BIRBHUM INSTITUTE OF
ENGINNERING & TECHNOLOGY
CA-2
NAME - SOMENATH MANDAL
DEPARTMENT - CIVIL ENGINEERING
ROLL - 11801322017
REG NO - 221180120133
SUBJECT - PROFESSIONAL PRACTICE, LAW
AND ETHICS
SUBJECT CODE - CE(HS)801
SEM- 8th
SESSION - 2024-2025
TOPIC - Write a Technical Report On Arbitration And
Conciliation Act 1996.
REPORT ON ARBITRATION AND CONCILIATION
ACT,1996
The 1996 Act is a comprehensive piece of legislation modelled on the lines of the
UNCITRAL Model Law. This act repealed all the three previous statutes (the 1937 Act
, the 1961 Act, and the 1940 Act)17. The 1996 Act covers both domestic and
international commercial arbitration.
The Arbitration Act 1996 (c. 23) is an act of the Parliament of the United
Kingdom which regulates arbitration proceedings within the jurisdiction of England
and Wales and Northern Ireland.
Arbitration Act 1996
Act of Parliament
Parliament of the United Kingdom
The Government of India decided to amend the Arbitration and Conciliation Act,
1996 by introducing the Arbitration and Conciliation (Amendment) Bill, 2015 in the
Parliament. In an attempt to make arbitration a preferred mode of settlement of
commercial disputes and making India a hub of international commercial arbitration,
the President of India on 23 October 2015 promulgated an Ordinance (Arbitration and
Conciliation (Amendment) Ordinance, 2015) amending the Arbitration and
Conciliation Act, 1996. The Union Cabinet chaired by the Prime Minister, had given
its approval for amendments to the Arbitration and Conciliation Bill, 2015.
England
Arbitration in its common law form developed in England; in the Middle Ages,
tribunals such as the courts of the boroughs, of the fair and of the staple arose as the
royal courts were not designed for trade disputes, and trade with foreigners was
otherwise unenforceable In the mid-16th century, common law courts developed
contract law and the Admiralty court became accessible for disputes with foreign
merchants, broadening the venues for trade disputes. Courts became suspicious of
arbitration; for example, in Kill v. Hollister (1746), an English court ruled that the
arbitration agreement could 'oust' courts of law and equity of jurisdiction
2015 Amendment
The following are the salient features of the new ordinance, introduced in 2015:
The first and foremost amendment introduced by the ordinance, is with respect
to definition of expression ' Court '.
The amended law makes a clear distinction between an international
commercial arbitration and domestic arbitration with regard to the definition of
'Court'. In so far as domestic arbitration is concerned, the definition of "Court"
is the same as was in the 1996 Act, however, for the purpose of international
commercial arbitration, 'Court' has been defined to mean only High Court of
competent jurisdiction.
Accordingly, in an international commercial arbitration, as per the new law,
district court will have no jurisdiction and the parties can expect speedier and
efficacious determination of any issue directly by the High court which is better
equipped in terms of handling commercial disputes.
Overview
England and Wales is one of the very few developed jurisdictions in the world which
has consciously elected not to follow the UNCITRAL Model Law on International
Commercial Arbitration. This is a position which has been subject to criticism.
General duty of the tribunal
The London Court of International Arbitration.
The Act mandates that the general duty of the arbitral tribunal is to:
act fairly and impartially as between the parties, giving each party a reasonable
opportunity of putting his case and dealing with that of his opponent, and
adopt procedures suitable to the circumstances of the particular case, avoiding
unnecessary delay or expense, so as to provide a fair means for the resolution of
the matters falling to be determined.
The various subsequent provisions relating to the conduct of arbitrations are largely
pinned upon this overriding duty. The legislation specifies that "The tribunal shall
comply with that general duty in conducting the arbitral proceedings, in its decisions
on matters of procedure and evidence and in the exercise of all other powers conferred
on it.
Stay Of Legal Proceedings.
If any legal proceedings are commenced against a party which are subject to an
arbitration agreement, then the party may apply to the court for a stay of those legal
proceedings, and the Act provides that the court "shall grant a stay unless it is satisfied
that the arbitration agreement is null and void, inoperative, or incapable of being
performed."
The Royal Courts of Justice.
Section 69 permits an appeal on a point of law to a court unless the parties have agreed
to exclude that right. But the right to bring an appeal may only be exercised either with
the agreement of the other party, or with the leave of the court. An agreement by the
parties to dispense with the requirement to give reasons for the tribunal's award is
treated as an agreement to exclude the court's jurisdiction to hear an appeal on a point
of law.
Challenging the award
Under the Act there are broadly only two ways in which an arbitration award may be
challenged (apart from appeal on a point of law):
Challenging the substantive jurisdiction under section 67; or
Seeking to set aside the award for serious irregularity under section 68.
The Act defines serious irregularity as one or more of the following which the court
considers has caused or will cause "substantial injustice" to the applicant:
1. failure by the tribunal to comply with section 33 (general duty of tribunal);
2. the tribunal exceeding its powers (otherwise than by exceeding its substantive
jurisdiction);
3. failure by the tribunal to conduct the proceedings in accordance with the
procedure agreed by the parties
The Arbitration and Conciliation (Amendment) Act, 2021
('2021 Amendment') was enacted in March, 2021
Thank you🤝🤍
