Bare Acts


PREAMBLE

An Act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto.

WHEREAS the United NationsCommission on International Trade Law(UNCITRAL) has adopted the UNCITRAL Model Law on International ommercialArbitration in 1985:

AND WHEREAS the General Assembly of the United Nations has recommendedthat all countries give due consideration to the said Model Law, in view of thedesirability of uniformity of the law of arbitral procedures and the specificneeds of international commercial arbitration practice;

AND WHEREAS the UNCITRAL has adopted the UNCITRAL Conciliation Rules in1980;

AND WHEREAS the General Assembly of the United Nations has recommendedthe use of the said Rules in cases where a dispute arises in the context ofinternational commercial relations and the parties seek an amicable settlementof that dispute by recourse to conciliation;

AND WHEREAS the said Model Law and Rules make significant contributionto the establishment of a unified legal framework for the fair and efficientsettlement of disputes arising in international commercial relations;

AND WHEREAS it is expedient to make law respecting arbitration andconciliation, taking into account the aforesaid Model Law and Rules;

BE it enacted by Parliament in the forty-seventh Year of the Republicof India as follows:-

PRELIMINARY

1. Short title, extent and commencement

(1) This Act may be called the Arbitration andConciliation Act, 1996.

(2) It extends to the whole of India:

Provided that Parts, I, III and IV shall extend to the Stateof Jammu and Kashmir only in so far as they relate to international commercialarbitration or, as the case may be, international commercial conciliation.

Explanation.- In this sub-section, the expression”international commercial conciliation” shall have the same meaning as the expression “international commercial arbitration” in clause(f) of sub-section (1) of section 2, subject to the modification that for the word “arbitration” occurring therein, the word “conciliation” shall be substituted.

(3) It shall come into force on such date1 as the Central Government may, by notification in the Official Gazette, appoint.

PART 1. ARBITRATION
CHAPTER 1. GENERAL PROVISIONS

2. Definitions

(1) In this Part, unless the context otherwise requires,-

(a) “arbitration” means any arbitration whetheror not administered by permanent arbitral institution;

(b) “arbitration agreement” means an agreementreferred to in section 7;

(c) “arbitral award” includes an interim award;

(d) “arbitral tribunal” means a sole arbitratoror a panel of arbitrators;

(e) “Court” means the principal Civil Court oforiginal jurisdiction in a district, and includes the High Court in exercise ofits ordinary original civil jurisdiction, having jurisdiction to decide thequestions forming the subject-matter of the arbitration if the same had beenthe subject-matter of a suit, but does not include any civil court of a gradeinferior to such principal Civil Court, or any Court of Small Causes;

(f) “international commercial arbitration” meansan arbitration relating to disputes arising out of legal relationships, whethercontractual or not, considered as commercial under the law in force in Indiaand where at least one of the parties is-

(i) an individual who is anational of, or habitually resident in, any country other than India; or

(ii) a body corporate which is incorporated in any countryother than India; or

(iii) a company or an association or a body of individualswhose central management and control is exercised in any country other thanIndia; or

(iv) the Government of a foreign country;

(g) “legal representative” means a person who inlaw represents the estate of a deceased person, and includes any person whointermeddles with the estate of the deceased, and, where a party acts in arepresentative character, the person on whom the estate devolves on the deathof the party so acting;

(h) “party” means a party to an arbitrationagreement.

(2) This Part shall apply where the place of arbitrationis in India.

(3) This Part shall not affect any other law for the timebeing in force by virtue of which certain disputes may not be submitted toarbitration.

(4) This Part except sub-section (1) of section 40,sections 41 and 43 shall apply to every arbitration under any other enactmentfor the time being in force, as if the arbitration were pursuant to anarbitration agreement and as if that other enactment were an arbitrationagreement, except in so far as the provision of this Part are inconsistent withthat other enactment or with any rules madethereunder;

(5) Subject to the provisions of sub-section (4), and savein so far as is otherwise provided by any law for the time being in force or inany agreement in force between India and any other country or countries, thisPart shall apply to all arbitrations and to all proceedings relating thereto.

(6) Where this Part, except section 28, leaves the partiesfree to determine a certain issue, that freedom shall include the right of theparties to authorise any person including an institution, to determine thatissue.

(7) An arbitral award made under this Part shall beconsidered domestic award.

(8) Where this Part.-

(a) refers to the fact that the parties have agreed orthat they may agree, or

(b) in any other way refers to an agreement of theparties,

that agreement shall include any arbitration rulesreferred to in that agreement.

(9) Where this Part, other than clause (a) of section 25or clause (a) of sub-section (2) of section 32, refers to a claim, it shallalso apply to a counter-claim, and where it refers to a defence, it shall alsoapply to a defence to that counter-claim.

3. Receipt of written communications.

(1) Unless otherwise agreed by the parties,-

(a) any written communication is deemed to have beenreceived if it is delivered to the addressee personally or at his place ofbusiness, habitual residence or mailing address, and

(b) if none of the places referred to in clause (a) can befound after making a reasonable inquiry, a written communication is deemed tohave been received if it is sent to the addressee’s last known place ofbusiness, habitual residence or mailing address by registered letter or by anyother means which provides a record of the attempt to deliver it.

(2) The communication is deemed to have been received onthe day it is so delivered.

(3) This section does not apply to written communicationsin respect of proceedings of any judicial authority.

4. Waiver of right to object

A party who knows that-

(a) any provision of this Part from which the parties mayderogate, or

(b) any requirement under the arbitration agreement,

has not been complied with and yet proceeds with thearbitration without stating his objection to such non-compliance without unduedelay or, if a time limit is provided for stating that objection, within thatperiod of time, shall be deemed to have waived his right to so object.

5. Extent of judicial intervention

Notwithstanding anything contained in any other law forthe time being in force, in matters governed by this Part, no judicialauthority shall intervene except where so provided in this Part.

6. Administrative assistance

In order to facilitate the conduct of the arbitralproceedings, the parties, or the arbitral tribunal with the consent of theparties, may arrange for administrative assistance by a suitable institution orperson.

CHAPTER 2. ARBITRATION AGREEMENT

7. Arbitration agreement

(1) In this Part, “arbitration agreement” meansan agreement by the parties to submit to arbitration all or certain disputeswhich have arisen or which may arise between them in respect of a defined legalrelationship, whether contractual or not.

(2) An arbitration agreement may be in the form of anarbitration clause in a contract or in the form of a separate agreement.

(3) An arbitration agreement shall be in writing.

(4) An arbitration agreement is in writing if it iscontained in-

(a) a document signed by the parties;

(b) an exchange of letters, telex, telegrams or othermeans of telecommunication which provide a record of the agreement; or

(c) an exchange of statements of claim and defence inwhich the existence of the agreement is alleged by one party and not denied bythe other.

(5) The reference in a contract to a document containingan arbitration clause constitutes an arbitration agreement if the contract isin writing and the reference is such as to make that arbitration clause part ofthe contract.

8. Power to refer parties to arbitration where there is an arbitration agreement

(1) A judicial authority before which an action is broughtin a matter which is the subject of an arbitration agreement shall, if a partyso applies not later than when submitting his first statement on the substanceof the dispute, refer the parties to arbitration.

(2) The application referred to in sub-section (1) shallnot be entertained unless it is accompanied by the original arbitrationagreement or a duly certified copy thereof.

(3) Notwithstanding that an application has been madeunder sub-section (1) and that the issue is pending before the judicialauthority, an arbitration may be commenced or continued and an arbitral awardmade.

9. Interim measures etc. by Court

A party may, before, or during arbitral proceedings or atany time after the making of the arbitral award but before it is enforced inaccordance with section 36, apply to a court-

(i) for the appointment of a guardian for a minor orperson of unsound mind for the purposes of arbitral proceedings; or

(ii) for an interim measure or protection in respect ofany of the following matters, namely:-

(a) the preservation, interim custody or sale of any goodswhich are the subject-matter of the arbitration agreement;

(b) securing the amount in dispute in the arbitration;

(c) the detention, preservation or inspection of anyproperty or thing which is the subject-matter of the dispute in arbitration, oras to which any question may arise therein and authorising for any of theaforesaid purposes any person to enter upon any land or building in thepossession of any party, or authorising any samples to be taken or any observationto be made, or experiment to be tried, which may be necessary or expedient forthe purpose of obtaining full information or evidence;

(d) interim injunction or the appointment of a receiver;

(e) such other interim measure of protection as may appearto the Court to be just and convenient, and the Court shall have the same powerfor making orders as it has for the purpose of, and in relation to, anyproceedings before it.

CHAPTER 3. COMPOSITION OF ARBITRAL TRIBUNAL

10. Number of arbitrators

(1) The parties are free to determine the number ofarbitrators, provided that such number shall not be an even number.

(2) Failing the determination referred to in sub-section(1), the arbitral tribunal shall consist of a sole arbitrator.

11. Appointment of arbitrators

(1) A person of any nationality may be an arbitrator,unless otherwise agreed by the parties.

(2) Subject to sub-section (6), the parties are free toagree on a procedure for appointing the arbitrator or arbitrators.

(3) Failing any agreement referred to in sub-section (2),in an arbitration with three arbitrators, each party shall appoint onearbitrator, and the two appointed arbitrators shall appoint the thirdarbitrator who shall act as the presiding arbitrator.

(4) If the appointment procedure in sub-section (3)applies and-

(a) a party fails to appoint an arbitrator within thirtydays from the receipt of a request to do so from the other party; or

(b) the two appointed arbitrators fail to agree on thethird arbitrator within thirty days from the date of their appointment,

the appointment shall be made, upon request of a party, bythe Chief Justice or any person or institution designated by him.

(5) Failing any agreement referredto in sub-section (2), in an arbitration with a sole arbitrator, if the partiesfail to agree on the arbitrator within thirty days from receipt of a request byone party from the other party to so agree the appointment shall be made, uponrequest of a party, by the Chief Justice or any person or institutiondesignated by him.

(6) Where, under an appointment procedure agreed upon bythe parties,-

(a) a party fails to act as required under that procedure;or

(b) the parties, or the two appointed arbitrators, fail toreach an agreement expected of them under that procedure; or

(c) a person, including an institution, fails to performany function entrusted to him or it under that procedure,

a party may request the Chief Justice or any person orinstitution designated by him to take the necessary measure, unless theagreement on the appointment procedure provides other means for securing theappointment.

