Historical Background:

Before the Vishakha guidelines came into the picture, the women had to take the matter of Sexual Harassment at Workplace by lodging a complaint under Sec 354 and 509 of IPC.

Bhanwari Devi, a social worker in a programme to stop child marriages, stopped a child marriage that was taking place in an influential Gujjar family. To take revenge one Ramakant Gujjar along with five of his men gang-raped Bhanwari Devi in a brutal manner in front of her husband. Her attempt to file a police case was met with apathy and she faced further stigma and cruelty. The trial court acquitted the accused citing lack of evidence but Bhanwari Devi, along with a sympathizer (Association known as Vishaka), approached the Supreme Court by way of a writ petition which eventually led to a very important and landmark judgment.

In the Vishaka v. State of Rajasthan, (1997) 6 SCC 241 case, the guidelines issued by a three-judge bench comprising of Chief Justice Verma, Justice Sujata V. Manohar and Justice B.N. Kripal widened the meaning and scope of sexual harassment. It defined sexual harassment as an unwanted sexual determination which is directly or impliedly intended to cause the following: 

1. Physical contact or advances.
2. A demand or request for sexual favours.
3. Sexually coloured remarks.
4. Showing pornography.
5. Any other unwelcome conduct whether it is physical, verbal or non-verbal. 

After 16 years of Vishakha case, The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act 2013 was enacted with the objective to provide protection against sexual harassment of women at the workplace and for the prevention and redressal of complaints of sexual harassment and for matter connected therewith or incidental thereto. The provisions of the Act came into force from 9th Dec 2013. It extends to the whole of India.

In Apparel Export Promotion Council v. A.K. Chopra, AIR 1999 SC 625 case, the respondent was working as a Private Secretary to the Chairman of the Apparel Export Promotion Council. It was alleged that he tried to molest a woman employee of the Council Miss X who was at the relevant, time working as a Clerk-cum-Typist in the office. The respondent had tried to molest her physically in the lift also while coming to the basement. The Court held that sexual harassment is a form of sex discrimination projected through unwelcome sexual advances, request for sexual favours and other verbal or physical conduct with sexual overtones, whether directly or by implication, particularly when submission to or rejection of such conduct by the female employee was capable of being used for effecting the employment of the female employee and unreasonably interfering with her work performance and had the effect of creating an intimidating or hostile working environment for her.

Object of the Act:

• to provide protection against sexual harassment of women at the workplace and for the prevention
• to redress complaints of sexual harassment and for matter connected therewith or incidental thereto.

Important Definitions:

Aggrieved Woman:

According to Section 2(a) of the Act, “aggrieved woman” means—

1. in relation to a workplace, a woman, of any age whether employed or not, who alleges to have been subjected to any act of sexual harassment by the respondent;
2. in relation to a dwelling place or house, a woman of any age who is employed in such a dwelling place or house.

Domestic Worker:

According to Section 2(e) of the Act, “domestic worker” means a woman who is employed to do the household work in any household for remuneration whether in cash or kind, either directly or through any agency on a temporary, permanent, part-time or full-time basis, but does not include any member of the family of the employer.

Employee:

According to Section 2(f) of the Act, “employee” means a person employed at a workplace for any work on a regular, temporary, ad hoc, or daily wage basis, either directly or through an agent, including a contractor, with or, without the knowledge of the principal employer, whether for remuneration or not, or working on a voluntary basis or otherwise, whether the terms of employment are express or implied and includes a co-worker, a contract worker, probationer, trainee, apprentice or called by any other such name.

Employer:

According to Section 2(f) of the Act, “employer” means—

1. in relation to any department, organization, undertaking, establishment, enterprise, institution, office, branch or unit of the appropriate Government or a local authority, the head of that department, organization, undertaking, establishment, enterprise, institution, office, branch or unit or such other officer as the appropriate Government or the local authority, as the case may be, may by an order specify in this behalf;
2. in any workplace not covered under sub-clause (i), any person responsible for the management, supervision and control of the workplace. Explanation. —For the purposes of this sub-clause “management” includes the person or board or committee responsible for formulation and administration of policies for such organization;
3. in relation to workplace covered under sub-clause (i) and (ii), the person discharging contractual obligations with respect to his or her employees;
4. in relation to a dwelling place or house, a person or a household who employs or benefits from the employment of a domestic worker, irrespective of the number, time period, or type of such worker employed, or the nature of the employment or activities performed by the domestic worker;

Internal Committee:

According to Section 2(h) of the Act, “Internal Committee” means an Internal Complaints Committee constituted under section 4 of the Act.

