INDIAN BARE ACTS

THE ARBITRATION AND CONCILIATION ACT, 1996

No.26 of 1996
[16th August, 1996]
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.
WH!A" the #nited Nations $ommission on %nternational &rade 'aw (#N$%&!A') has ado*ted the
#N$%&!A' +odel 'aw on %nternational $ommercial Arbitration in 19,-.
AN/ WH!A" the 0eneral Assembl1 of the #nited Nations has recommended that all countries
gi2e due consideration to the said +odel 'aw, in 2iew of the desirabilit1 of uniformit1 of the law of
arbitral *rocedures and the s*ecific needs of international commercial arbitration *ractice3
AN/ WH!A" the #N$%&!A' has ado*ted the #N$%&!A' $onciliation !ules in 19,43
AN/ WH!A" the 0eneral Assembl1 of the #nited Nations has recommended the use of the said
!ules in cases where a dis*ute arises in the conte5t of international commercial relations and the
*arties see6 an amicable settlement of that dis*ute b1 recourse to conciliation3
AN/ WH!A" the said +odel 'aw and !ules ma6e significant contribution to the establishment of
a unified legal framewor6 for the fair and efficient settlement of dis*utes arising in international
commercial relations3
AN/ WH!A" it is e5*edient to ma6e law res*ecting arbitration and conciliation, ta6ing into account
the aforesaid +odel 'aw and !ules3
7 it enacted b1 8arliament in the 9ort1:se2enth ;ear of the !e*ublic of %ndia as follows.:
PRELIMINARY
1."hort title, e5tent and commencement.: (1) &his Act ma1 be called the Arbitration and $onciliation
Act, 1996.
(2) %t e5tends to the whole of %ndia.
8ro2ided that 8arts, %, %%% and %< shall e5tend to the "tate of =ammu and >ashmir onl1 in so far as the1
relate to international commercial arbitration or, as the case ma1 be, international commercial
conciliation.
5*lanation.: %n this sub:section, the e5*ression ?international commercial conciliation? shall ha2e the
same meaning as the e5*ression ?international commercial arbitration? in clause (f) of sub:section (1)
of section 2, sub@ect to the modification that for the word ?arbitration? occurring therein, the word
?conciliation? shall be substituted.
(A) %t shall come into force on such date as the $entral 0o2ernment ma1, b1 notification in the Bfficial
0aCette, a**oint.
PART I
ARBITRATION
CHAPTER I
0eneral *ro2isions
2.Definitions.- (1) %n this 8art, unless the conte5t otherwise reDuires,:
(a) ?arbitration? means an1 arbitration whether or not administered b1 *ermanent arbitral institution3
(b) ?arbitration agreement? means an agreement referred to in section E3
(c) ?arbitral award? includes an interim award3
(d) ?arbitral tribunal? means a sole arbitrator or a *anel of arbitrators3
(e) ?$ourt? means the *rinci*al $i2il $ourt of original @urisdiction in a district, and includes the High
$ourt in e5ercise of its ordinar1 original ci2il @urisdiction, ha2ing @urisdiction to decide the Duestions
forming the sub@ect:matter of the arbitration if the same had been the sub@ect:matter of a suit, but
does not include an1 ci2il court of a grade inferior to such *rinci*al $i2il $ourt, or an1 $ourt of "mall
$auses3
(f) ?international commercial arbitration? means an arbitration relating to dis*utes arising out of legal
relationshi*s, whether contractual or not, considered as commercial under the law in force in %ndia
and where at least one of the *arties is:
(i) an indi2idual who is a national of, or habituall1 resident in, an1 countr1 other than %ndia3 or
(ii) a bod1 cor*orate which is incor*orated in an1 countr1 other than %ndia3 or
(iii) a com*an1 or an association or a bod1 of indi2iduals whose central management and control is
e5ercised in an1 countr1 other than %ndia3 or
(i2) the 0o2ernment of a foreign countr13
(g) ?legal re*resntati2e? means a *erson who in law re*resents the estate of a deceased *erson, and
includes an1 *erson who intermeddles with the estate of the deceased, and, where a *art1 acts in a
re*resentati2e character, the *erson on whom the estate de2ol2es on the death of the *art1 so acting3
(h) ?*art1? means a *art1 to an arbitration agreement.
(2) &his 8art shall a**l1 where the *lace of arbitration is in %ndia.
(A) &his 8art shall not affect an1 other law for the time being in force b1 2irtue of which certain
dis*utes ma1 not be submitted to arbitration.
(F) &his 8art e5ce*t sub:section (1) of section F4, sections F1 and FA shall a**l1 to e2er1 arbitration
under an1 other enactment for the time being in force, as if the arbitration were *ursuant to an
arbitration agreement and as if that other enactment were an arbitration agreement, e5ce*t in so far
as the *ro2ision of this 8art are inconsistent with that other enactment or with an1 rules made
thereunder3
(-) "ub@ect to the *ro2isions of sub:section (F), and sa2e in so far as is otherwise *ro2ided b1 an1 law
for the time being in force or in an1 agreement in force between %ndia and an1 other countr1 or
countries, this 8art shall a**l1 to all arbitrations and to all *roceedings relating thereto.
(6) Where this 8art, e5ce*t section 2,, lea2es the *arties free to determine a certain issue, that
freedom shall include the right of the *arties to authorise an1 *erson including an institution, to
determine that issue.
(E) An arbitral award made under this 8art shall be considered domestic award.
(,) Where this 8art:
(a) refers to the fact that the *arties ha2e agreed or that the1 ma1 agree, or
(b) in an1 other wa1 refers to an agreement of the *arties,
that agreement shall include an1 arbitration rules referred to in that agreement.
(9) Where this 8art, other than clause (a) of section 2- or clause (a) of sub:section (2) of section A2,
refers to a claim, it shall also a**l1 to a counterclaim, and where it refers to a defence, it shall also
a**l1 to a defence to that counterclaim.
A.!ecei*t of written communications.: (1) #nless otherwise agreed b1 the *arties,:
(a) an1 written communication is deemed to ha2e been recei2ed if it is deli2ered to the addressee
*ersonall1 or at his *lace of business, habitual residence or mailing address, and
(b) if none of the *laces referred to in clause (a) can be found after ma6ing a reasonable inDuir1, a
written communication is deemed to ha2e been recei2ed if it is sent to the addresseeGs last 6nown
*lace of business, habitual residence or mailing address b1 registered letter or b1 an1 other means
which *ro2ides a record of the attem*t to deli2er it.
(2) &he communication is deemed to ha2e been recei2ed on the da1 it is so deli2ered.
(A) &his section does not a**l1 to written communications in res*ect of *roceedings of an1 @udicial
authorit1.
F.Wai2er of right to ob@ect.: A *art1 who 6nows that:
(a) an1 *ro2ision of this 8art from which the *arties ma1 derogate, or
(b) an1 reDuirement under the arbitration agreement,
has not been com*lied with and 1et *roceeds with the arbitration without stating his ob@ection to such
non:com*liance without undue dela1 or, if a time limit is *ro2ided for stating that ob@ection, within that
*eriod of time, shall be deemed to ha2e wai2ed his right to so ob@ect.
-.5tent of @udicial inter2ention.: Notwithstanding an1thing contained in an1 other law for the time
being in force, in matters go2erned b1 this 8art, no @udicial authorit1 shall inter2ene e5ce*t where so
*ro2ided in this 8art.
6.Administrati2e assistance.: %n order to facilitate the conduct of the arbitral *roceedings, the *arties,
or the arbitral tribunal with the consent of the *arties, ma1 arrange for administrati2e assistance b1 a
suitable institution or *erson.
CHAPTER II
Arbitration agreement
E.Arbitration agreement.: (1) %n this 8art, ?arbitration agreement? means an agreement b1 the *arties
to submit to arbitration all or certain dis*utes which ha2e arisen or which ma1 arise between them in
res*ect of a defined legal relationshi*, whether contractual or not.
(2) An arbitration agreement ma1 be in the form of an arbitration clause in a contract or in the form of
a se*arate agreement.
(A) An arbitration agreement shall be in writing.
(F) An arbitration agreement is in writing if it is contained in:
(a) a document signed b1 the *arties3
(b) an e5change of letters, tele5, telegrams or other means of telecommunication which *ro2ide a
record of the agreement3 or
(c) an e5change of statements of claim and defence in which the e5istence of the agreement is
alleged b1 one *art1 and not denied b1 the other.
(-) &he reference in a contract to a document containing an arbitration clause constitutes an
arbitration agreement if the contract is in writing and the reference is such as to ma6e that arbitration
clause *art of the contract.
,.8ower to refer *arties to arbitration where there is an arbitration agreement.: (1) A @udicial authorit1
before which an action is brought in a matter which is the sub@ect of an arbitration agreement shall, if a
*art1 so a**lies not later than when submitting his first statement on the substance of the dis*ute,
refer the *arties to arbitration.
(2) &he a**lication referred to in sub:section (1) shall not be entertained unless it is accom*anied b1
the original arbitration agreement or a dul1 certified co*1 thereof.
(A) Notwithstanding that an a**lication has been made under sub:section (1) and that the issue is
*ending before the @udicial authorit1, an arbitration ma1 be commenced or continued and an arbitral
award made.
9.%nterim measures etc.b1 $ourt.: A *art1 ma1, before, or during arbitral *roceedings or at an1 time
after the ma6ing of the arbitral award but before it is enforced in accordance with section A6, a**l1 to
a court:
(i) for the a**ointment of a guardian for a minor or *erson of unsound mind for the *ur*oses of arbitral
*roceedings3 or
(ii) for an interim measure or *rotection in res*ect of an1 of the following matters, namel1.:
(a) the *reser2ation, interim custod1 or sale of an1 goods which are the sub@ect:matter of the
arbitration agreement3
(b) securing the amount in dis*ute in the arbitration3
(c) the detention, *reser2ation or ins*ection of an1 *ro*ert1 or thing which is the sub@ect:matter of the
dis*ute in arbitration, or as to which an1 Duestion ma1 arise therein and authorising for an1 of the
aforesaid *ur*oses an1 *erson to enter u*on an1 land or building in the *ossession of an1 *art1 or
authorising an1 sam*les to be ta6en or an1 obser2ation to be made, or e5*eriment to be tried, which
ma1 be necessar1 or e5*edient for the *ur*ose of obtaining full information or e2idence3
(d) interim in@unction or the a**ointment of a recei2er3
(e) such other interim measure of *rotection as ma1 a**ear to the $ourt to be @ust and con2enient,
and the $ourt shall ha2e the same *ower for ma6ing orders as it has for the *ur*ose of, and in
relation to, an1 *roceedings before it.
CHAPTER III
$om*osition of arbitral tribunal
14.Number of arbitrators.: (1) &he *arties are free to determine the number of arbitrators, *ro2ided
that such number shall not be an e2en number.
(2) 9ailing the determination referred to in sub:section (1), the arbitral tribunal shall consist of a sole
arbitrator.
11.A**ointment of arbitrators.: (1) A *erson of an1 nationalit1 ma1 be an arbitrator, unless otherwise
agreed b1 the *arties.
(2) "ub@ect to sub:section (6), the *arties are free to agree on a *rocedure for a**ointing the arbitrator
or arbitrators.
(A) 9ailing an1 agreement referred to in sub:section (2), in an arbitration with three arbitrators, each
*art1 shall a**oint one arbitrator, and the two a**ointed arbitrators shall a**oint the third arbitrator
who shall act as the *residing arbitrator.
(F) %f the a**ointment *rocedure in sub:section (A) a**lies and:
(a) a *art1 fails to a**oint an arbitrator within thirt1 da1s from the recei*t of a reDuest to do so from
the other *art13 or
(b) the two a**ointed arbitrators fail to agree on the third arbitrator within thirt1 da1s from the date of
their a**ointment,
the a**ointment shall be made, u*on reDuest of a *art1, b1 the $hief =ustice or an1 *erson or
institution designated b1 him.
