Arbitration and conciliation act 1996 by Riyaz mondal and group

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Presentation onarbitrationand
conciliationact 1996

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  1.RIYAZ
  MONDAL (045)
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  2.MANAS PRATIM PEGU (05)
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  3.BISWAJEET BEZ
  (052)
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  4.SAURAV
  BASUMATARY (011)

PRESENTED BY
SUBMITTED TO DR. MOUMITA DEY
ASSISTANT PROFFESOR
FACULTY OF COMMERCE
MANAGEMENT
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(No Transcript)
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Introduction

• The Arbitration and conciliation Bill was
  introduced in the parliament 1995 and was passed
  in 1996 as Act No 26 of 1996
• Earlier to this , the law on arbitration was
  contained in the foll , three enactment.
• The arbitration Act 1940.
• The arbitration 9protocol and convention )act
  1937 and
• Foreign awards Act 1961
• The present Act has 86 section and three schedule.

GENISIS OF THE PRESENT ACT
The United nation commission on the International
trade law (UNICTRAL) adopted a model law on
international commercial arbitration in 1985. The
General Assembly of united Nations advised all
members countries to adopt the law.
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THE ARBITRATION CONCILIATION ACT,
1996 Definition

• An Act 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.
• Arbitration is the reference of dispute between
  not less than two parties, for determination,
  after hearing both sides in a judicial manner, by
  a person or persons other than a court of
  competent jurisdiction.
• SECTION 2(1)(a) Arbitration means any
  arbitration whether or not administered by
  permanent arbitral institution.
• It is a process of dispute resolution between
  parties through arbitral tribunal appointed by
  parties to the dispute or by the court at the
  request of a party
• precisely it is an alternative to litigation as a
  method of dispute resolution.

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Object of the Arbitration and conciliation
Act,1996

• The main object of the Act is to consolidate and
  amend the law relating to
• domestic arbitration
• international commercial and business
  arbitration
• enforcement and implementation of foreign
  arbitral awards
• and to define the laws relating to  conciliation
  and matters that are connected therewith or
  incidental thereto.
• Some of the other objects, as provided in the
  Statement of Objects and Reasons for the
  Arbitration and Conciliation Bill, 1995 are as
  follows
• to comprehensively cover disputes relating to
  international, commercial issues and to come to a
  resolution through the process of arbitration and
  conciliation .
• to make provisions for a process of carrying out
  the arbitration proceedings which is fair,
  efficient and has the capacity to bring the
  parties to dispute to an amicable resolution
• to make provision that the arbitral tribunal
  gives reasons as its decision for its arbitral
  award
• to make sure that the arbitral tribunal works
  within the boundaries of its jurisdiction
• to reduce the supervision of the courts in the
  process of arbitration
• to allow an arbitral tribunal to apply mediation,
  conciliation or other dispute resolution
  processes during the arbitral proceedings to come
  to a settlement of disputes

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What can be referred to arbitration
All disputes of a civil nature or quasi-civil
nature which can be decided by a civil court can
be referred to arbitration

• Relating to property
• Right to hold an office
• Compensation for non- Fulfillment of a clause in
  a contract
• Disputes in a partnership

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Types of arbitration

1. Ad hoc Arbitration Where the procedure (apt
   arbitrator) is either agreed upon by the
   parties or in the absence of an agreement the
   same is laid down by arbitral tribunal
2. Institutional Arbitration In case of disputes
   arising b/w parties, they will be referred to
   particular inst. such as ICA, ICC, WIPO etc.
3. Contractual Arbitration When the parties to a
   contract inserts arbitration clause in their
   contract for referring future disputes to decided
   arbitrators.
4. Statutory Arbitration Cases when arbitration is
   statutorily imposed on the parties by law of
   land.

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Arbitral award and cost

• Under Section 2(1)C of Arbitration and
  conciliation act, 1996 arbitral award includes an
  interim award
• An arbitral award is a judgemental pronounced by
  an arbitral tribunal on disputes or differences
  referred to it for arbitration.
• Section 35 of Act states that an arbitral award
  shall be final and binding on the parties and
  persons claiming under them.
• Types of awards
• Final award when the arbitration proceedings
  stand terminated and award made is binding on the
  parties
• Interim award As a protective measure an
  arbitral tribunal may make an interim order I
  respect of the subject matter of the dispute.
  Such an award is effective on during the
  proceedings.

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Arbitration Agreement

• Interim Measures by court
• Appointment of a guardian for a minor or person
  of unsound mind for the purpose of arbitral
  proceeding
• Protection in respect of preservation, interim
  custody or sale of goods which are the
  subject-matter of the arbitration agreement
• Securing the amount in dispute
• The detention, preservation or inspection of any
  property or thing which is the subject-matter of
  the dispute
• interim injunction or the appointment of a
  receiver
• Any other interim measure of protection as may
  appear to the court to be just and convenient

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Appointment of arbitrator
An independent person or body officially
appointed to settle a dispute
The parties can agree on a procedure for
appointing the arbitrator or arbitrators If they
are unable to agree, each party will appoint one
arbitrator and the two appointed arbitrators will
appoint the third arbitrator who will act as a
presiding arbitrator.section 11(3). The party
can request Chief Justice to appoint an
arbitrator.section 11(4). In case of
international commercial dispute, the application
for appointment of arbitrator has to be made to
Chief Justice of India.
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Cost of Arbitration

• Fees and expenses of arbitrators and witnesses,
  legal fees and expenses, administration fees of
  the institution supervising the arbitration and
  other expenses
• Tribunal can decide the cost and share of each
  party
• If party refuse to pay the costs, The arbitral
  Tribunal may refuse to deliver its award thus
  any party can approach court
• The court will ask for deposit from the parties
  and on such deposit, the award will be delivered
  by the tribunal. Then Court will decide the costs
  of arbitration and shall pay the same to
  arbitrators. Balance, if any, will be refunded to
  the party.

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conciliation
The most important method for prevention and
settlement of industrial disputes through third
party intervention, setting disputes without
litigation. Process by which discussion between
parties is kept going through the participation
of a conciliator (The conciliator is a neutral
party who without using any force , seeks to find
some middle course for mutual agreement between
the disputants so that the deadlock is brought to
an end at the earliest as possible moment and
normal peace restored.
What can be referred to conciliation and what not?
Can be referred conciliation Cant be referred conciliation
Matters of civil nature Matters of Criminal nature
Breach of contract Illegal transactions
Disputes of movable or immovable property Matrimonial matters like divorce suit
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Arbitration Conciliation
Arbitration is available for existing as well as for future disputes. Conciliation applicable only to existing disputes.
There is no need for a prior agreement for resorting to this method. Prior agreement for arbitration between the parties is required.
The arbitrator does not merely assist the parties but he also actively arbitrates and resolves the dispute by making an arbitral award. Roe of conciliator is to help and assist the parties to reach an amicable settlement of their dispute
The pre-agreement in arbitration must be in writing. Since no pre-agreement are required in conciliation, there is no such binding in the case of conciliation.
Arbitral tribunal must consist of odd number. It may have an even number.
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It is a good and a fair settlement when
neither party likes the outcome , but
agree to it
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Thank you