Arbitration and Conciliation Act, 1996 Sections
The Arbitration and Conciliation Act, 1996 is divided into four main parts, multiple chapters, and over 80 sections. Below is a structured breakdown of the most significant sections you should know.
Part I: Arbitration (Sections 2–43)
This is the most frequently cited part, governing domestic and international commercial arbitrations seated in India.
Chapter I: General Provisions
- Section 2: Definitions (Arbitration, Award, Court, International Commercial Arbitration).
- Section 5: Extent of judicial intervention (The “non-interference” rule).
Chapter II: Arbitration Agreement
- Section 7: Definition and requirements of an arbitration agreement (Must be in writing).
- Section 8: Power of a court to refer parties to arbitration where an agreement exists.
- Section 9: Interim measures by the Court (Relief sought before or during proceedings).
Chapter III: Composition of Arbitral Tribunal
- Section 11: Appointment of arbitrators (The mechanism when parties fail to agree).
- Section 12: Grounds for challenge (Independence and impartiality of the arbitrator).
- Section 15: Termination of mandate and substitution of an arbitrator.
Chapter IV & V: Jurisdiction and Conduct
- Section 16: Competence of the tribunal to rule on its own jurisdiction (Kompetenz-Kompetenz).
- Section 17: Interim measures ordered by the Arbitral Tribunal.
- Section 27: Court assistance in taking evidence.
Chapter VI & VII: Awards and Recourse
- Section 29A: Time limit for arbitral awards (12 months, extendable by 6 months).
- Section 31: Form and contents of the award.
- Section 34: Application for setting aside an arbitral award (The grounds for challenge).
Chapter VIII & IX: Enforcement and Appeals
- Section 36: Enforcement of the award (Treated as a decree of the Court).
- Section 37: Appealable orders (Lists which court orders can be appealed).
Part IA: Arbitration Council of India (Sections 43A–43M)
- Section 43B: Establishment of the Arbitration Council of India (ACI) to grade institutions and accredit arbitrators.
Part II: Enforcement of Foreign Awards (Sections 44–60)
This part governs the recognition of awards made outside India.
- Section 44–52 (Chapter I): New York Convention Awards.
- Section 48: Conditions for enforcement of foreign awards (Grounds for refusal).
- Section 53–60 (Chapter II): Geneva Convention Awards.
Part III: Conciliation (Sections 61–81)
- Section 61: Scope and application.
- Section 73: Settlement agreement (Drafted by the conciliator and signed by parties).
- Section 74: Status and effect of settlement agreement (It has the same status as an arbitral award).
- Section 75: Confidentiality of conciliation proceedings.
Part IV: Supplementary Provisions (Sections 82–86)
- Section 82: Power of the High Court to make rules.
- Section 85: Repeal and savings (Repealed the 1940 Act).
The Schedules
- Fourth Schedule: Model fees for arbitrators.
- Fifth & Seventh Schedule: Criteria for determining the independence and impartiality of arbitrators (Conflict of interest).
Note: Many of these sections were significantly refined by the 2015, 2019, and 2021 Amendment Acts to make the process faster and more “court-detached.”