(-) 9ailing an1 agreement referred to in sub:section (2), in an arbitration with a sole arbitrator, if the
*arties fail to agree on the arbitrator within thirt1 da1s from recei*t of a reDuest b1 one *art1 from the
other *art1 to so agree the a**ointment shall be made, u*on reDuest of a *art1, b1 the $hief =ustice
or an1 *erson or institution designated b1 him.
(6) Where, under an a**ointment *rocedure agreed u*on b1 the *arties,:
(a) a *art1 fails to act as reDuired under that *rocedure3 or
(b) the *arties, or the two a**ointed arbitrators, fail to reach an agreement e5*ected of them under
that *rocedure3 or
(c) a *erson, including an institution, fails to *erform an1 function entrusted to him or it under that
*rocedure,
a *art1 ma1 reDuest the $hief =ustice or an1 *erson or institution designated b1 him to ta6e the
necessar1 measure, unless the agreement on the a**ointment *rocedure *ro2ides other means for
securing the a**ointment.
(E) A decision on a matter entrusted b1 sub:section (F) or sub:section (-) or sub:section (6) to the
$hief =ustice or the *erson or institution designated b1 him is final.
(,) &he $hief =ustice or the *erson or institution designated b1 him, in a**ointing an arbitrator, shall
ha2e due regard to:
(a) an1 Dualifications reDuired of the arbitrator b1 the agreement of the *arties and
(b) other considerations as are li6el1 to secure the a**ointment of an inde*endent and im*artial
arbitrator.
(9) %n the case of a**ointment of sole or third arbitrator in an international commercial arbitration, the
$hief =ustice of %ndia or the *erson or institution designated b1 him ma1 a**oint an arbitrator of a
nationalit1 other than the nationalities of the *arties where the *arties belong to different nationalities.
(14) &he $hief =ustice ma1 ma6e such scheme as he ma1 deem a**ro*riate for dealing with matters
entrusted b1 sub:section (F) or sub:section (-) or sub:section (6) to him.
(11) Where more than one reDuest has been made under sub:section (F) or sub:section (-) or sub:
section (6) to the $hief =ustices of different High $ourts or their designates, the $hief =ustice or his
designate to whom the reDuest has been first made under the rele2ant sub:section shall alone be
com*etent to decide on the reDuest.
(12) (a) Where the matters referred to in sub:sections (F), (-), (6), (E), (,) and (14) arise in an
international commercial arbitration the reference to ?$hief =ustice? in those sub:sections shall be
construed as a reference to the ?$hief =ustice of %ndia?.
(b) Where the matters referred to in sub:sections (F), (-), (6), (E), (,) and (14) arise in an1 other
arbitration, the reference to ?$hief =ustice? in those sub:section shall be construed as a reference to,
the $hief =ustice of the High $ourt within whose local limits the *rinci*al $i2il $ourt referred to in
clause (e) of sub:section (1) of section 2 is situate and, where the High $ourt itself is the ?$ourt
referred to in that clause, to the $hief =ustice of that High $ourt.
12.0rounds for challenge.: (1) When a *erson is a**roached in connection with his *ossible
a**ointment as an arbitrator, he shall disclose in writing an1 circumstances li6el1 to gi2e rise to
@ustifiable doubts as to his inde*endence or im*artialit1.
(2) An arbitrator, from the time of his a**ointment and throughout the arbitral *roceedings, shall,
without dela1, disclose to the *arties in writing an1 circumstances referred to in sub:section (1) unless
the1 ha2e alread1 been informed of them b1 him.
(A) An arbitrator ma1 be challenged onl1 if:
(a) circumstances e5ist that gi2e rise to @ustifiable doubts as to his inde*endence or im*artialit1, or
(b) he does not *ossess the Dualifications agreed to b1 the *arties.
(F) A *art1 ma1 challenge an arbitrator a**ointed b1 him, or in whose a**ointment he has
*artici*ated, onl1 for reasons of which he becomes aware after the a**ointment has been made.
1A.$hallenge *rocedure.: (1) "ub@ect to sub:section (F), the *arties are free to agree on a *rocedure
for challenging an arbitrator.
(2) 9ailing an1 agreement referred to in sub:section (1), a *art1 who intends to challenge an arbitrator
shall, within fifteen da1s becoming aware of the constitution of the arbitral tribunal or after becoming
aware of an1 circumstances referred to in sub:section (A) of section 12, send a written statement of
the reasons for the challenge to the arbitral tribunal.
(A) #nless the arbitrator challenged under sub:section (2) withdraws from his office or the other *art1
agrees to the challenge, the arbitral tribunal shall decide on the challenge.
(F) %f a challenge under an1 *rocedure agreed u*on b1 the *arties or under the *rocedure under sub:
section (2) is not successful, the arbitral tribunal shall continue the arbitral *roceedings and ma6e an
arbitral award.
(-) Where an arbitral award is made under sub:section (F), the *art1 challenging the arbitrator ma1
ma6e an a**lication for setting aside such an arbitral award in accordance with section AF.
(6) Where an arbitral award is set aside on an a**lication made under sub:section (-), the $ourt ma1
decide as to whether the arbitrator who is challenged is entitled to an1 fees.
1F.9ailure or im*ossibilit1 to act.: (1) &he mandate of an arbitrator shall terminate if:::
(a) he becomes de @ure or de facto unable to *erform his functions or for other reasons fails to act
without undue dela13 and
(b) he withdraws from his office or the *arties agree to the termination of his mandate.
(2) %f a contro2ers1 remains concerning an1 of the grounds referred to in clause (a) of sub:section (1),
a *art1 ma1, unless otherwise agreed b1 the *arties, a**l1 to the $ourt to decide on the termination of
the mandate.
(A) %f, under this section or sub:section (A) of section 1A, an arbitrator withdraws from his office or a
*art1 agrees to the termination of the mandate of an arbitrator, it shall not im*l1 acce*tance of the
2alidit1 of an1 ground referred to in this section or sub:section (A) of section 12.
1-.&ermination of mandate and substitution of arbitrator.: (1) %n addition to the circumstances referred
to in section 1A or section 1F, the mandate of an arbitrator shall terminate::::
(a) where he withdraws from office for an1 reason3 or
(b) b1 or *ursuant to agreement of the *arties.
(2) Where the mandate of an artibrator terminates, a substitute arbitrator shall be a**ointed according
to the rules that were a**licable to the a**ointment of the arbitrator being re*laced.
(A) #nless otherwise agreed b1 the *arties, where an arbitrator is re*laced under sub:section (2) , an1
hearings *re2iousl1 held ma1 be re*eated at the discretion of the arbitral tribunal.
(F) #nless otherwise agreed b1 the *arties, an order or ruling of the arbitral tribunal made *rior to the
re*lacement of an arbitrator under this section shall not b in2alid solel1 because there has been a
change in the com*osition of the arbitral tribunal.
CHAPTER I
=urisdiction of arbitral tribunals
16.$om*etence of arbitral tribunal to rule on its @urisdiction.: (1) &he arbitral tribunal ma1 rule on its
own @urisdiction, including ruling on an1 ob@ections with res*ect to the e5istence or 2alidit1 of the
arbitration agreement, and for that *ur*ose,::::::
(a) an arbitration clause which forms *art of a contract shall be treated as an agreement inde*endent
of the other terms of the contract3 and
(b) a decision b1 the arbitral tribunal that the contract is null and 2oid shall not entail i*so @ure the
in2alidit1 of the arbitration clause.
(2) A *lea that the arbitral tribunal does not ha2e @urisdiction shall be raised not later than the
submission of the statement of defence3 howe2er, a *art1 shall not be *recluded from raising such a
*lea merel1 because that he has a**ointed , or *artici*ated in the a**ointment of, an arbitrator.
(A) A *lea that the arbitral tribunal is e5ceeding the sco*e of its authorit1 shall he raised as soon as
the matter alleged to be be1ond the sco*e of its authorit1 is raised during the arbitral *roceedings.
(F) &he arbitral tribunal ma1, in either of the cases referred to in sub:section (2) or sub:section (A),
admit a later *lea if it considers the dela1 @ustified.
(-) &he arbitral tribunal shall decide on a *lea referred to in sub:section (2) or sub:section (A) and,
where the arbitral tribunal ta6es a decision re@ecting the *lea, continue with the arbitral *roceedings
and ma6e an arbitral award.
(6) A *art1 aggrie2ed b1 such an arbitral award ma1 ma6e an a**lication for setting aside such an
arbitral award in accordance with section AF.
1E.%nterim measures ordered b1 arbitral tribunal.: (1) #nless otherwise agreed b1 the *arties, the
arbitral tribunal ma1, at the reDuest of a *art1, order a *art1 to ta6e an1 interim measure of *rotection
as the arbitral tribunal ma1 consider necessar1 in res*ect of the sub@ect matter of the dis*ute.
(2) &he arbitral tribunal ma1 reDuire a *art1 to *ro2ide a**ro*riate securit1 in connection with a
measure ordered under sub:section (1).
CHAPTER
$onduct of arbitral *roceedings
1,.Dual treatment of *arties.: &he *arties shall be treated with eDualit1 and each *art1 shall be gi2en
a full o**ortunit1 to *resent his case.
19./etermination of rules of *rocedure.: (1) &he arbitral tribunal shall not be bound b1 the $ode of
$i2il 8rocedure, 194, or the %ndian 2idence Act, 1,E2.
(2) "ub@ect to this 8art, the *arties are free to agree on the *rocedure to be followed b1 the arbitral
tribunal in conducting its *roceedings.
(A) 9ailing an1 agreement referred to in sub:section (2), the arbitral tribunal ma1, sub@ect to this 8art,
conduct the *roceedings in the manner it considers a**ro*riate.
(F) &he *ower of the arbitral tribunal under sub:section (A) includes the *ower to determine the
admissibilit1 , rele2ance, materialit1 and weight of an1 e2idence.
24.8lace of arbitration.: (1) &he *arties are free to agree on the *lace of arbitration.
(2) 9ailing an1 agreement referred to in sub:section (1), the *lace of arbitration shall be determined b1
the arbitral tribunal ha2ing regard to the circumstances of the case, including the con2enience of the
*arties.
(A) Notwithstanding sub:section (1) or sub:section (2), the arbitral tribunal ma1, unless otherwise
agreed b1 the *arties, meet at an1 *lace it considers a**ro*riate for consultation among its members,
for hearing winners, e5*erts or the *arties, or for ins*ection of documents, goods or other *ro*ert1.
21.$ommencement of arbitral *roceedings.: #nless otherwise agreed b1 the *arties, the arbitral
*roceedings, in res*ect of a *articular dis*ute commence on the date on which a reDuest for that
dis*ute to be referred to arbitration is recei2ed b1 the res*ondent.
22.'anguage.: (1) &he *arties are free to agree u*on the language or languages to is used in the
arbitral *roceedings.
(2) 9ailing an1 agreement referred to in sub:section (1), the arbitral tribunal shall determine the
language or languages to be used in the arbitral *roceedings.
(A) &he agreement or determination, unless otherwise s*ecified, shall a**l1 to an1 written statement
b1 a *art1, an1 hearing and an1 arbitral award, decision or other communication b1 the arbitral
tribunal.
(F) &he arbitral tribunal ma1 order that an1 documentar1 e2idence shall be accom*anied b1 a
translation into the languages agreed u*on b1 the *arties or determined b1 the arbitral tribunal.
2A."tatements of claim and defence.: (1) Within the *eriod of time agreed u*on b1 the *arties or
determined b1 the arbitral tribunal, the claimant shall state the facts su**orting his claim, the *oints at
issue and the relief or remed1 sought, and the res*ondent shall state his defence in res*ect of these
*articulars, unless the *arties ha2e otherwise agreed as to the reDuired elements of those statements.
(2) &he *arties ma1 submit with their statements all documents the1 consider to be rele2ant or ma1
add a reference to the documents or other e2idence the1 will submit.
(A) #nless otherwise agreed b1 the *arties, either *art1 ma1 amend or su**lement his claim or
defence during the course of the arbitral *roceedings, unless the arbitral tribunal considers it
ina**ro*riate to allow the amendment or su**lement ha2ing regard to the dela1 in ma6ing it.
