ARBITRATION AND CONCILIATION ACT 1940 BARE ACT PDF

Arbitration Act, [Repealed] Complete Act – Bare Act Central Government. Year, Repealing Act1 – ARBITRATION AND CONCILIATION ACT, THE ARBITRATION ACT in India Bare Acts, Banking and Insurance, Business and Corporate, Constitutional, Consumer Laws, Criminal Law, Energy, . Arbitration and Conciliation Act Indian Bare Acts at and Conciliation Act, and section 34 of the Arbitration Act, is different.

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

Came into force on vide G. Where at least one of the parties is an individual having nationality of another country other than India or a body corporate which is incorporated in any country other than India or an association or a body of individuals whose central management and control is exercised in any country other than India or the government of a foreign country, the same would be a case of international commercial arbitration.

The respondent here in is a body corporate which is incorporated in a country other than India and therefore, in terms of the aforesaid definition the present admittedly is a case of international commercial arbitration; Dominant Offset Pvt. Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part. In the present case, it was held that courts in India have no power to issue interim order under section 9 of the Act in the matter when arbitration is held at a place outside India.

If court is not having jurisdiction to pass any interim order, in such cases, inherent powers not to be exercised, to confer jurisdiction upon itself. To exercise any inherent power court must have jurisdiction over the proceedings before it; Marriat International Inc.

In order to facilitate the conduct of the arbitral proceedings, the parties, or the arbitral tribunal with the consent of the parties, may arrange for administrative assistance by a suitable institution or person. The arbitrator is competent to decide the objection on its own jurisdiction whether appointed as per the terms of the agreement within the provisions of section or appointed under the provisions of section 11; State of Jharkhand v.

What constitute an arbitration agreement, well settled principles in respect thereof In regard to what constitutes an arbitration agreement, the well settled principles are—. If the terms of the agreement clearly indicate an intention on the part of the parties to the agreement to refer their disputes to a private tribunal for adjudication and an willingness to be bound by the decision of such tribunal on such disputes, it is arbitration agreement.

While there is no specific form of an arbitration agreement, the words used should disclose a determination and obligation to go to arbitration and not merely contemplate the possibility of going for arbitration. Where there is merely a possibility of the parties agreeing to arbitration in future, as contrasted from an obligation to refer disputes to arbitration, there is no valid and binding arbitration agreement.

Where there is a specific and direct expression of intent to have the disputes settled by arbitration, it is not necessary to set out the attributes of an arbitration agreement to make it an arbitration agreement. For example, where an agreement requires or permits an authority to decide a claim or dispute without hearing, or requires the authority to act in the interests of only one of the parties, or provides that the decision of the Authority will not be final and binding on the parties, or that if either party is not satisfied with the decision of the Authority, he may file a civil suit seeking relief, it cannot be termed as an arbitration agreement.

Any agreement or clause in an agreement requiring or contemplating a further consent or consensus before a reference to arbitration, is not an arbitration agreement, but an agreement to enter into an arbitration agreement in future; Jagdish Chander v. Ramesh Chander, 5 SCC It is not duty of court to adjourn a matter to enable parties to report to court about appointment of Arbitrator and then make reference; Pawan Sharma v.

It employs submission of the party to the jurisdiction of the judicial authority. What is, therefore, needed is a finding on the part of judicial authority that the party has waived his right to invoke the arbitration clause. If an application is filed before actually filing the first statement on the substance of the dispute, the party cannot be said to have waived his right or acquiesced himself to the jurisdiction of the court; Rashtriya Ispat Nigam Ltd.

Therefore, in cases where there is an arbitration clause in the agreement, it is obligatory for the court to refer the parties to arbitration in terms of their arbitration agreement and nothing remains to be decided in the original action after such an application is made except to refer the dispute to an arbitrator; P.

Anand Gajapathi Raju v. Raju Dead4 SCC Power of Court to refer parties for arbitration would and must necessarily include, imply and inhere in it the power and jurisdiction to appoint Arbitrator also; Afcons Infrastructure Ltd. Cherian Varkey Construction Co. Scope and object of section 8 of the Arbitration and Conciliation Act, and section 34 of the Arbitration Act, is different.

