59. Appealable orders.—
(1) An appeal shall lie from the order refusing—
(a) to refer the parties to arbitration under section 54; and
(b) to enforce a foreign award under section 57,
to the court authorised by law to hear appeals from such order.
(2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this
section shall affect or take away any right to appeal to the Supreme Court.
60. Saving.—Nothing in this Chapter shall prejudice any rights which any person would have had of
enforcing in India of any award or of availing himself in India of any award if this Chapter had not been
enacted.
PART III
CONCILIATION
61. Application and scope.—
(1) Save as otherwise provided by any law for the time being in force
and unless the parties have otherwise agreed, this Part shall apply to conciliation of disputes arising out of
legal relationship, whether contractual or not and to all proceedings relating thereto.
(2) This Part shall not apply where by virtue of any law for the time being in force certain disputes
may not be submitted to conciliation.
62. Commencement of conciliation proceedings.—
(1) The party initiating conciliation shall send to
the other party a written invitation to conciliate under this Part, briefly identifying the subject of the
dispute.
(2) Conciliation proceedings, shall commence when the other party accepts in writing the invitation to
conciliate.
(3) If the other party rejects the invitation, there will be no conciliation proceedings.
(4) If the party initiating conciliation does not receive a reply within thirty days from the date on
which he sends the invitation, or within such other period of time as specified in the invitation, he may
elect to treat this as a rejection of the invitation to conciliate and if he so elects, he shall inform in writing
the other party accordingly.
63. Number of conciliators.—
(1) There shall be one conciliator unless the parties agree that there
shall be two or three conciliators.
(2) Where there is more than one conciliator, they ought, as a general rule, to act jointly.
64. Appointment of conciliators.—
(1) Subject to sub-section
(2)—
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(a) in conciliation proceedings, with one conciliator, the parties may agree on the name of a sole
conciliator;
(b) in conciliation proceedings with two conciliators, each party may appoint one conciliator;
(c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and
the parties may agree on the name of the third conciliator who shall act as the presiding conciliator.
(2) Parties may enlist the assistance of a suitable institution or person in connection with the
appointment of conciliators, and in particular,—
(a) a party may request such an institution or person to recommend the names of suitable
individuals to act as conciliator; or
(b) the parties may agree that the appointment of one or more conciliators be made directly by
such an institution or person:
Provided that in recommending or appointing individuals to act as conciliator, the institution or
person shall have regard to such considerations as are likely to secure the appointment of an independent
and impartial conciliator and, with respect to a sole or third conciliator, shall take into account the
advisability of appointing a conciliator of a nationality other than the nationalities of the parties.
65. Submission of statements to conciliator.—
(1) The conciliator, upon his appointment, may
request each party to submit to him a brief written statement describing the general nature of the dispute
and the points at issue. Each party shall send a copy of such statement to the other party.
(2) The conciliator may request each party to submit to him a further written statement of his position
and the facts and grounds in support thereof, supplemented by any documents and other evidence that
such party deems appropriate. The party shall send a copy of such statement, documents and other
evidence to the other party.
(3) At any stage of the conciliation proceedings, the conciliator may request a party to submit to him
such additional information as he deems appropriate.
Explanation.—In this section and all the following sections of this Part, the term "conciliator" applies
to a sole conciliator, two or three conciliators, as the case may be.
66. Conciliator not bound by certain enactments.—The conciliator is not bound by the Code of
Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872 (1 of 1872).
67. Role of conciliator.—
(1) The conciliator shall assist the parties in an independent and impartial
manner in their attempt to reach an amicable settlement of their dispute.
(2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving
consideration to, among other things, the rights and obligations of the parties, the usages of the trade
concerned and the circumstances surrounding the dispute, including any previous business practices
between the parties.
(3) The conciliator may conduct the conciliation proceedings in such a manner as he considers
appropriate, taking into account the circumstances of the case, the wishes the parties may express,
including any request by a party that the conciliator hear oral statements, and the need for a speedy
settlement of the dispute.
(4) The conciliator may, at any stage of the conciliation proceedings, make proposals for a settlement
of the dispute. Such proposals need not be in writing and need not be accompanied by a statement of the
reasons therefor.
68. Administrative assistance.—In order to facilitate the conduct of the conciliation proceedings, the
parties, or the conciliator with the consent of the parties, may arrange for administrative assistance by a
suitable institution or person.