2F.Hearings and written *roceedings.: (1) #nless otherwise agreed b1 the *arties, the arbitral tribunal
shall decide whether to hold oral hearings for the *resentation of e2idence or for oral argument, or
whether the *roceedings shall be conducted on the basis of documents an other materials3
8ro2ided that the arbitral tribunal shall hold hearings, at an a**ro*riate stage of the *roceedings, on a
reDuest b1 a *art1, unless the *arties ha2e agreed that no oral hearing shall be held.
(2) &he *arties shall be gi2en sufficient ad2ance notice of an1 hearing and of an1 meeting of the
arbitral tribunal for the *ur*oses of ins*ection of documents, goods or other *ro*ert1.
(A) All statements, documents or other information su**lied to, or a**lications made to, the arbitral
tribunal b1 one *art1 shall be communicated to the other *art1, and an1 e5*ert re*ort or e2identiar1
document on which the arbitral tribunal ma1 rel1 in ma6ing its decision shall be communicated to the
*arties.
2-./efault of a *art1.: #nless otherwise agreed b1 the *arties, where, without showing sufficient
cause,::::
(a) the claimant fails to communicate his statement of claim in accordance with sub:section (1) of
section 2A, the arbitral tribunal shall terminate the *roceedings3
(b) the res*ondent fails to communicate his statement of defence in accordance with sub:section (1)
of section 2A, the arbitral tribunal shall continue the *roceedings without treating that failure in itself as
an admission of the allegations b1 the claimant.
(c) a *art1 fails to a**ear at an oral hearing or to *roduce documentar1 e2idence, the arbitral tribunal
ma1 continue the *roceedings and ma6e the arbitral award on the e2idence before it.
26.5*ert a**ointed b1 arbitral tribunal.: (1) #nless otherwise agreed b1 the *arties, the arbitral
tribunal ma1:::
(a) a**oint one or more e5*erts to re*ort to it on s*ecific issues to be determined b1 the arbitral
tribunal, and
(b) reDuire a *art1 to gi2e the e5*ert an1 rele2ant information or to *roduce, or to *ro2ide access to,
an1 rele2ant documents, goods or other *ro*ert1 for his ins*ection.
(2) #nless otherwise agreed b1 the *arties, if a *art1 so reDuests or if the arbitral tribunal considers it
necessar1, the e5*ert shall, after deli2er1 of his written or oral re*ort, *artici*ate on an oral hearing
where the *arties ha2e the o**ortunit1 to *ut Duestions to him and to *resent e5*ert witnesses in
order to testif1 on the *oints at issue.
(A) #nless otherwise agreed b1 the *arties, the e5*ert shall, on the reDuest of a *art1, ma6e a2ailable
to that *art1 for e5amination all documents, goods or other *ro*ert1 in the *ossession of the e5*ert
with which he was *ro2ided in order to *re*are his re*ort.
2E.$ourt assistance in ta6ing e2idence.: (1) &he arbitral tribunal, or a *art1 with the a**ro2al of the
arbitral tribunal, ma1 a**l1 to the $ourt for assistance in ta6ing e2idence.
(2) &he a**lication shall s*ecif1::::
(a) the names and addresses of the *arties and the arbitrators.
(b) the general nature of the claim and the relief sought3
(c) the e2idence to the obtained, in *articular,::::
(i) the name and address of an1 *erson to be heard as witness or e5*ert witness and a statement of
the sub@ect:matter of the testimon1 reDuired3
(ii) the descri*tion of an document to be *roduced or *ro*ert1 to be ins*ected.
(A) &he $ourt ma1, within its com*etence and according to its rules on ta6ing e2idence, e5ecute the
reDuest or ordering that the e2idence be *ro2ided directl1 to the arbitral tribunal.
(F) &he $ourt ma1, while ma6ing or order under sub:section (A), issue the same *rocesses to
witnesses as it ma1 issue in suits tried before it.
(-) 8ersons failing to attend in accordance with such *rocess, or ma6ing an1 other fault, or refusing to
gi2e their e2idence, or guilt1 of an1 contem*t to the arbitral tribunal during the conduct of arbitral
*roceedings, shall be sub@ect to the li6e disad2antages, *enalties and *unishments b1 order of the
$ourt on the re*resentation of the arbitral tribunal as the1 would incur for the li6e offences is suits
tried before the $ourt.
(6) %n this section the e5*ression ?8rocesses? includes summonses and commissions for the
e5amination of witnesses and summonses to *roduce documents.
CHAPTER I
+a6ing of arbitral award and termination of *roceedings
2,.!ules a**licable to substance of dis*ute.: (1) Where the *lace of arbitration is situate in %ndia,:::::
(a) in an arbitration other than an international commercial arbitration, the arbitral tribunal shall decide
the dis*ute submitted to arbitration in accordance with the substanti2e law for the time being in force
in %ndia3
(b) in international commercial arbitration,::::
(i) the arbitral tribunal shall decided the dis*ute in accordance with the rules of law designated b1 the
*arties as a**licable to the substance of the dis*ute3
(ii) an1 designation b1 the *arties of the law or legal s1stem of a gi2en countr1 shall be construed,
unless otherwise e5*ressed, as directl1 referring to the substanti2e law of that countr1 and not to its
conflict of laws rules3
(iii) failing an1 designation of the law under clause (a) b1 the *arties, the arbitral tribunal shall a**l1
the rules of law it considers to be a**ro*riate gi2en all the circumstances surrounding the dis*ute.
(2) &he arbitral tribunal shall decide e5 aeDuo et bono or as amiable com*ositeur onl1 if the *arties
ha2e e5*ressl1 authorised it to do so.
(A) %n all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and shall
ta6e into account the usages of the trade a**licable to the transaction.
29./ecision ma6ing b1 *anel of arbitrators.: (1) #nless otherwise agreed b1 the *arties, in arbitral
*roceedings with more than one arbitrator, an1 decision of the arbitral tribunal shall be made b1 a
ma@orit1 of all its members.
(2) Notwithstanding sub:section (1), if authorised b1 the *arties or all the members of the arbitral
tribunal, Duestions of *rocedure ma1 be decided b1 the *residing arbitrator.
A4."ettlement.: (1) %t is not incom*atible with an arbitration agreement for an arbitral tribunal to
encourage settlement of the dis*ute and, with the agreement of the *arties, the arbitral tribunal ma1
use mediation, conciliation or other *rocedures at an1 time during the arbitral *roceedings to
encourage settlement.
(2) %f, during arbitral *roceedings, the *arties settle the dis*ute, the arbitral tribunal shall terminate the
*roceedings and, if reDuested b1 the *arties and not ob@ected to b1 the arbitral tribunal, record the
settlement in the form of an arbitral award on agreed terms.
(A) An arbitral award on agreed terms shall be made in accordance with section A1 and shall state that
it is an arbitral award.
(F) An arbitral award on agreed terms shall ha2e the same status and effect as an1 other arbitral
award on the substance of the dis*ute.
A1.9orm and contents of arbitral award.: (1) An arbitral award shall be made in writing and shall be
signed b1 the members of the arbitral tribunal.
(2) 9or the *ur*oses of sub:section (1), in arbitral *roceedings with more than one arbitrator, the
signatures of the ma@orit1 of all the members of the arbitral tribunal shall be sufficient so long as the
reason for an1 omitted signature is stated.
(A) &he arbitral award shall state the reasons u*on which it is based, unless::::::
(a) the *arties ha2e agreed that no reasons are to be gi2en, or
(b) the award is an arbitral award on agreed terms under section A4.
(F) &he arbitral award shall state its date and the *lace of arbitration as determined in accordance with
section 24 and the award shall be deemed to ha2e been made at that *lace.
(-) After the arbitral award is made, a signed co*1 shall be deli2ered to each *art1.
(6) &he arbitral tribunal ma1, at an1 time during the arbitral *roceedings, ma6e an interim arbitral
award on an1 matter with res*ect to which it ma1 ma6e a final arbitral award.
(E) (a) #nless otherwise agreed b1 the *arties, where and in so far as an arbitral award is for the
*a1ment of mone1, the arbitral tribunal ma1 include in the sum for which the award is made interest,
at such rate as it deems reasonable, on the whole or an1 *art of the mone1, for the whole or an1 *art
of the *eriod between the date on which the cause of action arose and the date on which the award is
made.
(b) A sum directed to be *aid b1 an arbitral award shall, unless the award otherwise directs, carr1
interest at the rate of eighteen *er centum *er annum from the date of the award to the date of
*a1ment.
(,) #nless otherwise agreed b1 the *arties,::::
(a) the costs of an arbitration shall be fi5ed b1 the arbitral tribunal3
(b) the arbitral tribunal shall s*ecif1::::
(i) the *art1 entitled to costs,
(ii) the *art1 who shall *a1 the costs,
(iii) the amount of costs or method of determining that amount, and
(i2) the manner in which the costs shall be *aid.
5*lanation.:::9or the *ur*ose of clause (a), ?costs? means reasonable costs relating to::::
(i) the fees and e5*enses of the arbitrators and witnesses,
(ii) legal fees and e5*enses,
(iii) an1 administration fees of the institution su*er2ising the arbitration, and
(i2) an1 other e5*enses incurred in connection with the arbitral *roceedings and the arbitral award.
A2.&ermination of *roceedings.: (1) &he arbitral *roceedings shall be terminated b1 the final arbitral
award or b1 an order of the arbitral tribunal under sub:section (2).
(2) &he arbitral tribunal shall issue an order for the termination of the arbitral *roceedings where::::
(a) the claimant withdraws his claim, unless the res*ondent ob@ects to the order and the arbitral
tribunal recognises a legitimate interest on his *art in obtaining a final settlement of the dis*ute,
(b) the *arties agree on the termination of the *roceedings, or
(c) the arbitral tribunal finds that the continuation of the *roceedings has for an1 other reason become
unnecessar1 or im*ossible.
(A) "ub@ect to section AA and sub:section (F) of section AF, the mandate of the arbitral tribunal shall
terminate with the termination of the arbitral *roceedings.
AA.$orrection and inter*retation of award3 additional award.: (1) Within thirt1 da1s from the recei*t of
the arbitral award, unless another *eriod of time has been agreed u*on b1 the *arties::: :
(a) a *art1, with notice to the other *art1, ma1 reDuest the arbitral tribunal to correct an1 com*utation
errors, an1 electrical or t1*ogra*hical errors or an1 other errors of a similar nature occurring in the
award3
(b) if so agreed b1 the *arties, a *art1, with notice to the other *art1, ma1 reDuest the arbitral tribunal
to gi2e an inter*retation of a s*ecific *oint or *art of the award.
(2) %f the arbitral tribunal considers the reDuest made under sub:section (1) to be @ustified, it shall
ma6e the correction or gi2e the inter*retation within thirt1 da1s from the recei*t of the reDuest and the
inter*retation shall form *art of the arbitral award.
(A) &he arbitral tribunal ma1 correct and error of the t1*e referred to in clause (a) of sub:section (1),
on its own initiati2e, within thirt1 da1s from the date of the arbitral award.
(F) #nless otherwise agreed b1 the *arties, a *art1 with notice to the other *art1, ma1 reDuest, within
thirt1 da1s from the recei*t of the arbitral award, the arbitral tribunal to ma6e an additional arbitral
award as so claims *resented in the arbitral *roceedings but omitted from the arbitral award.
(-) %f the arbitral tribunal considers the reDuest made under sub:section (F) to be @ustified, it shall
ma6e the additional arbitral award within si5t1 da1s from the recei*t of such reDuest.
(6) &he arbitral tribunal ma1 e5tend, if necessar1, the *eriod of time within which it shall ma6e a
correction, gi2e an inter*retation or ma6e an additional arbitral award under sub:section (2) or sub:
section (-).
(E) "ection A1 shall a**l1 to a correction or inter*retation of the arbitral award or to an additional
arbitral award made under this section.
CHAPTER II
!ecourse against arbitral award
AF.A**lication for setting aside arbitral award.: (1) !ecourse to a $ourt against an arbitral award ma1
be made onl1 b1 an a**lication for setting aside such award in accordance with sub:section (2) and
sub:section (A).