(7) A decision on a matter entrusted by sub-section (4) orsub-section (5) or sub-section (6) to the Chief Justice or the person orinstitution designated by him is final.

(8) The Chief Justice or the person or institutiondesignated by him, in appointing an arbitrator, shall have due regard to-

(a) any qualifications required of the arbitrator by theagreement of the parties; and

(b) other considerations as are likely to secure theappointment of an independent and impartial arbitrator.

(9) In the case of appointment of sole or third arbitratorin an international commercial arbitration, the Chief Justice of India or theperson or institution designated by him may appoint an arbitrator of anationality other than the nationalities of the parties where the partiesbelong to different nationalities.

(10) The Chief Justice may make such scheme as he may deemappropriate for dealing with matters entrusted by sub-section (4) orsub-section (5) or sub-section (6) to him.

(11) Where more than one request has been made undersub-section (4) or sub-section (5) or sub-section (6) to the Chief Justices ofdifferent High Courts or their designates, the Chief Justice or his designateto whom the request has been first made under the relevant sub-section shallalone be competent to decide on the request.

(12) (a) Where the matters referred to in sub-sections(4), (5), (6), (7), (8) and (10) arise in an international commercialarbitration the reference to “Chief Justice” in those sub-sectionsshall be construed as a reference to the “Chief Justice of India”.

(b) Where the matters referred to in sub-sections (4),(5), (6), (7), (8) and (10) arise in any other arbitration, the reference to”Chief Justice” in those sub-section shall be construed as areference to, the Chief Justice of the High Court within whose local limits theprincipal Civil Court referred to in clause (e) of sub-section (1) of section 2is situate and, where the High Court itself is the “Court referred to inthat clause, to the Chief Justice of that High Court.

12. Grounds for challenge

(1) When a person is approached in connection with hispossible appointment as an arbitrator, he shall disclose in writing anycircumstances likely to give rise to justifiable doubts as to his independenceor impartiality.

(2) An arbitrator, from the time of his appointment andthroughout the arbitral proceedings, shall, without delay, disclose to theparties in writing any circumstances referred to in sub-section (1) unless theyhave already been informed of them by him.

(3) An arbitrator may be challenged only if-

(a) circumstances exist that give rise to justifiabledoubts as to his independence or impartiality, or

(b) he does not possess the qualifications agreed to bythe parties.

(4) A party may challenge an arbitrator appointed by him,or in whose appointment he has participated, only for reasons of which hebecomes aware after the appointment has been made.

13. Challenge procedure

(1) Subject to sub-section (4), the parties are free toagree on a procedure for challenging an arbitrator.

(2) Failing any agreement referred to in sub-section (1),a party who intends to challenge an arbitrator shall, within fifteen daysbecoming aware of the constitution of the arbitral tribunal or after becomingaware of any circumstances referred to in sub-section (3) of section 12, send awritten statement of the reasons for the challenge to the arbitral tribunal.

(3) Unless the arbitrator challenged under sub-section (2)withdraws from his office or the other party agrees to the challenge, thearbitral tribunal shall decide on the challenge.

(4) If a challenge under any procedure agreed upon by theparties or under the procedure under sub-section (2) is not successful, thearbitral tribunal shall continue the arbitral proceedings and make an arbitralaward.

(5) Where an arbitral award is made under sub-section (4),the party challenging the arbitrator may make an application for setting asidesuch an arbitral award in accordance with section 34.

(6) Where an arbitral award is set aside on an applicationmade under sub-section (5), the Court may decide as to whether the arbitratorwho is challenged is entitled to any fees.

14. Failure or impossibility to act

(1) The mandate of an arbitrator shall terminate if-

(a) he becomes de jure or de facto unable to perform hisfunctions or for other reasons fails to act without undue delay; and

(b) he withdraws from his office or the parties agree tothe termination of his mandate.

(2) If a controversy remains concerning any of the groundsreferred to in clause (a) of sub-section (1), a party may, unless otherwiseagreed by the parties, apply to the Court to decide on the termination of themandate.

(3) If, under this section or sub-section (3) of section13, an arbitrator withdraws from his office or a party agrees to thetermination of the mandate of an arbitrator, it shall not imply acceptance ofthe validity of any ground referred to in this section or sub-section (3) ofsection 12.

15. Termination of mandate and substitution of arbitrator

(1) In addition to the circumstances referred to insection 13 or section 14, the mandate of an arbitrator shall terminate-

(a) where he withdraws from office for any reason; or

(b) by or pursuant to agreement of the parties

(2) Where the mandate of an artibrator terminates, asubstitute arbitrator shall be appointed according to the rules that wereapplicable to the appointment of the arbitrator being replaced.

(3) Unless otherwise agreed by the parties, where anarbitrator is replaced under sub-section (2) , any hearings previously held maybe repeated at the discretion of the arbitral tribunal.

(4) Unless otherwise agreed by the parties, an order orruling of the arbitral tribunal made prior to the replacement of an arbitratorunder this section shall not b invalid solely because there has been a changein the composition of the arbitral tribunal.

16. Competence of arbitral tribunal to rule on its jurisdiction

(1) The arbitral tribunal may rule on its ownjurisdiction, including ruling on any objections with respect to the existence orvalidity of the arbitration agreement, and for that purpose,–

(a) an arbitration clause which forms part of a contractshall be treated as an agreement independent of the other terms of thecontract; and

(b) a decision by the arbitral tribunal that the contractis null and void shall not entail ipso jure the invalidity of the arbitrationclause.

(2) A plea that the arbitral tribunal does not havejurisdiction shall be raised not later than the submission of the statement ofdefence; however, a party shall not be precluded from raising such a pleamerely because that he has appointed , or participated in the appointment of,an arbitrator.

(3) A plea that the arbitral tribunal is exceeding thescope of its authority shall he raised as soon as the matter alleged to bebeyond the scope of its authority is raised during the arbitral proceedings.

(4) The arbitral tribunal may, in either of the casesreferred to in sub-section (2) or sub-section (3), admit a later plea if itconsiders the delay justified.

(5) The arbitral tribunal shall decide on a plea referredto in sub-section (2) or sub-section (3) and, where the arbitral tribunal takesa decision rejecting the plea, continue with the arbitral proceedings and makean arbitral award.

(6) A party aggrieved by such an arbitral award may makean application for setting aside such an arbitral award in accordance withsection 34.

17. Interim measures ordered by arbitral tribunal

(1) Unless otherwise agreed by the parties, the arbitraltribunal may, at the request of a party, order a party to take any interimmeasure of protection as the arbitral tribunal may consider necessary inrespect of the subject matter of the dispute.

(2) The arbitral tribunal may require a party to provideappropriate security in connection with a measure ordered under sub-section (1)

CHAPTER 5. CONDUCT OF ARBITRAL PROCEEDINGS

18. Equal treatment of parties

The parties shall be treated with equality and each partyshall be given a full opportunity to present his case.

19. Determination of rules of procedure

(1) The arbitral tribunal shall not be bound by the Codeof Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872(1 of1872).

(2) Subject to this Part, the parties are free to agree onthe procedure to be followed by the arbitral tribunal in conducting itsproceedings.

(3) Failing any agreement referred to in sub-section(2), the arbitral tribunal may, subject to this Part, conduct the proceedingsin the manner it considers appropriate.

(4) The power of the arbitral tribunal under sub-section(3) includes the power to determine the admissibility , relevance, materialityand weight of any evidence.

20. Place of arbitration

(1) The parties are free to agree on the place ofarbitration.

(2) Failing any agreement referred to in sub-section(1), the place of arbitration shall be determined by the arbitral tribunalhaving regard to the circumstances of the case, including the convenience ofthe parties.

(3) Notwithstanding sub-section (1) or sub-section(2), the arbitral tribunal may, unless otherwise agreed by the parties, meet atany place it considers appropriate for consultation among its members, forhearing winners, experts or the parties, or for inspection of documents, goodsor other property.

21. Commencement of arbitral proceedings

Unless otherwise agreed by the parties, the arbitralproceedings, in respect of a particular dispute commence on the date on which arequest for that dispute to be referred to arbitration is received by therespondent.

22. Language

(1) The parties are free to agree upon the language orlanguages to is used in the arbitral proceedings.

(2) Failing any agreement referred to in sub-section(1), the arbitral tribunal shall determine the language or languages to be usedin the arbitral proceedings.

(3) The agreement or determination, unless otherwisespecified, shall apply to any written statement by a party, any hearing and anyarbitral award, decision or other communication by the arbitral tribunal.

(4) The arbitral tribunal may order that any documentaryevidence shall be accompanied by a translation into the languages agreed uponby the parties or determined by the arbitral tribunal.

23. Statements of claim and defence

(1) Within the period of time agreed upon by the partiesor determined by the arbitral tribunal, the claimant shall state the factssupporting his claim, the points at issue and the relief or remedy sought, andthe respondent shall state his defence in respect of these particulars, unlessthe parties have otherwise agreed as to the required elements of thosestatements.

(2) The parties may submit with their statements alldocuments they consider to be relevant or may add a reference to the documentsor other evidence they will submit.

(3) Unless otherwise agreed by the parties, either partymay amend or supplement his claim or defence during the course of the arbitralproceedings, unless the arbitral tribunal considers it inappropriate to allowthe amendment or supplement having regard to the delay in making it.

24. Hearings and written proceedings

(1) Unless otherwise agreed by the parties, the arbitraltribunal shall decide whether to hold oral hearings for the presentation ofevidence or for oral argument, or whether the proceedings shall be conducted onthe basis of documents an other materials;

Provided that the arbitral tribunal shall hold hearings,at an appropriate stage of the proceedings, on a request by a party, unless theparties have agreed that no oral hearing shall be held.

(2) The parties shall be given sufficient advance noticeof any hearing and of any meeting of the arbitral tribunal for the purposes ofinspection of documents, goods or other property.

(3) All statements, documents or other information suppliedto, or applications made to, the arbitral tribunal by one party shall becommunicated to the other party, and any expert report or evidentiary documenton which the arbitral tribunal may rely in making its decision shall becommunicated to the parties.

25. Default of a party

Unless otherwise agreed by the parties, where, withoutshowing sufficient cause,–

(a) the claimant fails to communicate his statement ofclaim in accordance with sub-section (1) of section 23, the arbitraltribunal shall terminate the proceedings;

(b) the respondent fails to communicate his statement ofdefence in accordance with sub-section (1) of section 23, the arbitraltribunal shall continue the proceedings without treating that failure in itselfas an admission of the allegations by the claimant;

(c) a party fails to appear at an oral hearing or toproduce documentary evidence, the arbitral tribunal may continue theproceedings and make the arbitral award on the evidence before it.

