Arbitration and Conciliation Act, 1996 Guide
Explore the Arbitration and Conciliation Act and key dispute-resolution concepts. Check the applicable agreement, provisions, and procedure.
मध्यस्थता और सुलह अधिनियम, 1996
The primary law for arbitration, conciliation and alternative dispute resolution in India
Overview: Arbitration and Conciliation Act, 1996
The Arbitration and Conciliation Act, 1996 (with 2015, 2019 and 2021 amendments) governs both domestic and international commercial arbitration in India, and the enforcement of foreign arbitral awards under the New York Convention.
This is a plain-English guide, not the statutory text. Check provisions against official legal sources, read our editorial policy, or research related judgments.
Prepare your records and choose the next resource
Useful records to organise for Arbitration and Conciliation Act, 1996. These prompts are not a mandatory filing checklist.
- The full agreement and arbitration clause, including amendments.
- Relevant notices, delivery evidence, appointment records and any award.
- The seat, procedural stage and remedy sought; ask counsel to verify limitation from the actual record.
Key provisions of Arbitration and Conciliation Act, 1996
Section 7 — Arbitration agreement
Written agreement (contract clause or separate agreement) to submit disputes to arbitration; can be inferred from exchange of communications.
Section 8 & 45 — Reference to arbitration
Judicial authority must refer parties to arbitration when a valid arbitration agreement exists.
Section 11 — Appointment of arbitrator
Parties are free to agree on the procedure; failing which, Supreme Court (international)/High Court (domestic) appoints.
Section 17 — Interim measures by tribunal
Arbitral tribunal has the same powers as a court to grant interim relief; directly enforceable as a court order.
Section 34 — Setting aside award
Award can be challenged within 3 months (extendable by 30 days) on limited grounds — patent illegality, public policy, fraud, incapacity.
Section 36 — Enforcement
Award is enforceable as a decree of the court after the Section 34 period expires or challenge is dismissed.
When is a matter arbitrable?
Identify the right, remedy, applicable special statute and any exclusive statutory forum before relying on an arbitration clause. Arbitrability is not established by labelling a dispute commercial or contractual. Tenancy, consumer and insolvency matters should not be treated as one uniform category; obtain advice on the current case law and the particular dispute.
Challenging an arbitral award
Under Section 34, a party can apply to the court within 3 months of receiving the award (extendable by 30 days for sufficient cause; not beyond). Grounds are narrow — incapacity, invalid agreement, denial of natural justice, jurisdiction beyond terms of reference, or contravention of Indian public policy including patent illegality (domestic awards only).
Who typically needs this
- Businesses with commercial contracts containing arbitration clauses
- Startups drafting SHAs, SaaS agreements and vendor contracts
- Parties to construction, IP, employment or shareholder disputes
- Advocates, arbitrators and in-house counsel handling ADR
Frequently asked questions
How long does arbitration take in India?
Section 29A (2015 amendment) mandates that the award be made within 12 months from completion of pleadings, extendable by 6 months by party consent; further extension requires court order. In practice, complex arbitrations can take longer due to procedural challenges.
Can consumer disputes be sent to arbitration?
No. In Emaar MGF v. Aftab Singh (2018) and Vidya Drolia (2020), the Supreme Court held that consumer disputes are non-arbitrable, and a consumer can always approach the Consumer Commission despite an arbitration clause.
Is a foreign arbitral award enforceable in India?
Yes. Under Part II of the Act, awards from New York Convention (Section 44) or Geneva Convention (Section 53) countries are enforceable in India as a decree, subject to limited defences in Section 48.
Related laws
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