(2) An arbitral award ma1 be set aside b1 the $ourt onl1 if:::
(a) the *art1 ma6ing the a**lication furnishes *roof that:::::
(i) a *art1 was under some inca*acit1, or
(ii) the arbitration agreement is not 2alid under the law to which the *arties ha2e sub@ected it or, failing
an1 indication thereon, under the law for the time being in force3 or
(iii) the *art1 ma6ing the a**lication was not gi2en *ro*er notice of the a**ointment of an arbitrator or
of the arbitral *roceedings or was otherwise unable to *resent his case3 or
(i2) the arbitral award deals with a dis*ute not contem*lated b1 or not falling within the terms of the
submission to arbitration, or it contains decisions on matter be1ond the sco*e of the submission to
arbitration.
8ro2ided that, if the decisions on matters submitted to arbitration can be se*arated from those not so
submitted, onl1 that *art of the arbitral award which contains decisions on matters not submitted to
arbitration ma1 be set aside3 or
(2) the com*osition of the arbitral tribunal or the arbitral *rocedure was not in accordance with the
agreement of the *arties, unless such agreement was in conflict with a *ro2ision of this 8art from
which the *arties cannot derogate, or, failing such agreement, was not in accordance with this 8ast3 or
(b) the $ourt finds that::::::
(i) the sub@ect:matter of the dis*ute is not ca*able of settlement b1 arbitration under the law for the
time being in force, or
(ii) the arbitral award is in conflict with the *ublic *olic1 of %ndia.
5*lanation.:::Without *re@udice to the generalit1 of sub:clause (ii), it is hereb1 declared , for the
a2oidance of an1 doubt, that an award is in conflict with the *ublic *olic1 of %ndia if the ma6ing of the
award was induced of affected b1 fraud or corru*tion or was in 2iolation of section E- or section ,1.
(A) An a**lication for setting aside ma1 not be made after three months ha2e ela*sed from the date
on which the *art1 ma6ing that a**lication had recei2ed the arbitral award, or, if a reDuest had been
made under section AA, from the date on which that reDuest had been dis*osed of b1 the arbitral
tribunal.
8ro2ided that if the $ourt is satisfied that the a**licant was *re2ented b1 sufficient cause from ma6ing
the a**lication within the said *eriod of three months if ma1 entertain the a**lication within a further
*eriod of thirt1 da1s, but not thereafter.
(F) Bn recei*t of an a**lication under sub:section (1), the $ourt ma1, where it is a**ro*riate and it is
so reDuested b1 a *art1, ad@ourn the *roceedings for a *eriod of time determined b1 it in order to gi2e
the arbitral tribunal an o**ortunit1 to resume the arbitral *roceedings or to ta6e such other action as in
the o*inion of arbitral tribunal will eliminate the grounds for setting aside the arbitral award.
CHAPTER III
9inalit1 and enforcement of arbitral awards
A-.9inalit1 of arbitral awards.: "ub@ect to this 8art an arbitral award shall be final and binding on the
*arties and *ersons claiming under them res*ecti2el1.
A6.nforcement.: Where the time for ma6ing an a**lication to set aside the arbitral award under
award shall be endorsed under the $ode of $i2il 8rocedure, 194, (- of 194,) in the same manner as
if it were a decree of the $ourt.
CHAPTER I!
A**eals
AE.A**ealable orders.: (1) An a**eal shall lie from the following orders (and from no others) to the
$ourt authorised b1 law to hear a**eals from original decrees of the $ourt *assing the order,
namel1.:::
(a) granting or refusing to grant an1 measure under section 9.
(b) setting aside or refusing to set aside an arbitral award under section AF.
(2) A**eal shall also lie to a court from an order of the arbitral tribunal::::
(a) acce*ting the *lea referred to in sub:section (2) or sub:section (A) of section 163 or
(b) granting or refusing to grant an interim measure under section 1E.
(A) No second a**eal shall lie from an order *assed in a**eal under this section, but nothing in this
section shall affect or ta6en awa1 an1 right to a**eal to the "u*reme $ourt.
CHAPTER !
+iscellaneous
A,./e*osits.: (1) &he arbitral tribunal ma1 fi5 the amount of the de*osit or su**lementar1 de*osit, on
the case ma1 be, as an ad2ance for the costs referred to in sub:section (,) of section A1, which it
e5*ects will be incurred in res*ect of the claim submitted to it.
8ro2ided that where, a*art from the claim, a counter:claim has been submitted to the arbitral tribunal,
it ma1 fi5 se*arate amount of de*osit for the claim and counter:claim.
(2) &he de*osit referred to in sub:section (1) shall be *a1able in eDual shares b1 the *arties.
8ro2ided that where one *art1 fails to *a1 his share of the de*osit, the other *art1 ma1 *a1 that share.
8ro2ided further that where the other *art1 also does not *a1 the aforesaid share in res*ect of the
claim or the counter:claim, the arbitral tribunal ma1 sus*end or terminate the arbitral *roceedings in
res*ect of such claim or counter:claim, as the case ma1 be.
(A) #*on termination of the arbitral *roceedings, the arbitral tribunal shall render an accounting to the
*arties of the de*osits recei2ed and shall return an1 une5*ended balance to the *art1 or *arties, as
the case ma1 be.
A9.'ien on arbitral award and de*osits as to costs.: (1) "ub@ect to the *ro2isions of sub:section (2)
and to an1 *ro2ision to the contrar1 in the arbitration, agreement, the arbitral tribunal shall ha2e a lien
on the arbitral award for an1 un*aid costs of the arbitration.
(2) %f in an1 case an arbitral tribunal refuses to deli2er its award e5ce*t on *a1ment of the costs
demanded b1 it, the $ourt ma1, on an a**lication in this behalf, order that the arbitral tribunal shall
deli2er the arbitral award to the a**licant on *a1ment into $ourt b1 the a**licant of the costs
demanded, and shall, after such inDuir1, in an1, as it thin6s, fit, further order that out of the mone1 so
*aid into $ourt there shall be *aid to the arbitral tribunal b1 wa1 of costs such sum as the $ourt ma1
consider reasonable and that the balance of the mone1, if an1, shall be refunded to the a**licant.
(A) An a**lication under sub:section (2) ma1 be made b1 an1 *art1 unless the fees demanded ha2e
been fi5ed b1 written agreement between him and the arbitral tribunal, and the arbitral tribunal shall
be entitled to a**ear and be heard on an1 such a**lication.
(F) &he $ourt ma1 ma6e such orders as it thin6s fit res*ecting the costs of the arbitration where an1
Duestion arises res*ecting such costs and the arbitral award contains no sufficient *ro2ision
concerning them.
F4.Arbitration agreement not to be discharged b1 death of *art1 thereto.: (1) An arbitration agreement
shall not be discharged b1 the death of an1 *art1 thereto either as res*ects the deceased or as
res*ects an1 other *art1, but shall in such e2ent b1 enforceable b1 or against the legal re*resentati2e
of the deceased.
(2) &he mandate of an arbitrator shall not be terminated b1 the death of an1 *art1 b1 whom he was
a**ointed.
(A) Nothing in this section shall affect the o*eration of an1 law b1 2irtue of which an1 right of action is
e5tinguished b1 the death of a *erson.
F1.8ro2isions in case of insol2enc1.: (1) Where it is *ro2ided b1 a term in a contract to which an
insol2ent is a *art1 that an1 dis*ute arising thereout or in connection therewith shall be submitted to
arbitration, the said term shall, if the recei2er ado*ts the contract, be enforceable b1 or against him so
far as it relates to an1 such dis*ute.
(2) Where a *erson who has been ad@udged an insol2ent had, before the commencement of the
insol2enc1 *roceedings, become a *art1 to a arbitration agreement, and an1 matter to which the
agreement a**lies is reDuired to be determined in connection with, or for the *ur*oses of, the
insol2enc1 *roceedings.then, if the case is one to which sub:section (1) does not a**l1, an1 other
*art1 or the recei2er ma1 a**l1 to the @udicial authorit1 ha2ing @urisdiction in the insol2enc1
*roceedings for an order directing that the matter in Duestion shall be submitted to arbitration in
accordance with the arbitration agreement , and the @udicial authorit1 ma1, if it is of o*inion that,
ha2ing regard to all the circumstances of the case, the matter ought to be determined b1 arbitration,
ma6e an order accordingl1.
(A) %n this section the e5*ression ?recei2er? includes an Bfficial Assignee.
F2.=urisdiction.: Notwithstanding an1thing contained elsewhere in this 8art or in an1 other law for the
time being in force, where with res*ect to an arbitration agreement an1 a**lication under this 8art has
been made in a $ourt, that $ourt alone shall ha2e @urisdiction o2er the arbitral *roceedings and all
subseDuent a**lications arising out of that agreement and the arbitral *roceedings shall be made in
that $ourt and in no other $ourt.
FA.'imitations.: (1) &he 'imitation Act, 196A (A6 of 196A), shall, a**l1 to arbitrations as it a**lies to
*roceedings in court.
(2) 9or the *ur*oses of this section and the 'imitation Act, 196A (A6 of 196A), an arbitration shall be
deemed to ha2e commenced on the date referred in section 21.
(A) Where an arbitration agreement to submit further dis*utes to arbitration *ro2ides that an1 claim to
which the agreement a**lies shall be barred unless some ste* to commence arbitral *roceedings is
ta6en within a time fi5ed b1 the agreement, and a dis*ute arises to which the agreement a**lies the
$ourt, if it is of o*inion that in the circumstances of the case undue hardshi* would otherwise be
caused, and notwithstanding that the time so fi5ed has e5*ired, ma1 on such terms, if an1, as the
@ustice of the case ma1 reDuire, e5tend the time for such *eriod as it thin6s *ro*er.
(F) Where the $ourt orders that an arbitral award be set aside, the *eriod between the
commencement of the arbitration and the date of the order of the $ourt shall be e5cluded in
com*uting the time *rescribed b1 the 'imitation Act, 196A (A6 of 196A), for the commencement of the
*roceedings (including arbitration) with res*ect to the dis*ute so submitted.
PART II
EN"ORCEMENT O" CERTAIN "OREI#N A$ARDS
CHAPTER I
New ;or6 $on2ention Awards
FF./efinition.: %n this $ha*ter, unless the conte5t otherwise reDuires, ?foreign award? means an
arbitral award on differences between *ersons arising out of legal relationshi*s, whether contractual
or not, considered as commercial under the law in force in %ndia, made on or after the 11th da1 of
Bctober, 1964:
(a) in *ursuance of an agreement in writing for arbitration to which the $on2ention set forth in the 9irst
"chedule a**lies, and
(b) in one of such territories as the $entral 0o2ernment, being satisfied that reci*rocal *ro2isions
ha2e been made ma1, b1 notification in the Bfficial 0aCette, declare to be territories to which the said
$on2ention a**lies.
F-.8ower of @udicial authorit1 to refer *arties to arbitration.: Notwithstanding an1thing contained in
8art % or in the $ode of $i2il 8rocedure, 194, (- of 194,), a @udicial authorit1, when seiCed of an action
in a matter in res*ect of which the *arties ha2e made an agreement referred to in section FF, shall, at
the reDuest of one of the *arties or an1 *erson claiming through or under him, refer the *arties to
arbitration, unless it finds that the said agreement is null and 2oid, ino*erati2e or inca*able of being
*erformed.
F6.When foreign award binding.: An1 foreign award which would be enforceable under this $ha*ter
shall be treated as binding for all *ur*oses on the *ersons as between whom it was made, and ma1
accordingl1 be relied on b1 an1 of those *ersons b1 wa1 of defence, set off or otherwise in an1 legal
*roceedings in %ndia and an1 references in this $ha*ter to enforcing a foreign award shall be
construed as including references to rel1ing on an award.
FE.2idence.: (1) &he *art1 a**l1ing for the enforcement of a foreign award shall, at the time of the
a**lication, *roduce before the court::::
(a) the original award or a co*1 thereof, dul1 authenticated in the manner reDuired b1 the law of the
countr1 in which it was made3
(b) the original agreement for arbitration or a dul1 certified co*1 thereof3 and
(c) such e2idence as ma1 be necessar1 to *ro2e that the aware is a foreign award.
