Arbitration and Conciliation Act, 1996 - Conciliation Provisions Summary

Part of the Act Applicable to Conciliation (Section 61)

1. Scope of Conciliation:
o Conciliation applies to disputes arising out of legal relationships, whether
contractual or not.
o Disputes must give one party the right to sue and the other party the liability to be
sued.
o It excludes disputes that cannot be submitted to conciliation due to any applicable
law.

Number and Qualifications of Conciliators (Section 63)

 Number of Conciliators:
o Generally, one conciliator is appointed, but parties may agree on two or three
conciliators.
o If more than one conciliator is appointed, they should generally act jointly.

Appointment of Conciliators (Section 64)

1. One Conciliator: Parties agree on a sole conciliator.

2. Two Conciliators: Each party appoints one conciliator.
3. Three Conciliators: Each party appoints one conciliator, and the parties agree on a third
conciliator to act as the presiding conciliator.
4. Assistance for Appointment: Parties can seek the assistance of an institution or person
to help appoint conciliators.

Principles of Procedure

1. Independence and Impartiality (Section 67(1)):

o The conciliator must be independent and impartial.
o They should assist the parties in an unbiased manner to reach a settlement.
2. Fairness and Justice (Section 67(2)):
o The conciliator must act objectively, fairly, and justly, considering the rights and
obligations of the parties, industry practices, and dispute context.
3. Confidentiality (Sections 75, 70):
 o The conciliator and parties must maintain confidentiality about all matters of the
conciliation process.
o Information given in confidence by a party must not be disclosed to the other
party unless authorized.
4. Disclosure of Information (Section 70):
o A conciliator must disclose relevant information to the other party, enabling them
to respond.
5. Cooperation (Section 71):
o The parties must cooperate in good faith by providing necessary materials,
evidence, and attending meetings.
6. Rules of Procedure (Section 66):
o The conciliator is not bound by technical rules of the Civil Procedure Code or the
Indian Evidence Act, but must respect natural justice principles.
7. Place of Meeting (Section 69(2)):
o The parties can agree on the meeting location. If not, the conciliator decides after
consulting with the parties.
8. Communication (Section 69(1)):
o The conciliator can communicate with the parties orally or in writing, either
together or separately.

Procedure of Conciliation

1. Commencement of Proceedings (Section 62):

o Initiated when one party invites the other party in writing to conciliate.
o The invitation identifies the dispute subject.
o The process begins if the other party accepts in writing; otherwise, no conciliation
proceeds.
o If no reply is received within 30 days, the initiating party may treat it as a
rejection.
2. Submission of Statements (Section 65):
o Each party submits a written statement describing the dispute and points at issue.
o Statements are shared between the parties.
3. Conduct of Proceedings (Sections 69(1), 67(3)):
o The conciliator has discretion in conducting proceedings, ensuring they are fair
and consider the parties' wishes, circumstances, and need for speed.
4. Administrative Assistance (Section 68):
o The parties and conciliator may seek administrative support from a suitable
institution or person.

Settlement

1. Role of Conciliator (Sections 67(4), 72, 73):

 o The conciliator assists in reaching a settlement and may propose settlement terms
at any stage.
o Settlement terms can be reformulated after considering the parties' observations.
2. Settlement Agreement (Section 73):
o If an agreement is reached, it is documented and signed by the parties.
o The agreement is final and binding on the parties.
o The conciliator authenticates and provides copies to the parties.
3. Status and Effect of Settlement (Section 74):
o The settlement agreement has the same status as an arbitral award and is
enforceable like a court decree.

Restrictions on Role of Conciliator (Section 80)

1. Prohibition as Arbitrator or Counsel:

o The conciliator cannot act as an arbitrator or party representative in any related
arbitration or judicial proceeding.
2. Prohibition as a Witness:
o The conciliator cannot be called as a witness in any arbitral or judicial proceeding
regarding the dispute.

Termination of Conciliation (Section 76)

Conciliation proceedings may terminate in four ways:

1. Settlement Agreement: Upon signing the settlement agreement.

2. Conciliator's Declaration: When the conciliator declares that further conciliation efforts
are unjustified.
3. Parties' Declaration: When the parties declare the proceedings terminated.
4. Party Declaration: When one party informs the other and the conciliator of the
termination.

Resort to Arbitration or Judicial Proceedings (Section 77)

 As a rule, no arbitration or judicial proceedings can be initiated during conciliation on the

same dispute.
 Exceptionally, a party may initiate proceedings if necessary to preserve their rights.

Costs (Section 78)

  Costs cover conciliator fees, witness expenses, expert advice, administrative assistance,
and other proceedings-related expenses.
 The conciliator sets the costs after proceedings end and notifies the parties.
 Costs are equally shared by the parties.