Setting Aside Arbitral Award: Contemporary Scenario in India

Therefore, these two respective provisions of different Acts have no application to deprive the party of the legitimate right to invoke section 8 of the Brae and Conciliation Act to have the matter relating to the disputes referred to arbitration, in terms of the arbitration agreement; Kalpana Kothari v.

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A party may, before or during arbitral proceedings or at any time after the making of the arbitral award but before it is enforced in accordance with section 36, apply to a court—. A party or a person is entitled to interim protection if action of the other party is either in breach of the terms of the agreement or militates against equity, fair play or natural justice, otherwise not; Baby Arya v. Pendency of any arbitral proceedings is not a pre-condition for an exercise of power by the court.

Pendency of any arbitral proceedings is not a pre-condition for exercise of power by arbitfation. The court may grant interim relief before or during arbitral proceedings or at anytime after making of the arbitral award but before it is enforced; Globe Cogeneration Power Ltd.

Section 9 of the Arbitration and Conciliation Act,only deals with the interim measure by the court. Obviously it is not within the scope of this section to inquire into the claim and the counter-claim made by both the parties in regard to the custody of the articles concilation what has been admitted by the respondent; Narain Sahai Aggarwal v.

Santosh Rani, 2 Arb LR The parties are at liberty to determine the number of arbitrators, but such number shall not be an even number. If the parties fail to provide for an odd number of arbitrators, the arbitral tribunal shall be constituted by a sole arbitrator; Sri Venkateshwara Construction Co. In bar present case, a contract between the two parties M and S provided that each party shall nominate one arbitrator and the two arbitrators shall then appoint an umpire before proceeding with the reference.

S invoked arbitration clause and appointed an arbitrator under the agreement after the Act came into force. It was contended by the M that the arbitration agreement provided for the appointment of two arbitrators while section 10 1 of the Act does not envisage the appointment of an even number of arbitrators and that the only remedy in such a case was by way of suit and not by arbitration.

The Supreme Court held that there is nothing in section 7 to indicate the requirement of the number of arbitrators as a part of the arbitration agreement. Thus the validity of an arbitration agreement does not depend on the number of arbitrators specified therein.

The number of arbitrators is dealt with separately in section 10 which is a bate of machinery provision for the working of the arbitration agreement.

It is, therefore, clear that an agreement specifying an even number of arbitrators cannot be a ground to render the arbitration agreement invalid under the Act. In view of the term in the arbitration agreement that the two arbitrators would appoint an umpire, the requirement of section 10 1 was satisfied.

In other words, the arbitration agreement was not for an even number of arbitrators and section 10 2 was not attracted. The arbitration agreement was deemed to be one providing for three arbitrators; M.

Sterlite Industries India Ltd. Exercise of discretion for appointment of same arbitrator even after forfeiture of right is improper; Suri Constructions v. It is well settled that where an arbitrator is named in the arbitration agreement, the provisions of section 11 of the Act are not attracted and the court will not have jurisdiction to try and decide the petition arbltration by party for appointment of another arbitrator; Kamla Solvent v.

Under section 11, there is no provision fixing any time limit except under sub-section 5 which provides the time limit of 30 days from the receipt of the request from the party for appointment of an arbitrator. Under sub-section 6 no such time limit have been fixed. The existence of the hare clause and the validity of reference shall only be decided by the Arbitrator. During pendency of arbitration, civil court has no jurisdiction to entertain petition and decide nature of objections raised therein.

Questions can be raised before and decided by arbitrator; State of Jharkhand v. The Arbitrator himself in exercise of power conferred on him arbktration or under section 16 can decide cojciliation question whether or not the arbitration clause in question was scored out at the time of agreement between the parties and as such, conciloation or not he has jurisdiction to decide the matter or adjudicate the dispute; State of Orissa v.

The parties shall be treated with equality and each party shall be abd a full opportunity to present his case. Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent. Section 21 of the Act lays down that unless and otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to be referred to arbitration is received by respondent; Y.

Provided that the arbitral tribunal shall hold oral hearings, at an appropriate stage of the proceedings, on a request by a party, unless the parties have agreed that no oral hearing shall be held. Unless otherwise agreed by conculiation parties, anr, without showing sufficient cause,—. Where the arbitrator has awarded interest from the date of the award till the date of payment, disallow interest from the date of the decree or determine a different rate conciliatikn which the interest is to be paid or confirm the grant of 19440 as awarded in the award.