(2) %f the award or agreement to be *roduced under sub:section (1) is in a foreign language, the *art1
see6ing to enforce the award shall *roduce a translation into nglish certified as correct b1 a
di*lomatic or consular agent of the countr1 to which that *art1 belongs or certified as correct in such
other manner as ma1 be sufficient according to the law in force in %ndia.
5*lanation.:::%n this section and all the following sections of this $ha*ter, ?$ourt? means the *rinci*al
$i2il $ourt of original @urisdiction in a district, and includes the High $ourt in e5ercise of its ordinar1
original ci2il @urisdiction, ha2ing @urisdiction o2er the sub@ect:matter of the award if the same had been
the sub@ect:matter of a suit, but does not include an1 ci2il court of a grade inferior to such *rinci*al
$i2il $ourt, or an1 $ourt of "mall $auses.
F,.$onditions for enforcement of foreign awards.: (1) nforcement of a foreign award ma1 be refused,
at the reDuest of the *art1 against whom it is in2o6ed, onl1 if that *art1 furnishes to the court *roof
that::::
(a) the *arties to the agreement referred to in section FF were, under the law a**licable to them,
under some inca*acit1, or the said agreement is not 2alid under the law to which the *arties ha2e
sub@ected it or, failing an1 indication thereon, under the law of the countr1 where the award was made3
or
(b) the *art1 against whom the award is in2o6ed was not gi2en *ro*er notice of the a**ointment of the
arbitrator or of the arbitral *roceedings or was otherwise unable to *resent his case3 or
(c) the award deals with a difference not contem*lated b1 or not falling within the terms of the
submission to arbitration, or it contains decisions on matters be1ond the sco*e of the submission to
arbitration.
8ro2ided that, if the decisions on matters submitted to arbitration can be se*arated from those not so
submitted, that *art of the award which contains decisions on matters submitted to arbitration ma1 be
enforced3 or
(d) the com*osition of the arbitral authorit1 or the arbitral *rocedure was not in accordance with the
agreement of the *arties, or, failing such agreement, was not in accordance with the law of the
countr1 where the arbitration too6 *lace 3 or
(e) the award has not 1et become binding on the *arties, or has been set aside or sus*ended b1 a
com*etent authorit1 of the countr1 in which, or under the law of which, that award was made.
(2) nforcement of an arbitral award ma1 also be refused if the court finds that:
(a) the sub@ect :matter of the difference is not ca*able of settlement b1 arbitration under the law of
%ndia3 or
(b) the enforcement of the award would be contrar1 to the *ublic *olic1 of %ndia.
5*lanation.::::Without *re@udice to the generalit1 of clause (b), it is hereb1 declared, for the
a2oidance of an1 doubt, that an award is in conflict with the *ublic *olic1 of %ndia if the ma6ing of the
award was induced or affected b1 fraud or corru*tion.
(A) %f an a**lication for the setting aside or sus*ension of the award has been made to a com*etent
authorit1 referred to in clause (e) of sub:section (1) the $ourt ma1, if it considers it *ro*er, ad@ourn the
decision on the enforcement of the award and ma1 also , on the a**lication of the *art1 claiming
enforcement of the award, order the other *art1 to gi2e suitable securit1.
F9.nforcement of foreign awards.: Where the $ourt is satisfied that the foreign award is enforceable
under this $ha*ter, the award shall be deemed to be a decree of that $ourt.
-4.A**ealable orders.: (1) An a**eal shall lie from the order refusing to:::
(a) refer the *arties to arbitration under section F-3
(b) enforce a foreign award under section F,,
to the court authorised b1 law to hear a**eals from such order.
(2) No second a**eal shall lie from an order *assed in a**eal under this section, but nothing in this
section shall affect or ta6e awa1 an1 right to a**eal to the "u*reme $ourt.
-1."a2ing.: Nothing in this $ha*ter shall *re@udice an1 rights which an1 *erson would ha2e had of
enforcing in %ndia of an1 award or of a2ailing himself in %ndia of an1 award or of a2ailing himself in
%ndia of an1 award if this $ha*ter had not been enacted.
-2.$ha*ter %% not to a**l1.: $ha*ter %% of this 8art shall not a**l1 in relation to foreign awards to which
this $ha*ter a**lies.
$HA8&! %%
0ene2a $on2ention Awards
-A.%nter*retation.: %n this $ha*ter ?foreign award? means an arbitral award on differences relating to
matters considered as commercial under the law in force in %ndia made after the 2,th da1 of =ul1,
192F,:::
(a) in *ursuance of an agreement for arbitration to which the 8rotocol set forth in the "econd
"chedule a**lies, and
(b) between *ersons of whom one is sub@ect to the @urisdiction of some one of such 8owers as the
$entral 0o2ernment, being satisfied that reci*rocal *ro2isions ha2e been made, ma1, b1 notification in
the Bfficial 0aCette, declare to be *arties to the $on2ention set forth in the &hird "chedule, and of
whom the other is sub@ect to the @urisdiction of some other of the 8owers aforesaid, and
(c) in one of such territories as the $entral 0o2ernment, being satisfied that reci*rocal *ro2isions ha2e
been made, ma1, b1 li6e notification, declare to be territories to which the said $on2ention a**lies,
and for the *ur*oses of this $ha*ter an award shall not be deemed to be final if an1 *roceedings for
the *ur*ose of contesting the 2alidit1 of the award are *ending in the countr1 in which it was made.
-F.8ower of @udicial authorit1 to refer *arties to arbitration.: Notwithstanding an1thing contained in
8art % or in the $ode of $i2il 8rocedure, 194, (- of 194,), a @udicial authorit1, on being seiCed of a
dis*ute regarding a contract made between *ersons to whom section -A a**lies and including an
arbitration agreement, whether referring to *resent or further differences, which is 2alid under that
section and ca*able of being carried into effect, shall refer the *arties on the a**lication of either of
them or an1 *erson claiming through or under him to the decision of the arbitrators and such
reference shall not *re@udice the com*etence of the @udicial authorit1 in case the agreement or the
arbitration cannot *roceed or becomes ino*erati2e.
--.9oreign awards when binding.: An1 foreign award which would be enforceable under this $ha*ter
shall be treated as binding for all *ur*oses on the *ersons as between whom it was made, and ma1
accordingl1 be relied on b1 an1 of those *ersons b1 wa1 of defence, set off or otherwise in an1 legal
*roceedings in %ndia and an1 references in this $ha*ter to enforcing a foreign award shall be
construed as including references to rel1ing on an award.
-6.2idence.: (1) &he *art1 a**l1ing for the enforcement of a foreign award shall, at the time of
a**lication *rocedure before the $ourt::::
(a) the original award or a co*1 thereof dul1 authenticated in the manner reDuired b1 the law of the
countr1 in which it was made3
(b) e2idence *ro2ing that the award has become final3 and
(c) such e2idence as ma1 be necessar1 to *ro2e that the conditions mentioned in clauses (a) and (c)
of sub:section (1) of section -E are satisfied.
(2) Where an1 document reDuiring to be *roduced under sub:section (1) is in a foreign language, the
*art1 see6ing to enforce the award shall *roduce a translation into nglish certified as correct b1 a
di*lomatic or consular agent of the countr1 to which that *art1 belongs or certified as correct in such
other manner as ma1 be sufficient according to the law in force in %ndia.
5*lanation.:::%n this section and all the following sections of this $ha*ter, ?$ourt? means the *rinci*al
$i2il $ourt of original @urisdiction in a district, and includes the High $ourt in e5ercise of its ordinar1
original ci2il @urisdiction, ha2ing @urisdiction o2er the sub@ect:matter of the award if the same had been
the sub@ect matter of a suit, but does not include an1 ci2il court of a grade inferior to such *rinci*al
$i2il $ourt, or an1 $ourt of "mall $auses.
-E.$onditions for enforcement of foreign awards.: (1) %n order that a foreign award ma1 be
enforceable under this $ha*ter, it shall be necessar1 that:::
(a) the award has been made in *ursuance of a submission to arbitration which is 2alid under the law
a**licable thereto3
(b) the sub@ect:matter of the award is ca*able of settlement b1 arbitration under the law of %ndia3
(c) the award has been made b1 the arbitral tribunal *ro2ided for in the submission to arbitration or
constituted in the manner agreed u*on b1 the *arties and in conformit1 with the law go2erning the
arbitration *rocedure3
(d) the award has become final in the countr1 in which it has been made, in the sense that it will not
be considered as such if it is o*en to o**osition or a**eal or if it is *ro2ed that an1 *roceedings for
the *ur*ose of contesting the 2alidit1 of the award the *ending3
(e) the enforcement of the award is not contrar1 to the *ublic *olic1 or the law of %ndia.
5*lanation.:::Without *re@udice to the generalit1 of clause (e), it is hereb1 declared, for the
a2oidance, of an1 doubt, that an award is in conflict with the *ublic *olic1 of %ndia if the ma6ing of the
award was induced or affected b1 fraud or corru*tion.
(2) 2en if the conditions laid down in sub:section (1) are fulfilled, enforcement of the award shall be
refused if the $ourt is satisfied that:::
(a) the award has been annulled in the countr1 in which it was made3
(b) the *art1 against whom it is sought to use the award was not gi2en notice of the arbitration
*roceedings in sufficient time to enable him to *resent his case3 or that, being under a legal
inca*acit1, he was not *ro*erl1 re*resented3
(c) the award does not deal with the differences contem*lated b1 or falling within the terms of the
submission to arbitration or that it contains decisions on matters be1ond the sco*e for the submission
or arbitration3
8ro2ided that if the award has not co2ered all the differences submitted to the arbitral tribunal, the
$ourt ma1, if it thin6s fit, *ost*one such enforcement or grant it sub@ect to such guarantee as the
$ourt ma1 decide.
(A) %f the *art1 against whom the award has been made *ro2es that under the law go2erning the
arbitration *rocedure 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 2alidit1 of the
award, the $ourt ma1, if it thin6s fit, either refuse enforcement of the award or ad@ourn the
consideration thereof, gi2ing such *art1 a reasonable time within which to ha2e the award annulled b1
the com*etent tribunal.
-,.nforcement of foreign awards.: Where the $ourt is satisfied that the foreign award is enforceable
under this $ha*ter, the award shall be deemed to be a decree of the $ourt.
-9.A**ealable orders.: (1) An a**eal shall lie from the order refusing::::
(a) to refer the *arties to arbitration under section -F. and
(b) to enforce a foreign award under section -E,
(2) No second a**eal shall lie from an order *assed in a**eal under this section, but nothing in this
section shall affect or ta6e awa1 an1 right to a**eal to the "u*reme $ourt.
64."a2ing.: Nothing in this $ha*ter shall *re@udice an1 rights which an1 *erson would ha2e had of
enforcing in %ndia of an1 award or of a2ailing himself in %ndia of an1 award if this $ha*ter had not been
enacted.
61.A**lication and sco*e.: (1) "a2e as otherwise *ro2ided b1 an1 law for the time being in force and
unless the *arties ha2e otherwise agreed, this 8art shall a**l1 to conciliation of dis*utes arising out of
legal relationshi*, whether contractual or not and to all *roceedings relating thereto.
(2) &his 8art shall not a**l1 where b1 2irtue of an1 law for the time being in force certain dis*utes ma1
not be submitted to conciliation.
62.$ommencement of conciliation *roceedings.: (1) &he *art1 initiating conciliation shall send to the
other *art1 a written in2itation to conciliate under this 8art, briefl1 identif1ing the sub@ect of the dis*ute.
(2) $onciliation *roceedings shall commence when the other *art1 acce*ts in writing the in2itation to
conciliate.
(A) %f the other *art1 re@ects the in2itation, there will be no conciliation *roceedings.