26. Expert appointed by arbitral tribunal

(1) Unless otherwise agreed by the parties, the arbitraltribunal may–

(a) appoint one or more experts to report to it onspecific issues to be determined by the arbitral tribunal, and

(b) require a party to give the expert any relevantinformation or to produce, or to provide access to, any relevant documents,goods or other property for his inspection.

(2) Unless otherwise agreed by the parties, if a party sorequests or if the arbitral tribunal considers it necessary, the expert shall,after delivery of his written or oral report, participate on an oral hearingwhere the parties have the opportunity to put questions to him and to presentexpert witnesses in order to testify on the points at issue.

(3) Unless otherwise agreed by the parties, the expertshall, on the request of a party, make available to that party for examinationall documents, goods or other property in the possession of the expert withwhich he was provided in order to prepare his report.

27. Court assistance in taking evidence

(1) The arbitral tribunal, or a party with the approval ofthe arbitral tribunal, may apply to the Court for assistance in taking evidence.

(2) The application shall specify-

(a) the names and addresses of the parties and thearbitrators.

(b) the general nature of the claim and the relief sought;

(c) the evidence to the obtained, in particular,-

(i) the name and address of any person to be heard aswitness or expert witness and a statement of the subject-matter of thetestimony required;

(ii) the description of an document to be produced orproperty to be inspected.

(3) The Court may, within its competence and according toits rules on taking evidence, execute the request or ordering that the evidencebe provided directly to the arbitral tribunal.

(4) The Court may, while making or order under sub-section(3), issue the same processes to witnesses as it may issue in suits triedbefore it.

(5) Persons failing to attend in accordance with suchprocess, or making any other fault, or refusing to give their evidence, orguilty of any contempt to the arbitral tribunal during the conduct of arbitralproceedings, shall be subject to the like disadvantages, penalties andpunishments by order of the Court on the representation of the arbitraltribunal as they would incur for the like offences is suits tried before theCourt.

(6) In this section the expression “Processes”includes summonses and commissions for the examination of witnesses andsummonses to produce documents.

CHAPTER 6. MAKING OF ARBITRAL AWARD AND TERMINATION OF PROCEEDINGS

28. Rules applicable to substance of dispute

(1)Where the place of arbitration is situate in India,-

(a)in an arbitration other than an international commercial arbitration, the arbitraltribunal shall decide the dispute submitted to arbitration in accordance withthe substantive law for the time being in force in India;

(b)in international commercial arbitration-

(i) the arbitral tribunal shall decided the dispute inaccordance with the rules of law designated by the parties as applicable to thesubstance of the dispute;

(ii) any designation by the parties of the law or legalsystem of a given country shall be construed, unless otherwise expressed, asdirectly referring to the substantive law of that country and not to itsconflict of laws rules;

(iii) failing any designation of the law under clause (a)by the parties, the arbitral tribunal shall apply the rules of law it considersto be appropriate given all the circumstances surrounding the dispute.

(2) The arbitral tribunal shall decide ex aequo et bono oras amiable compositeur only if the parties have expressly authorised it to doso.

(3) In all cases, the arbitral tribunal shall decide inaccordance with the terms of the contract and shall take into account theusages of the trade applicable to the transaction.

29. Decision making by panel of arbitrators

(1)Unlessotherwiseagreedbytheparties,inarbitralproceedingswithmorethanonearbitrator,anydecisionofthearbitraltribunalshallbemadebyamajorityofallitsmembers. (2)Notwithstandingsub-section(1),ifauthorisedbythepartiesorallthemembersofthearbitraltribunal,questionsofproceduremaybedecidedbythepresidingarbitrator.
30. Settlement

(1) It is not incompatible with an arbitration agreementfor an arbitral tribunal to encourage settlement of the dispute and, with theagreement of the parties, the arbitral tribunal may use mediation, conciliationor other procedures at any time during the arbitral proceedings to encouragesettlement.

(2) If, during arbitral proceedings, the parties settle thedispute, the arbitral tribunal shall terminate the proceedings and, ifrequested by the parties and not objected to by the arbitral tribunal, recordthe settlement in the form of an arbitral award on agreed terms.

(3) An arbitral award on agreed terms shall be made inaccordance with section 31 and shall state that it is an arbitral award.

(4) An arbitral award on agreed terms shall have the samestatus and effect as any other arbitral award on the substance of the dispute.

31. Form and contents of arbitral award

(1)An arbitral award shall be made in writing and shall be signed by the membersof the arbitral tribunal.

(2)For the purposes of sub-section (1), in arbitral proceedings with more than onearbitrator, the signatures of the majority of all the members of the arbitraltribunal shall be sufficient so long as the reason for any omitted signature isstated.

(3)The arbitral award shall state the reasons upon which it is based, unless——

(a) the parties have agreed that no reasons are to be given,or

(b) the award is an arbitral award on agreed terms undersection 30.

(4) The arbitral award shall state its date and the placeof arbitration as determined in accordance with section 20 and the award shallbe deemed to have been made at that place.

(5) After the arbitral award is made, a signed copy shallbe delivered to each party.

(6) The arbitral tribunal may, at any time during thearbitral proceedings, make an interim arbitral award on any matter with respectto which it may make a final arbitral award.

(7) (a) Unless otherwise agreed by the parties, where andin so far as an arbitral award is for the payment of money, the arbitraltribunal may include in the sum for which the award is made interest, at suchrate as it deems reasonable, of the whole or any part of the money, for thewhole or any part of the period between the date on which the cause of actionarose and the date on which the award is made.

(b) A sum directed to be paid by an arbitral award shall,unless the award otherwise directs, carry interest at the rate of eighteen percentum per annum from the date of the award to the date of payment.

(8) Unless otherwise agreed by the parties,-

(a) the costs of an arbitration shall be fixed by thearbitral tribunal;

(b) the arbitral tribunal shall specify–

(i) the party entitled to costs,

(ii) the party who shall pay the costs,

(iii) the amount of costs or method of determining thatamount, and

(iv) the manner in which the costs shall be paid.

Explanation.—For the purpose of clause (a), “costs”means reasonable costs relating to-

(i) the fees and expenses of the arbitrators andwitnesses,

(ii) legal fees and expenses,

(iii) any administration fees of the institutionsupervising the arbitration, and

(iv) any other expenses incurred in connection with thearbitral proceedings and the arbitral award.

32. Termination of proceedings

(1) The arbitral proceedings shall be terminated by thefinal arbitral award or by an order of the arbitral tribunal under sub-section(2).

(2) The arbitral tribunal shall issue an order for thetermination of the arbitral proceedings where-

(a) the claimant withdraws his claim, unless therespondent objects to the order and the arbitral tribunal recognises a legitimateinterest on his part in obtaining a final settlement of the dispute,

(b) the parties agree on the termination of theproceedings, or

(c) the arbitral tribunal finds that the continuation ofthe proceedings has for any other reason become unnecessary or impossible.

(3) Subject to section 33 and sub-section (4) of section34, the mandate of the arbitral tribunal shall terminate with the terminationof the arbitral proceedings.

33. Correction and interpretation of award; additional award

(1) Within thirty days of the receipt of the arbitralaward, unless another period of time has been agreed upon by the parties-

(a) a party, with notice to the other party, may requestthe arbitral tribunal to correct any computation errors, any electrical ortypographical errors or any other errors of a similar nature occurring in theaward;

(b) if so agreed by the parties, a party, with notice tothe other party, may request the arbitral tribunal to give an interpretation ofa specific point or part of the award.

(2) If the arbitral tribunal considers the request madeunder sub-section (1) to be justified, it shall make the correction or give theinterpretation within thirty days from the receipt of the request and theinterpretation shall form part of the arbitral award.

(3) The arbitral tribunal may correct and error of thetype referred to in clause (a) of sub-section (1), on its own initiative,within thirty days from the date of the arbitral award.

(4) Unless otherwise agreed by the parties, a party withnotice to the other party, may request, within thirty days from the receipt ofthe arbitral award, the arbitral tribunal to make an additional arbitral awardas so claims presented in the arbitral proceedings but omitted from thearbitral award.

(5) If the arbitral tribunal considers the request madeunder sub-section (4) to be justified, it shall make the additional arbitralaward within sixty days from the receipt of such request.

(6) The arbitral tribunal may extend, if necessary, theperiod of time within which it shall make a correction, give an interpretationor make an additional arbitral award under sub-section (2) or sub-section (5).

(7) Section 31 shall apply to a correction orinterpretation of the arbitral award or to an additional arbitral award madeunder this section.

CHAPTER 7. RECOURSE AGAINST ARBITRAL AWARD

34. Application for setting aside arbitral award

(1) Recourse to a Court against anarbitral award may be made only by an application for setting aside such awardin accordance with sub-section (2) and sub-section (3).

(2) An arbitral award may be setaside by the Court only if-

(a) the party making theapplication furnishes proof that-

(i) a party was under someincapacity, or

(ii) the arbitration agreement is not valid underthe law to which the parties have subjected it or, failing any indicationthereon, under the law for the time being in force; or

(iii) the party making the application was notgiven proper notice of the appointment of an arbitrator or of the arbitralproceedings or was otherwise unable to present his case; or

(iv) the arbitral award deals with a dispute notcontemplated by or not falling within the terms of the submission toarbitration, or it contains decisions on matter beyond the scope of thesubmission to arbitration:

Provided that, if the decisions on matterssubmitted to arbitration can be separated from those not so submitted, onlythat part of the arbitral award which contains decisions on matters notsubmitted to arbitration may be set aside; or

(v) the composition of the arbitral tribunal or thearbitral procedure was not in accordance with the agreement of the parties,unless such agreement was in conflict with a provision of this Part from whichthe parties cannot derogate, or, failing such agreement, was not in accordancewith this Past; or

(b) the Court finds that-

(i) the subject-matter ofthe dispute is not capable of settlement by arbitration under the law for thetime being in force, or

(ii) the arbitral award is inconflict with the public policy of India.

Explanation.–Withoutprejudice to the generality of sub-clause (ii), it is hereby declared,for the avoidance of any doubt, that an award is in conflict with the publicpolicy of India if the making of the award was induced of affected by fraud orcorruption or was in violation of section 75 or section 81.

