Arbitration in India.doc

ARBITRATION IN INDIA: AN OVERVIEW

By Sumeet Sumeet Kachwaha and Dharmendra Rautray,

Kachwaha & Partners Partners

 Background  Background to to arbitration arbitration legislation legislation::

The Indian law of of arbitration is contained in the  Arbitration and Conciliation Act 1996   (Act!

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The Act is based on the "#$% 'I TRA) *odel )aw on International ommercial Arbitration and the 'ITRA) 'ITRA) Arbitration Rules "#+! The Statement of -b.ects and Reasons of the the Act reco/nises that India0s economic reforms will become effecti1e only if the nation0s dis2ute resolution 2ro1isions are in tune with international re/ime! The Statement of -b.ects and Reasons set f orth the main ob.ecti1es of the Act as follows3 4i to com2rehensi1ely co1er international international and commercial arbitration and conciliation as also domestic arbitration and conciliation5 ii to ma6e 2r o1ision for an ar bitral 2rocedure which is fair , efficient and ca2able of meetin/ the needs of the s2ecific arbitration5 iii to 2ro1ide that the arbitral tribunal /i1es reasons reasons for its arbitral award5 award5 i1 to ensur e that the arbitral arbitral tribunal remains within the limits of its .urisdiction5 1 to minimise the su2er1isory role role of courts in the arbitral 2rocess5 2rocess5 1i to 2ermit an arbitral tribunal tribunal to use mediation, conciliation or other 2rocedures 2rocedures durin/ the arbitral 2roceedin/s to encoura/e settlement of dis2utes5 1ii to 2ro1ide that e1ery final arbitral award is enforced in the same manner as if it were a decree of the court5

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The authors are 2artners of th e law firm, Kachwaha & Partners! 7ull te8t of the Act Act can be 1iewed at3 htt2399www!6a2le/al!com9statutes9inde8!h tml

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1iii to 2ro1ide that a settlement a/reement reached by the 2arties as a result of conciliation 2roceedin/s will ha1e the same status and effect as an arbitral award on a/reed terms on the substance of the dis2ute rendered by an arbitral tribunal5 and

i8 to 2ro1ide that, for 2ur2oses of enfor cement of forei/n awards, e1er y arbitral award made in a country to which one of the two Inter national on1entions relatin/ to forei/n arbitral awards to which India is a 2ar ty a22lies, will be treated as a forei/n award!:

 Scheme of the Act:

The Act is a com2osite 2iece of le/islation! It 2ro1ides for domestic arbitration5 international commercial arbitration5 enforcement of forei/n award and conciliation ( the latter bein/ based on the 'ITRA) onciliation Rules of "#$;! The more si/nif icant 2ro1isions of the Act are to be found in Part I and Part II thereof! Part I contains the 2ro1isions for domestic and international commercial arbitration in India! All arbitration conducted in India would be /o1erned by Part I, irres2ecti1e of the nationalities of the  2arties! Part II 2ro1ides for enforcement of forei/n awards! Part I is more com2rehensi1e and contains e8tensi1e 2ro1isions based on the *odel )aw! It  2ro1ides inter alia for arbitrability of dis2utes5 non