Local Committee:

According to Section 2(i) of the Act, “Local Committee” means the Local Complaints Committee constituted under section 6 of the Act.

Respondent:

According to Section 2(m) of the Act, “respondent’ means a person against whom the aggrieved woman has made a complaint under section 9 of the Act.

Work Place:

According to Section 2(0) of the Act, “workplace” includes—

1. any department, organization, undertaking, establishment, enterprise, institution, office, branch, or unit which is established, owned, controlled or wholly or substantially financed by funds provided directly or indirectly by the appropriate Government or the local authority or a government company or a corporation or a co-operative society;
2. any private sector organization or a private venture, undertaking, enterprise, institution, establishment, society, trust, non-governmental organization, unit or service provider carrying on commercial, professional, vocational, educational, entertainmental, industrial, health services or financial activities including production, supply, sale, distribution or service;
3. hospitals or nursing homes;
4. any sports institute, stadium, sports complex or competition or games venue, whether residential or not used for training, sports or other activities relating thereto;
5. any place visited by the employee arising out of or during the course of employment including transportation by the employer for undertaking such journey;
6. a dwelling place or a house;

Sexual Harassment:

According to Section 2(m) of the Act, “sexual harassment” includes any one or more of the following unwelcome acts or behavior (whether directly or by implication) namely:—

1. physical contact and advances; or
2. a demand or request for sexual favours; or
3. making sexually coloured remarks; or
4. showing pornography; or
5. any other unwelcome physical, verbal or non-verbal conduct of sexual nature;

According to Section 3 of the Act: The following circumstances, among other circumstances, if it occurs, or is present in relation to or connected with any act or behavior of sexual harassment may amount to sexual harassment:

1. implied or explicit promise of preferential treatment in her employment; or
2. implied or explicit threat of detrimental treatment in her employment; or
3. implied or explicit threat about her present or future employment status; or
4. interference with her work or creating an intimidating or offensive or hostile work environment for her; or
5. humiliating treatment likely to affect her health or safety.

Internal Complaints Committee:

According to Section 2(h) of the the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, “Internal Committee” means an Internal Complaints Committee constituted under section 4 of the Act.

Section 4 of Chapter II of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, deals with the Internal Complaints Committee. To look after problems related to harassment of women at the workplace, every employer of a workplace shall, by an order in writing, constitute a Committee to be known as the “Internal Complaints Committee at different levels and offices of the organization.

The Internal Committees shall consist of a Presiding Officer who shall be a woman preferably employed at a senior level at the workplace from amongst the employees. Not less than two Members of the committee from amongst employees preferably committed to the cause of women or who have had experience in social work or have legal knowledge. One member from amongst non-governmental organizations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment. At least one-half of the total Members so nominated shall be women.

The Presiding Officer and every Member of the Internal Committee shall hold office for such period, not exceeding three years, from the date of their nomination as may be specified by the employer.

Removal of Presiding Officer or Member of Internal Complaints Committee:

Presiding Officer or Member of Internal Complaints Committee, as the case may be, shall be removed from the Committee and the vacancy so created or any casual vacancy shall be filled by fresh nomination in accordance with the provisions of this section in following circumstances

1. contravenes the provisions of section 16; or
2. has been convicted for an offence or an inquiry into an offence under any law for the time being in force is pending against him; or
3. he has been found guilty in any disciplinary proceedings or a disciplinary proceeding is pending against him; or
4. has so abused his position as to render his continuance in office prejudicial to the public interest.

Local Committee:

According to Section 2(i) of the Act, “Local Committee” means the Local Complaints Committee constituted under section 6 of the Act. Sections 5 to 8 of Chapter III of the Act, deals with the Local Committee.

Section 5 of the Act deals with the notification of the district officer. According to Section 5 of the Act, the appropriate Government may notify a District Magistrate or Additional District Magistrate or the Collector or Deputy Collector as a District Officer for every District to exercise powers or discharge functions under this Act.

