The document summarizes key amendments made to the Arbitration and Conciliation Act of India in 2015. The objectives of the amendments were to make arbitration more expedient, cost-effective, and the preferred mode of dispute resolution. Some key changes include imposing time limits on arbitration proceedings and court decisions related to arbitration, reducing judicial interference, enhancing the powers of arbitrators, and aligning the law more closely with international standards for arbitration.

1. Highlights of the Amendment to the
Arbitration and Conciliation Act-2016

2. History of Arbitration law in India
• Indian Arbitration Act, 1899 (Only in presidency
towns of Calcutta, Bombay and Madras)
• Civil Procedure Code, 1908
• Arbitration Act, 1940 ( Only for domestic
arbitrations)
• Arbitration (Protocol and Convention Act), 1937
(Geneva Convention awards)
• Foreign Awards (Recognition and Enforcement
Act), 1961 ( New York Convention Awards)
• Indian Arbitration and Conciliation Act, 1996

3. Arbitration Act, 1940
• Delays in arbitration proceedings
• Interference of courts and delays in court
proceedings.
• Interminable, complex and expensive.
• Enforcement through courts.

4. Indian Arbitration and Conciliation
Act, 1996
• Applicable for both domestic and
international awards.
• Based on UNCITRAL model laws, 1985 and
UNCITRAL conciliation rules, 1980
• Provision of conciliation
• Problems of delays continued as once
arbitration challenged under section 34
award. Remains in-executable.
• Delays in courts

5. The Arbitration And Conciliation
(Amendment)Act,2015
OBJECTIVE
• Make arbitration a preferred mode of
settlement
• Making India a hub of International
commercial arbitration.
• Making arbitration expeditions, efficacies and
cost effective remedy.
• Seek to curb the practice leading to wastage
of time.

6. OBJECTIVE
• Independence & impartiality of the Arbitrator.
• Making arbitrator responsible for delay in the
arbitration proceedings attributable to him.
• Reducing interference of courts.

7. AMENDMENTS

8. Definition of Court
• Section 2(1)(e)
• Court means ‘civil court’ for domestic arbitration
• High Courts- International commercial
arbitration.
• Section2(2) .
• It envisages that part -1 shall apply where the
place of arbitration is in india and that provisions
of sections 9,27,37(1()a) and 37(3) shall apply to
International commercial arbitration even if seat
of arbitration is outside india.

9. Section 8
Reference to arbitration
• Mandates judicial authority to refer the
parties to arbitration if arbitration agreement
exists.
• A provision has been added to apply to court
for production of arbitration agreement to the
custody of opposite party

10. Section 9 (Interim measures)
• Arbitral proceedings have to commence
within a period of 90 days from the date of
order of interim measure.
• Section 27, Section 37 1(a), 37(3) shall also
apply to international commercial arbitration,
even if the seat of arbitration is outside India.
“Bhatia International v/s Balso kaiser”

11. Section 11- Expeditious Appointment
of arbitrator
• Supreme court/ High court or designated person
by them is to appoint arbitrator within 60 days
from the date of service by the opposite party.
• “Chief Justice of High Court” replaced by “High
Court”, “chief justice of India” replaced by
“Supreme Court”
• The decision of High Court/ Supreme Court final.
• Appeal before the Supreme Court by SLP.
• Fix limits on the fee payable to the arbitrators.

12. Section 12 .Disclosure of interest by
Arbitrator before Appointment
• Declaration by the arbitrator about his
independence and impartiality.
• Circumstances given in V/ VII schedule very
exhaustive.
• Parties to disputes may waive off the
provisions (by written agreement)
• Govt. bodies may not appoint their employees
or consultants as arbitrators.

13. Section 17- Interim measure by
Arbitral tribunal
• Interim orders passed by the tribunal would
be enforceable as if it is an order of court.
• If arbitral tribunal is constituted, courts should
not entertain applications under section 9
barring exceptional circumstances.

14. Section 24 , Expeditious Process
• Arbitral tribunal to hold the hearings for
presentation of evidence or oral arguments on
day to day basis
• Not to grant any adjournments unless
sufficient causes shown.
• Tribunal to impose exemplary cost where
adjournments is sought without sufficient
cause.

15. Section 25 ,Expeditious Process
• Respondents’ failure to communicate his
statement of defence as forfeiture of his right
to file such statement of defence.
• Tribunal to continue with proceedings without
treating such failure as admission of
allegations by the claimant.

16. Section 28, Discretion to Arbitrator
• Tribunal to take into account the terms of the
contract and trade usage applicable to the
transaction.
• Relieves arbitrators from strictly adhering to
terms of the contract while deciding the case.
However, the arbitrator can not still ignore
the terms of contract.
• Brings in an element of discretion in favour of
the arbitrators.

17. Section 29A, time bound proceedings
• Award is to be made within 12 months from
the date of reference
• Further extendable to six months by the
consent of the parties.
• Mandate of arbitrator terminates unless the
court extends it for sufficient cause or on such
other terms as it may seem fit

18. Section 29A, time bound proceedings
• While extending the time the court may order
reduction of fees of arbitrator by up-to 5%, for
each month of such delay for reasons
attributable to arbitrators.
• Application for extension of time shall be
disposed within 60 days

19. Section 29-B,FAST TRACK PROCEDURE
• Tribunal makes award within 6 months
• Tribunal decides the disputes on the basis of
written pleadings, documents and submissions
without oral hearings unless considered
necessary
• Additional fee payable to arbitrator.
• Tribunal may pass the decision making to one of
the parties to proceedings to bear whole or as a
part of such cost as may be decided by the
tribunal

20. SECTION 31, Rate of interest linked to
current rate
• In absence of any decision of arbitrator, levy
of future interest on awarded amount @ 2%
higher than the current rate of interest.

21. SECTION 34, Quick disposal of
Challenge
• Application of challenge has to be disposal within a
year from date of service of notice to opposite party.
• No provision to extend this time limit
• Ground of challenge
International commercial arbitration
 If award is initiated by fraud or corruption
 Contravention with the fundamental policy of Indian
law.
 Conflict with the basic notions of morality and justice

22. SECTION 34
• Ground of challenge
Domestic arbitration
 can be challenged on the ground of Patent
illegally on the face of award but the award
shall not be set aside merely on the ground of
erroneous appreciation of law or by re-
appreciation of evidence

23. SECTION 36, No automatic Stay
• Award would not be automatically stayed by
merely filing an application under Section 34.
• There has to be specific order from the court
staying the execution of award.
• Court may grant stay subject to deposits of
whole or part of the awarded amount.

24. SECTION 37, Appeal against refusal to
refer dispute to arbitration under
section 8
• Filing an appeal against refusal of judicial
authority to refer parties to arbitration under
section 8.