Arbitration and Conciliation Act explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Arbitration and Conciliation Act, 1996 is one Act with five Parts and a set of Schedules, and most questions about it become easier once you know which Part you are in. This introduction is a map of the Act as per the India Code consolidated text consulted, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12-10-2023; later amendments should be checked. If you need to know which Part governs your contract or your dispute, our legal consultation team can read the clause with you.
The Act has Part I (arbitration, sections 2 to 43), Part IA (Arbitration Council of India, sections 43A to 43M), Part II (enforcement of certain foreign awards, sections 44 to 60), Part III (conciliation, sections 61 to 81) and Part IV (supplementary provisions, sections 82 to 87), followed by the Schedules. Part I applies where the place of arbitration is in India (section 2(2)). An award made under Part I is a domestic award (section 2(7)). Foreign awards are dealt with in Part II. Each Part is explained section by section in the articles linked below.
What the Act sets out to do
The long title says the Act consolidates and amends the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards, and defines the law relating to conciliation. The Preamble records that it takes into account the UNCITRAL Model Law on International Commercial Arbitration, adopted in 1985, and the UNCITRAL Conciliation Rules, adopted in 1980.
Section 1 gives the short title, says the Act extends to the whole of India, and leaves commencement to a notified date. The footnote to section 1(3) gives that date as 22nd August, 1996. The text shows the proviso and Explanation to section 1(2) as omitted. See section 1: short title, extent and commencement.
The Act at a glance
| Part | Sections | Heading as printed | Chapters |
|---|---|---|---|
| Preliminary | 1 | Short title, extent and commencement | None |
| Part I | 2 to 43 | Arbitration | Chapters I to X |
| Part IA | 43A to 43M | Arbitration Council of India | None |
| Part II | 44 to 60 | Enforcement of certain foreign awards | Chapters I and II |
| Part III | 61 to 81 | Conciliation | None |
| Part IV | 82 to 87 | Supplementary provisions | None |
| Schedules | First to Eighth | Conventions, model fee, arbitrator disclosure and ineligibility | Eighth shown as omitted |
Part I: arbitration (sections 2 to 43)
Part I is the working code for an arbitration seated in India. It has ten Chapters.
Chapter I, general provisions (sections 2 to 6). Section 2 defines "Court", "international commercial arbitration", "party" and other terms, and applies Part I where the place of arbitration is in India. Sections 3 to 6 deal with receipt of written communications, waiver, the limit on judicial intervention and administrative assistance.
Chapter II, arbitration agreement (sections 7 to 9). Section 7 says what an arbitration agreement is and that it must be in writing. Section 8 requires a judicial authority to refer parties to arbitration, and section 9 lets a party ask the Court for interim measures.
Chapter III, composition of arbitral tribunal (sections 10 to 15). The number of arbitrators, appointment under section 11, disclosure and grounds for challenge under section 12, the challenge procedure, and termination and substitution.
Chapter IV, jurisdiction of arbitral tribunals (sections 16 and 17). The tribunal may rule on its own jurisdiction under section 16 and may order interim measures under section 17.
Chapter V, conduct of arbitral proceedings (sections 18 to 27). Equal treatment, procedure, place, commencement, language, pleadings, hearings, default, experts and court assistance in taking evidence. Our overview of sections 18 to 27 links each one.
Chapter VI, making of arbitral award and termination of proceedings (sections 28 to 33). The law applied to the dispute, decision by a panel, the time limit in section 29A, the fast track procedure in section 29B, settlement, the form of the award, costs, termination and correction. See the arbitral award: making and enforcement.
Chapter VII, recourse against arbitral award (section 34). The single section on setting aside an award.
Chapter VIII, finality and enforcement of arbitral awards (sections 35 and 36). The award is final and binding, and is enforced under section 36 in the same manner as a decree.
Chapter IX, appeals (section 37) and Chapter X, miscellaneous (sections 38 to 43). Appealable orders, deposits and lien for costs, death and insolvency of a party, the Court that has jurisdiction, confidentiality (sections 42A and 42B) and limitation under section 43.