Jurisdiction of Local Committee:

Section 6 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 deals with the jurisdiction of the Local Committee.  According to Section 6 of the Act,

1. Every District Officer shall constitute in the district concerned, a committee to be known as the “Local Committee” to receive complaints of sexual harassment from establishments where the Internal Committee has not been constituted due to having less than ten workers or if the complaint is against the employer himself.
2. The District Officer shall designate one nodal officer in every block, taluka, and tehsil in the rural or tribal area and ward or municipality in the urban area, to receive complaints and forward the same to the concerned Local Committee within a period of seven days.
3. The jurisdiction of the Local Committee shall extend to the areas of the district where it is constituted.

Constitution of Local Committee:

Section 7 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 deals with the constitution of the Local Committee.  According to Section 7 of the Act, the Local Committees shall consist of a Chairperson be nominated from amongst the eminent women in the field of social work and committed to the cause of women. One Member to be nominated from amongst the women working in the block, taluka or tehsil or ward or municipality in the district. Two Members, of whom at least one shall be a woman, to be nominated from amongst such non-governmental organizations or associations committed to the cause of women or a person familiar with the issues relating to sexual harassment, which may be prescribed. At least one of the nominees should, preferably, have a background in law or legal knowledge. At least one of the nominees shall be a woman belonging to the Scheduled Castes or the Scheduled Tribes or the Other Backward Classes or minority community notified by the Central Government, from time to time. The concerned officer dealing with the social welfare or women and child development in the district shall be a member ex officio.

Removal of Chairperson or Member of Local Committee:

Chairperson or Member of Local Committee, as the case may be, shall be removed from the Committee and the vacancy so created or any casual vacancy shall be filled by fresh nomination in accordance with the provisions of this section in the following circumstances

1. contravenes the provisions of section 16; or
2. has been convicted for an offence or an inquiry into an offence under any law for the time being in force is pending against him; or
3. he has been found guilty in any disciplinary proceedings or a disciplinary proceeding is pending against him; or
4. has so abused his position as to render his continuance in office prejudicial to the public interest.

Complaint of Sexual Harassment:

Section 9 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 deals with the complaint of sexual harassment. According to Section 9 of the Act, any aggrieved woman may make, in writing, a complaint of sexual harassment at the workplace to the Internal Committee if so constituted, or the Local Committee, in case it is not so constituted, within a period of three months from the date of incident and in case of a series of incidents, within a period of three months from the date of the last incident. If such a complaint cannot be made in writing, the Presiding Officer or any Member of the Internal Committee or the Chairperson or any Member of the Local Committee, as the case may be, shall render all reasonable assistance to the woman for making the complaint in writing. The Internal Committee or, as the case may be, the Local Committee may, for the reasons to be recorded in writing, extend the time limit for filing the complaint not exceeding three months if it is satisfied that the circumstances were such which prevented the woman from filing a complaint within the said period.

If the aggrieved woman is unable to make a complaint on account of her physical or mental incapacity or death or otherwise, her legal heir or such other person as may be prescribed may make a complaint under this section.

Conciliation:

Section 10 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 deals with the conciliation between the respondent and the aggrieved woman. According to Section 10 of the Act, before initiating an inquiry under section 11 and at the request of the aggrieved woman, the Internal Committee or, as the case may be, the Local Committee, may take steps to settle the matter between her and the respondent through conciliation, but there should not be a monetary settlement as a basis of conciliation.

When settlement is reached the Internal Committee or the Local Committee, as the case may be, shall record the settlement so arrived and forward the same to the employer or the District Officer to take action as specified in the recommendation. The Internal Committee or the Local Committee, as the case may be, shall provide the copies of the settlement as recorded under sub-section (2) to the aggrieved woman and the respondent. Where a settlement is arrived at under sub-section (1), no further inquiry shall be conducted by the Internal Committee or the Local Committee, as the case may be.

Inquiry Into Complaint:

Section 11 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 deals with an inquiry into the complaint made by the aggrieved woman. According to Section 10 of the Act, before initiating an inquiry under section 11 and at the request of the aggrieved woman, the Internal Committee or, as the case may be, the Local Committee, may take steps to settle the matter between her and the respondent through conciliation, but there should not be a monetary settlement as a basis of conciliation. The inquiry under Section 11(1) shall be completed within a period of ninety days.