(F) %f the *art1 initiating conciliation does not recei2e a re*l1 within thirt1 da1s from the date on which
he sends the in2itation, or within such other *eriod of time as s*ecified in the in2itation, be ma1 elect
to treat this as a re@ection of the in2itation to conciliate and if he so elects, he shall inform in writing the
other *art1 accordingl1.
6A.Number of conciliators.: (1) &here shall be one conciliator unless the *arties agree that there shall
be two or three conciliators.
(2) Where there is more than one conciliator, the1 ought, as a general rule, to act @ointl1.
6F.A**ointment of conciliators.: (1) "ub@ect to sub:section (2):::
(a) in conciliation *roceedings with one conciliator, the *arties ma1 agree on the name of a sole
conciliator3
(b) in conciliation *roceedings with two conciliators, each *art1 ma1 a**oint one conciliator3
(c) in conciliation *roceedings with three conciliators, each *art1 ma1 a**oint one conciliator and the
*arties ma1 agree on the name of the third conciliator who shall act as the *residing conciliator.
(2) 8arties ma1 enlist the assistance of a suitable institution or *erson in connection with the
a**ointment of conciliators and in *articular,::::
(a) a *art1 ma1 reDuest such an institution or *erson to recommend the names of suitable indi2iduals
to act as conciliator3 or
(b) the *arties ma1 agree that the a**ointment of one or more conciliators be made directl1 b1 such
an institution or *erson3
8ro2ided that in recommending or a**ointing indi2iduals to act as conciliator, the institution or *erson
shall ha2e regard to such considerations as are li6el1 to secure the a**ointment of an inde*endent
and im*artial conciliator and, with res*ect to a sole or third conciliator, shall ta6e into account the
ad2isabilit1 of a**ointing a conciliator of a nationalit1 other than the nationalities of the *arties.
6-."ubmission of statements to conciliator.: (1) &he conciliator, u*on his a**ointment, ma1 reDuest
each *art1 to submit to him a brief written statement of his *osition and the facts and grounds in
su**ort thereof, su**lement b1 an1 documents and other e2idence that such *art1 deems
a**ro*riate.&he *art1 shall send a co*1 of such statement, documents and other e2idence to the
other *art1.
(2) &he $onciliator ma1 reDuest each *art1 to submit to him a further written statement of his *osition
and the facts and grounds in su**ort thereof, su**lemented b1 an1 documents and other e2idence
that such *art1 deems a**ro*riate.&he *art1 shall send a co*1 of such statement, documents and
other e2idence to the other *art1.
(A) At an stage of the conciliation *roceedings, the conciliator ma1 reDuest a *art1 to submit to him
such additional information as he deems a**ro*riate.
5*lanation.::::%n this section and all the following sections of this 8art, the term ?conciliator? a**lies
to a sole conciliator, to or three conciliators as the case ma1 be.
66.$onciliator not bound b1 certain enactments.: &he conciliator is not bound b1 the $ode of $i2il
8rocedure, 194, (- of 194,)or the %ndian 2idence Act, 1,E2 (1 of 1,E2).
6E.!ole of conciliator.: (1) &he conciliator shall assist the *arties in an inde*endent and im*artial
manner in their attem*t to reach an amicable settlement of their dis*ute.
(2) &he conciliator shall be guided b1 *rinci*les of ob@ecti2it1, fairness and @ustice, gi2ing consideration
to, among other things, the rights and obligations of the *arties, the usages of the trade concerned
and the circumstances surrounding the dis*ute, including an1 *re2ious business *ractices between
the *arties.
(A) &he conciliator ma1 conduct the conciliation *roceedings in such a manner as he considers
a**ro*riate, ta6ing into account the circumstances of the case, the wishes the *arties ma1 e5*ress,
including an1 reDuest b1 a *art1 that the conciliator hear oral statements, and the need for a s*eed1
settlement of the dis*ute.
(F) &he conciliator:ma1, at an1 stage of the conciliation *roceedings, ma6e *ro*osals for a settlement
of the dis*ute."uch *ro*osals need not be writing and need not be accom*anied b1 a statement of
the reasons therefor.
6,.Administrati2e assistance.: %n order to facilitate the conduct of the conciliation *roceedings, the
*arties, or the conciliator with the consent of the *arties, ma1 arrange for administrati2e assistance b1
a suitable institution or *erson.
69.$ommunication between conciliator and *arties.: (1) &he conciliator ma1 in2ite the *arties to meet
him or ma1 communicate with them orall1 or in writing.He ma1 meet or communicate with the *arties
together or with each of them se*aratel1.
(2) #nless the *arties ha2e agreed u*on the *lace where meetings with the conciliator are to be held,
such *lace shall be determined b1 the conciliator, after consultation with the *arties, ha2ing regard to
the circumstances of the conciliation *roceedings.
E4./isclosure of information.: When the conciliator recei2es factual information concerning the dis*ute
from a *art1, he shall disclose the substance of that information to the other *art1 in order that the
other *art1 ma1 ha2e the o**ortunit1 to *resent an1 e5*lanation which he considers a**ro*riate.
8ro2ided that when a *art1 gi2es an1 information to the conciliator sub@ect to a s*ecific condition that
it be 6e*t confidential, con conciliator shall not disclose that information to the other *art1.
E1.$o:o*eration of *arties with conciliator.: &he *arties shall in good faith co:o*erate with the
conciliator and, in *articular, shall endea2our to com*l1 with reDuests b1 the conciliator to submit
written materials, *ro2ide e2idence and attend meetings.
E2."uggestions b1 *arties for settlement of dis*ute.: ach *art1 ma1, on his own initiati2e or at the
in2itation of the conciliator, submit to the conciliator suggestions for the settlement of the dis*ute.
EA."ettlement agreement.: (1) When it a**ears to the conciliator that there e5ist elements of a
settlement which ma1 be acce*table to the *arties, he shall formulate the terms of a *ossible
settlement and submit them to the *arties for their obser2ations.After recei2ing the obser2ations of the
*arties, the conciliator ma1 reformulate the terms of a *ossible settlement in the light of such
obser2ations.
(2) %f the *arties reach agreement on a settlement of the dis*ute, the1 ma1 draw u* and sign a written
settlement agreement.%f reDuested b1 the *arties, the conciliator ma1 draw u*, or assist the *arties in
drawing u*, the settlement agreement.
(A) When the *arties sign the settlement agreement, it shall be final and binding on the *arties and
*ersons claiming under them res*ecti2el1.
(F) &he conciliator shall authenticate the settlement agreement and furnish a co*1 thereof to each of
the *arties.
EF."tatus and effect of settlement agreement.: &he settlement agreement shall ha2e the and effect as
if it is an arbitral award on agreed terms on the substance of the dis*ute rendered b1 an arbitral
tribunal under section A4.
E-.$onfidentialit1.: Notwithstanding an1thing contained in an1 other law for the time being in force, the
conciliator and the *arties shall 6ee* confidential all matter relating to the conciliation
*roceedings.$onfidentialit1 shall e5tend also to the settlement agreement, e5ce*t where its disclosure
is necessar1 for *ur*oses of im*lementation and enforcement.
E6.&ermination of conciliation *roceedings.: &he conciliation *roceedings shall be terminated
(a) b1 the signing of the settlement agreement b1 the *arties3 on the date of the agreement3 or
(b) b1 a written declaration of the conciliator, after consultation with the *arties, in the effect that
further efforts at conciliation are no longer @ustified, on the date of the declaration3 or
(c) b1 a written declaration of the *arties addressed to the conciliator to the effect that the conciliation
*roceedings are terminated , on the date of the declaration3 or
(d) b1 a written declaration of a *art1 to the other *art1 and the conciliator, if a**ointed, to the effect
that the conciliation *roceedings are terminated, on the date of the declaration.
EE.!esort to arbitral or @udicial *roceedings.: &he *arties shall not initiate, during the conciliation
*roceedings, an1 arbitral or @udicial *roceedings in res*ect of a dis*ute that is the sub@ect: matter of
the conciliation *roceedings e5ce*t that a *art1 ma1 initiate arbitral or @udicial *roceedings, where, in
his o*inion, such *roceedings are necessar1 for *reser2ing his rights.
E,.$osts.: (1) #*on termination of the conciliation *roceedings, the conciliator shall fi5 the costs of the
conciliation and gi2en written notice thereof to the *arties.
(2) 9or the *ur*ose of sub:section (1) , ?costs? means reasonable costs relating to:::
(a) the fee and e5*enses of the conciliator and witnesses reDuested b1 the conciliator, with the
consent of the *arties3
(b) an1 e5*ert ad2ice reDuested b1 the conciliator with the consent of the *arties3
(c) an1 assistance *ro2ided *ursuant to clause (b) of sub:section (2) of section 6F and section 6,.
(d) an1 other e5*enses incurred in connection with the conciliation *roceedings and the settlement
agreement.
(A) &he costs shall be borne eDuall1 b1 the *arties unless the settlement agreement *ro2ides for a
different a**ointment.All other e5*enses incurred b1 a *art1 shall be borne b1 that *art1.
E9./e*osits.: (1) &he conciliator ma1 direct each *art1 to de*osit an eDual amount as an ad2ance for
the costs referred to in sub:section (2) of section E, which he e5*ects will be incurred.
(2) /uring the course of the conciliation *roceedings, the conciliator ma1 direct su**lementar1
de*osits in an eDual amount from each *art1.
(A) %f the reDuired de*osits under sub:sections (1) and (2) are not *aid in full b1 both *arties within
thirt1 da1s, the conciliator ma1 sus*end the *roceedings or ma1 ma6e a written declaration of
termination of the *roceedings to the *arties, effecti2e on the date of that declaration.
(F) #*on termination of the conciliation *roceedings the conciliator shall render an accounting to the
*arties of the de*osits recei2ed and shall return and e5*ended balance to the *arties.
,4.!ole of conciliator in other *roceedings.: #nless otherwise agreed b1 the *arties.::::
(a) the conciliator shall not act as an arbitrator or as a re*resentati2e or counsel of a *art1 in an1
arbitral or @udicial *roceeding in res*ect of a dis*ute that is the sub@ect of the conciliation *roceedings3
(b) the conciliator shall not be *resented b1 the *arties as a witness in an1 arbitral or @udicial
*roceedings.
,1.Admissibilit1 of e2idence in other *roceedings.: &he *arties shall not rel1 on or introduce as
e2idence in arbitral or @udicial *roceedings, whether or not such *roceedings relate to the dis*ute that
is the sub@ect of the conciliation *roceedings,:
(a) 2iews e5*ressed or suggestions made b1 the other *art1 in res*ect of a *ossible settlement of the
dis*ute3
(b) admissions made b1 the other *art1 in the course of the conciliation *roceedings3
(c) *ro*osals made b1 the conciliator3
(d) the fact that the other *art1 had indicated to acce*t a *ro*osal for settlement made b1 the
conciliator.
PART I
S%PPLEMENTARY PROISIONS
,2.8ower of High $ourt to ma6e rules.: &he High court ma1 ma6e rules consistent with this Act as to
all *roceedings before the court under this Act.
,A.!emo2al of difficulties.: (1) %f an1 difficult1 arises in gi2ing effect to the *ro2isions of this Act, the
central 0o2ernment ma1, b1 order *ublished in the Bfficial 0aCette, ma6e such *ro2isions, not
inconsistent with the *ro2isions of this Act as a**ear to it to be necessar1 or e5*edient for remo2ing
the difficult1.
8ro2ided that no such order shall be after the e5*ir1 of a *eriod of two 1ears from the date of
commencement of this Act.
(2) 2er1 order made under this section shall, as soon as ma1 be after it is made, be laid before each
Houses of 8arliament.
,F.8ower to ma6e rules.: (1) &he $entral 0o2ernment ma1, b1 notification in the Bfficial 0aCette,
ma6e rules for carr1ing out the *ro2isions of this Act.