69. Communication between conciliator and parties.—
(1) The conciliator may invite the parties to
meet him or may communicate with them orally or in writing. He may meet or communicate with the
parties together or with each of them separately.
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(2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held,
such place shall be determined by the conciliator, after consultation with the parties, having regard to the
circumstances of the conciliation proceedings.
70. Disclosure of information.—When the conciliator receives factual information concerning the
dispute from a party, he shall disclose the substance of that information to the other party in order that the
other party may have the opportunity to present any explanation which he considers appropriate:
Provided that when a party gives any information to the conciliator subject to a specific condition that
it be kept confidential, the conciliator shall not disclose that information to the other party.
71. Co-operation of parties with conciliator.—The parties shall in good faith co-operate with the
conciliator and, in particular, shall endeavour to comply with requests by the conciliator to submit written
materials, provide evidence and attend meetings.
72. Suggestions by parties for settlement of dispute.—Each party may, on his own initiative or at
the invitation of the conciliator, submit to the conciliator suggestions for the settlement of the dispute.
73. Settlement agreement.—
(1) When it appears to the conciliator that there exist elements of a
settlement which may be acceptable to the parties, he shall formulate the terms of a possible settlement
and submit them to the parties for their observations. After receiving the observations of the parties, the
conciliator may reformulate the terms of a possible settlement in the light of such observations.
(2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written
settlement agreement. If requested by the parties, the conciliator may draw up, or assist the parties in
drawing up, the settlement agreement.
(3) When the parties sign the settlement agreement, it shall be final and binding on the parties and
persons claiming under them respectively.
(4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of
the parties.
74. Status and effect of settlement agreement.—The settlement agreement shall have the same
status and effect as if it is an arbitral award on agreed terms on the substance of the dispute rendered by
an arbitral tribunal under section 30.
75. Confidentiality.—Notwithstanding anything contained in any other law for the time being in
force, the conciliator and the parties shall keep confidential all matters relating to the conciliation
proceedings. Confidentiality shall extend also to the settlement agreement, except where its disclosure is
necessary for purposes of implementation and enforcement.
76. Termination of conciliation proceedings.—The conciliation proceedings shall be terminated—
(a) by the signing of the settlement agreement by the parties, on the date of the agreement; or
(b) by a written declaration of the conciliator, after consultation with the parties, to the effect that
further efforts at conciliation are no longer justified, on the date of the declaration; or
(c) by a written declaration of the parties addressed to the conciliator to the effect that the
conciliation proceedings are terminated, on the date of the declaration; or
(d) by a written declaration of a party to the other party and the conciliator, if appointed, to the
effect that the conciliation proceedings are terminated, on the date of the declaration.
77. Resort to arbitral or judicial proceedings.—The parties shall not initiate, during the
conciliation proceedings, any arbitral or judicial proceedings in respect of a dispute that is the subject-
matter of the conciliation proceedings except that a party may initiate arbitral or judicial proceedings
where, in his opinion, such proceedings are necessary for preserving his rights.
78. Costs.—
(1) Upon termination of the conciliation proceedings, the conciliator shall fix the costs of
the conciliation and give written notice thereof to the parties.
(2) For the purpose of sub-section
(1), “costs” means reasonable costs relating to—
35
(a) the fee and expenses of the conciliator and witnesses requested by the conciliator with the
consent of the parties;
(b) any expert advice requested by the conciliator with the consent of the parties;
(c) any assistance provided pursuant to clause
(b) of sub-section
(2) of section 64 and section 68.
(d) any other expenses incurred in connection with the conciliation proceedings and the
settlement agreement.
(3) The costs shall be borne equally by the parties unless the settlement agreement provides for a
different apportionment. All other expenses incurred by a party shall be borne by that party.
79. Deposits.—
(1) The conciliator may direct each party to deposit an equal amount as an advance
for the costs referred to in sub-section
(2) of section 78 which he expects will be incurred.
(2) During the course of the conciliation proceedings, the conciliator may direct supplementary
deposits in an equal amount from each party.
(3) If the required deposits under sub-sections
(1) and
(2) are not paid in full by both parties within
thirty days, the conciliator may suspend the proceedings or may make a written declaration of termination
of the proceedings to the parties, effective on the date of that declaration.