According to Section 11 of the Act, when there is no conciliation has arrived between the respondent and the aggrieved woman or the respondent fails to comply with any condition of settlement the respondent and the aggrieved woman under Section 10 of the Act, the inquiry is initiated under Section 11 of the Act. The Internal Committee or the Local Committee, as the case may be, shall, where the respondent is an employee, proceed to make an inquiry into the complaint in accordance with the provisions of the Service Rules applicable to the respondent. If no such rules exist, in such manner as may be prescribed or in case of a domestic worker, the Local Committee shall, if prima facie case exists, forward the complaint to the police, within a period of seven days for registering the case under section 509 of the Indian Penal Code (45 of 1860), and any other relevant provisions of the said Code where applicable. If both the parties are employees, the parties shall, during the course of the inquiry, be given an opportunity of being heard and a copy of the findings shall be made available to both the parties enabling them to make representation against the findings before the Committee

Notwithstanding anything contained in section 509 of the Indian Penal Code (45 of 1860), the court may, when the respondent is convicted of the offence, order payment of such sums as it may consider appropriate, to the aggrieved woman by the respondent, having regard to the provisions of section 15 of the Act.

According to Section 16 of the Act, publication or making known contents of complaint and inquiry proceedings is prohibited. The contents of the complaint made under section 9, the identity and addresses of the aggrieved woman, respondent, and witnesses, any information relating to conciliation and inquiry proceedings, recommendations of the Internal Committee or the Local Committee, as the case may be, and the action taken by the employer or the District Officer under the provisions of this Act shall not be published, communicated or made known to the public, press, and media in any manner

According to Section 17 of the Act, If any person entrusted with the duty to handle or deal with the complaint, inquiry, or any recommendations or action to be taken under the provisions of this Act, contravenes the provisions of section 16, he shall be liable for a penalty in accordance with the provisions of the service rules applicable to the said person or where no such service rules exist, in such manner as may be prescribed.

Power of Committees During Enquiry:

For the purpose of making an inquiry under Section 11(1), the Internal Committee or the Local Committee, as the case may be, shall have the same powers as are vested in a civil court the Code of Civil Procedure, 1908 (5 of 1908) when trying a suit in respect of the following matters, namely:

• summoning and enforcing the attendance of any person and examining him on oath;
• requiring the discovery and production of documents;
• any other matter which may be prescribed.

Action During the Pendency of Inquiry:

Section 12 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, deals with the actions to be taken during the pendency of the inquiry.

During the pendency of an inquiry on a written request made by the aggrieved woman, the Internal Committee or the Local Committee, as the case may be, may recommend to the employer to—

• transfer the aggrieved woman or the respondent to any other workplace; or
• grant leave to the aggrieved woman up to a period of three months; or
• grant such other relief to the aggrieved woman a may be prescribed.

The leave granted to the aggrieved woman under this section shall be in addition to the leave she would be otherwise entitled. On the recommendation of the Internal Committee or the Local Committee, as the case may be, under Section 12(1), the employer shall implement the recommendations made Section 12(1) and send the report of such implementation to the Internal Committee or the Local Committee, as the case may be.

Inquiry Report:

Section 13 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 deals with an inquiry report.According to Section 13 of the act, on the completion of an inquiry under this Act, the Internal Committee or the Local Committee, as the case may be, shall provide a report of its findings to the employer, or as the case may be, the District Officer within a period of ten days from the date of completion of the inquiry and such report be made available to the concerned parties.

Where the Internal Committee or the Local Committee, as the case may be, arrives at the conclusion that the allegation against the respondent has not been proved, it shall recommend to the employer and the District Officer that no action is required to be taken in the matter.

Where the Internal Committee or the Local Committee, as the case may be, arrives at the conclusion that the allegation against the respondent has been proved, it shall recommend to the employer or the District Officer, as the case may be

• to take action for sexual harassment as a misconduct in accordance with the provisions of the service rules applicable to the respondent or where no such service rules have been made, in such manner as may be prescribed;
• to deduct, notwithstanding anything in the service rules applicable to the respondent, from the salary or wages of the respondent such sum as it may consider appropriate to be paid to the aggrieved woman or to her legal heirs, as it may determine, in accordance with the provisions of section 15: Provide that in case the employer is unable to make such deduction from the salary of the respondent due to his being absent from duty or cessation of employment it may direct to the respondent to pay such sum to the aggrieved woman: Provided further that in case the respondent fails to pay the sum referred to in Section 13(2), the Internal Committee or as, the case may be, the Local Committee may forward the order for recovery of the sum as an arrear of land revenue to the concerned District Officer.

The employer or the District Officer shall act upon the recommendation within sixty days of its receipt by him.