(3) An application for setting aside may not bemade after three months have elapsed from the date on which the party makingthat application had received the arbitral award, or, if a request had beenmade under section 33, from the date on which that request had been disposed ofby the arbitral tribunal:

Provided that if the Court issatisfied that the applicant was prevented by sufficient cause from making theapplication within the said period of three months if may entertain theapplication within a further period of thirty days, but not thereafter.

(4) On receipt of an applicationunder sub-section (1), the Court may, where it is appropriate and it isso requested by a party, adjourn the proceedings for a period of timedetermined by it in order to give the arbitral tribunal an opportunity toresume the arbitral proceedings or to take such other action as in the opinionof arbitral tribunal will eliminate the grounds for setting aside the arbitralaward.

CHAPTER 8. FINALITY AND ENFORCEMENT OF ARBITRAL AWARDS

35. Finality of arbitral awards

Subject to this Part an arbitral award shall be final and binding on the parties and persons claiming under them respectively.

36. Enforcement

Where the time for making anapplication to set aside the arbitral award under award under section 34has expired, or such application having been made, it has been refused, theaward shall be enforced under the Code of Civil Procedure, 1908 (5 of1908) in the same manner as if it were a decree of the Court.

CHAPTER 9. APPEALS

37. Appealable orders

(1) An appealshall lie from the following orders (and from no others) to the Courtauthorised by law to hear appeals from original decrees of the Court passingthe order, namely:-

(a) granting or refusing to grantany measure under section 9:

(b) setting aside or refusing toset aside an arbitral award under section 34.

(2) An appeal shall also lie to acourt from an order of the arbitral tribunal-

(a) accepting the plea referred toin sub-section (2) or sub-section (3) of section 16; or

(b) granting or refusing to grantan interim measure under section 17.

(3) No second appeal shall liefrom an order passed in appeal under this section, but nothing in this sectionshall affect or taken away any right to appeal to the Supreme Court.

CHAPTER 10. MISCELLANEOUS

38. Deposits

(1) The arbitral tribunal may fixthe amount of the deposit or supplementary deposit, as the case may be, as anadvance for the costs referred to in sub-section (8) of section 31,which it expects will be incurred in respect of the claim submitted to it:

Provided that where, apart fromthe claim, a counter-claim has been submitted to the arbitral tribunal,it may fix separate amount of deposit for the claim and counter-claim.

(2) The deposit referred to in sub-section(1) shall be payable in equal shares by the parties:

Provided that where one partyfails to pay his share of the deposit, the other party may pay that share:

Provided further that where theother party also does not pay the aforesaid share in respect of the claim orthe counter-claim, the arbitral tribunal may suspend or terminate thearbitral proceedings in respect of such claim or counter-claim, as thecase may be.

(3) Upon termination of thearbitral proceedings, the arbitral tribunal shall render an accounting to theparties of the deposits received and shall return any unexpended balance to theparty or parties, as the case may be.

39. Lien on arbitral award and deposits as to costs

(1) Subject to the provisions ofsub-section (2) and to any provision to the contrary in the arbitration,agreement, the arbitral tribunal shall have a lien on the arbitral award forany unpaid costs of the arbitration.

(2) If in any case an arbitraltribunal refuses to deliver its award except on payment of the costs demandedby it, the Court may, on an application in this behalf, order that the arbitraltribunal shall deliver the arbitral award to the applicant on payment intoCourt by the applicant of the costs demanded, and shall, after such inquiry, inany, as it thinks, fit, further order that out of the money so paid into Courtthere shall be paid to the arbitral tribunal by way of costs such sum as theCourt may consider reasonable and that the balance of the money, if any, shallbe refunded to the applicant.

(3) An application under sub-section(2) may be made by any party unless the fees demanded have been fixed bywritten agreement between him and the arbitral tribunal, and the arbitraltribunal shall be entitled to appear and be heard on any such application.

(4) The Court may make such ordersas it thinks fit respecting the costs of the arbitration where any questionarises respecting such costs and the arbitral award contains no sufficientprovision concerning them.

40. Arbitration agreement not to be discharged by death of party thereto

(1) An arbitration agreement shallnot be discharged by the death of any party thereto either as respects thedeceased or as respects any other party, but shall in such event by enforceableby or against the legal representative of the deceased.

(2) The mandate of an arbitratorshall not be terminated by the death of any party by whom he was appointed.

(3) Nothing in this section shallaffect the operation of any law by virtue of which any right of action is extinguishedby the death of a person.

41. Provisions in case of insolvency

(1) Where it is provided by a termin a contract to which an insolvent is a party that any dispute arisingthereout or in connection therewith shall be submitted to arbitration, the saidterm shall, if the receiver adopts the contract, be enforceable by or againsthim so far as it relates to any such dispute.

(2) Where a person who has beenadjudged an insolvent had, before the commencement of the insolvencyproceedings, become a party to a arbitration agreement, and any matter to whichthe agreement applies is required to be determined in connection with, or forthe purposes of, the insolvency proceedings, then, if the case is one towhich sub-section (1) does not apply, any other party or the receivermay apply to the judicial authority having jurisdiction in the insolvencyproceedings for an order directing that the matter in question shall besubmitted to arbitration in accordance with the arbitration agreement , and thejudicial authority may, if it is of opinion that, having regard to all thecircumstances of the case, the matter ought to be determined by arbitration,make an order accordingly.

(3) In this section the expression”receiver” includes an Official Assignee.

42. Jurisdiction

Notwithstanding anything containedelsewhere in this Part or in any other law for the time being in force, wherewith respect to an arbitration agreement any application under this Part hasbeen made in a Court, that Court alone shall have jurisdiction over thearbitral proceedings and all subsequent applications arising out of thatagreement and the arbitral proceedings shall be made in that Court and in noother Court.

43. Limitations

(1) The Limitation Act, 1963 (36of 1963), shall, apply to arbitrations as it applies to proceedings in court.

(2) For the purposes of thissection and the Limitation Act, 1963 (36 of 1963), an arbitration shall bedeemed to have commenced on the date referred in section 21.

(3) Where an arbitration agreementto submit further disputes to arbitration provides that any claim to which theagreement applies shall be barred unless some step to commence arbitralproceedings is taken within a time fixed by the agreement, and a dispute arisesto which the agreement applies the Court, if it is of opinion that in thecircumstances of the case undue hardship would otherwise be caused, andnotwithstanding that the time so fixed has expired, may on such terms, if any,as the justice of the case may require, extend the time for such period as itthinks proper.

(4) Where the Court orders that anarbitral award be set aside, the period between the commencement of thearbitration and the date of the order of the Court shall be excluded incomputing the time prescribed by the Limitation Act, 1963 (36 of 1963), for thecommencement of the proceedings (including arbitration) with respect to thedispute so submitted.

PART II. ENFORCEMENT OF CERTAIN FOREIGN AWARDS
CHAPTER I. NEW YORK CONVENTION AWARDS

44. Definition

In this Chapter, unless thecontext otherwise requires, “foreign award” means an arbitral awardon differences between persons arising out of legal relationships, whethercontractual or not, considered as commercial under the law in force in India,made on or after the 11th day of October, 1960-

(a) in pursuance of an agreement in writing forarbitration to which the Convention set forth in the First Schedule applies,and

(b) in one of such territories asthe Central Government, being satisfied that reciprocal provisions have beenmade may, by notification in the Official Gazette, declare to be territories towhich the said Convention applies.

45. Power of judicial authority to refer parties to arbitration

Notwithstanding anything containedin Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicialauthority, when seized of an action in a matter in respect of which the partieshave made an agreement referred to in section 44, shall, at the request of oneof the parties or any person claiming through or under him, refer the partiesto arbitration, unless it finds that the said agreement is null and void,inoperative or incapable of being performed.

46. When foreign award binding

Any foreign award which would beenforceable under this Chapter shall be treated as binding for all purposes onthe persons as between whom it was made, and may accordingly be relied on byany of those persons by way of defence, set off or otherwise in any legalproceedings in India and any references in this Chapter to enforcing a foreignaward shall be construed as including references to relying on an award.

47. Evidence

(1) The party applying for theenforcement of a foreign award shall, at the time of the application, producebefore the court-

(a) the original award or a copy thereof, dulyauthenticated in the manner required by the law of the country in which it wasmade;

(b) the original agreement forarbitration or a duly certified copy thereof; and

(c) such evidence as may benecessary to prove that the aware is a foreign award.

(2) If the award or agreement tobe produced under sub-section (1) is in a foreign language, the partyseeking to enforce the award shall produce a translation into English certifiedas correct by a diplomatic or consular agent of the country to which that partybelongs or certified as correct in such other manner as may be sufficientaccording to the law in force in India.

Explanation.—In thissection and all the following sections of this Chapter, “Court” meansthe principal Civil Court of original jurisdiction in a district, and includesthe High Court in exercise of its ordinary original civil jurisdiction, havingjurisdiction over the subject-matter of the award if the same had beenthe subject-matter of a suit, but does not include any civil court of agrade inferior to such principal Civil Court, or any Court of Small Causes.

48. Conditions for enforcement of foreign awards

(1) Enforcement of a foreign awardmay be refused, at the request of the party against whom it is invoked, only ifthat party furnishes to the court proof that-

(a) the parties to the agreement referred to in section44 were, under the law applicable to them, under some incapacity, or the saidagreement is not valid under the law to which the parties have subjected it or,failing any indication thereon, under the law of the country where the awardwas made; or

(b) the party against whom the award is invoked wasnot given proper notice of the appointment of the arbitrator or of the arbitralproceedings or was otherwise unable to present his case; or

(c) the award deals with adifference not contemplated by or not falling within the terms of thesubmission to arbitration, or it contains decisions on matters beyond the scopeof the submission to arbitration.

Provided that, if the decisions on matters submitted to arbitrationcan be separated from those not so submitted, that part of the award whichcontains decisions on matters submitted to arbitration may be enforced; or

(d) the composition of the arbitral authority orthe arbitral procedure was not in accordance with the agreement of the parties,or, failing such agreement, was not in accordance with the law of the countrywhere the arbitration took place ; or

(e) the award has not yet becomebinding on the parties, or has been set aside or suspended by a competentauthority of the country in which, or under the law of which, that award wasmade.

(2) Enforcement of an arbitral award may also berefused if the court finds that-

(a) the subject -matter ofthe difference is not capable of settlement by arbitration under the law ofIndia; or

(b) the enforcement of the awardwould be contrary to the public policy of India.