(4) Upon termination of the conciliation proceedings, the conciliator shall render an accounting to the
parties of the deposits received and shall return any unexpended balance to the parties.
80. Role of conciliator in other proceedings.—Unless otherwise agreed by the parties,—
(a) the conciliator shall not act as an arbitrator or as a representative or counsel of a party in any
arbitral or judicial proceeding in respect of a dispute that is the subject of the conciliation
proceedings;
(b) the conciliator shall not be presented by the parties as a witness in any arbitral or judicial
proceedings.
81. Admissibility of evidence in other proceedings.—The parties shall not rely on or introduce as
evidence in arbitral or judicial proceedings, whether or not such proceedings relate to the dispute that is
the subject of the conciliation proceedings,—
(a) views expressed or suggestions made by the other party in respect of a possible settlement of
the dispute;
(b) admissions made by the other party in the course of the conciliation proceedings;
(c) proposals made by the conciliator;
(d) the fact that the other party had indicated his willingness to accept a proposal for settlement
made by the conciliator.
PART IV
SUPPLEMENTARY PROVISIONS
82. Power of High Court to make rules.—The High Court may make rules consistent with this Act
as to all proceedings before the Court under this Act.
83. Removal of difficulties.—
(1) If any difficulty arises in giving effect to the provisions of this Act,
the Central Government may, by order published in the Official Gazette, make such provisions, not
inconsistent with the provisions of this Act as appear to it to be necessary or expedient for removing the
difficulty:
Provided that no such order shall made be after the expiry of a period of two years from the date of
commencement of this Act.
(2) Every order made under this section shall, as soon as may be after it is made, be laid before each
Houses of Parliament.
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84. Power to make rules.—
(1) The Central Government may, by notification in the Official Gazette,
make rules for carrying out the provisions of this Act.
(2) Every rule made by the Central Government under this Act shall be laid, as soon as may be, after
it is made before each House of Parliament while it is in session, for a total period of thirty days which
may be comprised in one session or in two or more successive sessions, and if, before the expiry of the
session immediately following the session or the successive sessions aforesaid, both Houses agree in
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that
any such modification or annulment shall be without prejudice to the validity of anything previously done
under that rule.
85. Repeal and savings.—
(1) The Arbitration (Protocol and Convention) Act, 1937 (6 of 1937), the
Arbitration Act, 1940 (10 of 1940) and the Foreign Awards (Recognition and Enforcement)
Act, 1961 (45 of 1961) are hereby repealed.
(2) Notwithstanding such repeal,—
(a) the provisions of the said enactments shall apply in relation to arbitral proceedings which
commenced before this Act came into force unless otherwise agreed by the parties but this Act shall
apply in relation to arbitral proceedings which commenced on or after this Act comes into force;
(b) all rules made and notifications published, under the said enactments shall, to the extent to
which they are not repugnant to this Act, be deemed respectively to have been made or issued under
this Act.
86. Repeal and saving.—
(1) The Arbitration and Conciliation (Third) Ordinance, 1996 (Ord.27 of
1996) is hereby repealed.
(2) Notwithstanding such repeal, any order, rule, notification or scheme made or anything done or
any action taken in pursuance of any provision of the said Ordinance shall be deemed to have been
made, done or taken under the corresponding provisions of this Act.
1
[87. Effect of arbitral and related court proceedings commenced prior to 23rd October,
2015.—Unless the parties otherwise agree, the amendments made to this Act by the Arbitration and
Conciliation (Amendment) Act, 2015 shall—
(a) not apply to—
(i) arbitral proceedings commenced before the commencement of the Arbitration and Conciliation
(Amendment) Act, 2015 (23rd October, 2015);
(ii) court proceedings arising out of or in relation to such arbitral proceedings irrespective of
whether such court proceedings are commenced prior to or after the commencement of the
Arbitration and Conciliation (Amendment) Act, 2015;
(b) apply only to arbitral proceedings commenced on or after the commencement of the Arbitration
and Conciliation (Amendment) Act, 2015 and to court proceedings arising out of or in relation to such
arbitral proceedings.]