Punishment for False or Malicious Complaint and False Evidence:

Section 14 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, deals with the punishment for false or malicious complaint and false evidence. according to Section 14 of the Act,

1. Where the Internal Committee or the Local Committee, as the case may be, arrives at a conclusion that the allegation against the respondent is malicious or the aggrieved woman or any other person making the complaint has made the complaint knowing it to be false or the aggrieved woman or any other person making the complaint has produced any forged or misleading document, it may recommend to the employer or the District Officer, as the case may be, to take action against the woman or the person who has made the complaint under sub-section (1) or sub-section (2) of section 9, as the case may be, in accordance with the provisions of the service rules applicable to her or him or where no such service rules exist, in such manner as may be prescribed: Provided that a mere inability to substantiate a complaint or provide adequate proof need not attract action against the complainant under this section: Provided further that the malicious intent on part of the complainant shall be established after an inquiry in accordance with the procedure prescribed, before any action is recommended.
2. Where the Internal Committee or the Local Committee, as the case may be, arrives at a conclusion that during the inquiry any witness has given false evidence or produced any forged or misleading document, it may recommend to the employer of the witness or the District Officer, as the case may be, to take action in accordance with the provisions of the service rules applicable to the said witness or where no such service rules exist, in such manner as may be prescribed.

Determination of Compensation:

Section 15 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, deals with the determination of compensation. According to Section 15 of the Act, for the purpose of determining the sums to be paid to the aggrieved woman under clause (ii) of sub-section (3) of section 13, the Internal Committee or the Local Committee, as the case may be, shall have regard to—

• the mental trauma, pain, suffering, and emotional distress caused to the aggrieved woman;
• the loss in the career opportunity due to the incident of sexual harassment;
• medical expenses incurred by the victim for physical or psychiatric treatment;
• the income and financial status of the respondent;
• feasibility of such payment in a lump sum or in installments.

Appeal

Section 18 of the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013, deals with appeal. According to Section 18 of the Act,

1. Any person aggrieved from the recommendations made under sub-section (2) of section 13 or under clause (i) or clause (ii) of sub-section (3) of section 13 or sub-section (1) or subsection (2) of section 14 or section 17 or non-implementation of such recommendations may prefer an appeal to the court or tribunal in accordance with the provisions of the service rules applicable to the said person or where no such service rules exist then, without prejudice to provisions contained in any other law for the time being in force, the person aggrieved may prefer an appeal in such manner as may be prescribed.
2. The appeal under sub-section (1) shall be preferred within a period of ninety days of the recommendations.

Duty of Employer:

Section 19 of the Act deals with the duties of employer. According to Section 19 of the Act the duties of employer are as follows:

• provide a safe working environment at the workplace with shall include safety from the persons coming into contact at the workplace;
• display at any conspicuous place in the workplace, the penal consequences of sexual harassments; and the order constituting, the Internal Committee under sub-section (1) of section 4;
• organise workshops and awareness programmes at regular intervals for sensitising the employees with the provisions of the Act and orientation programmes for the members of the Internal Committee in the manner as may be prescribed;
• provide necessary facilities to the Internal Committee or the Local Committee, as the case may be, for dealing with the complaint and conducting an inquiry;
• assist in securing the attendance of respondent and witnesses before the Internal Committee or the Local Committee, as the case may be;
• make available such information to the Internal Committee or the Local Committee, as the case be, as it may require having regard to the complaint made under sub-section (1) of section 9;
• provide assistance to the woman if she so chooses to file a complaint in relation to the offence under the Indian Penal Code (45 of 1860) or any other law for the time being in force;
• cause to initiate action, under the Indian Penal Code (45 of 1860) or any other law for the time being in force, against the perpetrator, or if the aggrieved woman so desires, where the perpetrator is not an employee, in the workplace at which the incident of sexual harassment took place;
• treat sexual harassment as a misconduct under the service rules and initiate action for such misconduct;
• monitor the timely submission of reports by the Internal Committee

Conclusion:

The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 provides a robust mechanism for redressal to women. It requires public awareness, sensitivity, and robust implementation of the Act, to avoid such incidents.

The post The Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 appeared first on The Fact Factor.

Alternative Dispute Resolution or ADR refers to an assortment of dispute resolution procedures that primarily serve as alternatives to litigation and are generally conducted with the assistance of a neutral and independent third party. In this article, we shall introduce ourselves with Arbitration. ADR processes are conducted with the assistance of an ADR neutral, who is an unbiased, independent, and impartial third party not connected with the dispute, and helps the disputant parties to resolve their disputes by the use of the well-established dispute resolution processes. Arbitration, Conciliation, Mediation, Negotiation, and Lok Adalats are different methods of ADR. In this article, we shall study arbitration and arbitration tribunal.