Explanation.–Withoutprejudice to the generality of clause (b), it is hereby declared, for theavoidance of any doubt, that an award is in conflict with the public policy ofIndia if the making of the award was induced or affected by fraud or corruption.

(3) If an application for thesetting aside or suspension of the award has been made to a competent authorityreferred to in clause (e) of sub-section (1) the Court may, if itconsiders it proper, adjourn the decision on the enforcement of the award andmay also , on the application of the party claiming enforcement of the award,order the other party to give suitable security.

49. Enforcement of foreign awards

Where the Court is satisfied thatthe foreign award is enforceable under this Chapter, the award shall be deemedto be a decree of that Court.

50. Appealable orders

(1) An appeal shall lie from theorder refusing to-

(a) refer the parties toarbitration under section 45;

(b) enforce a foreign award undersection 48, to the court authorised by law to hear appeals from such order.

(2) No second appeal shall liefrom an order passed in appeal under this section, but nothing in this sectionshall affect or take away any right to appeal to the Supreme Court.

51. Saving

Nothing in this Chapter shallprejudice any rights which any person would have had of enforcing in India ofany award or of availing himself in India of any award or of availing himselfin India of any award if this Chapter had not been enacted.

52. Chapter II not to apply

Chapter II of this Part shall notapply in relation to foreign awards to which this Chapter applies.

CHAPTER II. GENEVA CONVENTION AWARDS

53. Interpretation

In this Chapter “foreignaward” means an arbitral award on differences relating to mattersconsidered as commercial under the law in force in India made after the 28thday of July, 1924,-

(a) in pursuance of an agreement for arbitration towhich the Protocol set forth in the Second Schedule applies, and

(b) between persons of whom one is subject to thejurisdiction of some one of such Powers as the Central Government, beingsatisfied that reciprocal provisions have been made, may, by notification inthe Official Gazette, declare to be parties to the Convention set forth in theThird Schedule, and of whom the other is subject to the jurisdiction of someother of the Powers aforesaid, and

(c) in one of such territories asthe Central Government, being satisfied that reciprocal provisions have beenmade, may, by like notification, declare to be territories to which the saidConvention applies, and for the purposes of this Chapter an award shall not bedeemed to be final if any proceedings for the purpose of contesting thevalidity of the award are pending in the country in which it was made.

54. Power of judicial authority to refer parties to arbitration

Notwithstanding anything containedin Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a judicialauthority, on being seized of a dispute regarding a contract made betweenpersons to whom section 53 applies and including an arbitration agreement,whether referring to present or further differences, which is valid under thatsection and capable of being carried into effect, shall refer the parties onthe application of either of them or any person claiming through or under himto the decision of the arbitrators and such reference shall not prejudice thecompetence of the judicial authority in case the agreement or the arbitrationcannot proceed or becomes inoperative.

55. Foreign awards when binding

Any foreign award which would beenforceable under this Chapter shall be treated as binding for all purposes onthe persons as between whom it was made, and may accordingly be relied on byany of those persons by way of defence, set off or otherwise in any legalproceedings in India and any references in this Chapter to enforcing a foreignaward shall be construed as including references to relying on an award.

56. Evidence

(1) The party applying for theenforcement of a foreign award shall, at the time of application procedurebefore the Court-

(a) the original award or a copy thereof dulyauthenticated in the manner required by the law of the country in which it wasmade;

(b) evidence proving that theaward has become final; and

(c) such evidence as may benecessary to prove that the conditions mentioned in clauses (a) and (c) of sub-section(1) of section 57 are satisfied.

(2) Where any document requiringto be produced under sub-section (1) is in a foreign language, the partyseeking to enforce the award shall produce a translation into English certifiedas correct by a diplomatic or consular agent of the country to which that partybelongs or certified as correct in such other manner as may be sufficientaccording to the law in force in India.

Explanation.—Inthis section and all the following sections of this Chapter, “Court”means the principal Civil Court of original jurisdiction in a district, andincludes the High Court in exercise of its ordinary original civiljurisdiction, having jurisdiction over the subject-matter of the awardif the same had been the subject matter of a suit, but does not include anycivil court of a grade inferior to such principal Civil Court, or any Court ofSmall Causes.

57. Conditions for enforcement of foreign awards

(1) In order that a foreign awardmay be enforceable under this Chapter, it shall be necessary that-

(a) the award has been made in pursuance of asubmission to arbitration which is valid under the law applicable thereto;

(b) the subject-matter ofthe award is capable of settlement by arbitration under the law of India;

(c) the award has been made by the arbitraltribunal provided for in the submission to arbitration or constituted in themanner agreed upon by the parties and in conformity with the law governing thearbitration procedure;

(d) the award has become final in the country inwhich it has been made, in the sense that it will not be considered as such ifit is open to opposition or appeal or if it is proved that any proceedings forthe purpose of contesting the validity of the award the pending;

(e) the enforcement of the awardis not contrary to the public policy or the law of India.

Explanation.—Withoutprejudice to the generality of clause (e), it is hereby declared, for theavoidance, of any doubt, that an award is in conflict with the public policy ofIndia if the making of the award was induced or affected by fraud or corruption.

(2) Even if the conditions laiddown in sub-section (1) are fulfilled, enforcement of the award shall berefused if the Court is satisfied that-

(a) the award has been annulled inthe country in which it was made;

(b) the party against whom it issought to use the award was not given notice of the arbitration proceedings insufficient time to enable him to present his case; or that, being under a legalincapacity, he was not properly represented;

(c) the award does not deal withthe differences contemplated by or falling within the terms of the submissionto arbitration or that it contains decisions on matters beyond the scope forthe submission or arbitration;

Provided that if the award has notcovered all the differences submitted to the arbitral tribunal, the Court may,if it thinks fit, postpone such enforcement or grant it subject to suchguarantee as the Court may decide.

(3) If the party against whom theaward has been made proves that under the law governing the arbitrationprocedure there is a ground, other than the grounds referred to in clauses (a)and (c) of sub-section (1) and clauses (b) and (c) of sub-section(2) entitling him to contest the validity of the award, the Court may, if itthinks fit, either refuse enforcement of the award or adjourn the considerationthereof, giving such party a reasonable time within which to have the awardannulled by the competent tribunal.

58. Enforcement of foreign awards

Where the Court is satisfied thatthe foreign award is enforceable under this Chapter, the award shall be deemedto be a decree of the Court.

59. Appealable orders

(1) An appeal shall lie from theorder refusing-

(a) to refer the parties to arbitrationunder section 54: and

(b) to enforce a foreign awardunder section 57, to the court authorised by law to hear appeals from suchorder.

(2) No second appeal shall liefrom an order passed in appeal under this section, but nothing in this sectionshall affect or take away any right to appeal to the Supreme Court.

60. Saving

Nothing in this Chapter shallprejudice any rights which any person would have had of enforcing in India ofany award or of availing himself in India of any award if this Chapter had notbeen enacted.

PART 3. CONCILIATION

61. Application and scope

(1) Save as otherwise provided byany law for the time being in force and unless the parties have otherwiseagreed, this Part shall apply to conciliation of disputes arising out of legalrelationship, whether contractual or not and to all proceedings relatingthereto.

(2) This Part shall not applywhere by virtue of any law for the time being in force certain disputes may notbe submitted to conciliation.

62. Commencement of conciliation proceedings

(1) The party initiatingconciliation shall send to the other party a written invitation to conciliateunder this Part, briefly identifying the subject of the dispute.

(2) Conciliation proceedings shallcommence when the other party accepts in writing the invitation to conciliate.

(3) If the other party rejects theinvitation, there will be no conciliation proceedings.

(4) If the party initiatingconciliation does not receive a reply within thirty days from the date on whichhe sends the invitation, or within such other period of time as specified inthe invitation, be may elect to treat this as a rejection of the invitation toconciliate and if he so elects, he shall inform in writing the other partyaccordingly.

63. Number of conciliators

(1) There shall be one conciliatorunless the parties agree that there shall be two or three conciliators.

(2) Where there is more than oneconciliator, they ought, as a general rule, to act jointly.

64. Appointment of conciliators

(1) Subject to sub-section(2),-

(a) in conciliation proceedings with oneconciliator, the parties may agree on the name of a sole conciliator;

(b) in conciliation proceedingswith two conciliators, each party may appoint one conciliator;

(c) in conciliation proceedingswith three conciliators, each party may appoint one conciliator and the partiesmay agree on the name of the third conciliator who shall act as the presidingconciliator.

(2) Parties may enlist theassistance of a suitable institution or person in connection with theappointment of conciliators and in particular,-

(a) a party may request such an institution orperson to recommend the names of suitable individuals to act as conciliator; or

(b) the parties may agree that the appointment ofone or more conciliators be made directly by such an institution or person:

Provided that in recommending orappointing individuals to act as conciliator, the institution or person shallhave regard to such considerations as are likely to secure the appointment ofan independent and impartial conciliator and, with respect to a sole or thirdconciliator, shall take into account the advisability of appointing aconciliator of a nationality other than the nationalities of the parties.

65. Submission of statements to conciliator

(1) The conciliator, upon hisappointment, may request each party to submit to him a brief written statementof his position and the facts and grounds in support thereof, supplement by anydocuments and other evidence that such party deems appropriate. Theparty shall send a copy of such statement, documents and other evidence to theother party.

(2) The Conciliator may requesteach party to submit to him a further written statement of his position and thefacts and grounds in support thereof, supplemented by any documents and otherevidence that such party deems appropriate. The party shall send a copyof such statement, documents and other evidence to the other party.

(3) At an stage of the conciliationproceedings, the conciliator may request a party to submit to him suchadditional information as he deems appropriate.

Explanation.– Inthis section and all the following sections of this Part, the term”conciliator” applies to a sole conciliator, to or three conciliatorsas the case may be.

66. Conciliator not bound by certain enactments

The conciliator is not bound bythe Code of Civil Procedure, 1908 (5 of 1908)or the Indian Evidence Act, 1872(1 of 1872).

67. Role of conciliator

(1) The conciliator shall assistthe parties in an independent and impartial manner in their attempt to reach anamicable settlement of their dispute.

(2) The conciliator shall beguided by principles of objectivity, fairness and justice, giving considerationto, among other things, the rights and obligations of the parties, the usagesof the trade concerned and the circumstances surrounding the dispute, includingany previous business practices between the parties.

(3) The conciliator may conductthe conciliation proceedings in such a manner as he considers appropriate,taking into account the circumstances of the case, the wishes the parties mayexpress, including any request by a party that the conciliator hear oralstatements, and the need for a speedy settlement of the dispute.

