Section 1 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.
Section 1 gives the Act its name, says where it extends and leaves the start date to a notification. The Preamble before it explains why Parliament made the law and which international texts it took into account. This article reads both as per the India Code consolidated text consulted.
The Act is called the Arbitration and Conciliation Act, 1996 (Act No. 26 of 1996, dated 16th August, 1996). Under sub-section (2) it extends to the whole of India, and under sub-section (3) it comes into force on the date the Central Government appoints by notification in the Official Gazette. The footnote gives that date as 22nd August, 1996, by notification No. G.S.R 375(E). The proviso and the Explanation that once followed sub-section (2) are shown as omitted. The Preamble names the UNCITRAL Model Law on International Commercial Arbitration (1985) and the UNCITRAL Conciliation Rules (1980).
Where this article comes from
Everything below is taken from the India Code consolidated text of the Act. Its footnotes show what has been inserted, substituted or omitted and by which amending Act, and this article names an amendment only as those footnotes print it. Rules, notifications and later amendments are outside that text, so check them separately, and take a legal consultation if a live contract depends on a provision.
Two features of the text matter for every article in this series. First, it prints the whole Act: sections 1 to 87, Part IA, the Schedules and an Appendix. This article covers only the Preamble and section 1; the later sections and the Schedules have their own articles. Second, the text prints Part and Chapter headings. Section 1 stands under the heading "PRELIMINARY", before any Part begins. Part I, headed "ARBITRATION", opens with Chapter I, "General provisions", at section 2, whose first words are "In this Part".
What the Preamble says
The Preamble describes the Act as one "to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto."
It then sets out the recitals in sequence:
| Recital in the Preamble | What it records |
|---|---|
| First | The UNCITRAL has adopted the UNCITRAL Model Law on International Commercial Arbitration in 1985 |
| Second | The General Assembly of the United Nations has recommended that all countries give due consideration to that Model Law, given the desirability of uniformity of the law of arbitral procedures and the specific needs of international commercial arbitration practice |
| Third | The UNCITRAL has adopted the UNCITRAL Conciliation Rules in 1980 |
| Fourth | The General Assembly has recommended the use of those Rules where a dispute arises in international commercial relations and the parties seek an amicable settlement by conciliation |
| Fifth | The Model Law and Rules make a significant contribution to a unified legal framework for the fair and efficient settlement of disputes in international commercial relations |
| Sixth | It is expedient to make law on arbitration and conciliation taking the Model Law and Rules into account |
The enacting words follow: "BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows".
For a business reader the Preamble is useful in one practical way. It tells you that the Act covers three subjects in one statute: domestic arbitration, international commercial arbitration with the enforcement of foreign awards, and conciliation. The headings of the text follow the same order: Part I on arbitration, Part II on the enforcement of certain foreign awards, Part III on conciliation and Part IV on supplementary provisions, with Part IA on the Arbitration Council of India placed after Part I. For the wider picture, see our introduction to the Arbitration and Conciliation Act, 1996.
Sub-section (1): the short title
Sub-section (1) reads: "This Act may be called the Arbitration and Conciliation Act, 1996." Contracts and notices that refer to the statute should use this name and the year 1996. Where a contract says only "the Arbitration Act", it is wise to check that the drafting means this Act and not another law.
Sub-section (2): extent
Sub-section (2) says the Act "extends to the whole of India". In the text consulted that sentence ends with a colon and is followed by a row of asterisks, which marks words that have been omitted. Nothing else is printed in sub-section (2): the sub-section, as it now stands in this text, is that single statement of extent.
The footnote to the asterisks says what was removed: "The proviso and Explanation omitted". So sub-section (2) once carried a proviso and an Explanation, and the text consulted prints neither of them. Their former wording is not reproduced in the footnote, so this article does not describe what they said. For how the Act defines "international commercial arbitration", see our article on section 2 and the definitions.
The omission footnote: two Adaptation Orders of 2020
The footnote names two instruments as the source of the omission:
- the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, notification No. S.O. 1123(E), dated 18-3-2020; and
- the Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated 23-10-2020.
The text prints no separate State amendment entry under section 1. The omission is shown in the body of sub-section (2) itself, with these two Orders cited in the footnote. The Orders themselves are not part of the text consulted; read them if a question turns on their exact terms.
Sub-section (3): commencement
Sub-section (3) says the Act "shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint." The footnote on the words "such date" reads: "22nd August, 1996, vide notification No. G.S.R 375(E), dated 22nd August, 1996, see Gazette of India, Extraordinary, Part II, sec. 3(i)." Read plainly, the text gives 22nd August, 1996 as the appointed date and that notification as its source. Anything beyond what the footnote prints is outside the text consulted.
Conciliation and the Mediation Act, 2023
The Preamble speaks of conciliation, and Part III of the Act deals with it. The Mediation Act, 2023 (Act 32 of 2023) provides, through its Sixth Schedule, that sections 61 to 81 of this Act are substituted by two new sections: one that treats conciliation under this Act, and under the Code of Civil Procedure, 1908, as mediation under the Mediation Act, and one that saves conciliation proceedings begun before that Act's commencement. That Act comes into force by notification, and the date is not in the sources consulted. This article therefore does not say whether that change is in force. Our article on the Mediation Act amendments to the Arbitration Act takes this up.
What this means in practice
- Name the Act correctly in dispute clauses, notices and petitions.
- Do not assume any consolidated text is current. The footnotes of the text consulted show amendments up to Act 3 of 2021 and a latest date of 12 October 2023; the text says nothing about any later change, and neither does this article.
- Go to the right article for anything beyond section 1: appeals are in section 37, and the power to make rules is in sections 82 to 84.
- Know the Part you are in. Sections 2 to 43 form Part I, on arbitration; see section 5 on judicial intervention for how that Part limits courts.
Need help with an arbitration clause or dispute?
If you are drafting a contract, planning a dispute-resolution route or trying to work out which law governs a clause, our team can review your documents with you. You can start with a short legal consultation and we will tell you what to check first.
Key takeaways
- The statute is the Arbitration and Conciliation Act, 1996, Act No. 26 of 1996.
- Section 1(2) extends it to the whole of India; the proviso and the Explanation are shown as omitted, with two Adaptation Orders of 2020 cited in the footnote.
- Section 1(3) leaves commencement to a Central Government notification; the footnote gives 22nd August, 1996, by notification No. G.S.R 375(E).
- The Preamble names the UNCITRAL Model Law (1985) and Conciliation Rules (1980) as the background.
- Section 1 stands under the heading "PRELIMINARY"; Part I begins at section 2.
- The Mediation Act, 2023 affects conciliation provisions of this Act; commencement is by notification, date not in the sources consulted.
Read next
- Section 2: definitions and scope of Part I
- Sections 5 and 6: judicial intervention and administrative assistance
- Introduction to the Arbitration and Conciliation Act, 1996
- Mediation Act, 2023 for commercial and trade disputes
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.