Part IA: Arbitration Council of India (sections 43A to 43M)
The text shows Part IA as inserted by Act 33 of 2019 (the 2019 Amendment Act), section 10, with effect from 12-10-2023. It provides for the Central Government to establish the Arbitration Council of India by notification (section 43B), and sets out its composition, its duties and functions under section 43D, grading of arbitral institutions, accreditation of arbitrators and a depository of awards. The text consulted prints no notification and no regulations of the Council, so check those separately.
Part II: enforcement of certain foreign awards (sections 44 to 60)
Part II has two Chapters. Chapter I (sections 44 to 52) covers New York Convention awards, with the Convention set out in the First Schedule. Chapter II (sections 53 to 60) covers Geneva Convention awards, with the Protocol and the Convention in the Second and Third Schedules. Section 52 says Chapter II does not apply to foreign awards to which Chapter I applies. Our overview of Part II links each section.
Part III: conciliation (sections 61 to 81)
Part III covers conciliation from the written invitation in section 62 to the settlement agreement in section 73, which section 74 gives the same status and effect as an arbitral award on agreed terms under section 30. See conciliation under sections 61 to 81.
The India Code text consulted prints these sections. The Mediation Act, 2023 provides for sections 61 to 81 of this Act to be replaced by two sections. Its commencement is by notification, and the date is not in the sources consulted, so check whether that change is in force before relying on Part III. Our article on sections 58 to 61 of the Mediation Act, 2023 explains the amendments.
Part IV: supplementary provisions (sections 82 to 87)
Section 82 lets the High Court make rules as to proceedings before the Court under the Act, section 83 deals with removal of difficulties and section 84 with rules by the Central Government. Sections 85 and 86 repeal the Arbitration (Protocol and Convention) Act, 1937, the Arbitration Act, 1940, the Foreign Awards (Recognition and Enforcement) Act, 1961 and the Third Ordinance of 1996, with savings. Section 87 deals with proceedings commenced before 23rd October, 2015.
The Schedules
| Schedule | Heading reference as printed | What it holds |
|---|---|---|
| First | See section 44 | Convention on the Recognition and Enforcement of Foreign Arbitral Awards |
| Second | See section 53 | Protocol on Arbitration Clauses |
| Third | See section 53 | Convention on the Execution of Foreign Arbitral Awards |
| Fourth | See section 11(14) | Model fee by sum in dispute |
| Fifth | See section 12(1)(b) | Grounds giving rise to justifiable doubts about an arbitrator |
| Sixth | See section 12(1)(b) | Form of disclosure by the arbitrator |
| Seventh | See section 12(5) | Relationships that make a person ineligible as arbitrator |
| Eighth | Shown as omitted by the Arbitration and Conciliation (Amendment) Act, 2021 (3 of 2021), s. 4 (w.e.f. 4-11-2020) | Nothing is printed |
An Appendix after the Schedules prints extracts from the Arbitration and Conciliation (Amendment) Act, 2015 (3 of 2016).
Points in the text worth noticing
- The contents list at the front of the text marks section 26 as omitted, but section 26 is printed in full in the body with no omission footnote.
- The contents list still names the Eighth Schedule, which the body shows as omitted.
- The headings of the Fifth and Sixth Schedules both refer to section 12(1)(b), although the Schedules are named in Explanations 1 and 2 to section 12(1).
Need help reading the Act against your contract?
Which Part applies depends on where the arbitration is seated and where the award was made. Our legal consultation service reviews the dispute clause, identifies the provisions that govern it and sets out the next steps in writing.
Key takeaways
- The Act has Parts I, IA, II, III and IV and eight Schedules, the last shown as omitted.
- Part I applies where the place of arbitration is in India (section 2(2)).
- Part II covers New York Convention and Geneva Convention awards.
- Part III covers conciliation; check the commencement of the Mediation Act, 2023 before relying on it.
- Amendment dates are given only as the footnotes print them; later amendments should be checked.
Read next
- Section 2: definitions and scope of Part I
- Section 7: the arbitration agreement
- 2015 and 2019 amendments: what the official text shows
- Sections 85 and 86: repeal of earlier arbitration laws and savings
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.