(4) The conciliator-may, atany stage of the conciliation proceedings, make proposals for a settlement ofthe dispute. Such proposals need not be writing and need not beaccompanied by a statement of the reasons therefor.

68. Administrative assistance

In order to facilitate the conductof the conciliation proceedings, the parties, or the conciliator with theconsent of the parties, may arrange for administrative assistance by a suitableinstitution or person.

69. Communication between conciliator and parties

(1) The conciliator may invite theparties to meet him or may communicate with them orally or in writing. Hemay meet or communicate with the parties together or with each of themseparately.

(2) Unless the parties have agreedupon the place where meetings with the conciliator are to be held, such placeshall be determined by the conciliator, after consultation with the parties,having regard to the circumstances of the conciliation proceedings.

70. Disclosure of information

When the conciliator receivesfactual information concerning the dispute from a party, he shall disclose thesubstance of that information to the other party in order that the other partymay have the opportunity to present any explanation which he considersappropriate:

Provided that when a party givesany information to the conciliator subject to a specific condition that it bekept confidential, con conciliator shall not disclose that information to theother party.

71. Co-operation of parties with conciliator

The parties shall in good faith co-operatewith the conciliator and, in particular, shall endeavour to comply withrequests by the conciliator to submit written materials, provide evidence andattend meetings.

72. Suggestions by parties for settlement of dispute

Each party may, on his owninitiative or at the invitation of the conciliator, submit to the conciliatorsuggestions for the settlement of the dispute.

73. Settlement agreement

(1) When it appears to theconciliator that there exist elements of a settlement which may be acceptableto the parties, he shall formulate the terms of a possible settlement andsubmit them to the parties for their observations. After receiving theobservations of the parties, the conciliator may reformulate the terms of apossible settlement in the light of such observations.

(2) If the parties reach agreementon a settlement of the dispute, they may draw up and sign a written settlementagreement. If requested by the parties, the conciliator may draw up, orassist the parties in drawing up, the settlement agreement.

(3) When the parties sign thesettlement agreement, it shall be final and binding on the parties and personsclaiming under them respectively.

(4) The conciliator shallauthenticate the settlement agreement and furnish a copy thereof to each of theparties.

74. Status and effect of settlement agreement

The settlement agreement shallhave the and effect as if it is an arbitral award on agreed terms on thesubstance of the dispute rendered by an arbitral tribunal under section 30.

75. Confidentiality

Notwithstanding anything containedin any other law for the time being in force, the conciliator and the partiesshall keep confidential all matter relating to the conciliation proceedings.Confidentiality shall extend also to the settlement agreement, except whereits disclosure is necessary for purposes of implementation and enforcement.

76. Termination of conciliation proceedings

The conciliation proceedings shallbe terminated

(a) by the signing of thesettlement agreement by the parties; on the date of the agreement; or

(b) by a written declaration ofthe conciliator, after consultation with the parties, in the effect thatfurther efforts at conciliation are no longer justified, on the date of the declaration;or

(c) by a written declaration ofthe parties addressed to the conciliator to the effect that the conciliationproceedings are terminated , on the date of the declaration; or

(d) by a written declaration of aparty to the other party and the conciliator, if appointed, to the effect thatthe conciliation proceedings are terminated, on the date of the declaration.

77. Resort to arbitral or judicial proceedings

The parties shall not initiate,during the conciliation proceedings, any arbitral or judicial proceedings inrespect of a dispute that is the subject- matter of the conciliationproceedings except that a party may initiate arbitral or judicial proceedings,where, in his opinion, such proceedings are necessary for preserving his rights.

78. Costs

(1) Upon termination of theconciliation proceedings, the conciliator shall fix the costs of theconciliation and given written notice thereof to the parties.

(2) For the purpose of sub-section(1) , “costs” means reasonable costs relating to-

(a) the fee and expenses of the conciliator andwitnesses requested by the conciliator, with the consent of the parties;

(b) any expert advice requested bythe conciliator with the consent of the parties;

(c) any assistance providedpursuant to clause (b) of sub-section (2) of section 64 and section 68.

(d) any other expenses incurred inconnection with the conciliation proceedings and the settlement agreement.

(3) The costs shall be borneequally by the parties unless the settlement agreement provides for a differentappointment. All other expenses incurred by a party shall be borne bythat party.

79. Deposits

(1) The conciliator may directeach party to deposit an equal amount as an advance for the costs referred toin sub-section (2) of section 78 which he expects will be incurred.

(2) During the course of theconciliation proceedings, the conciliator may direct supplementary deposits inan equal amount from each party.

(3) If the required deposits undersub-sections (1) and (2) are not paid in full by both partieswithinthirty days, the conciliator may suspend the proceedings or may make awritten declaration of termination of the proceedings to the parties, effectiveon the date of that declaration.

(4) Upon termination of theconciliation proceedings the conciliator shall render an accounting to theparties of the deposits received and shall return and expended balance to theparties.

80. Role of conciliator in other proceedings

Unless otherwise agreed by theparties:-

(a) the conciliator shall not act as an arbitratoror as a representative or counsel of a party in any arbitral or judicialproceeding in respect of a dispute that is the subject of the conciliationproceedings;

(b) the conciliator shall not be presentedby the parties as a witness in any arbitral or judicial proceedings.

81. Admissibility of evidence in other proceedings

The parties shall not rely on orintroduce as evidence in arbitral or judicial proceedings, whether or not suchproceedings relate to the dispute that is the subject of the conciliationproceedings,-

(a) views expressed or suggestionsmade by the other party in respect of a possible settlement of the dispute;

(b) admissions made by the otherparty in the course of the conciliation proceedings;

(c) proposals made by theconciliator;

(d) the fact that the other partyhad indicated to accept a proposal for settlement made by the conciliator.

PART 4. SUPPLEMENTARY PROVISIONS

82. Power of High Court to make rules

The High court may make rulesconsistent with this Act as to all proceedings before the court under this Act.

83. Removal of difficulties

(1) If any difficulty arises ingiving effect to the provisions of this Act, the central Government may, byorder published in the Official Gazette, make such provisions, not inconsistentwith the provisions of this Act as appear to it to be necessary or expedientfor removing the difficulty:

Provided that no such order shallbe after the expiry of a period of two years from the date of commencement ofthis Act.

(2) Every order made under thissection shall, as soon as may be after it is made, be laid before each Housesof Parliament.

84. Power to make rules

(1) The Central Government may, bynotification in the Official Gazette, make rules for carrying out theprovisions of this Act.

(2) Every rule made by the CentralGovernment under this Act shall be laid, as soon as may be, after it is madebefore each House of Parliament while it is in session, for a total period ofthirty days which may be comprised in one session or in two or more successivesessions, and if, before the expiry of the session immediately following thesession or the successive sessions aforesaid, both Houses agree in making maymodification in the rule or both Houses agree that the rule should not be made,the rule shall thereafter have effect only in such modified form or be of no effect,as the case may be; so, however, that any such modification or annulment shallbe without prejudice to the validity of anything previously done under thatrule.

85. Repeal and savings

(1) The Arbitration (Protocol andConvention) Act, 1937 (6 of 1937), the Arbitration Act, 1940 (10 of 1940) andthe Foreign Awards (Recognition and Enforcement) Act, 1961 (45 of 1961) arehereby repealed.

(2) Notwithstanding such repeal,-

(a) the provisions of the said enactments shallapply in relation to arbitral proceedings which commenced before this Act cameinto force unless otherwise agreed by the parties but this Act shall apply inrelation to arbitral proceedings which commenced on or after this Act comesinto force;

(b) all rules made and notifications published,under the said enactments shall, to the extent to which they are not repugnantto this Act, be deemed respectively to have been made or issued under this Act,

86. Repeal of Ordinance 27 of 1996 and saving

(1) The Arbitration andConciliation (Third) Ordinance, 1996 (27 of 1996) is hereby repealed.

(2) Notwithstanding such repeal,any order, rule, notification or scheme made or anything done or any actiontaken in pursuance of any provision of the said Ordinance shall be deemed tohave been made, done or taken under the corresponding provisions of this Act.

THE FIRST SCHEDULE
CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS
(See section 44)
ARTICLE I

1. This Convention shall apply to the recognitionand enforcement of arbitral awards made in the territory of a State other thanthe State where the recognition and enforcement of such awards are sought andarising out of differences between persons, whether physical or legal. Itshall also apply to arbitral awards not considered as domestic awards in theState where their recognition and enforcement are sought.

2. The term “arbitral awards” shallinclude not only awards made by arbitrators appointed for each case but alsothose made by permanent arbitral bodies to which the parties have submitted.

3. When signing, ratifying or acceding to thisConvention, or notifying extension under article X hereof, and State may on thebasis of reciprocity declare that it will apply the Convention to therecognition and enforcement of awards made only in the territory of anotherContracting State. It may also declare that it will apply the Conventiononly to differences arising out of legal relationships, whether contractual ornot, which are considered as commercial undertaking national law of the Statemaking such declaration.

ARTICLE II

1. Each Contracting State shall recognise anagreement in writing under which the parties undertaking to submit toarbitration all or any differences which have arisen or which may arise betweenthem in respect of defined legal relationship, whether contractual or not,concerning a subject-matter capable of settlement by arbitration.

2. The term “agreement in writing” shallinclude an arbitral clause in a contract or an arbitration agreement, signed bythe parties or contained in an exchange of letters or telegrams.

3. The court of a Contracting State, when seized ofan action in a matter in respect of which the parties have made an agreementwithin the meaning of this article, shall, at the request of one of theparties, refer the parties to arbitration, unless in finds that the saidagreement is null and void, inoperative of incapable of being performed.

ARTICLE III

Each Contracting State shall recognize arbitral awards asbinding and enforcement them in accordance with the rules of procedure of theterritory where the award is relied upon, under the conditions laid down in thefollowing articles. There shall not be imposed substantially moreonerous conditions or higher fees or charges on the recognition or enforcementof arbitral awards to which this Convention applies than are imposed on therecognition or enforcement of domestic arbitral awards.

ARTICLE IV

1. To obtain the recognition and enforcementmentioned in the proceeding article, the party applying for recognition andenforcement shall, at the time of the application, supply:

(a) the duly authenticated original award or a dulycertified copy thereof:

(b) the original agreement referred to in article II or aduly certified copy thereof.

