The Arbitration and Conciliation Act 1996 An analysis is one of the grand legislations in the Indian judiciary for managing arbitration and conciliation of both domestic and international contracts. This Act intends to ensure that this process provides a quicker, cheaper solution to disputes than civil litigation in courts.
Historical Context and Enactment
The Indian arbitration statutes were passed in India. It succeeded the earlier Arbitration Act of 1940, which was considered incongruent and ineffective. Therefore, new Act was passed with some reference to the UNCITRAL Model Law on International Commercial Arbitration and was expected to minimize the interference of the courts in arbitration.
Primary Purpose of the Act The Arbitration and Conciliation Act 1996
The primary purposes of the are as follows Arbitration and Conciliation are to be faster and fair, enable the courts’ interference to the least possible, and recognize and enforce the award. The Act also seeks to establish an authoritative legal regime for domestic and international commercial arbitration in India.
Structure of the Act about The Arbitration and Conciliation Act 1996
The Arbitration and Conciliation Act 1996 is divided into four parts.
Part I: Arbitration
This section addresses domestic arbitration and relates to section 9, which has provisions on the beginning of arbitration, arbitrators’ appointment, and arbitral proceedings’ procedure.
Part II: Recourse to Certain Foreign Awards
This part deals with recognizing and enforcing foreign arbitral awards under the New York Convention and Geneva Conventions.
Part III: Conciliation
This section provides a legal framework for the conciliation process, offering an alternative method of dispute resolution.
Part IV: Supplementary Provisions
There are other provisions contained in this part that are general to the entire Act.
One Identifies the Features of The Arbitration and Conciliation Act 1996
It outlines several essential features of the arbitration process. The outlines several critical features in the arbitration process.
Arbitration Agreement
The Act embraces written and oral arbitration agreements and can not restrict how parties can agree to arbitrate their disputes.
Appointment of Arbitrators
The number of arbitrators and how such arbitrators are appointed are matters of the parties’ discretion. Moreover, In the case of a dispute, the Act allows the court to intervene in appointing members.
Arbitral Proceedings
The Act provides some discretions to the arbitral tribunal concerning the conduct of proceedings, including rules of procedure and evidence.
Interim Measures
The Act allows both courts and arbitral tribunals to award interim preserving measures that have the proceeding.
Conciliation Under the Act The Arbitration and Conciliation Act 1996
The other procedure recognized under the Act, a dispute resolution mechanism, is conciliation, covered under the Arbitration and Conciliation Act 1996. However, the Act establishes how the conciliators are to be appointed, how conciliation proceedings will take place, and how settlements will be arrived at.
Enforcement of Arbitral Awards The Arbitration and Conciliation Act 1996
However, of all the legislation in place, the Enforcement of Arbitral Awards is one of the crucial features. The Act treats domestic and foreign arbitral awards differently:
Domestic Awards
Firstly, These are enforced under Section 36 of the Act and are considered decrees of the court.
Foreign Awards
Foreign awards are enforced by Part II of the Act, which implements the New York Convention and the Geneva Convention.
Amendments to the Act The Arbitration and Conciliation Act 1996
Since its enactment, It has undergone several amendments to address various issues and improve its effectiveness. Since its enactment, It has undergone several amendments to address multiple problems and improve its effectiveness:
2015 Amendment
This amendment put time bars on arbitration proceedings, narrowed down the circumstances under which an award may be challenged by Megan Leavey, and defined the meaning of public policy regarding annulling awards.
2019 Amendment
This amendment created the Arbitration Council of India and brought legislation to cover the accreditation of arbitrators.
Impact and Significance The Arbitration and Conciliation Act 1996
Since its enactment, the Act has undoubtedly contributed to marketing India as an arbitration-friendly nation worldwide. Even though it has limited court intervention in arbitration matters, it increased the speed at which commercial disputes are resolved. However, It benchmarked the Indian arbitration legislation with the best ones in the global market.
Conclusion
In conclusion, the Arbitration and Conciliation Act of 1996 laid the foundation for the effective functioning of the ADR in India. The provision of a structure of arbitration and conciliation has changed the face of the country’s system for resolving disputes by presenting business people and individuals with efficient and effective means of solving their disputes other than through trial and the courts.