Deposits (Section 79)

 Conciliators may estimate and ask parties to deposit costs in advance.

 If parties fail to deposit within 30 days, the conciliator can suspend or terminate
proceedings.
 The conciliator accounts for the deposits and returns any unused balance after
termination.

This summary organizes the sections of the Arbitration and Conciliation Act, 1996 concerning
conciliation into clear, distinct categories, outlining the rules, procedures, and principles
governing conciliation.

Here is a summary of the sections you provided from the Indian Arbitration and Conciliation
Act, 1996:

Section 28 - Rules Applicable to Substance of Dispute

1. In India:
o Domestic Arbitration: The tribunal applies Indian law to decide the dispute.
o International Commercial Arbitration: The tribunal applies the law designated
by the parties, or, if not designated, the tribunal decides based on the most
appropriate law.
2. The tribunal can only decide ex aequo et bono (based on equity) or amiable
compositeur if authorized by the parties.
3. The tribunal must consider contract terms and trade usages when deciding.

Section 29 - Decision Making by Panel of Arbitrators

1. In proceedings with more than one arbitrator, decisions are made by a majority.
2. For procedural questions, the presiding arbitrator may decide if authorized.

Section 29A - Time Limit for Arbitral Award

1. The award must be made within 12 months from when the tribunal enters the reference.
2. If the award is made within 6 months, the tribunal can receive additional fees if agreed
by the parties.
3. The parties may extend the time for 6 months.
 4. If the award isn’t made within the stipulated period, the arbitrators' mandate terminates
unless extended by the court. The court may reduce the arbitrator's fees by 5% per month
of delay.
5. The court can substitute arbitrators if the time limit is exceeded.
6. The court can impose actual or exemplary costs on any party.

Section 29B - Fast Track Procedure

1. Parties may opt for fast track procedure to resolve disputes quickly, either before or at
the time of the arbitrator’s appointment.
2. The tribunal may consist of a single arbitrator.
3. The tribunal follows specific procedures, such as relying on written pleadings and
documents with limited oral hearings.
4. The award must be made within 6 months.
5. If the award is not made within this period, the procedures of Section 29A apply.
6. Arbitrator fees are determined by mutual agreement.

Section 30 - Settlement

1. The tribunal can encourage settlement and use mediation or conciliation with the parties’
agreement.
2. If a settlement occurs, the tribunal may terminate proceedings and issue an award on
agreed terms, which has the same effect as any other arbitral award.

Section 31 - Form and Contents of Arbitral Award

1. The award must be in writing and signed by the arbitrators. In multi-arbitrator cases, a
majority signature is sufficient with reasons for any missing signature.
2. The award must state the reasons, unless agreed otherwise or if the award is on agreed
terms.
3. The date and place of the award must be mentioned, and it is deemed made at that place.
4. A signed copy of the award must be delivered to each party.
5. The tribunal can issue interim awards.
6. Interest may be included in awards involving payment, at a rate deemed reasonable by
the tribunal or set by law.
7. The tribunal may also fix costs of the arbitration.

Section 31A - Regime for Costs

1. The court or tribunal has discretion to determine:

o Whether costs are payable.
o The amount and timing of costs.
2. The unsuccessful party generally pays costs, but exceptions may apply.
3. Factors such as party conduct, frivolous counterclaims, and reasonable settlement
offers are considered in cost decisions.
4. The tribunal may order various cost arrangements, including:
 o Payment of a portion of another party’s costs.
o Costs for specific parts of proceedings.
o Interest on costs.

Section 32 - Termination of Proceedings

1. Arbitration proceedings terminate upon:

o Final award.
o Tribunal's order (if the claimant withdraws or parties agree to terminate).
2. The tribunal’s mandate ends upon termination of proceedings.

Section 33 - Correction and Interpretation of Award; Additional Award

1. Parties may request the tribunal to correct clerical/typographical errors or interpret

parts of the award within 30 days.
2. The tribunal must respond to such requests within 30 days.
3. The tribunal can also make additional awards for claims omitted from the original
award.
4. The tribunal may extend the time for corrections or additional awards if necessary.
5. These corrections, interpretations, or additional awards are considered part of the original
arbitral award.

This summarizes the key provisions governing arbitration proceedings under the Indian
Arbitration and Conciliation Act, 1996.

Here's a summary of the provisions provided:

Arbitration Agreement (Section 7)

 An arbitration agreement is an agreement by parties to submit disputes to arbitration. It

can be part of a contract or a separate agreement and must be in writing.
 Valid forms of an arbitration agreement include documents signed by parties, exchanges
of letters/communications (including electronic means), or an exchange of statements of
claim and defense where the existence of the agreement is not denied.