2. If the said award or agreement is not made in anofficial language of the country in which the award is relied upon, the partyapplying for recognition and enforcement of the award shall produce atranslation of these documents into such language. The translation shallbe certified by an official or sworn translator or by a diplomatic or consularagent.

ARTICLE V

1. Recognition and enforcement of the award may berefused, at the request of the party against whom it is invoked, only if thatparty furnishes to the competent authority where the recognition andenforcement is sought, proof that-

(a) the parties to the agreement referred to in article IIwere, under the law applicable to them, under some incapacity, or the saidagreement in not valid under the law to which the parties have subjected it or,failing any indication thereon, under the law of the country where the awardwas made; or

(b) the party against whom the award is invoked wasnot given proper notice of the appointment of the arbitrator or of thearbitration proceedings or was otherwise unable to present his case; or

(c) the award deals with a difference notcontemplated by or not falling within the terms of the submission toarbitration, or it contains decisions on matters beyond the scope of thesubmission to arbitration, provided that, if the decisions on matters submittedto arbitration can be separated from those not so submitted, that part of theaward which contains decisions on matters submitted to arbitration may berecognised and enforced; or

(d) the composition of the arbitral authority orthe arbitral procedure was not in accordance with the agreement of the parties,or, failing such agreement, was not in accordance with the law of the countrywhere the arbitration took place; or

(e) the award has not yet become binding on the parties,or has been set aside or suspended by a competent authority of the country inwhich, or under the law of which, that award was made.

2. Recognition and enforcement of an arbitral awardmay also be refused if the competent authority in the country where recognitionand enforcement is sought finds that-

(a) the subject matter of the difference is not capable ofsettlement by arbitration under the law of that country; or

(b) the recognition or enforcement of the award would becontrary to the public policy of that country.

ARTICLE VI

If an application for the setting aside or suspension ofthe award has been made to a competent authority referred to in article V(1)(e), the authority before which the award is sought to be relied upon may, ifit considers it proper, adjourn the decision on the enforcement of the awardand may also, on the application of the party claiming enforcement of theaward, order the other party to give suitable security.

ARTICLE VII

1. The provisions of the present Convention shallnot affect the validity of multilateral or bilateral agreements concerning therecognition and enforcement of arbitral awards entered into by the ContractingStates nor deprive any interested party of any right he may have to availhimself of an arbitral award in the manner and to the extent allowed by the lawor the treaties of the country where such award is sought to be relied upon.

2. The Geneva Protocol on Arbitration Clauses of1923 and the Geneva Convention on the Execution of Foreign Arbitral Awards of1927 shall cease to have effect between Contracting States on their becomingbound and to the extent that they become bound by this Convention.

ARTICLE VIII

1. This Convention shall be upon until 31st December,1958 for signature on behalf of any Member of the United Nations and also onbehalf of any other State which is or hereafter becomes member of anyspecialised agency of the United Nations, or which is or hereafter becomes aparty to the Statute of the International Court of Justice, or any other Stateto which an invitation has been addressed by the General Assembly of the UnitedNations.

2. This Convention shall be ratified and theinstrument of ratification shall be deposited with the Secretary-Generalof the United Nations.

ARTICLE IX

1. This Convention shall be upon for accession toall States referred to in article VIII.

2. Accession shall be effected by the deposit of aninstrument of accession with the Secretary-General of the United Nations.

ARTICLE X

1. Any State may, at the time of signature,ratification or accession, declare that this Convention shall extend to all orany of the territories for the international relations of which it isresponsible. Such a declaration shall take effect when the Conventionenters into force for the State concerned.

2. At any time thereafter any such extension shallbe made by notification addressed to the Secretary-General of the UnitedNations and shall take effect as from the ninetieth day after the day ofreceipt by the Secretary-General of the United Nations of thisnotifications, or as from the date of entry into force of the Convention forthe State concerned, whichever is the later.

3. With respect to those territories to which thisConvention is not extended at the time of signature, ratification or accession,each State concerned shall consider the possibility of taking the necessarysteps in order to extend the application of this Convention to suchterritories, subject, where necessary for constitutional reasons, to theconsent of the Governments of such territories.

ARTICLEXI

In the case of a federal or non-unitary State, thefollowing provisions shall apply:-

(a) with respect of those articles of this Convention thatcome within the legislative jurisdiction of the federal authority, theobligations of the federal Government shall to this extent be the same as thoseof Contracting States which are not federal States;

(b) with respect to those articles of this Convention thatcome within the legislative jurisdiction of constituent States or provinceswhich are not, under the constitutional system of the federation, bound to takelegislative action, the federal Government shall bring such articles with afavourable recommendation to the notice of the appropriate authorities ofconstituent States or provinces at the earliest possible moment;

(c) a federal State Party to this Convention shall, at therequest of any other Contracting State transmitted through the Secretary-Generalof the United Nations, supply a statement of the law and practice of thefederation and its constituent units in regard to any particular provision ofthis Convention, showing the extent to which effect has been given to thatprovision by legislative or other action.

ARTICLE XII

1. This Convention shall come into force on theninetieth day following the date of deposit of the third instrument ofratification or accession.

2. For each State ratifying or acceding to thisConvention after the deposit of the third instrument of ratification oraccession, this Convention shall enter into force on the ninetieth day afterdeposit by such State of its instrument of ratification or accession.

ARTICLE XIII

1. Any Contracting State may denounce thisConvention by a written notification to the Secretary-General of theUnited Nations. Denunciation shall take effect one year after the dateof receipt of the notification by the Secretary-General.

2. Any State which has made a declaration ornotification under article X may, at any time thereafter, by notification tothe Secretary-General of the United Nations, declare that thisConvention shall cease to extend to the territory concerned one year after thedate of the receipt of the notification by the Secretary-General.

3. This Convention shall continue to be applicableto arbitral awards in respect of which recognition or enforcement proceedingshave been instituted before the denunciation takes effect.

ARTICLE XIV

A Contracting State shall not be entitled to avail itselfof the present Convention against other Contracting States except to the extentthat it is itself bound to apply the Convention.

ARTICLE XV

The Secretary General of the United Nations shall notifythe States contemplated in article VIII of the following:-

(a) signatures and ratifications in accordance witharticle VIII;

(b) accessions in accordance with article IX;

(c) declarations and notifications under articles I, X andXI;

(d) the date upon which this Convention enters into forcein accordance with article XII;

(e) denunciations and notifications in accordance witharticle XIII.

ARTICLE XVI

1. This Convention, of which the Chinese, English,French, Russian and Spanish texts shall be equally authentic, shall bedeposited in the archives of the United Nations.

2. The Secretary General of the United Nationsshall transmit a certified copy of this Convention to the State contemplated inarticle XIII.

THE SECOND SCHEDULE
PROTOCOL ON ARBITRATION CLAUSES
(See section 53)

The undersigned, being duly authorised, declarethat they accept, on behalf of the countries which they represent, thefollowing provisions:-

1. Each of the Contracting States recognises thevalidity of an agreement whether relating to existing or future differencesbetween parties subject respectively to the jurisdiction of differentContracting States by which the parties to a contract agree to submit toarbitration all or any differences that may arise in connection with suchcontract relating to commercial matters or to any other matter capable ofsettlement by arbitration, whether or not the arbitration is to take place in acountry to whose jurisdiction none of the parties is subject.

Each Contracting State reserves the right to limit theobligation mentioned above to contracts which are considered as commercialunder its national law. Any Contracting State which avails itself ofthis right will notify the Secretary-General of the League of Nations inorder that the other Contracting States may be so informed.

2. The arbitral procedure, including theconstitution of the Arbitral Tribunal, shall be governed by the will of theparties and by the law of the country in whose territory the arbitration takesplace.

The Contracting States agree to facilitate all steps inthe procedure which require to be taken in their own territories, in accordancewith the provisions of their law governing arbitral procedure applicable toexisting differences.

3. Each Contracting State undertakes to endure theexecution by its authorities and in accordance with the provisions of itsnational law of arbitral awards made in its own territory under the precedingarticles.

4. The Tribunals of the Contracting Parties, onbeing seized of a dispute regarding a contract made between persons to whomArticle I applies and including an Arbitration Agreement whether referring topresent or further differences with is valid in virtue of the said article andcapable of being carried into effect, shall refer the parties on theapplication of either of them to the decision of the Arbitrators.

Such reference shall not prejudice the competence of hejudicial tribunals in case the agreement or the arbitration cannot proceed orbecomes inoperative.

5. The present Protocol, which shall remain open forsignature by all States, shall be ratified. The ratification shall bedeposited as soon as possible with the Secretary, General of the League ofNations, who shall notify such deposit to all the Signatory States.

6. The present Protocol will come into force assoon as two ratifications have been deposited. Thereafter it will takeeffect, in the case of each Contracting State, one month after the notificationby the Secretary-General of the deposit of its ratification.

7. The present Protocol may be denounced by anyContracting State on giving one year’s notice. Denunciation shall beeffected by a notification addressed to the Secretary-General of theLeague, who will immediately transmit copies of such notification to all theother Signatory States and inform them of the date on which it was received.The denunciation shall take effect one year after the date on which it wasnotified to the Secretary-General, and shall operate only in respect ofthe notifying State.

8. The Contracting States may declare that theiracceptance of the present Protocol does not include any or all of theunder-mentioned territories; that is to say, their colonies, overseaspossessions or territories, protectorates or the territories over which theyexercise a mandate.

The said States may subsequently adhere separately onbehalf of any territory thus excluded. The Secretary- General ofthe League of Nations shall be informed as soon as possible of such adhesions.He shall notify such adhesions to all Signatory States. They willtake effect on month after the notification by the Secretary-General toall Signatory states The Contracting States may also denounce the Protocol separatelyon behalf of any of the territories referred to above. Article 7 appliesto such denunciation.

THE THIRD SCHEDULE
CONVENTION ON THE EXECUTION OF FOREIGN ARBITRAL AWARDS
(See sections 53)
ARTICLE 1

(1) In the territories of any High Contracting Party towhich the present Convention applies, an arbitral award made in pursuance of anagreement, whether relating the existing or future differences (hereinaftercalled “a submission to arbitration”) covered by the Protocol onarbitration Clauses opened at Geneva on September 24th.1923, shall berecognised as binding and shall be enforced in accordance with the rules of theprocedure of the territory where the award is relied upon, provided that thesaid award has been made in a territory of one of the High Contracting Partiesto which the present Convention applies and between persons who are subject tothe jurisdiction of one of the High Contracting Parties.

