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Salient features of Arbitration and Conciliation act 1996

Alternative dispute resolution is the process for the settlement of dispute between the parties outside the court. There are various methods for alternative dispute resolution and the following are: arbitration, conciliation, negotiation, mediation. At the very earlier there was no law for the systematic procedure of those methods. A legislation was made on arbitration which was incomplete, a conference was held  by the Prime Minister of India P.V Narshimha Rao, he considered International Model of law like UNCITRAL based on commercial International arbitration discussion about the arbitration in India in the year of 1993. As the result of this conference and the various drawbacks of the previous legislation and to make the people satisfy the arbitration and conciliation act 1996 was enacted by the government of India. It corporate the rules and regulation from the UNCITRAL.

1.The the act 1996 is a long step leap in the direction of alternative dispute resolution system.

2. Arbitration and conciliation act was passed by the government of India in the year of 1996 as a measure of fulfilling the obligation under International treaties and conventions in conformity with the Model law.

3. The act divided into four parts  1st part (section 2 - 43), dealing with the domestic arbitration including the international arbitration conducted in India.           2nd part (section 44 - 60), deal with the enforcement of foreign award given by the New York convention and Geneva convention.                                           3rd part (section 61 - 81), setting out the legal Framework for conciliation proceeding in India.       4th part (section 82 - 86), dealing with the Supplementary provisions.

4. The act, prominence of the arbitration agreement before starting the arbitration proceeding in case of any dispute.     

5. The act also, provide that the arbitration agreement must contain the subject matter of dispute, number of arbitrators, qualification, jurisdiction.

6. The act, also provide power to the parties to choose the seat of arbitral Tribunal, means to select the place of arbitration proceeding and etc. 

7. The set also provide parties to set the rules.

This act setup the systematic method for Arbitration, conciliation and even Mediation to resolve the issue between the parties.


  • Introduction
  • Salient features
  • Conclusion

BY : Amrisha Jain

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