Arbitration:

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. The decision given by the arbitral tribunal is called an award. In India, the procedure of arbitration is regulated by the Arbitration and Conciliation Act, 1996.

Arbitration Tribunal:

Chapter III of the Arbitration and Conciliation Act, 1996 lays down the arrangements for the Composition of an Arbitral Tribunal. 

Number of Arbitrators:

Section 10(1) of the Arbitration and Conciliation Act, 1996 gives provision for the number of arbitrators in the arbitration tribunal. The parties to the dispute are allowed to mutually choose the number of arbitrators that shall establish the arbitral tribunal to adjudicate the dispute. It is, in any case, necessary that the number of arbitrators appointed shall be an odd number and not an even. This provision guarantees that there are no ties.

According to Section 10(2) of the Arbitration and Conciliation Act, 1996, if the parties to the dispute are unable to choose the number of arbitrators, in that case, just a single arbitrator shall be appointed.

Nationality of Arbitrator:

Section 11(1) of the Arbitration and Conciliation Act, 1996, a person of any nationality may be an arbitrator unless otherwise agreed by the parties.

Procedure to Appoint Arbitrator:

According to Section 11(2) of the Arbitration and Conciliation Act, 1996, the parties are free to agree on the procedure of appointment of the arbitrator or arbitrators.

According to Section 11(2) of the Arbitration and Conciliation Act, 1996, if parties fail to appoint arbitrator as specified in Section 10 clause 2, then each party shall appoint one arbitrator and the two appointed arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator.

Rule 22 of the Rules of Arbitration gives that if the value of the claim made under arbitration is One Crore or less, a solitary arbitrator can resolve the dispute if the parties agree to it. In cases where the claim to the dispute surpasses one Crore, the arbitral tribunal shall be made out of three arbitrators with the agreement of the parties.

Challenge to the Appointment of Arbitrator:

Section 12 of the Arbitration and Conciliation Act, 1996 deals with the circumstances in which the appointment of an arbitrator can be challenged.

1. Circumstances exist that give rise to justifiable doubts as to independence or impartiality on account of any past or present relationship with or interest in any of the parties or in relation to the subject matter in dispute, whether financial, business, professional or other kinds, or
2. He has no time due to his present or future assignments which is likely to affect his ability to devote sufficient time to the arbitration and in particular their ability to complete the entire arbitration within a period of twelve months.
3. He does not possess the qualifications agreed to by the parties.
4. The arbitrator falls in a category mentioned in the Seventh Schedule of the Act
5. The fifth schedule to the Act gives grounds that give justifiable doubts as to the independence or impartiality of the arbitrator.

The arbitrator has to inform parties about the circumstances mentioned above from time to time throughout the proceeding. A party may challenge an arbitrator appointed by him, or in whose appointment he has participated, only for reasons of which he becomes aware after the appointment has been made.

Requisite Qualifications of Arbitrator:

• The arbitrator must have requisite qualifications and none of the disqualifications prescribed in the arbitration agreement.
• The arbitrator should possess all the required capacity by law to assume the office of the arbitrator.
• H must be a person of the general reputation of fairness, integrity, and capable of applying objectivity in arriving at settlement in the dispute.
• The arbitrator should be free from any bias
• The arbitrator must be free from any connection with parties and the subject matter.

Reasons for Termination of Mandate of Arbitrator:

Section 14 of the Arbitration and Conciliation Act, 1996, governs the situation of termination of the mandate of the arbitrator because of his failure to act. The grounds for termination of the mandate under Section 14 are as follows:

• The arbitrator becomes de jure or de facto unable to perform his function.
• For some other reasons fails to act without undue delay
• The arbitrator withdraws from office.
• The parties agree to the termination of his authority as an arbitrator.

The arbitrator becomes de jure or de facto unable to perform his function:

De Jure refers to an arbitrator’s legal incapacity to perform his functions under the law and relates to circumstances under which the arbitrator by law is barred from continuing in office. For example: if an arbitrator becomes bankrupt or convicted for a criminal offence, then he becomes de jure unable to adjudicate the case. De Facto refers to factual inability. It relates to a factual happening during the process of arbitration. For example: if the arbitrator falls seriously ill or has some physical incapacity, then he becomes de facto unable to perform his function.