Power to Refer Parties to Arbitration (Section 8)

 A judicial authority must refer parties to arbitration if they apply, provided the agreement
exists, and the application is made before submitting the first statement in the dispute.
 An application must be accompanied by the original or a certified copy of the arbitration
agreement.
 Arbitration can still proceed while a judicial application is pending.

Interim Measures by Court (Section 9)

  Parties can apply for interim measures from a court before, during, or after arbitration,
such as securing goods, interim injunctions, or appointing a receiver.
 If an interim order is made before arbitration begins, proceedings must start within 90
days.
 After the arbitral tribunal is formed, courts may only intervene if the remedy under
section 17 is insufficient.

Composition of Arbitral Tribunal (Sections 10-15)

 Parties can decide on the number of arbitrators (odd number, at least one).
 If no agreement is made, a sole arbitrator will be appointed.
 If the parties can't agree on arbitrators, the Supreme Court or High Court will appoint
one.
 Arbitrators must disclose any relationships or interests that could affect impartiality
(Section 12).
 An arbitrator may be challenged for lack of impartiality, conflict of interest, or inability
to act (Sections 13 and 14).
 If an arbitrator cannot perform their duties, they can be replaced (Sections 14-15), and the
process can continue with a substitute arbitrator. Previous hearings are optional to repeat.

Power of Central Government (Section 11A)

 The Central Government can amend the Fourth Schedule of the Arbitration Act, and
any such amendments must be presented in Parliament.

Challenges and Disqualification (Sections 12-15)

 Arbitrators must disclose any potential conflicts of interest or reasons they may not be
able to act impartially.
 A party can challenge an arbitrator's independence, impartiality, or qualifications.
 If an arbitrator withdraws or is disqualified, they are replaced through a defined process.

In summary, the provisions focus on ensuring that arbitration agreements are clear, enforceable,
and fair, and that the process for appointing, challenging, and replacing arbitrators is transparent
and unbiased. Courts also play a role in ensuring interim measures and proper formation of the
tribunal.

The UNCITRAL Model Law on International Commercial Arbitration is a legal framework

designed to provide a unified set of rules for arbitration. It is intended to ensure fair, efficient,
and enforceable arbitration agreements and awards in international commercial disputes.

Here's a summary of the requested articles:

Article 1: Scope of Application

  Article 1(1): The Model Law applies to international commercial arbitration. This
includes disputes arising from a commercial relationship, whether contractual or not.
 Article 1(2): The Model Law applies to both arbitration agreements and arbitral
procedures unless the parties specifically exclude or modify it.

Article 7: Form of the Arbitration Agreement

 The arbitration agreement must be in writing. This includes agreements made through an
exchange of letters, telex, telegrams, or electronic communications, or through a claim
and defense exchange that recognizes the existence of an arbitration agreement.

Article 8: Competence of the Arbitral Tribunal to Rule on Its Jurisdiction

 If a party challenges the existence or validity of the arbitration agreement, the arbitral
tribunal has the authority to rule on its own jurisdiction, even if a court has not yet
decided on it.

Article 9: Interim Measures

 The Model Law allows parties to request interim measures from a court before or during
arbitral proceedings. This can include the preservation of goods or securing a dispute
amount.

Article 10: Number of Arbitrators

 The parties are free to determine the number of arbitrators, but it cannot be an even
number. If no agreement is made, a sole arbitrator is appointed.

Article 11: Appointment of Arbitrators

 The parties are free to agree on the procedure for appointing arbitrators. If the parties
cannot agree, a procedure is set out: in a panel of three, each party appoints one
arbitrator, and the two appoint the third. If the appointment procedure fails, the court can
appoint the arbitrators.

Article 12 & 13: Grounds for Challenge and Challenge Procedure

 Article 12: Arbitrators must disclose any circumstances that could raise doubts about
their impartiality or independence. The parties can challenge an arbitrator if they become
aware of such issues.
 Article 13: A party wishing to challenge an arbitrator must do so within a specified time
after becoming aware of the grounds for the challenge.

Article 18: Equal Treatment of the Parties

  The arbitral tribunal must ensure that all parties are treated equally and are given a full
opportunity to present their case.

Article 19: Determination of Rules of Procedure

 The parties are free to agree on the procedures to be followed in arbitration. In the
absence of such agreement, the arbitral tribunal will set the procedure.

Article 28: Expert Appointments

 The arbitral tribunal may appoint experts to assist in the proceedings. Experts must
provide a report to the tribunal and may be cross-examined by the parties.

