbitration agreement
- s. 9 Interim measures, etc., by Court
- s. 25 Default of a party
- s. 27 Court assistance in taking evidence
- s. 28 Rules applicable to substance of dispute
- s. 32 Termination of proceedings
- s. 37 Appealable orders
- s. 40 Arbitration agreement not to be discharged by death of party thereto
- s. 41 Provisions in case of insolvency
- s. 43 Limitations
Referred to by 1
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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State of West Bengal v. Associated Contractors
Court's Decision & Legal Precedent
Section 2(1)(e) exhaustively defines Court as the Principal Civil Court of original jurisdiction in a district or a High Court exercising ordinary original civil jurisdiction — not the Supreme Court. Section 42 exclusive jurisdiction attaches only to applications made to such a Court (e.g. ss.9/34), not to s.8 judicial-authority or s.11 Chief Justice applications. Where a High Court first seized a s.9 matter, it alone entertains the later s.34 challenge. DATE-VERIFIED Judgement order-14.pdf 2014-09-10.
On this section: s.2(1)(e) — exhaustive definition of Court for Part I; Supreme Court is not a Court under the Act; feeds s.42 exclusive-jurisdiction rule.
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Amazon. Com Nv Investment Holdings LLC vs Future Retail Limited
Court's Decision & Legal Precedent
The Arbitration and Conciliation Act, 1996, when properly read in light of its principles of party autonomy (Sections 2(6), 2(8), 19(2)), definition of arbitration (Section 2(1)(a) including arbitration administered by permanent arbitral institutions), and the commencement of arbitral proceedings (Section 21 read with institutional rules), provides that an Emergency Arbitrator's award delivered under institutional rules such as the Singapore International Arbitration Centre Rules is an 'order' under Section 17(1) of the Act. Such orders are enforceable under Section 17(2) as if they were orders of a court. No appeal lies against an order passed under Section 17(2) in enforcement of an Emergency Arbitrator's award, either under Section 37 of the Arbitration Act or under the Code of Civil Procedure, as Section 37 provides an exhaustive and exclusive remedy for appeals in arbitration matters, and Section 37(2)(b) provides appeals only for orders granting or refusing interim measures under Section 17(1), not for enforcement proceedings under Section 17(2). A party that has agreed to be governed by institutional arbitration rules cannot subsequently characterize an Emergency Arbitrator's award as a nullity and ignore it until such award is formally set aside through proper procedures, as doing so violates the rule of law and fundamental principles of obedience to court orders.
On this section: Definitions of 'arbitration', 'arbitral award', 'arbitral tribunal' and principle of party autonomy. Held that 'arbitration' includes any arbitration administered by permanent arbitral institutions; parties are free to authorize any person or institution to determine issues; and institutional rules agreed by parties are part of the arbitration agreement.
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Ntpc Limited vs Afcons R. N. Shetty and Co. Pvt. LTD Jv
Court's Decision & Legal Precedent
Arbitrators do not have unilateral power to determine their own fees. Where parties have fixed fees by agreement or court has fixed fees by order, arbitrators are bound by such fees. Where no agreement or court order exists, arbitrators may fix reasonable fees only after transparent consultation with parties at preliminary stage, and such fees are subject to court review for reasonableness under Section 39. The Fourth Schedule is binding on ad hoc arbitrations post-Amendment Act 2019. The term 'sum in dispute' in Fourth Schedule refers to aggregate of claim and counter-claim. The ceiling of Rs. 30 lakhs in Serial No. 6 applies to total fee, not just variable component. The fee is per individual arbitrator, not per tribunal. Arbitrators cannot charge separate fees for claims and counter-claims; they must charge single fee based on aggregate sum in dispute.
On this section: Party autonomy principle - parties have freedom to determine issues and authorize any person to determine those issues
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Srei Infrastructure Finance Limited vs Tuff Drilling Private Limited
Court's Decision & Legal Precedent
An arbitral tribunal which has terminated proceedings under Section 25(a) of the Arbitration and Conciliation Act, 1996 due to non-filing of claim by the claimant retains jurisdiction to consider an application for recall of the order terminating the proceedings if the claimant shows sufficient cause. The tribunal does not become functus officio after passing an order under Section 25(a). The phrase 'where without showing sufficient cause' in Section 25(a) contemplates that sufficient cause can be shown either before or after the termination order is passed. If sufficient cause is shown, the arbitral tribunal can accept the statement of claim and permit the claimant to file the claim even after the time fixed under Section 23(1) has expired. The principles underlying Order 9 Rule 13 of the Civil Procedure Code, 1908 can be invoked by the arbitral tribunal to recall orders passed under Section 25(a) on sufficient cause being shown. The non-use of the phrase 'the mandate of the arbitral tribunal shall terminate' in Section 25(a), as opposed to its use in Section 32(3), indicates that the legislature intended that if the claimant shows sufficient cause, the proceedings can be re-commenced.
On this section: Definition of arbitral tribunal as a sole arbitrator or a panel of arbitrators
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Amazon. Com Nv Investment Holdings LLC vs Future Coupons Private Limited
Court's Decision & Legal Precedent
Full party autonomy is given by the Arbitration and Conciliation Act, 1996 to have a dispute decided in accordance with institutional rules which can include Emergency Arbitrators delivering interim orders, described as 'awards'. Such orders are an important step in aid of decongesting the civil courts and affording expeditious interim relief to the parties. Such orders are referable to and are made under Section 17(1) of the Arbitration Act. Additionally, no appeal lies under Section 37 of the Arbitration Act against an order of enforcement of an Emergency Arbitrator's order made under Section 17(2) of the Act, as Section 37 provides an exhaustive code for appeals from orders under the Arbitration Act, and the legal fiction created by Section 17(2) is limited to enforcement purposes only and does not extend to appellate jurisdiction.
