Arbitration and Conciliation

Applicability of the Arbitration and Conciliation Act, 1996

The Act applies to the whole of India but Part I, Part II, Part III and Part IV will extend to Jammu and Kashmir only if they relate to international commercial arbitration or conciliation. The Act was enforced on 22nd August 1996 but the ordinance was promulgated by the President on 16th January 1996. The other two ordinances i.e., Arbitration and Conciliation ordinances were passed on 26th March and 21st June 1996 respectively. Objectives of the Arbitration and Conciliation Act, 1996

Earlier, the law on arbitration was dealt with under 3 acts which eventually became outdated. As a result of which the bodies of trade and industry and experts of arbitration demanded and proposed amendments to make the Act responsive and at par with the needs of the society. It was felt that the economic reforms in the country can only be dealt with if domestic and international commercial disputes and their settlement are not outside the purview of such reforms.