SYNOPSIS

TOPIC- A CRITICAL STUDY OF THE ARBITRATION AND

SUBMITTED TO –MR. NEHAL ARIF ABBASI, FACULTY OF LAW,

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Introduction
Arbitration & Conciliation have been the most preferred type of dispute resolution from times
immemorial in the ancient times in India, there existed a system of arbitration in forms of
Panchayat. The system of Arbitration was so prevalent in India that Chief Justice Marten in a
case was compelled to state “It is indeed a striking feature of ordinary Indian life. And I would
go further & say that it prevails in all ranks of life to a much greater extent than in the case in
England. To refer matters to Panch is one of the most natural ways of deciding many a dispute
in India.” There have been various legislations on arbitration and conciliation from pre-British
era to post-British era, currently the law which provides an exhaustive mechanism on
arbitration is “The Arbitration and Conciliation Act, 1996” (hereinafter to be referred as A&C
Act) which is based upon UNCITRAL Model of International Law. The Act of 1996 is
bifurcated under four different parts but for the purpose of this research only two parts are
relevant which covers arbitration agreement, conduct of arbitral proceedings, composition &
jurisdiction of arbitral tribunals, recourse against arbitral award & finality and enforcement of
arbitral awards within Part-I of the Act and the remaining one part i.e., Part II of the Act
comprises with enforcement of certain foreign awards and falls within the scope of New York
Convention, 1958 and Geneva Convention, 1927.

The amendment of 2015 has been brought for removing judicial intervention in the arbitration
arena which is creating an negative impact on Indias image for an hub for international
arbitration. Significant Provisions from the 2015 Amendment:The 2015 Amendment
established strict timelines for issuing arbitral awards, introduced a fast-track arbitration
process, and clarified the concept of "public policy" to limit misuse in challenging awards.
These changes aimed to streamline arbitration proceedings and foster a more predictable
environment for dispute resolution.

Establishment of the Arbitration Council of India (ACI):

The 2019 Amendment led to the creation of the ACI, which aims to standardize arbitration
practices and promote institutional arbitration. This has bolstered stakeholder confidence in
arbitration as a viable dispute resolution mechanism, particularly in complex sectors like
construction.

Reduction of Judicial Intervention:

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A primary goal of the amendments was to minimize judicial interference in arbitration. The
revised Section 34 (post-2015) restricts the grounds for challenging arbitral awards to specific
issues, such as violations of fundamental policy or morality. This shift has encouraged courts
to adopt a more pro-arbitration approach, aligning with global practices.

Enhanced Clarity in Legal Provisions:

The amendments provided greater clarity regarding procedural matters, such as distinguishing
between the "seat" and "venue" of arbitration. This clarity has reduced jurisdictional disputes
and improved the enforceability of interim relief measures granted by courts and arbitral
tribunals.

Focus on Expedited Justice:

The introduction of a 12-month deadline for issuing arbitral awards (with a possible extension)
under the 2015 Amendment aims to expedite dispute resolution. Although this has improved
timelines, challenges remain due to delays in related court proceedings.

Alignment with International Standards:

The amendments reflect India's commitment to aligning its arbitration framework with
international norms, such as the UNCITRAL Model Law. By promoting institutional
arbitration and reducing judicial intervention, India is positioning itself as an attractive
destination for international arbitration.

This research paper aims to provide the suggestion for the establishment of National Arbitration
Tribunal for barring the judicial overreach in the arbitration proceedings specially in the field
of International commercial arbitration.

RESEARCH QUESTIONS

Does the impact of the amendment of the 1996 Act can be seen in present-day scenarios?

Has the judicial intervention been curtailed to an extent?

Did the amended provisions hold more clarity in the enforcement of the law?

Did the act ensure speedy justice which is the purpose of the arbitration act and do it adhere to
the international scenarios?

HYPOTHESIS

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The amendments to the Arbitration and Conciliation Act of 1996 have significantly enhanced
the arbitration framework in India, resulting in:

Reduced Judicial Intervention: The amendments have effectively curtailed judicial interference
in arbitration proceedings, thereby promoting party autonomy and ensuring that disputes are
resolved primarily through arbitration rather than through prolonged court litigation.

Increased Clarity in Enforcement: The amended provisions provide clearer guidelines for
enforcement, particularly concerning the definitions of "seat" and "venue" of arbitration, which
have minimized jurisdictional ambiguities and improved the overall predictability of arbitration
outcomes.

Facilitation of Speedy Justice: The introduction of specific timelines for arbitral awards and
fast-track procedures has contributed to a more efficient dispute resolution process, aligning
with the original objectives of the Arbitration Act to provide speedy justice.

Alignment with International Standards: The amendments have brought India's arbitration
practices in line with international norms, enhancing confidence among foreign investors and
facilitating cross-border arbitration by reducing unnecessary judicial interference.

This hypothesis posits that the amendments not only address existing challenges within the
Indian arbitration system but also align it with global best practices, ultimately fostering a more
robust framework for dispute resolution.

REVIEW OF LITERATURE

Textbooks and Commentaries:

1. Dr. S.C. Tripathi, The Arbitration and Conciliation Act, 1996 (Central Law

Publications, Allahabad, 6th edn., 2012).

2. Arbitration and Conciliation Act by O.P. Malhotra & Indu Malhotra.

Reports and Documents:

1. Law Commission of India, “67th Report on Arbitration Act, 1940” (Nov. 1978).

2. Law Commission of India, “246th Report on Amendments to the Arbitration and

Conciliation Act, 1996” (Aug. 2014).

Law Review Articles and Journals:

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1. Arbitration in India- A story of growth and opportunity, Cyril Amarchand Mangaldas.

2.Zabeen Motorwala, Arbitration and Concillation (Amendment) Act, 2015- Key Changes and
Circumstances Leading to the Amendments, Bharti Law Review.

3.Anurag K. Agarwal. Arbitration and Conciliation (Amendment) Act, 2015: Arbitrators and
Conflict of Interest, NLSBLR.

4.Samridhi Bhatt, Statute Analysis: Arbitration and Concillation (Amendment) Act,2019,

CONCLUSION SUPPORTING HYPOTHESIS

The recent amendments to India's arbitration law represent significant strides towards creating
a more efficient, transparent, and internationally aligned arbitration system. While challenges
persist, particularly regarding judicial delays and enforcement issues, these reforms have laid
a solid foundation for enhancing India's status as a preferred jurisdiction for arbitration
globally.

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