On this section: Establishes that arbitration can be administered by permanent arbitral institution, supporting inclusion of institutional rules like SIAC Rules
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Garware Wall Ropers LTD vs Coastal Marine Constructions Engineering LTD
Court's Decision & Legal Precedent
An arbitration clause contained in an unstamped agreement cannot be acted upon or enforced until the agreement is properly stamped and all stamp duty and penalty (if any) are paid. The mandatory provisions of the Indian Stamp Act requiring impounding of unstamped instruments apply to judicial authorities hearing Section 11 applications under the Arbitration and Conciliation Act, 1996. Section 11(6A), which limits judicial examination to the existence of an arbitration agreement, does not override these mandatory stamp duty requirements. The 'existence' of an arbitration agreement must be understood in context of all legal requirements for enforceability, including stamp duty compliance. The High Court must impound unstamped agreements and hand them to the stamp authority for adjudication of stamp duty issues before proceeding with the Section 11 application.
On this section: The Court examined the scope of judicial intervention under Section 11 post-amendment, particularly Section 11(6A) which limits examination to existence of arbitration agreement. The Court held that this provision does not override mandatory stamp duty requirements. Section 16 regarding arbitrator's competence to rule on jurisdiction was analyzed to understand the independence of arbitration clauses. Section 11(13) regarding 60-day disposal was harmonized with stamp duty requirements.
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Chloro Controls(i) P. LTD vs Severn Trent Water Purification INC
Court's Decision & Legal Precedent
In multi-party and composite commercial transactions involving multiple interconnected agreements (principal/mother agreement and ancillary/subsidiary agreements), where the principal agreement contains a comprehensive arbitration clause covering disputes 'under or in connection with' such agreement, and the ancillary agreements are integral to performing the objectives of the principal agreement and are referred to therein, the Court shall refer all disputes arising from such composite transaction to arbitration under Section 45 of the Arbitration and Conciliation Act, 1996. This referral can include disputes of non-signatory parties who are claiming through or under the signatory parties to the principal agreement, provided: (1) there is a defined legal relationship between such parties arising from the composite transaction; (2) the parties' manifest intention demonstrates unified dispute resolution through arbitration; (3) the disputes are intrinsically interlinked and capable of composite resolution without risk of conflicting awards on overlapping issues; and (4) no serious challenge is made to the validity, operability or enforceability of the arbitration agreement at the threshold. The expression 'any person claiming through or under' in Section 45 is to be liberally construed to achieve the legislative intent of according primacy to arbitration in international commercial disputes, subject to the exceptions of agreements being null and void, inoperative or incapable of performance. Bifurcation of parties or causes of action is generally not permissible under the 1996 Act, but this does not prevent composite reference of all disputes arising from interlinked agreements forming a unified commercial transaction.
On this section: Distinguishes that 'party' means a party to an arbitration agreement, but must be read with Section 45 to include persons claiming through or under such party in multi-party commercial transactions
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Ravi Prakash Goel vs Chanra Prakash Goel
Court's Decision & Legal Precedent
Where an arbitration agreement is contained in a partnership deed and a dispute touching the affairs of the partnership firm has arisen during the lifetime of a partner, the legal representative of that deceased partner is entitled to invoke and enforce the arbitration clause, notwithstanding the death of the original partner. This right flows from Section 40 of the Arbitration and Conciliation Act, 1996, which mandates that arbitration agreements do not discharge upon death and remain enforceable by legal representatives, read harmoniously with Sections 46, 47, and 48 of the Indian Partnership Act, which preserve and enforce the rights of representatives to claim accounts and have the firm wound up. The arbitration clause survives the dissolution of the partnership and the death of a partner, and it is not necessary for the partnership deed to explicitly include heirs and legal representatives for this succession to apply, as such rights are governed by statute.
On this section: Definition of 'legal representative' - person who in law represents the estate of a deceased person; the Court applied this definition to establish Ravi's status as a legal representative
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Questions about Section 2
What have the courts held on Section 2 of the Arbitration and Conciliation Act?
State of West Bengal v. Associated Contractors (10 Sep 2014) is the leading judgment on this section among those set out below: s.2(1)(e) — exhaustive definition of Court for Part I; Supreme Court is not a Court under the Act; feeds s.42 exclusive-jurisdiction rule. Another 7 judgments on this section are set out below, all of them from the Supreme Court. They run from 2007 to 2022.
How do I find court cases under Section 2 of the Arbitration and Conciliation Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Arbitration Act 2, section 2 Arbitration Act, section 2 of the Arbitration and Conciliation Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 8 reported judgments on this section are set out on this page, beginning with State of West Bengal v. Associated Contractors (10 Sep 2014).
What should I read with Section 2 of the Arbitration and Conciliation Act, and has it changed?
Its own text turns on section 7 (Arbitration agreement), section 9 (Interim measures, etc., by Court), section 25 (Default of a party), section 27 (Court assistance in taking evidence), and on 6 further provisions, so none of them can safely be read on its own. 1 other provision in this corpus refers back to it.
When did Section 2 of the Arbitration and Conciliation Act come into force?
Section 2 of the Arbitration and Conciliation Act, cited as Arbitration Act 2, came into force on 22 Aug 1996, having been enacted on 16 Aug 1996. It is in force as at the date shown on this page.
Other sections of this Act
- 8. Power to refer parties to arbitration where there is an arbitration agreement1029 words
- 11. Appointment of arbitrators1027 words
- 34. Application for setting aside arbitral awards861 words
- 29A. Time limit for arbitral award635 words
- 57. Conditions for enforcement of foreign awards519 words
- 48. Conditions for enforcement of foreign awards493 words
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. Text as in force on 14 Oct 2026. This page is not a substitute for legal advice.