1. Ins. by Act 33 of 2019, s. 13 (r.w.e.f. 30-8-2019).
37
38
THE FIRST SCHEDULE
(See section 44)
CONVENTION ON THE RECOGNITION AND ENFORCEMENT OF FOREIGN ARBITRAL AWARDS
ARTICLE 1
1. This Convention shall apply to the recognition and enforcement of arbitral awards made in the
territory of a State other than the State where the recognition and enforcement of such awards are sought,
and arising out of differences between persons, whether physical or legal. It shall also apply to arbitral
awards not considered as domestic awards in the State where their recognition and enforcement are
sought.
2. The term “arbitral awards” shall include not only awards made by arbitrators appointed for each
case but also those made by permanent arbitral bodies to which the parties have submitted.
3. When signing, ratifying or acceding to this Convention, or notifying extension under article X
hereof, any State may on the basis of reciprocity declare that it will apply the Convention to the
recognition and enforcement of awards made only in the territory of another Contracting State. It may
also declare that it will apply the Convention only to differences arising out of legal relationships,
whether contractual or not, which are considered as commercial under the national law of the State
making such declaration.
ARTICLE II
1. Each Contracting State shall recognise an agreement in writing under which the parties undertake
to submit to arbitration all or any differences which have arisen or which may arise between them in
respect of defined legal relationship, whether contractual or not, concerning a subject-matter capable of
settlement by arbitration.
2. The term “agreement in writing” shall include an arbitral clause in a contract or an arbitration
agreement, signed by the parties or contained in an exchange of letters or telegrams.
3. The court of a Contracting State, when seized of an action in a matter in respect of which the
parties have made an agreement within the meaning of this article, shall, at the request of one of the
parties, refer the parties to arbitration, unless in finds that the said agreement is null and void, inoperative
of incapable of being performed.
ARTICLE III
Each Contracting State shall recognize arbitral awards as binding and enforce them in accordance
with the rules of procedure of the territory where the award is relied upon, under the conditions laid down
in the following articles. There shall not be imposed substantially more onerous conditions or higher fees
or charges on the recognition or enforcement of arbitral awards to which this Convention applies than are
imposed on the recognition or enforcement of domestic arbitral awards.
ARTICLE IV
1. To obtain the recognition and enforcement mentioned in the preceding article, the party applying
for recognition and enforcement shall, at the time of the application, supply—
(a) the duly authenticated original award or a duly certified copy thereof;
(b) the original agreement referred to in article II or a duly certified copy thereof.
2. If the said award or agreement is not made in an official language of the country in which the
award is relied upon, the party applying for recognition and enforcement of the award shall produce a
translation of these documents into such language. The translation shall be certified by an official or
sworn translator or by a diplomatic or consular agent.
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ARTICLE V
1. Recognition and enforcement of the award may be refused, at the request of the party against
whom it is invoked, only if that party furnishes to the competent authority where the recognition and
enforcement is sought, proof that—
(a) the parties to the agreement referred to in article II were, under the law applicable to them,
under some incapacity, or the said agreement is not valid under the law to which the parties have
subjected it or, failing any indication thereon, under the law of the country where the award was
made; or
(b) the party against whom the award is invoked was not given proper notice of the appointment
of the arbitrator or of the arbitration proceedings or was otherwise unable to present his case; or
(c) the award deals with a difference not contemplated by or not falling within the terms of the
submission to arbitration, or it contains decisions on matters beyond the scope of the submission to
arbitration, provided that, if the decisions on matters submitted to arbitration can be separated from
those not so submitted, that part of the award which contains decisions on matters submitted to
arbitration may be recognised and enforced; or
(d) the composition of the arbitral authority or the arbitral procedure was not in accordance with
the agreement of the parties, or, failing such agreement, was not in accordance with the law of the
country where the arbitration took place; or
(e) the award has not yet become binding on the parties, or has been set aside or suspended by a
competent authority of the country in which, or under the law of which, that award was made.
2. Recognition and enforcement of an arbitral award may also be refused if the competent authority in
the country where recognition and enforcement is sought finds that—
(a) the subject-matter of the difference is not capable of settlement by arbitration under the law of
that country; or
(b) the recognition or enforcement of the award would be contrary to the public policy of that
country.
ARTICLE VI
If an application for the setting aside or suspension of the award has been made to a competent
authority referred to in article V
(1)
(e), the authority before which the award is sought to be relied upon
may, if it considers it proper, adjourn the decision on the enforcement of the award and may also, on the
application of the party claiming enforcement of the award, order the other party to give suitable security.