For some other reasons fails to act without undue delay:

In situations where the arbitrator is taking too long to adjudicate the dispute, this provision shall apply. If the arbitrator takes too long to even conduct the first hearing, let alone adjudication of the case; the parties can resort to this provision to terminate the mandate of the arbitrator.

The arbitrator withdraws from office:

For the reasons suitable to the arbitrator, if he withdraws from office, then automatically his mandate is terminated. This can happen because of various reasons and the arbitrator is not bound to give a detailed explanation of the same.

The parties agree to the termination of his authority as an arbitrator

If one of the parties wants removal of the arbitrator, then they must approach the court for the same. However, if both the parties agree to remove the arbitrator, then they can do so pursuant to making an agreement under section 15(1)(b) and terminate the mandate of the arbitrator. A party singularly does not have the power to revoke the authority of the arbitrator. But both/all parties in the agreement can do the same and do not need to approach the court to enforce the termination.

Procedure of Termination of Mandate of Arbitrator:

An arbitrator’s mandate can be terminated:

• by the arbitrator (by recusing themselves from the arbitral tribunal);
• by the parties;
• by the arbitral tribunal;
• by a court order;
• on the death of the arbitrator; or
• because of the arbitrator’s physical incapacity to proceed with the mandate.

If the situation falls within any of the grounds mentioned under section 14, then the party willing to terminate the mandate must approach the Court. An application for removing the arbitrator may be made to the court in whose jurisdiction the contract was executed, or subject matter of the work was performed, or within whose jurisdiction the office of the arbitrator was situated. The power to remove an arbitrator by the court is discretionary in nature. Every application to the court under section 14 is not supposed to be ruled in the affirmative. There might be situations where the court does not feel the need to remove the arbitrator. If the conditions mentioned under section 14 are satisfied, then it is imperative for the court to remove the arbitrator.

However, if both the parties agree to remove the arbitrator, then they can do so pursuant to making an agreement under section 15(1)(b) and terminate the mandate of the arbitrator. A party singularly does not have the power to revoke the authority of the arbitrator. But both/all parties in the agreement can do the same and do not need to approach the court to enforce the termination.

Substitution of Arbitrator:

If termination of mandate of Arbitrator is done under Section 13 or 14 of the Act, he shall be substituted. The procedure of substitution is laid down in Section 15 of the Act. Section 15(2) of the 1996 act allows for arbitrators to be substituted if their mandate has been terminated.

Where the mandate of arbitrator terminates, a substitute shall be appointed according to the rules that were applicable to the appointment of the arbitrator being replaced.

Unless otherwise agreed by the parties, where the arbitrator is replaced under subsection 2, any hearing previously held may be repeated at the discretion of arbitral tribunal.

Unless otherwise agreed by the parties, an order of ruling of the arbitral tribunal made prior to the replacement of an arbitrator under section shall not be invalid solely because there is a change in the composition of arbitral tribunal.

Jurisdiction of Arbitral Tribunal:

Chapter IV of the Act contains Sections 16 and 17 that deal with the jurisdiction of an arbitration tribunal. Section 16 of the Act deals with the Competence of arbitral tribunal to rule on its own jurisdiction and conveys that the arbitral tribunal has the independence of choosing its own jurisdiction and freedom from the interference of courts regarding any matter related to arbitration.

Section 16– Competence of arbitral tribunal to rule on its jurisdiction:

The arbitral tribunal may rule on its own jurisdiction, including ruling on any objections with respect to the existence or validity of the arbitration agreement and for this purpose,

(a) an arbitration clause which forms part of a contract shall be treated as an agreement independent of the other terms of the contract when it’s validity is challenged before the tribunal.

(b) a decision by the arbitral tribunal that the contract is null and void shall not mean that the arbitration clause invalid.

If there is a plea that the arbitral tribunal does not have jurisdiction, it cannot be raised after the submission of the statement of defence. Even an arbitrator may raise such a plea. However, if there is any delay and if such a delay is justified, the arbitral tribunal may admit a later plea according to sub section 4 of section 16 of the Act.

A plea that the arbitral tribunal is exceeding the scope of its authority shall be raised as soon as the matter alleged to be beyond the scope of its authority is raised during the arbitral proceedings. The arbitral tribunal shall decide on a plea referred to above and, where the arbitral tribunal takes a decision rejecting the plea, it shall continue with the arbitral proceedings and make an arbitral award. A party aggrieved by such an arbitral award may make an application for setting aside such an arbitral award in accordance with section 34 of the Act which deals with ‘Application for setting aside arbitral award’.

