2. Definitions.—
(1) In this Part, unless the context otherwise requires,—
(a) “arbitration” means any arbitration whether or not administered by permanent arbitral
institution;
(b) “arbitration agreement” means an agreement referred to in section 7;
1. The proviso and Explanation omitted by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020,
vide notification No. S.O. 1123(E) dated (18-3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of
Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).
2. 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).
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(c) “arbitral award” includes an interim award;
(d) “arbitral tribunal” means a sole arbitrator or a panel of arbitrators;
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(e) “Court” means—
(i) in the case of an arbitration other than international commercial arbitration, the principal
Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its
ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the
subject-matter of the arbitration if the same had been the subject-matter of a suit, but does not
include any Civil Court of a grade inferior to such principal Civil Court, or any Court of Small
Causes;
(ii) in the case of international commercial arbitration, the High Court in exercise of its
ordinary original civil jurisdiction, having jurisdiction to decide the questions forming the
subject-matter of the arbitration if the same had been the subject-matter of a suit, and in other
cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that
High Court;]
(f) “international commercial arbitration” means an arbitration relating to disputes arising out of
legal relationships, whether contractual or not, considered as commercial under the law in force in
India and where at least one of the parties is—
(i) an individual who is a national of, or habitually resident in, any country other than India;
or
(ii) a body corporate which is incorporated in any country other than India; or
(iii) 2*** an association or a body of individuals whose central management and control is
exercised in any country other than India; or
(iv) the Government of a foreign country;
(g) “legal representative” means a person who in law represents the estate of a deceased person,
and includes any person who intermeddles with the estate of the deceased, and, where a party acts in a
representative character, the person on whom the estate devolves on the death of the party so acting;
(h) “party” means a party to an arbitration agreement.
(2) This Part shall apply where the place of arbitration is in India:
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Provided that subject to an agreement to the contrary, the provisions of sections 9, 27 and clause
(a)
of sub-section
(1) and sub-section
(3) of section37 shall also apply to international commercial
arbitration, even if the place of arbitration is outside India, and an arbitral award made or to be made in
such place is enforceable and recognised under the provisions of Part II of this Act.]
(3) This Part shall not affect any other law for the time being in force by virtue of which certain
disputes may not be submitted to arbitration.
(4) This Part except sub-section
(1) of section 40, sections 41 and 43 shall apply to every arbitration
under any other enactment for the time being in force, as if the arbitration were pursuant to an arbitration
agreement and as if that other enactment were an arbitration agreement, except in so far as the provisions
of this Part are inconsistent with that other enactment or with any rules made thereunder.
(5) Subject to the provisions of sub-section
(4), and save in so far as is otherwise provided by any law
for the time being in force or in any agreement in force between India and any other country or countries,
this Part shall apply to all arbitrations and to all proceedings relating thereto.
(6) Where this Part, except section 28, leaves the parties free to determine a certain issue, that
freedom shall include the right of the parties to authorise any person including an institution, to determine
that issue.
1. Subs. by Act 3 of 2016, s. 2, for clause
(e) (w.e.f. 23-10-2015).
2. The words “a company or” omitted by s. 2, ibid. (w.e.f. 23-10-2015).
3. Ins. by s. 2, ibid. (w.e. f. 23-10-2015).
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(7) An arbitral award made under this Part shall be considered as a domestic award.
(8) Where this Part—
(a) refers to the fact that the parties have agreed or that they may agree, or
(b) in any other way refers to an agreement of the parties,
that agreement shall include any arbitration rules referred to in that agreement.
(9) Where this Part, other than clause
(a) of section 25 or clause
(a) of sub-section
(2) of section 32,
refers to a claim, it shall also apply to a counterclaim, and where it refers to a defence, it shall also apply
to a defence to that counterclaim.
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