India's principal arbitration statute governs arbitrations seated in India, enforcement of specified foreign awards and the present statutory conciliation framework.
The Arbitration and Conciliation Act, 1996 is India's central arbitration law. Part I primarily governs arbitrations seated in India; Part II governs enforcement of specified foreign awards; Part III presently governs conciliation; and Part IV contains supplementary provisions.
Section 5 restricts judicial intervention to matters authorised by the Act. Courts nevertheless retain important functions, including interim protection, appointment in appropriate cases, assistance in taking evidence, extension of time, challenge, appeal and enforcement.
Section 7 requires a written arbitration agreement. Section 8 requires a judicial authority to refer covered parties to arbitration on a timely application unless it finds prima facie that no valid arbitration agreement exists. The precise parties, timing and documentary requirements matter.
Under Section 16, the tribunal may rule on its own jurisdiction and on objections to the existence or validity of the arbitration agreement. The plea is not required "before pleadings" in general; it must ordinarily be raised no later than submission of the statement of defence, subject to the statutory exceptions.
For matters other than international commercial arbitration, Section 29A ordinarily requires an award within 12 months from completion of pleadings under Section 23(4). International commercial arbitrations are subject to an endeavour to dispose of the matter within 12 months from completion of pleadings, rather than the same mandatory consequence. Parties may extend the domestic period by six months; further extension is for the competent court.
Section 29B permits a fast-track process by written agreement and ordinarily contemplates a documents-based procedure and a six-month award period. It has no ₹1 crore ceiling.
Section 34 is not an appeal on the merits. Its grounds include incapacity, invalid agreement, lack of proper notice, excess of jurisdiction, procedural defects, non-arbitrability and public policy. Section 34(2A) additionally permits specified domestic awards to be set aside for patent illegality appearing on the face of the award, while excluding mere erroneous application of law or reappreciation of evidence.
A Section 34 application must ordinarily be filed within three months of receipt of the award, with a possible further period of 30 days on sufficient cause—but not thereafter. Under Section 36, filing the challenge does not automatically stay enforcement. The 2021 amendment also provides for an unconditional stay where the court finds a prima facie case that the arbitration agreement, contract or making of the award was induced or affected by fraud or corruption.
The 2015 amendment strengthened arbitrator disclosure and independence rules, tribunal interim powers, time management, the costs regime, and enforcement without an automatic stay. The 2019 amendment introduced institution-related reforms, Part IA and changes to Section 29A. The relevant Part IA provisions were commenced in October 2023, but commencement of statutory text should not be confused with proof that the Arbitration Council of India has been fully established and is operational; that requires separate verification of notifications and appointments. The 2021 amendment added the fraud-or-corruption stay proviso and removed the Eighth Schedule.
Sections 61–81 continue to appear in the current operative text and provide a self-contained conciliation framework. A written settlement signed by the parties has the same status and effect as an arbitral award on agreed terms under Section 74. The Mediation Act, 2023 enacts future substitutions, but those changes must be read with the applicable commencement notification.
General information only — not legal advice and not a solicitation.
Arbitration is a binding process where an arbitrator decides the dispute after hearing both sides, similar to a private court. Learn how it works, when it fits, and how awards are enforced in India.
Conciliation is a process where a neutral conciliator can actively propose settlement terms, unlike mediation. Learn how it works, when it applies, and how conciliated settlements are enforced under Indian law.
Whether a mediated settlement, conciliation agreement, or arbitral award is legally binding depends on which process produced it. Here's how enforceability actually works in India.
The Delhi International Arbitration Centre (DIAC) is a statutory arbitral institution established by the Delhi High Court, administering domestic and international commercial arbitrations under its own rules.
SIAC is the leading Asian arbitral seat and handles a heavy volume of Indian party disputes, offering arbitration, an arb-med-arb protocol, and the SIAC Rules 2025.
The IAMC Hyderabad, established in 2021 with Telangana High Court support, administers arbitration and mediation and recorded an unusually strong early caseload.