Legal Reference

Arbitration and Conciliation Act, 1996

India's landmark legislation governing arbitration, mediation, and conciliation — a complete guide to all key sections, amendments, and practical implications.

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Overview of the Act

The Arbitration and Conciliation Act, 1996 is India's comprehensive legislation that consolidates and amends the law relating to domestic arbitration, international commercial arbitration, enforcement of foreign arbitral awards, and the law relating to conciliation.

It is based on the UNCITRAL Model Law on International Commercial Arbitration (1985) and the UNCITRAL Conciliation Rules (1980). The Act has been significantly amended in 2015, 2019, and 2021 to make arbitration in India faster, cheaper, and more transparent.

1996
Enacted
2015, 2019, 2021
Amendments
UNCITRAL Model Law
Based on
4 Parts, 86 Sections
Covers

Key Sections Explained

The most important sections practitioners and parties need to know.

Section 7

Arbitration Agreement

Defines what constitutes a valid arbitration agreement — it must be in writing, though it can be in an exchange of letters, telex, or electronic communications.

Section 8

Reference to Arbitration by Court

A judicial authority must refer parties to arbitration if a valid arbitration agreement exists, unless it finds the agreement to be null and void.

Section 9

Interim Measures by Court

Parties can approach courts for interim relief (injunctions, asset preservation) before, during, or after arbitration proceedings.

Section 11

Appointment of Arbitrator

If parties fail to appoint an arbitrator as agreed, either party can request the Supreme Court (international) or High Court (domestic) to appoint one.

Section 17

Interim Measures by Tribunal

The arbitral tribunal itself can grant interim relief — a powerful tool that avoids court delays. Post 2015 amendment, these orders are enforceable as court orders.

Section 29A

Time Limit for Award

Awards must be made within 12 months of completion of pleadings (extendable by 6 months with consent). Courts can further extend for sufficient cause.

Section 34

Setting Aside Award

An award can only be challenged on very limited grounds — incapacity, invalid agreement, natural justice violations, or conflict with public policy. 3-month limitation period.

Section 36

Enforcement of Award

An arbitral award, after the time for challenging it has expired, is enforceable as a decree of the court — giving it the same force as a court judgment.

Key Amendments

2015 Amendment

  • →Section 9: Court interim relief limited after arbitral award passed
  • →Section 17: Tribunal's interim orders made enforceable as court orders
  • →Section 28: 'Public policy' grounds for challenge narrowed
  • →Section 34: Challenge time runs from date of award, not receipt
  • →Section 36: No automatic stay on award filing; stay requires court order

2019 Amendment

  • →Arbitration Council of India (ACI) established
  • →Section 11: Arbitrator appointment within 60 days
  • →Section 29A: Award timeline reduced, automatic mandate termination removed
  • →Section 43J: Accreditation of arbitrators through ACI
  • →8th Schedule: Qualifications for arbitrators specified

2021 Amendment

  • →Section 36: Unconditional stay on awards where fraud or corruption alleged
  • →8th Schedule repealed — qualification norms to be prescribed by ACI
  • →More flexibility in arbitrator qualifications

Frequently Asked Questions

What is the Arbitration and Conciliation Act 1996?

India's primary legislation governing domestic and international arbitration, mediation, and conciliation. Based on the UNCITRAL Model Law, amended in 2015, 2019, and 2021.

What are the key sections of the Act?

Key sections: Section 7 (agreement), Section 9 (court interim relief), Section 11 (arbitrator appointment), Section 17 (tribunal interim relief), Section 29A (time limit), Section 34 (setting aside award), Section 36 (enforcement).

What is Section 9 of the Arbitration Act?

Section 9 allows courts to grant interim relief — injunctions, asset preservation — before, during, or after arbitration. Post 2015 amendment, courts can only grant post-award relief if Section 17 remedy is not efficacious.

What is Section 34 of the Arbitration Act?

Section 34 permits setting aside an arbitral award on limited grounds — incapacity, invalid agreement, natural justice violation, or public policy conflict. Application must be made within 3 months.

What is the time limit for arbitration under Section 29A?

12 months from completion of pleadings, extendable by 6 months by consent. Courts can further extend for sufficient cause.

Does the Act apply to international arbitration?

Yes. Part II (Sections 44–60) governs enforcement of foreign arbitral awards under the New York and Geneva Conventions.

Related Topics

Section 9 — Interim Relief →Section 34 — Setting Aside Award →What is Arbitration? →Arbitral Award Explained →Online Arbitration Services →Sole Arbitrator →

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