ARTICLE VII
1. The provisions of the present Convention shall not affect the validity of multilateral or bilateral
agreements concerning the recognition and enforcement of arbitral awards entered into by the Contracting
States nor deprive any interested party of any right the may have to avail himself of an arbitral award in
the manner and to the extent allowed by the law or the treaties of the country where such award is sought
to be relied upon.
2. The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the Execution
of Foreign Arbitral Awards of1927 shall cease to have effect between Contracting States on their
becoming bound and to the extent that they become bound by this Convention.
ARTICLE VIII
1. This Convention shall be open until 31st December, 1958 for signature on behalf of any Member of
the United Nations and also on behalf of any other State which is or hereafter becomes member of any
specialised agency of the United Nations, or which is or hereafter becomes a party to the Statute of the
International Court of Justice, or any other State to which an invitation has been addressed by the General
Assembly of the United Nations.
2. This Convention shall be ratified and the instrument of ratification shall be deposited with the
Secretary-General of the United Nations.
ARTICLE 1X
1. This Convention shall be open for accession to all States referred to in article VIII.
2. Accession shall be effected by the deposit of an instrument of accession with the Secretary-General
of the United Nations.
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ARTICLE X
1. Any State may, at the time of signature, ratification or accession, declare that this Convention shall
extend to all or any of the territories for the international relations of which it is responsible. Such a
declaration shall take effect when the Convention enters into force for the State concerned.
2. At any time thereafter any such extension shall be made by notification addressed to the Secretary-
General of the United Nations and shall take effect as from the ninetieth day after the day of receipt by the
Secretary-General of the United Nations of this notification, or as from the date of entry into force of the
Convention for the State concerned, whichever is the later.
3. With respect to those territories to which this Convention is not extended at the time of signature,
ratification or accession, each State concerned shall consider the possibility of taking the necessary steps
in order to extend the application of this Convention to such territories, subject, where necessary for
constitutional reasons, to the consent of the Governments of such territories.
ARTICLE XI
In the case of a federal or non-unitary State, the following provisions shall apply:—
(a) with respect of those articles of this Convention that come within the legislative jurisdiction of
the federal authority, the obligations of the federal Government shall to this extent be the same as
those of Contracting States which are not federal States;
(b) with respect to those articles of this Convention that come within the legislative jurisdiction of
constituent States or provinces which are not, under the constitutional system of the federation, bound
to take legislative action, the federal Government shall bring such articles with a favourable
recommendation to the notice of the appropriate authorities of constituent States or provinces at the
earliest possible moment;
(c) a federal State Party to this Convention shall, at the request of any other Contracting State
transmitted through the Secretary-General of the United Nations, supply a statement of the law and
practice of the federation and its constituent units in regard to any particular provision of this
Convention, showing the extent to which effect has been given to that provision by legislative or
other action.
ARTICLE XII
1. This Convention shall come into force on the ninetieth day following the date of deposit of the
third instrument of ratification or accession.
2. For each State ratifying or acceding to this Convention after the deposit of the third instrument of
ratification or accession, this Convention shall enter into force on the ninetieth day after deposit by such
State of its instrument of ratification or accession.
ARTICLE XIII
1. Any Contracting State may denounce this Convention by a written notification to the Secretary-
General of the United Nations. Denunciation shall take effect one year after the date of receipt of the
notification by the Secretary-General.
2. Any State which has made a declaration or notification under article X may, at any time thereafter,
by notification to the Secretary-General of the United Nations, declare that this Convention shall cease to
extend to the territory concerned one year after the date of the receipt of the notification by the Secretary-
General.
3. This Convention shall continue to be applicable to arbitral awards in respect of which recognition
or enforcement proceedings have been instituted before the denunciation takes effect.
ARTICLE XIV
A Contracting State shall not be entitled to avail itself of the present Convention against other
Contracting States except to the extent that it is itself bound to apply the Convention.
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ARTICLE XV
The Secretary-General of the United Nations shall notify the States contemplated in article VIII of the
following:—
(a) signatures and ratifications in accordance with article VIII;
(b) accessions in accordance with article IX;
(c) declarations and notifications under articles I, X and XI;
(d) the date upon which this Convention enters into force in accordance with ar
