Task 664127

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Significance of Arbitration and Conciliation Act, 1996- comparison with 1940 Act
and UNCITRAL model laws.
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Significance of Arbitration and Conciliation Act, 1996- comparison with 1940 Act and
UNCITRAL model laws.
The Arbitration and Conciliation Act, 1996 stands as a landmark legislation in the realm
of Alternative Dispute Resolution (ADR), significantly shaping the legal landscape in India. This
essay aims to delve into the significance of the Act by comparing it with its predecessor, the
Arbitration Act, 1940, and evaluating its alignment with the UNCITRAL Model Laws on
International Commercial Arbitration.
The Arbitration Act, 1940 served as the primary legislation governing arbitration
proceedings in India for several decades. However, it had some inherent shortcomings that
necessitated a more comprehensive and modern framework. One of the key features of the 1940
Act was that it did not adequately address complex commercial disputes or provide a robust
mechanism for effective dispute resolution. The procedural requirements under this act were
often criticized for being cumbersome and time-consuming, leading to delays in resolving
disputes.
The need for a new legislation became apparent due to these deficiencies in the existing
legal framework. This realization culminated in the enactment of the Arbitration and
Conciliation Act, 1996 which aimed to streamline and modernize arbitration procedures in India.
The 1996 Act introduced several progressive provisions such as automatic stay on court
proceedings once arbitration is initiated, appointment of arbitrators by courts if parties fail to
agree, recognition of foreign arbitral awards, etc.
Analyzing the salient features of the Arbitration and Conciliation Act, 1996 reveals a
more efficient and structured approach towards ADR mechanisms. The act provides detailed
provisions regarding arbitration agreements emphasizing party autonomy, composition of arbitral
tribunal ensuring impartiality and independence, conduct of arbitration proceedings promoting
fairness and efficiency among others. These features collectively contribute towards expeditious
resolution of disputes while upholding principles of natural justice.
When comparing the Arbitration Act, 1940 with its successor -the Arbitration and
Conciliation Act, 1996- significant differences come to light. The shift from a litigation-oriented
approach to an arbitration-friendly regime is evident through various amendments made in favor
of speedy dispute resolution under the newer act. The emphasis on limited judicial intervention
unless absolutely necessary reflects a pro-arbitration stance aimed at minimizing court
interference during arbitral proceedings.
Examining how well does Indian law align with international standards becomes
pertinent when considering UNCITRAL Model Laws on International Commercial
Arbitration.The UNCITRAL model laws serve as benchmarks for harmonizing global practices
related to international commercial arbitration.The adoption of UNCITRAL principles by many
countries signifies their commitment towards creating an arbitration-friendly environment that
attracts international businesses seeking predictable outcomes.
In conclusion,the significance ofArbitrationandConciliationActinIndia cannot be

overstated.Its evolutionfromthe outdatedArbitrationsActof1940to
3
amorecomprehensiveandmodern frameworkunderpinsefforts tomakethe countrya preferred

destinationfor ADRmechanisms.Theact'salignmentwithUNCITRALmodel
lawsoninternationalcommercialarbitrationshowcasesIndia'scommitment totowards
globalbestpracticesinthis domain.Thislegislativeframework
hasnotonlyrevolutionizedADRlandscapewithinitiatedbutalsoledtoefficientandeffectiveresolutiono
fdisputeswhileenhancingIndiapositivesimageasbusinessdestination."
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References
VIKASH KUMAR. “SUPPLY CHAIN DISPUTE RESOLUTION THROUGH
ALTERNATIVE DISPUTE RESOLUTION (ADR) MECHANISM (VIZ,
ARBITRATION, MEDIATION, CONCILIATION, AND NEGOTIATION) IN INDIA.”
Russian Law Journal, 2023, https://doi.org/10.52783/rlj.v11i5s.951.
Md Junaid. “The Development and Progression of Alternative Dispute Resolution (ADR) In

India.” International Journal For Multidisciplinary Research, 2023,
https://doi.org/10.36948/ijfmr.2023.v05i05.7824.
Lewiandy, et al. “THE ROLE OF MEDIATION AS A FORM OF AMICABLE

SETTLEMENT PRIOR TO ARBITRAL PROCEEDINGS UNDER BANI
ARBITRATION CENTER RULES AND PROCEDURES.” International Journal of
Application on Social Science and Humanities, 2023,
https://doi.org/10.24912/ijassh.v1i1.25688.
Samuel Getachew Kidanemariam. “The Role of Courts in Arbitration in Ethiopia under

Proclamation No. 1237/2021.” Middle East Research Journal of Economics and
Management, 2023, https://doi.org/10.36348/merjem.2023.v03i03.001.

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In conclusion,the significance ofArbitrationandConciliationActinIndia cannot be

amorecomprehensiveandmodern frameworkunderpinsefforts tomakethe countrya preferred

Md Junaid. “The Development and Progression of Alternative Dispute Resolution (ADR) In

Lewiandy, et al. “THE ROLE OF MEDIATION AS A FORM OF AMICABLE

Samuel Getachew Kidanemariam. “The Role of Courts in Arbitration in Ethiopia under

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