ARBITRATION ACT,1996

INTRODUCTION
Arbitration is a flexible and consensual process for resolving business disputes
in a binding and enforcement manner, wherin parties refer their disputes in a
neutral third partyfor settlement without restoring to court action
In india the rapid globalization of the econiomy and the increase in the
competition has led to the increase in commercial disputes ,already
overburdened courtsand futher slow adjudication of commercial disputes has
worsened the economy environment and thereforeADR process has become
more crucial for business operating in india
An arbitaration and conciliation act was enactes in 1996 with the aim and the
objective to give effect to the UNCITRAL MODEL LAW as adopted by the
united commission on international trade law
 OBJECTIVES OF THE
ACT
To provide fair efficient and capable procedure for settlement of
commercial disputes
To deal with international and commercialarbitrations and conciaations
anfd mediatations
To exlicititly provide rules and responsibiliytes of the arbitrators
To provide freedom to the parties to define the procuedures for arbirtal
proceedings
Tominimize the suoervisory role of the courts
Toencurage the settlement of the commercial disputes at any stage of
arbitration proceeding at any time thereafter
To provide execution of the award in the sa,me manner as a decree of
thr court is executed ;and
To provide mechanism for enforcement of foreign awards in india
 STRUCTURE OF THE
ARBITRATION ACT
The arbitaarbitation act is divided in four parts and seven schedules as
are given below

Part 1-Deals with arbitration in india ( Sec 2 to 43)

Part 2- Deals with enforcement of certain foreign awards (sec 44 to 60)
Part 3 – Deals wih conciliation (sec 61 to 81 )
Part 4 –Deals with supplementary provisions (SEC 81B TO 86
SCHEDULES
• First schedule –convention of the regonisation and enforcement of foreign
awqards
• Second schedule – protocol of arbritation clauses
• Third schedule –Convention of the execution of the foreign arbitral awards
• Fourth schedule – Amodel fee structure for the arbitral tribunal
• Fifth schedule – Provide grounds for justiiable doubts as to independence
or impartial of arbitratiors
• Sixth schedule – Disclosure by arbitrator about his past or present
relationhip with the parties
• Seventh schedule – Catogories defining relatiomship
SUBJECT MATTERS OF ARBITRATION:
• Any commercial matters arising out or relates to a contract can be
refered to arbitrations
• Arbitration act does not specifically exclude any category of disputes
however if the court finds that the subject matter of disoutes is not
capable of the settlement by the arbitration the court shall set aside
the award
• As per the public policy the matrimonial matters criminal proccedings
insolvency and winding of the matters anti competition matters are
non arbitrable subject matter
PROFFESIONAL FEE OF AN
ARBITRATOR (Sec 11(14)
• Enactment of amendment act 2015 presently fourth schedule of the a
act provides a model fee structure further sec 11(14) emowers the
high court to frame the fee structure bases on model of ourth
schedule.It is applicable to international and other arbitrational
ptoceedings
• The London cvourt of international arbitration (LCIA) apart from
registration charges levy arbitration fee on hourly rate basis
JURISDICTION OF THE ARBITRAL
TRIBUNAL (Sec 16&17)
• An arbitral tribunal is competent to rule on itss own jurisdiction
including ruling on any objections with respect to existence and
validity of arbitration agreements
• If the arbitral jurisdiction decides that it has its own jurisdiction then
it shall proceed with the arbiotral proceeding and make an award
however award so passes shall be subject to challenge under sec 34
of the act
• Arbitral tribunal may also pss interim orders during the procedings
CONDDUCT OF ARBITRAL
PROCEEDINGS (sec 19-25)
• Seat of arbitration (sec-20)
• Language of arbitration (sec-22)
• Commencement of arbitral proceeding (sec -21)
• Procedure for arbitral proccedings (sec-19)
• Arbitral proceedings (sec -23)
TIME FRAME FOR ARBITRAL (sec 29-A)

• Tribunal shall pass the award within 12 months from the date of
refrence however the period may be extended by the parties for
maximum period of 6 months
• If the award is not passed within 12m or within such extended time
period the mandate of arbitrator shall be terminated unless xtended
by the court
• The ciurt may on sufficient time extemnd the period and may impose
terms and conditions as maybe be necessary the applicable