What is Arbitration,Arbitration & Conciliation Act 1996 (Download PDF)

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Justice Srikrishna Committee, a High Level Committee reviewing the Institutionalization of Arbitration Mechanism submitted its report. The Arbitration and Conciliation Act 1996 regulates domestic arbitration in India.

Arbitration & Conciliation Act 1996

What is Commercial Arbitration?

  • Arbitration is effective and expeditious dispute resolution framework unlike the Court proceedings
  • Parties submit themselves to Arbitration for faster resolution and disposal of the disputes
  • Effective arbitration inspires the confidence of Foreign Investors and increases reliability of the legal system for expeditious, cheaper and flexible dispute resolution.

What is Arbitration and Conciliation Act 1996?

  • The Arbitration and Conciliation Act 1996 regulates domestic arbitration in India.
  • Till 1996, there were three statutes on arbitration in India - the Arbitration (Protocol and Convention) Act, 1937, the Indian Arbitration Act, 1940 and the Foreign Awards (Recognition and Enforcement) Act, 1961.
  • The Arbitration Act, 1940 dealt only with arbitration that took place in India.
  • The Arbitration and Conciliation Act, 1996 is based on UNCITRAL (United Nations Commission on International Trade Law) Model. 2 - relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards.
  • The Arbitration and Conciliation Act of 1996 is divided into two parts:
    • First part deals with Arbitration conducted in India and its enforcement.
    • Second part provides for arbitration conducted in a Foreign Country and enforcement of such foreign awards.

About the Committee

  • It was headed by Justice (retired) BN Srikrishna.
  • Tasked to find ways for speedy resolution of commercial disputes making India an international hub of Arbitration.
  • Government will amend laws according to recommendations.

Key Recommendations of Justice Srikrishna Committee

  • Committee recommended setting up Arbitration Promotion Council of India (APCI) - autonomous body with representatives from all stakeholders
    • APCI may recognize professional institutes providing accreditation to arbitrators.
    • APCI also empowered to hold training workshops and interact with law firms and law schools to train advocates- creating a specialist arbitration bar with advocates dedicated to the field.
  • Creation of a specialist Arbitration Bench to deal with commercial disputes in the domain of the Courts
  • Suggested changes 2015 Amendments in the Arbitration and Conciliation Act to make arbitration speedier and more effective by incorporating international best practices.
  • Creation of National Litigation Policy (NLP) to promote arbitration in Government Contracts

- Published/Last Modified on: September 5, 2017


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