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How far has India developed its laws on ADR?


Though arbitration flourished in India before the Britishers came in and established their power, in the form of panchayats (which have since been recognized in the Indian Constitution), The Geneva Convention also included arbitration provisions. 

The first dedicated arbitration provision was Section 89 of the Civil Procedure Code of 1908, which provided for arbitration. Still, it was abolished by Section 49 and Schedule III of the Arbitration Act of 1940. Before enacting the Arbitration Act, 1940, the British passed the Arbitration (Protocol and Convention) Act, 1937, which stated in the Preamble that India was a signatory to the League of Nations' Protocol on Arbitration.  

The League of Nations was founded to bring the globe closer together via trade, which led to recognizing the need for arbitration. As a consequence, the 1923 Protocol on Arbitration Clauses was created. The League of Nations drafted a new Convention for the Enforcement of Foreign Arbitral Awards to fill up the gaps left by the 1923 Convention. Other enactments, such as the Arbitration (Protocol and Convention) Act, 1937, were based on Geneva Convention. 

 In 1940, the Arbitration Act was enacted, which repealed all earlier arbitration statutes. The 1937 Arbitration (Protocol and Convention) failed to achieve its goal. After many years of effort, the world came up with a convention, the New York Convention, in 1958, which is still in effect today. The Arbitration Act of 1940 was then repealed, and the Arbitration Act of 1960 was enacted. 

The New York Convention prompted the Foreign Awards (Recognition and Enforcement) Act of 1961, which filled a gap in the 1960 Arbitration Act. 


The Arbitration and Conciliation (Amendment) Ordinance and the Commercial Courts Ordinance were enacted into law by the Indian legislature in the last week of 2015. The latter Ordinance was passed to make business dispute settlement simpler and more efficient. But it's the modification to the Arbitration Act that seals the deal. The following are some of the main improvements it makes:

Domestic arbitration disputes may be submitted in high courts with sufficient (original) jurisdiction; international arbitration disputes will be filed immediately.

Unless the parties agree differently, some Part I shall apply to international commercial arbitrations regardless of whether the venue is in India or not.

Courts are required to submit parties to arbitration unless the arbitration agreement is found to be invalid.

The courts will only grant interim relief if the parties cannot seek equivalent relief from the arbitral panel. Following any such temporary order, the parties will be required to finish the arbitration procedures within a certain amount of time.

Available time limits were established, with the potential to extend them, requiring all arbitrations to be finished within 12 months and all court matters to be resolved within one year.


If India is seen as an unreliable site for implementing international arbitration rulings, it would be unable to maintain its drive for global reputation and become an attractive location for international investment. 

The Indian legislature has passed legislation that affects worldwide norms for the execution of arbitral verdicts, regardless of where they are delivered, due to a mix of experience and needs.

It remains to be seen if Indian courts will completely embrace these adjustments and if they would be sufficient to address the existing framework's issues.

This article is based purely on the author's personal views and opinions in exercising the fundamental right guaranteed under Article 19(1)(a) and other related laws being a force in India for the time being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, the white code VIA Mediation and arbitration center shall not be responsible for any errors caused due to human error or otherwise.


This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre shall not be responsible for any errors caused due to human error or otherwise. 

  • Introduction
  • Recent Development
  • Conclusion

BY : Friyana damania

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