When the arbitrator, having been invested with the jurisdiction to decide the arbitrability of certain claims has committed error of jurisdiction in not considering the arbitrability of the claims and passed a non-speaking award granting certain lump sum amount, it is difficult to give acceptance to the award made by the umpire; Tamil Nadu Anf Board v. Arbitrator has power to award interest at all four stages. It was held that the direction to pay interest from date of award cannot be faulted under section 31 7 ; T.

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It is seen that by express agreement between the parties, arbitrability of the claim for refund of the hire charges was referred to arbitration and T came to be appointed as arbitrator and entered upon that reference. But when claim was made, he enlarged the dispute unilaterally without there being any agreement by the appellant.

Infact they objected to the enlargement of the scope of the arbitration. Since arbitrator went on adjudicating the disputes, they were left with no option but to participate in the proceedings as the claims were pressed for and parties submitted to the jurisdiction of the arbitrator. Therefore, it did not amount to acquiescence. The arbitrator went out of their way to declare that whatever amount in addition was due from respondent No.

It was contended that the award was decided outside the authority of the arbitrators. It was held that the arbitrators had clearly misdirected themselves and had exceeded the scope of their authority and the award was, therefore, set aside; Union of India v. Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, only that part of the arbitral award which contains decisions on matters not submitted to arbitration may be set aside; or.

Provided that if the Court is satisfied that the applicant was prevented by sufficient cause from making the application within the said period of three months it may entertain the application within a further period of thirty days, but not thereafter. Arbitration Court cannot interfere on the ground of award being erroneous.

The arbitration court cannot interfere with the award on the ground that the award is erroneous if the award is otherwise proper. It is not open to the arbitration court to re-appreciate reasonableness of reasons in the arbitral award; Union of India v.

The award made by the arbitrator was partially vitiated on account of overlooking the contents of the document brought to his notice and therefore, to that extent the award should have been modified by the High Court. Virtually allotment of land was not in recognition of any statutory entitlement but was only by way of compassion; State of Karnataka v. Where an arbitrator passed a non-speaking award granting certain lumpsum amount and award did not contain any decision or arbitrability of the claims, such award is liable to be set aside; Tamil Nadu Electricity Board v.

THE ARBITRATION ACT, 1940

While considering legality and validity of award, High Court cannot substitute its own findings as if sitting in appeal over award. High Court has no jurisdiction to interfere with award; Ram Prasad Sharma v. It is axiomatic that the arbitrator being a creative of the agreement must operate within the four corners of the agreement and cannot travel beyond it.

More particularly, he cannot award any amount, which is ruled out or prohibited by the terms of the anc. In the present case, the agreement between the parties clearly says that in measuring the built up area, the balcony areas should be excluded. The arbitrators could not have acted contrary to the said stipulation and awarded any amount to the appellant on that account; New India Civil Erectors P Ltd. The right to file an application under section 34 to set aside an award is arbitratoin and the same is unconditional and unqualified; The Supdtg.

Deivasigamani, AIR Mad Subject to this Part an arbitral award shall be final and binding on the parties and persons claiming under them respectively. Where the time for making an application to set aside the arbitral award under section 34 has expired, or such application having been arbitratlon, it has been refused, the award shall be enforced under the Code of Civil Procedure, aarbitration of in the ane manner as if it were a decree of the Court.

Forum of appellate court must be determined with reference to definition of court in section 2 1 e of the Act. A second appeal against the order of arbitral tribunal is not maintainable under this section; Cref Finance Ltd.

Provided that where, apart from bae claim, a counter-claim has been submitted to the arbitral tribunal, it may fix separate amount of deposit for the claim and counter-claim. Provided that where one party fails to pay his share of the deposit, the other party may pay that share:.

Provided further that where the other party also does not pay the aforesaid share in respect of the claim or the counter-claim, hare arbitral tribunal may suspend or terminate the abritration proceedings in respect of such claim or counter-claim, as the case may be. Notwithstanding anything contained elsewhere in this Part or in any other law for the time being in force, where with respect to an arbitration agreement any application under this Part has been made in a Court, that Court alone shall have jurisdiction over the arbitral proceedings conciliatoon all subsequent applications arising out of that agreement and the arbitral proceedings shall be made in that Court and in no other Court.