KEY PROVISIONS OF THE LAW OF ARBITRATION AND CONCILIATION

Key Provisions of the Law of Arbitration and Conciliation in India

Arbitration and conciliation have become popular methods for dispute resolution in India due to their efficiency and flexibility. The Law of Arbitration and Conciliation Act, 1996, governs these processes in the country. Here are the key provisions of this law:

1. Arbitration Agreement:

• The Act requires that parties must agree to resolve their disputes through arbitration. This agreement can be in the form of a clause in a contract or a separate agreement.
• The arbitration agreement must be in writing and can be in the form of an exchange of letters, electronic communication, or other means of communication.

2. Appointment of Arbitrators:

• Parties are free to choose the number of arbitrators, but if they fail to do so, the default provision is for a sole arbitrator.
• In case of multiple arbitrators, each party typically appoints one arbitrator, and the appointed arbitrators choose the presiding arbitrator.

3. Conduct of Arbitral Proceedings:

• Arbitrators have the authority to conduct the proceedings in a manner they deem appropriate, as long as it is fair and efficient.
• The Act empowers arbitrators to determine the admissibility, relevance, and weight of evidence.

4. Interim Measures:

• Arbitrators have the authority to grant interim measures, such as injunctions or orders to preserve assets, to maintain the status quo pending the resolution of the dispute.
• These interim measures are enforceable in court, similar to court orders.

5. Award:

• The arbitral tribunal must render its award within a specified time frame, unless extended by mutual agreement of the parties.
• The award must be in writing and signed by the arbitrator(s). It should state the reasons upon which it is based, unless the parties have agreed otherwise.

6. Challenge and Enforcement of Awards:

• The Act provides grounds upon which an award can be challenged, such as incapacity of a party, lack of due process, or violation of public policy.
• Once an award is issued, either party can enforce it through the courts. The courts have limited grounds to refuse enforcement, primarily related to procedural irregularities or public policy concerns.

7. Conciliation Proceedings:

• Conciliation is a voluntary process where a neutral third party assists the parties in reaching a mutually acceptable settlement.
• The Act provides for the appointment of a conciliator or a panel of conciliators to facilitate the process.
• If the parties reach a settlement through conciliation, it is binding and enforceable as if it were an arbitral award.

8. Confidentiality:

• The Act imposes a duty of confidentiality on all parties and participants involved in arbitration or conciliation proceedings.
• This confidentiality extends to the proceedings, the documents produced, and the award or settlement reached.

 The Law of Arbitration and Conciliation in India provides a robust framework for resolving disputes outside of traditional court litigation. Its key provisions ensure fairness, efficiency, and enforceability, making arbitration and conciliation attractive options for parties seeking timely and effective resolution of their disputes.