(2) To obtain such recognition or enforcement, it shall,further, be necessary:–

(a) that the award has been made in pursuance of asubmission to arbitration which is valid under the law applicable thereto;

(b) that the subject-matter of the award is capableof settlement by arbitration under the law of the country in which the award issought to be relied upon;

(c) that the award has been made by the ArbitralTribunal provided for in the submission to arbitration or constituted in themanner agreed upon by the parties and in conformity with the law governing thearbitration procedure;

(d) that the award has become final in the country inwhich it has been made, in the sense that it will not be considered as such ifit is open to opposition, appeal or pourvoi en cassation (in the countrieswhere such forms of procedure exist) or if it is proved that any proceedingsfor the purpose of contesting the validity of the award are pending;

(e) that the recognition or enforcement of the award isnot contrary to the public policy or to the principles of the law of thecountry in which it is sought to be relied upon.

ARTICLE 2

Even if the conditions laid down in Article I hereof arefulfilled, recognition and enforcement of the award shall be refused if theCourt is satisfied:-

(a) that the award has been annulled in the country inwhich it was made:-

(b) that the party against whom it is sought to use theaward was not given notice of the arbitration proceedings in sufficient time toenable him to present his case; or that, being under a legal incapacity, he wasnot properly represented;

(c) that the award does not deal with the differencescontemplated by or falling within the terms of the submission to arbitration orthat it contains decisions on matters beyond the scope of the submission toarbitration.

If the award has not covered all the questions submittedto the arbitral tribunal, the competent authority of the country whererecognition or enforcement of the award is sought can, if it thinks fit ,postpone such recognition or enforcement or grant it subject to such guaranteeas that authority may decide.

ARTICLE 3

If the party against whom the award has been made provesthat, under the law governing the arbitration procedure, there is a ground,other than the grounds referred to in Article 1(a) and (c), and Article 2(b)and (c), entitling him to contest the validity of the award in a Court of Law,the Court may, if it thinks fit, either refuse recognition or enforcement ofthe award or adjourn the consideration thereof, giving such party a reasonabletime within which to have the award annulled by the competent tribunal.

ARTICLE 4

The party relying upon an award or claiming itsenforcement must supply, in particular:-

(1) the original award or a copy thereof dulyauthenticated, according to the requirements of the law of the country in whichit was made;

(2) documentary or other evidence to prove that the awardhas become final, in the sense defined in Article 1 (d), in the country inwhich it was made;

(3) when necessary, documentary or other evidence to provethat the conditions laid down in Article 1, Paragraph (1) and paragraph (2) (a)and (c), have been fulfilled.

A translation of the award and of the award and of theother documents mentioned in this Article into the official language of thecountry where the award is sought to be relied upon may be demanded.Suchtranslations must be certified correct by a diplomatic or consular agent of thecountry to which the party who seeks to rely upon the award belongs or by asworn translator of the country where the award is sought to be relied upon.

ARTICLE 5

The provisions of the above articles small not deprive anyinterested party of the right of availing himself of an arbitral award in themanner and to the extent allowed by the law or the treaties of the countrywhere such award is sought to be relied upon.

ARTICLE 6

The present Convention applies only to arbitral awardsmade after the coming into force of the Protocol on Arbitration Clauses openedat Geneva on September 24th, 1923.

ARTICLE 7

The present Convention, which will remain open to thesignature of all the signatories of the Protocol of 1923 on Arbitration Clauses,shall be ratified.

It may be ratified only on behalf of those Members of theLeague of Nations and Non-member States on whose behalf the Protocol of1923 on Arbitration Clauses, shall be ratified.

Ratification shall be deposited as soon as possible withthe Secretary-General of the League of Nations, who will notify suchdeposit to all the signatories.

ARTICLE 8

The present Convention shall come into force three monthsafter it shall have been ratified on behalf of two High Contracting Parties.Thereafter, it shall take effect, in the case of each High ContractingParty, three months after the deposit of the ratification on its behalf withthe Secretary-General of the League of Nations.

ARTICLE 9

The present Convention may be denounced on behalf of anyMember of the League or Non-Member State. Denunciation shall benotified in writing to the Secretary-General of the League of Nations,who will immediately send a copy thereof, certified to the in conformity withthe notifications, to all the other Contracting Parties, at the same timeinforming them of the date on which he received it

The denunciation shall come into force only in respect ofthe High Contracting Party which shall have notified it and one year after suchnotification shall have reached the Secretary-General of the League of Nations.

The denunciation of the Protocol on Arbitration Clausesshall entail , ipso facto, the denunciation of the present Convention.

ARTICLE 10

The present Convention does not apply to the colonies,protectorates or territories under suzerainty or mandate of any HighContracting Party unless they are specially mentioned.

The application of this Convention to one or more of suchcolonies, protectorates or territories to which the Protocol on ArbitrationClauses opened at Geneva on September 24th, 1923, applies, can be effected atany time by means of a declaration addressed to the Secretary-General ofthe League of Nations by one of the High Contracting Parties.

Such declaration shall take effect three months after thedeposit thereof.

The High Contracting Parties can at any time denounce theConvention for all or any of the colonies, protectorates or territoriesreferred to above. Article 9 hereof applied to such denunciation.

ARTICLE 11

A certified copy of the present Convention shall betransmitted by the Secretary-General of the league of Nations of everyMember of the league of Nations and to every Non-Member State whichsigns the same.

THE APPOINTMENT OF ARBITRATORS BY THE CHIEF JUSTICE OF INDIA SCHEME, 19962

No.F.22/1/95SCA/Genl.–In excise ofthe power conferred on the Chief Justice of India under sub-section (10) ofsection 11 of the Arbitration and Conciliation Ordiance, 19963 , I hereby make the following Scheme.

1. Short title.-

This Scheme may be called the appointment of Arbitratorsby the Chief Justice of India Scheme, 1996.

2. Submission of request.-

The request to the Chief Justice under sub-section(4) or sub-section (5) or sub-section (6) of shall be made in writing and shallbe accompanied by-

(a)theoriginal arbitration agreement or a duly certified copy thereof;

(b)thenames and addresses of the parties to the arbitration agreement;

(c)thenames and addresses of the arbitrators, if any, already appointed;

(d)thename and address of the person or institution, if any, to whom or which anyfunction has been entrusted by the parties to the arbitration agreement underthe appointment procedure agree upon by them;

(e)thequalification required if any, of the arbitrators by the agreement of the parties;

(f)a briefwritten statement describing the general nature of the dispute and the pointsat issue;

(g)therelief or remedy sought; and

(h)anaffidavit, supported by the relevant document, to the effect that the conditionto be satisfied under sub-section (4) or sub-section (5) or sub-section (6) ofsection 11, as the case may be, before making the request to the Chief Justice, has been satisfied.

3.Authority to deal with the request.-

Uponreceipt of a request under paragraph 2, the Chief Justice may either deal withthe matter entrusted to him or designate any other person or institution forthat purpose.

4.Forwarding of request to designated person or institution.-

Wherethe Chief Justice designates any person or institution under paragraph 3, heshall have the request along with the documents mentioned in paragraph 2forwarded forthwith to such person or institution and also have a notice sentto the parties to the arbitration agreement.

5. Seekking further information.-

The Chief Justice or the person or the institutiondesignated by him under paragraph 3 may seek further information orclarification from the party making the request under this scheme.

6. Rejection of request.-

Where the request made by any part under paragraph2 is not in accordance with the provisions of this Scheme, the Chief Justice orthe person or the institution designated by him may reject it.

7. Notice to affected persons.-

Subject to the provisions of paragraph 6, the ChiefJustice or the person or the institution designated by him shall a direct thata notice of the request be given to al the parties to the arbitration agreementand such other person or persons as may seem to him or is likely to be affectedby such request to show cause, within the time specified in the notice, why theappointment of the arbitrator or the measure proposed to be taken should not bemade or taken and such notice shall be accompanied by copies of all documents, referred to in paragraph 2 or, as the case may be by information orclarification, if any, sought under paragraph 5.

8. Withdrawal of authority.-

If the Chief Justice, on receipt of a complaintfrom either party to the arbitration agreement or otherwise is of opinion thatthe person or institution designated by him under parabraph 3 has neglectd orrefused to act or is incapable of acting he may withdraw the authority given byhim to such person or institution and either deal with the request himself ordesignate another person or institution for that purpose.

9. Intimation of action taken onrequest.-

The appointment made or measure taken by the ChiefJustice or any person or institution designated by him in pursuance of therequest under paragraph I shall be communicated in writing to-

(a)theparties to the arbitration agreement;

(b)thearbitrators, if any, already appointed by the parties to the arbitrationagreement;

(c)theperson or the institution referred to in paragraph 2(d);

(d)thearbitrator appointed in pursuance of the request.

10. Requests and communication tobe sent to Registrar.-

All request under this Scheme and communicationrelating thereto which are addressed to the Chief Justice shall be presented tothe Registrar of this Court, who shall maintain a separate Register of suchrequests and communications.

11. Delivery and receipt ofwritten communications.-

The provisions of sub-sections (1) and (2) ofsection 3 of the Arbitration and Conciliation Ordinance, 1996 shall, so far asmay be, apply to all written communications received or sent under this Scheme.

12. Costs for processing requests.-

The party making a request underthis Scheme shall, on receipt of noticof demand from-

(a)theRegistry of the court where the Chief Justice makes the appointment of an arbitrator or takes the necessary measure, or

(b)thedesignated person or the institution as the case may be, where such person or institution makes appointment or arbitrator or takes the necessary measure, payand amount of Rs. 15,000 in accordance with the terms of such notice towards tocosts involved in processing the request.

13. Interpretation.-

If any question arises with reference to theinterpretation of any of the provisions of this scheme, the question shall bereferred to the Chief Justice, whose decision shall be final.

14. Power to amend the Scheme.-

The Chief Justice may, from time to time, amend bywasy of addition or variation any provision of this Scheme.

___________________________

1.Inserted vide G.S.R. 375(E) dated 22nd August 1996 w.e.f. 22nd August 1996.

2. VideSupreme Court of India Notification dated 29 January 1996. Published in theGazette of India, Extraordinary, Partt III- Section 1. dated 16 May, 1996.

3. Now Act 26 of 1996.

OFFICE TIMINGS
Monday to Saturday 10:00 am to 06:00 pm.
Sundays and Holidays Reserved for urgent & prior appointments.

Related Bare Acts