(2) 2er1 rule made b1 the $entral 0o2ernment under this Act shall be laid, as soon as ma1 be, after
it is made before each House of 8arliament while it is in session, for a total *eriod of thirt1 da1s which
ma1 be com*rised in one session or in two or more successi2e sessions, and if, before the e5*ir1 of
the session immediatel1 following the session or the successi2e sessions aforesaid, both Houses
agree in ma6ing ma1 modification in the rule or both Houses agree that the rule should not be made,
the rule shall thereafter ha2e effect onl1 in such modified form or be of no effect, as the case ma1 be3
so, howe2er, that an1 such modification or annulment shall be without *re@udice to the 2alidit1 of
an1thing *re2iousl1 done under that rule.
,-.!e*eal and sa2ings.: (1) &he Arbitration (8rotocol and $on2ention) Act, 19AE (6 of 19AE), the
Arbitration Act, 19F4 (14 of 19F4) and the 9oreign Awards (!ecognition and nforcement) Act, 1961
(F- of 1961) are hereb1 re*ealed.
(2) Notwithstanding such re*eal,:::::
(a) the *ro2isions of the said enactments shall a**l1 in relation to arbitral *roceedings which
commenced before this Act came into force unless otherwise agreed b1 the *arties but this Act shall
a**l1 in relation to arbitral *roceedings which commenced on or after this Act comes into force3
(b) all rules made and notifications *ublished, under the said enactments shall, to the e5tent to which
the1 are not re*ugnant to this Act, be deemed res*ecti2el1 to ha2e been made or issued under this
Act,
,6.!e*eal of Brdinance 2E of 1996 and sa2ing.: (1) &he Arbitration and $onciliation (&hird)
Brdinance, 1996 (Brd.2E of 1996) is hereb1 re*ealed.done or an1 action ta6en in *ursuance of an1
*ro2ision of the said Brdinance shall be deemed to ha2e been made, done or ta6en under the
corres*onding *ro2isions of this Act.
THE "IRST SCHED%LE
("ee section FF)
CONENTION ON THE RECO#NITION AND E!PORCEMENT O" "OREI#N ARBITRAL A$ARDS
ARTICLE 1
1.&his $on2ention shall a**l1 to the recognition and enforcement of arbitral awards made in the
territor1 of a "tate other than the "tate where the recognition and enforcement of such awards are
sought and arising out of differences between *ersons, whether *h1sical or legal.%t shall also a**l1 to
arbitral awards not considered as domestic awards in the "tate where their recognition and
enforcement are sought.
2.&he term ?arbitral awards? shall include not onl1 awards made b1 arbitrators a**ointed for each
case but also those made b1 *ermanent arbitral bodies to which the *arties ha2e submitted.
A.When signing, ratif1ing or acceding to this $on2ention, or notif1ing e5tension under article H hereof,
and "tate ma1 on the basis of reci*rocit1 declare that it will a**l1 the $on2ention to the recognition
and enforcement of awards made onl1 in the territor1 of another $ontracting "tate.%t ma1 also declare
that it will a**l1 the $on2ention onl1 to differences arising out of legal relationshi*s, whether
contractual or not, which are considered as commercial underta6ing national law of the "tate ma6ing
such declaration.
ARTICLE II
1.ach $ontracting "tate shall recognise an agreement in writing under which the *arties underta6ing
to submit to arbitration all or an1 differences which ha2e arisen or which ma1 arise between them in
res*ect of defined legal relationshi*, whether contractual or not, concerning a sub@ect:matter ca*able
of settlement b1 arbitration.
2.&he term ?agreement in writing? shall include an arbitral clause in a contract or an arbitration
agreement, signed b1 the *arties or contained in an e5change of letters or telegrams.
A.&he court of a $ontracting "tate, when seiCed of an action in a matter in res*ect of which the *arties
ha2e made an agreement within the meaning of this article, shall, at the reDuest of one of the *arties,
refer the *arties to arbitration, unless in finds that the said agreement is null and 2oid, ino*erati2e of
inca*able of being *erformed.
ARTICLE III
ach $ontracting "tate shall recogniCe arbitral awards as binding and enforcement them in
accordance with the rules of *rocedure of the territor1 where the award is relied u*on, under the
conditions laid down in the following articles.&here shall not be im*osed substantiall1 more onerous
conditions or higher fees or charges on the recognition or enforcement of arbitral awards to which this
$on2ention a**lies than are im*osed on the recognition or enforcement of domestic arbitral awards.
ARTICLE I
1.&o obtain the recognition and enforcement mentioned in the *roceeding article, the *art1 a**l1ing
for recognition and enforcement shall, at the time of the a**lication, su**l1.
(a) the dul1 authenticated original award or a dul1 certified co*1 thereof.
(b) the original agreement referred to in article %% or a dul1 certified co*1 thereof.
2.%f the said award or agreement is not made in an official language of the countr1 in which the award
is relied u*on, the *art1 a**l1ing for recognition and enforcement of the award shall *roduce a
translation of these documents into such language.&he translation shall be certified b1 an official or
sworn translator or b1 a di*lomatic or consular agent.
ARTICLE
1.!ecognition and enforcement of the award ma1 be refused, at the reDuest of the *art1 against
whom it is in2o6ed, onl1 if that *art1 furnishes to the com*etent authorit1 where the recognition and
enforcement is sought, *roof that::::
(a) the *arties to the agreement referred to in article %% were, under the law a**licable to them, under
some inca*acit1, or the said agreement in not 2alid under the law to which the *arties ha2e sub@ected
it or, failing an1 indication thereon, under the law of the countr1 where the award was made3 or
(b) the *art1 against whom the award is in2o6ed was not gi2en *ro*er notice of the a**ointment of the
arbitrator or of the arbitration *roceedings or was otherwise unable to *resent his case3 or
(c) the award deals with a difference not contem*lated b1 or not falling within the terms of the
submission to arbitration, or it contains decisions on matters be1ond the sco*e of the submission to
arbitration, *ro2ided that, if the decisions on matters submitted to arbitration can be se*arated from
those not so submitted, that *art of the award which contains decisions on matters submitted to
arbitration ma1 be recognised and enforced3 or
(d) the com*osition of the arbitral authorit1 or the arbitral *rocedure was not in accordance with the
agreement of the *arties, or, failing such agreement, was not in accordance with the law of the
countr1 where the arbitration too6 *lace3 or
(e) the award has not 1et become binding on the *arties, or has been set aside or sus*ended b1 a
com*etent authorit1 of the countr1 in which, or under the law of which, that award was made.
2.!ecognition and enforcement of an arbitral award ma1 also be refused if the com*etent authorit1 in
the countr1 where recognition and enforcement is sought finds that::::
(a) the sub@ect matter of the difference is not ca*able of settlement b1 arbitration under the law of that
countr13 or
(b) the recognition or enforcement of the award would be contrar1 to the *ublic *olic1 of that countr1.
ARTICLE I
%f an a**lication for the setting aside or sus*ension of the award has been made to a com*etent
authorit1 referred to in article <(1) (e), the authorit1 before which the award is sought to be relied u*on
ma1, if it considers it *ro*er, ad@ourn the decision on the enforcement of the award and ma1 also, on
the a**lication of the *art1 claiming enforcement of the award, order the other *art1 to gi2e suitable
securit1.
ARTICLE II
1.&he *ro2isions of the *resent $on2ention shall not affect the 2alidit1 of multilateral or bilateral
agreements concerning the recognition and enforcement of arbitral awards entered into b1 the
$ontracting "tates nor de*ri2e an1 interested *art1 of an1 right he ma1 ha2e to a2ail himself of an
arbitral award in the manner and to the e5tent allowed b1 the law or the treaties of the countr1 where
such award is sought to be relied u*on.
2.&he 0ene2a 8rotocol on Arbitration $lauses of 192A and the 0ene2a $on2ention on the 5ecution
of 9oreign Arbitral Awards of 192E shall cease to ha2e effect between $ontracting "tates on their
becoming bound and to the e5tent that the1 become bound b1 this $on2ention.
ARTICLE III
1.&his $on2ention shall be u*on until A1st /ecember, 19-, for signature on behalf of an1 +ember of
the #nited Nations and also on behalf of an1 other "tate which is or hereafter becomes member of
an1 s*ecialised agenc1 of the #nited Nations, or which is or hereafter becomes a *art1 to the "tatute
of the %nternational $ourt of =ustice, or an1 other "tate to which an in2itation has been addressed b1
the 0eneral Assembl1 of the #nited Nations.
2.&his $on2ention shall be ratified and the instrument of ratification shall be de*osited with the
"ecretar1:0eneral of the #nited Nations.
ARTICLE 1!
1.&his $on2ention shall be u*on for accession to all "tates referred to in article <%%%.
2.Accession shall be effected b1 the de*osit of an instrument of accession with the "ecretar1:0eneral
of the #nited Nations.
ARTICLE !
1.An1 "tate ma1, at the time of signature, ratification or accession, declare that this $on2ention shall
e5tend to all or an1 of the territories for the international relations of which it is res*onsible."uch a
declaration shall ta6e effect when the $on2ention enters into force for the "tate concerned.
2.At an1 time thereafter an1 such e5tension shall be made b1 notification addressed to the "ecretar1:
0eneral of the #nited Nations and shall ta6e effect as from the ninetieth da1 after the da1 of recei*t b1
the "ecretar1:0eneral of the #nited Nations of this notifications, or as from the date of entr1 into force
of the $on2ention for the "tate concerned, whiche2er is the later.
A.With res*ect to those territories to which this $on2ention is not e5tended at the time of signature,
ratification or accession, each "tate concerned shall consider the *ossibilit1 of ta6ing the necessar1
ste*s in order to e5tend the a**lication of this $on2ention to such territories, sub@ect, where
necessar1 for constitutional reasons, to the consent of the 0o2ernments of such territories.
ARTICLE !I
%n the case of a federal or non:unitar1 "tate, the following *ro2isions shall a**l1.:::
(a) with res*ect of those articles of this $on2ention that come within the legislati2e @urisdiction of the
federal authorit1, the obligations of the federal 0o2ernment shall to this e5tent be the same as those
of $ontracting "tates which are not federal "tates3
(b) with res*ect to those articles of this $on2ention that come within the legislati2e @urisdiction of
constituent "tates or *ro2inces which are not, under the constitutional s1stem of the federation, bound
to ta6e legislati2e action, the federal 0o2ernment shall bring such articles with a fa2ourable
recommendation to the notice of the a**ro*riate authorities of constituent "tates or *ro2inces at the
earliest *ossible moment3
(c) a federal "tate 8art1 to this $on2ention shall, at the reDuest of an1 other $ontracting "tate
transmitted through the "ecretar1:0eneral of the #nited Nations, su**l1 a statement of the law and
*ractice of the federation and its constituent units in regard to an1 *articular *ro2ision of this
$on2ention, showing the e5tent to which effect has been gi2en to that *ro2ision b1 legislati2e or other
action.
ARTICLE !II
1.&his $on2ention shall come into force on the ninetieth da1 following the date of de*osit of the third
instrument of ratification or accession.
2.9or each "tate ratif1ing or acceding to this $on2ention after the de*osit of the third instrument of
ratification or accession, this $on2ention shall enter into force on the ninetieth da1 after de*osit b1
such "tate of its instrument of ratification or accession.
ARTICLE !III
1.An1 $ontracting "tate ma1 denounce this $on2ention b1 a written notification to the "ecretar1:
0eneral of the #nited Nations./enunciation shall ta6e effect one 1ear after the date of recei*t of the
notification b1 the "ecretar1:0eneral.
2.An1 "tate which has made a declaration or notification under article H ma1, at an1 time thereafter,
b1 notification to the "ecretar1:0eneral of the #nited Nations, declare that this $on2ention shall
cease to e5tend to the territor1 concerned one 1ear after the date of the recei*t of the notification b1
the "ecretar1:0eneral.
A.&his $on2ention shall continue to be a**licable to arbitral awards in res*ect of which recognition or
enforcement *roceedings ha2e been instituted before the denunciation ta6es effect.
ARTICLE !I
A $ontracting "tate shall not be entitled to a2ail itself of the *resent $on2ention against other
$ontracting "tates e5ce*t to the e5tent that it is itself bound to a**l1 the $on2ention.
ARTICLE !