Article 29 & 29A: Power to Order a Stay of Proceedings

 Article 29: The arbitral tribunal has the authority to suspend or adjourn the proceedings
as necessary.
 Article 29A: The tribunal must make an award within a reasonable time unless the
parties agree otherwise.

Article 30: Award

 The arbitral tribunal must make a final award in the case, addressing the dispute’s subject
matter. The award must be written, signed, and dated.

Article 32: Interpretation of Award

 A party can request the arbitral tribunal to clarify the award or correct any errors in the
award's computation, clerical mistakes, or typographical errors.

Article 33: Additional Powers of the Arbitral Tribunal

 The tribunal may order interim relief, including preservation of evidence, to protect the
rights of the parties before or during the proceedings.

Article 35: Recognition and Enforcement of Awards

 Arbitral awards are recognized and enforceable in courts as judgments unless the award
is set aside or refused recognition based on certain grounds, including invalid arbitration
agreements or non-compliance with due process.

Article 36: Grounds for Refusal of Enforcement

 A party may refuse enforcement of an arbitral award under specific grounds, such as a
lack of jurisdiction, failure to comply with the agreement, or violations of public policy.
These sections of the UNCITRAL Model Law cover the key procedural elements of international
arbitration, ensuring fairness, independence of the arbitral tribunal, and enforceability of arbitral
awards.

Here is a summary of the key sections related to arbitration agreements, the appointment and
challenge of arbitrators, interim measures, and the composition of the arbitral tribunal:

1. Section 7: Arbitration Agreement

o Defines an "arbitration agreement" as a written agreement between parties to
submit disputes to arbitration.
o It can be part of a contract (arbitration clause) or a separate agreement.
o An arbitration agreement is considered written if contained in signed documents,
exchanged communications (including electronic), or exchange of statements
where one party alleges and the other does not deny the agreement.
2. Section 8: Power to Refer to Arbitration
o A judicial authority must refer parties to arbitration if a valid arbitration
agreement exists and a party applies for referral before submitting the first
statement on the substance of the dispute.
o Applications must be accompanied by the original or certified copy of the
arbitration agreement.
o Arbitration may proceed even while the referral application is pending.
3. Section 9: Interim Measures by Court
o A party may apply for interim measures before, during, or after arbitration but
before the award is enforced.
o Court can issue measures to preserve goods, secure amounts in dispute, preserve
property, or appoint a guardian, among other protective measures.
o The arbitral proceedings must commence within 90 days from the court’s interim
order.
4. Section 10: Number of Arbitrators
o Parties are free to determine the number of arbitrators, but it cannot be an even
number.
o If the number isn’t decided, the tribunal shall consist of a sole arbitrator.
5. Section 11: Appointment of Arbitrators
o Arbitrators can be of any nationality unless agreed otherwise.
o Parties are free to agree on the appointment procedure; otherwise, the parties
appoint arbitrators (in cases with three arbitrators, each party appoints one, and
the two appointed arbitrators select the third).
o If one party or the appointed arbitrators fail to appoint, the Supreme Court or
High Court will appoint the arbitrator.
o Courts must ensure impartiality and independence of the appointed arbitrator.
6. Section 12: Grounds for Challenge
o Arbitrators must disclose any circumstances that could affect their impartiality,
independence, or ability to perform their role.
o Arbitrators may be challenged for these reasons or if they lack the qualifications
agreed by the parties.
 o Certain relationships with parties make an individual ineligible to be appointed as
an arbitrator unless waived by the parties.
7. Section 13: Challenge Procedure
o The procedure for challenging an arbitrator is determined by the parties, but if not
agreed upon, a party must notify the arbitral tribunal within 15 days after
becoming aware of the reasons for the challenge.
o If a challenge is unsuccessful, arbitration proceeds, and the challenge can later be
raised when seeking to set aside the award.
8. Section 14: Failure or Impossibility to Act
o An arbitrator's mandate terminates if they are unable to perform their duties,
withdraw, or the parties agree to end the mandate.
o If there is a dispute about the termination of an arbitrator’s mandate, the Court can
decide the matter.
9. Section 15: Termination of Mandate and Substitution of Arbitrator
o The mandate of an arbitrator can terminate if they withdraw, are replaced by
mutual agreement, or under other conditions outlined.
o If an arbitrator’s mandate ends, a substitute is appointed according to the same
procedure as the original.
o Previous hearings may be repeated at the discretion of the arbitral tribunal unless
otherwise agreed.

These sections govern key aspects of arbitration, including the formation of agreements,
appointment and challenge of arbitrators, interim measures, and the overall functioning of the
arbitral tribunal.