What is the Arbitration and Conciliation Act of 1996?

The Arbitration and Conciliation Act of 1996 is an important law for solving problems outside of the Court. It lays down rules for settling disagreements through Arbitration and Conciliation, whether they happen within the country or across borders. Moreover, this Act came into being on the 16th of August 1996. Furthermore, it brings together and updates laws about arbitration in the country, settling international business disputes, implementing awards from foreign arbitrations, and how conciliation works. Read on to learn more in detail about what is arbitration and conciliation act 1996, the 3 Parts and Salient Features of the Act and the Arbitration and Conciliation Act 1996 Amendment 2019.

What are the 3 Parts of the Act of 1996?

Additionally, the Arbitration and Conciliation Act is structured into 3 main parts: 

• Part I focuses on arbitration according to an arbitration agreement.
• Part II deals with the enforcement of foreign awards.
• Part III pertains to conciliation. 

Also Read: What is a Lok Adalat?

What are the Salient Features of Arbitration and Conciliation Act of 1996?

The Act of 1996 introduces key features that improve the processes. Moreover here are the Salient features:

• Speedy Resolution: The Act aims to give a fast and cost-effective resolution of disputes. Therefore, addressing the delays and expenses with court litigation.

• Party Autonomy: It upholds the principle of party autonomy. Thus, it allows parties to determine the procedure for resolving their disputes. 

• Limited Judicial Intervention: The Act minimizes the intervention of courts in arbitration proceedings, hence granting greater autonomy to the arbitral tribunal.

• Enforcement of Awards: It guarantees that arbitral awards are enforced like court decrees, thereby improving the efficacy of the arbitration process.

Also Read: What is the Administrative Tribunal in India?

Arbitration and Conciliation Act 1996 Amendment 2019

In 2019, the Arbitration and Conciliation Act of 1996 was Amended to make arbitration better. 

• Additionally, the changes aimed to make arbitration faster, fairer, and more effective. 
• They included making sure disputes are resolved quickly, making sure proceedings are fair, and giving the arbitration panel more power to decide on how things are done during the process.

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