&he "ecretar1 0eneral of the #nited Nations shall notif1 the "tates contem*lated in article <%%% of the
following.::::
(a) signatures and ratifications in accordance with article <%%%3
(b) accessions in accordance with article %H3
(c) declarations and notifications under articles %, H and H%3
(d) the date u*on which this $on2ention enters into force in accordance with article H%%3
(e) denunciations and notifications in accordance with article H%%%.
A!&%$' H<%
1.&his $on2ention, of which the $hinese, nglish, 9rench, !ussian and "*anish te5ts shall be eDuall1
authentic, shall be de*osited in the archi2es of the #nited Nations.
2.&he "ecretar1 0eneral of the #nited Nations shall transmit a certified co*1 of this $on2ention to the
"tate contem*lated in article H%%%.
THE SECOND SCHED%LE
("ee section -A)
PROTOCOL ON ARBITRATION CLA%SES
&he undersigned, being dul1 authorised, declare that the1 acce*t, on behalf of the countries which
the1 re*resent, the following *ro2isions.::::
1.ach of the $ontracting "tates recognises the 2alidit1 of an agreement whether relating to e5isting
or future differences between *arties sub@ect res*ecti2el1 to the @urisdiction of different $ontracting
"tates b1 which the *arties to a contract agree to submit to arbitration all or an1 differences that ma1
arise in connection with such contract relating to commercial matters or to an1 other matter ca*able of
settlement b1 arbitration, whether or not the arbitration is to ta6e *lace in a countr1 to whose
@urisdiction none of the *arties is sub@ect.
ach $ontracting "tate reser2es the right to limit the obligation mentioned abo2e to contracts which
are considered as commercial under its national law.An1 $ontracting "tate which a2ails itself of this
right will notif1 the "ecretar1:0eneral of the 'eague of Nations in order that the other $ontracting
"tates ma1 be so informed.
2.&he arbitral *rocedure, including the constitution of the Arbitral &ribunal, shall be go2erned b1 the
will of the *arties and b1 the law of the countr1 in whose territor1 the arbitration ta6es *lace.
&he $ontracting "tates agree to facilitate all ste*s in the *rocedure which reDuire to be ta6en in their
own territories, in accordance with the *ro2isions of their law go2erning arbitral *rocedure a**licable
to e5isting differences.
A.ach $ontracting "tate underta6es to endure the e5ecution b1 its authorities and in accordance with
the *ro2isions of its national law of arbitral awards made in its own territor1 under the *receding
articles.
F.&he &ribunals of the $ontracting 8arties, on being seiCed of a dis*ute regarding a contract made
between *ersons to whom Article % a**lies and including an Arbitration Agreement whether referring to
*resent or further differences with is 2alid in 2irtue of the said article and ca*able of being carried into
effect, shall refer the *arties on the a**lication of either of them to the decision of the Arbitrators.
"uch reference shall not *re@udice the com*etence of he @udicial tribunals in case the agreement or
the arbitration cannot *roceed or becomes ino*erati2e.
-.&he *resent 8rotocol, which shall remain o*en for signature b1 all "tates, shall be ratified.&he
ratification shall be de*osited as soon as *ossible with the "ecretar1, 0eneral of the 'eague of
Nations, who shall notif1 such de*osit to all the "ignator1 "tates.
6.&he *resent 8rotocol will come into force as soon as two ratifications ha2e been
de*osited.&hereafter it will ta6e effect, in the case of each $ontracting "tate, one month after the
notification b1 the "ecretar1:0eneral of the de*osit of its ratification.
E.&he *resent 8rotocol ma1 be denounced b1 an1 $ontracting "tate on gi2ing one 1earGs
notice./enunciation shall be effected b1 a notification addressed to the "ecretar1:0eneral of the
'eague, who will immediatel1 transmit co*ies of such notification to all the other "ignator1 "tates and
inform them of the date on which it was recei2ed.&he denunciation shall ta6e effect one 1ear after the
date on which it was notified to the "ecretar1:0eneral, and shall o*erate onl1 in res*ect of the
notif1ing "tate.
,.&he $ontracting "tates ma1 declare that their acce*tance of the *resent 8rotocol does not include
an1 or all of the undermentioned territories3 that is to sa1, their colonies, o2erseas *ossessions or
territories, *rotectorates or the territories o2er which the1 e5ercise a mandate.
&he said "tates ma1 subseDuentl1 adhere se*aratel1 on behalf of an1 territor1 thus e5cluded.&he
"ecretar1:0eneral of the 'eague of Nations shall be informed as soon as *ossible of such
adhesions.He shall notif1 such adhesions to all "ignator1 "tates.&he1 will ta6e effect on month after
the notification b1 the "ecretar1:0eneral to all "ignator1 states.
&he $ontracting "tates ma1 also denounce the 8rotocol se*aratel1 on behalf of an1 of the territories
referred to abo2e.Article E a**lies to such denunciation.
THE THIRD SCHED%LE
("ee sections -A)
CONENTION ON THE E!EC%TION O" "OREI#N ARBITRAL A$ARDS
ARTICLE 1
(1) %n the territories of an1 High $ontracting 8art1 to which the *resent $on2ention a**lies, an arbitral
award made in *ursuance of an agreement, whether relating the e5isting or future differences
(hereinafter called ?a submission to arbitration?) co2ered b1 the 8rotocol on arbitration $lauses
o*ened at 0ene2a on "e*tember 2Fth.192A, shall be recognised as binding and shall be enforced in
accordance with the rules of the *rocedure of the territor1 where the award is relied u*on, *ro2ided
that the said award has been made in a territor1 of one of the High $ontracting 8arties to which the
*resent $on2ention a**lies and between *ersons who are sub@ect to the @urisdiction of one of the
High $ontracting 8arties.
(2) &o obtain such recognition or enforcement, it shall, further, be necessar1.:::
(a) that the award has been made in *ursuance of a submission to arbitration which is 2alid under the
law a**licable thereto3
(b) that the sub@ect:matter of the award is ca*able of settlement b1 arbitration under the law of the
countr1 in which the award is sought to be relied u*on3
(c) that the award has been made b1 the Arbitral &ribunal *ro2ided for in the submission to arbitration
or constituted in the manner agreed u*on b1 the *arties and in conformit1 with the law go2erning the
arbitration *rocedure3
(d) that the award has become final in the countr1 in which it has been made, in the sense that it will
not be considered as such if it is o*en to o**osition, a**eal or *our2oi en cassation (in the countries
where such forms of *rocedure e5ist) or if it is *ro2ed that an1 *roceedings for the *ur*ose of
contesting the 2alidit1 of the award are *ending3
(e) that the recognition or enforcement of the award is not contrar1 to the *ublic *olic1 or to the
*rinci*les of the law of the countr1 in which it is sought to be relied u*on.
ARTICLE 2
2en if the conditions laid down in Article % hereof are fulfilled, recognition and enforcement of the
award shall be refused if the $ourt is satisfied.:::
(a) that the award has been annulled in the countr1 in which it was made.:::
(b) that the *art1 against whom it is sought to use the award was not gi2en notice of the arbitration
*roceedings in sufficient time to enable him to *resent his case3 or that, being under a legal
inca*acit1, he was not *ro*erl1 re*resented3
(c) that the award does not deal with the differences contem*lated b1 or falling within the terms of the
submission to arbitration or that it contains decisions on matters be1ond the sco*e of the submission
to arbitration.
%f the award has not co2ered all the Duestions submitted to the arbitral tribunal, the com*etent
authorit1 of the countr1 where recognition or enforcement of the award is sought can, if it thin6s fit ,
*ost*one such recognition or enforcement or grant it sub@ect to such guarantee as that authorit1 ma1
decide.
ARTICLE &
%f the *art1 against whom the award has been made *ro2es that, under the law go2erning the
arbitration *rocedure, 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 2alidit1 of the award in a $ourt of 'aw, the $ourt ma1, if
it thin6s fit, either refuse recognition or enforcement of the award or ad@ourn the consideration thereof,
gi2ing such *art1 a reasonable time within which to ha2e the award annulled b1 the com*etent
tribunal.
ARTICLE '
&he *art1 rel1ing u*on an award or claiming its enforcement must su**l1, in *articular.::
(1) the original award or a co*1 thereof dul1 authenticated, according to the reDuirements of the law of
the countr1 in which it was made3
(2) documentar1 or other e2idence to *ro2e that the award has become final, in the sense defined in
Article 1 (d), in the countr1 in which it was made3
(A) when necessar1, documentar1 or other e2idence to *ro2e that the conditions laid down in Article 1,
8aragra*h (1) and *aragra*h (2) (a) and (c), ha2e been fulfilled.
A translation of the award and of the award and of the other documents mentioned in this Article into
the official language of the countr1 where the award is sought to be relied u*on ma1 be
demanded."uch translations must be certified correct b1 a di*lomatic or consular agent of the countr1
to which the *art1 who see6s to rel1 u*on the award belongs or b1 a sworn translator of the countr1
where the award is sought to be relied u*on.
ARTICLE (
&he *ro2isions of the abo2e articles small not de*ri2e an1 interested *art1 of the right of a2ailing
himself of an arbitral award in the manner and to the e5tent allowed b1 the law or the treaties of the
countr1 where such award is sought to be relied u*on.
ARTICLE 6
&he *resent $on2ention a**lies onl1 to arbitral awards made after the coming into force of the
8rotocol on Arbitration $lauses o*ened at 0ene2a on "e*tember 2Fth, 192A.
ARTICLE )
&he *resent $on2ention, which will remain o*en to the signature of all the signatories of the 8rotocol
of 192A on Arbitration $lauses, shall be ratified.
%t ma1 be ratified onl1 on behalf of those +embers of the 'eague of Nations and Non:member "tates
on whose behalf the 8rotocol of 192A on Arbitration $lauses, shall be ratified.
!atification shall be de*osited as soon as *ossible with the "ecretar1:0eneral of the 'eague of
Nations, who will notif1 such de*osit to all the signatories.
ARTICLE *
&he *resent $on2ention shall come into force three months after it shall ha2e been ratified on behalf
of two High $ontracting 8arties.&hereafter, it shall ta6e effect, in the case of each High $ontracting
8art1, three months after the de*osit of the ratification on its behalf with the "ecretar1:0eneral of the
'eague of Nations.
ARTICLE 9
&he *resent $on2ention ma1 be denounced on behalf of an1 +ember of the 'eague or Non:+ember
"tate./enunciation shall be notified in writing to the "ecretar1:0eneral of the 'eague of Nations, who
will immediatel1 send a co*1 thereof, certified to the in conformit1 with the notifications, to all the other
$ontracting 8arties, at the same time informing them of the date on which he recei2ed it
&he denunciation shall come into force onl1 in res*ect of the High $ontracting 8art1 which shall ha2e
notified it and one 1ear after such notification shall ha2e reached the "ecretar1 :: 0eneral of the
'eague of Nations.
&he denunciation of the 8rotocol on Arbitration $lauses shall entail , i*so facto, the denunciation of
the *resent $on2ention.
ARTICLE 1+
&he *resent $on2ention does not a**l1 to the colonies, *rotectorates or territories under suCeraint1 or
mandate of an1 High $ontracting 8art1 unless the1 are s*eciall1 mentioned.
&he a**lication of this $on2ention to one or more of such colonies, *rotectorates or territories to
which the 8rotocol on Arbitration $lauses o*ened at 0ene2a on "e*tember 2Fth, 192A, a**lies, can
be effected at an1 time b1 means of a declaration addressed to the "ecretar1:0eneral of the 'eague
of Nations b1 one of the High $ontracting 8arties.
"uch declaration shall ta6e effect three months after the de*osit thereof.
&he High $ontracting 8arties can at an1 time denounce the $on2ention for all or an1 of the colonies,
*rotectorates or territories referred to abo2e.Article 9 hereof a**lied to such denunciation.
ARTICLE 11
A certified co*1 of the *resent $on2ention shall be transmitted b1 the "ecretar1:0eneral of the league
of Nations of e2er1 +ember of the league of Nations and to e2er1 Non:+ember "tate which sign the
same.
>.'.+BHAN8#!%A,
"ec1.to the 0o2t.of %ndia.