The act, 1996 is a long step leap in the direction of an alternative dispute resolution system. 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 UNCITRAL. There were various previous legislation on arbitration which was incomplete and inefficient. A conference was held by the Prime Minister of India, P.V Narasimha Rao, he considered International modern law like UNCITRAL on commercial International arbitration. Various discussions held on arbitration in India in the year of 1993. As the result of these conference and the drawbacks of previous legislation or to make the people satisfy, the arbitration and conciliation act 1996 was enacted by the government of India. It corporated the rules and regulation from the UNCITRAL.
Various alternative dispute resolution techniques specially arbitration and conciliation in India are governed by the arbitration and conciliation act 1996.
The term arbitration means determination of settlement all the dispute by the decision of one or more person called arbitrators or arbitral tribunal. The term arbitration was not defined in arbitration act 1940 however, Arbitration and Conciliation act 1996 define arbitration means any arbitration whether or not administer by permanent arbitral institution.
Scope: arbitration is no more and less than litigation. These parts and apply where the place of arbitration is in India. It shall not affect any other law for the time being in force in India. The part except: sub section (1) of section 40, section 41, section 43 shall applied to every arbitration under any other enactment for the time being in force. Arbitrator is called upon to find the facts, apply the law, Grand relief to the disputed parties. In any agreement in force between India and any other country these parts shall applied to all arbitration to all proceedings relating thereto. Arbitration and conciliation is a civilized way of resolving issues which avoid court proceedings.
Object: comprehensively cover domestic arbitration and conciliation. To make provisions for an arbitration which: fair, efficient, capable of meeting the needs. Objective to remain arbitration Tribunal within the limits. To minimise the supervisory role of courts.