Arbitration Law

The Indian arbitral system was governed by the Code of Civil Procedure 1908 until the Arbitration Act of 1940 came into existence and later, it was replaced by the Arbitration and Conciliation Act 1996 to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral award as define the law relating to conciliation.

The Arbitration Act 1937 and the Foreign Awards Act 1961 are largely based on the model law of United Nations Commission for International Trade Law. The Arbitration and Conciliation Act 1996 is largely based on the model law of United Nations Commission for International Trade Law. Before the Arbitration and Conciliation Act 1996 came into existence, the law on Arbitration was contained in three enactments, namely the Arbitration Act 1940, Protocol and convention Act 1937 and the foreign awards act, 1961. Three acts were repealed and new acts namely the arbitration and conciliation act 1996 comes into existence.

Arbitration Agreement:-
Section (7) of the Arbitration and Conciliation Act 1996 relates to Arbitration Agreement, which lays down the meaning and other conditions for a valid Arbitration Agreement.

Meaning of the Arbitration Agreement:-
According to Section 7(1) of the Arbitration and Conciliation Act 1996, an arbitration agreement means an agreement by parties to submit to arbitration all or certain disputes which have arisen in respect of a defined legal relationship, whether contractual or not.

Form:-
The Arbitration Agreement is not necessary to be in any particular form. Arbitration Agreement may be in the form of a separate Agreement.

Composition of arbitral tribunal:-
The parties are free to determine the number of Arbitrators, provided that such number shall not be an even number.

Appointment of Arbitrator:-
Section (11) of the Arbitration and Conciliation Act 1996 relates to the appointment of the Arbitrator. Under this section subject to 11(6), parties are free to agree on the procedure for appointing the arbitrators.

International commercial arbitration:-
According to Section 2 (1) of the Arbitration and Conciliation Act, 1996, International Commercial Arbitration means an Arbitration relating to disputes arising out of legal relationship whether contractual or not, considered as commercial under the laws in force in India and where at least one of the party is an individual who is a national of, or habitually resident in any country other than India.

Grounds to Challenge Arbitrator:-
Under section 12(3) of the arbitration and conciliation act 1996 an arbitrator may be challenged, which give rise to justifiable doubt as to his independence or impartiality, or he does not possess the qualification agreed by the parties.

Interim measures by arbitral tribunal:-
Under section 17(1) of the Arbitration and Conciliation Act 1996, the Arbitral Tribunal at the request of a party, may order a party to take any interim measure of protection as the tribunal may consider essential in respect of subject matter of dispute. The Arbitral Tribunal may also need a party to provide appropriate security in connection with measure ordered above.

Conduct of arbitral proceedings - Rule of procedure in arbitral proceedings:-
Under section 19(2) & (3) of the Arbitration and Conciliation Act 1996, the parties are free to agree on procedure to be followed by the Arbitral Tribunal in conducting the arbitral proceedings. Failing any agreement procedure to be followed, the Arbitral Tribunal may conduct the proceeding in the manner it considers appropriate.