Power of Arbitration Tribunal to Order Interim Measures:

Section 17 of the Act deals with arbitral tribunal’ power to order interim measures.

A party may, during the arbitral proceedings or at any time after the making of the arbitral award but before it is enforced apply to the arbitral tribunal for the appointment of a guardian for a minor or person of unsound mind for the purposes of arbitral proceedings or as an interim measure of protection in any of the following matters;

(a) the preservation, interim custody or sale of any goods which are the subject-matter of the arbitration agreement;

(b) securing the amount in dispute in the arbitration;

(c) the detention, preservation or inspection of any property or thing which is the subject-matter of the dispute in arbitration, or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon any land or building in the possession of any party, or authorising any samples to be taken, or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence;

(d) interim injunction or the appointment of a receiver;

(e) such other interim measure of protection as may appear to the arbitral tribunal to be just and convenient.

The arbitral tribunal shall have the same power for making orders, as the court has for the purpose of, and in relation to, any proceedings before it.

Powers of Arbitral Tribunal:

• The arbitrator has a power to administer an oath to the parties. It is necessary for him to act as a quasi-judicial authority
• Power to take interim measures
• According to section 25, an arbitrator has an power to proceed to ex-parte
• Power to appoint an expert
• Power to make awards

Duties of Arbitral Tribunal:

• To fix a time and place for arbitration, which is convenient to the parties
• Duty to disclose
• Duty to efficiently resolve the dispute
• Duty to determine the rules for the procedure

Reasons to Terminate Mandate of Arbitral Panel:

1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party.
2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties.
3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties.
4. The arbitrator is a lawyer in the same law firm which is representing one of the parties.
5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration.
6. The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself.

Distinguishing Between Section 9 and 17 of the Act.

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There is a famous proverb “where there are two minds there will be three opinions”. Everybody has their own opinion and views, hence there may be a conflict of opinions. In today’s society, such conflicts are inevitable and a quick, easy, and strong mechanism for resolution of such conflicts at minimum cost is need of time. Such a mechanism reduces the burden on the judiciary. Arbitration, Mediation, Conciliation, Negotiations, Lok Adalats are some methods which can be used in such situations. These methods are collectively known as the Alternate Dispute Resolution (ADR) System.

Arbitration:

Arbitration is an ADR procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court. The decision given by the arbitral tribunal is called an award. In India, the procedure of arbitration is regulated by the Arbitration and Conciliation Act, 1996.

Advantages of Arbitration:

• Liberty to Choose Arbitrator: The parties to the dispute usually agree on the arbitrator, so the arbitrator will be someone that both sides have confidence will be impartial and fair.
• Expert Arbitrator: Unlike in a court trial, where the judge or jury may know very little about the subject matter of the dispute, the parties to the arbitration have the ability to select an arbitrator with expertise in a certain area, which may lead to a more equitable and informed decision.
• Flexibility: There are lesser formalities in arbitration than in the traditional judicial system.
• Speed: As the parties have been given the freedom to determine the procedure, time, and place for the settlement of the dispute, it saves a lot of time compared to traditional courts.
•  Less cost: Traditional Court system is strictly procedural, hence expensive. Arbitration saves a lot of money and cost.
• Privacy and Confidentiality: In arbitration, the process of dispute resolution is within four walls and only in presence of parties and experts.
• Finality: There is a very limited avenue for appeals.  In the case of arbitration because the grounds for challenging an arbitrator’s decision are severely limited by the Arbitration Act.
• Enforceability: The arbitral awards are enforceable which makes arbitration a binding process. Such awards are generally easier to enforce as compared to court verdicts.

Disadvantages of Arbitration:

• Inability to Appeal: There is a very limited avenue for appeals. As a general and practical rule, the arbitrator’s decision cannot be appealed.
• Lack of Formal Evidence: There is a lack of a formal evidence process. The parties have to rely on the skill and experience of the arbitrator to sort out the evidence, rather than a judge or jury.
• Mandatory Arbitration Contracts: Arbitration agreements are sometimes contained in ancillary agreements, or in small print in other agreements, and consumers and employees sometimes do not know in advance that they have agreed to mandatory binding pre-dispute arbitration by purchasing a product or taking a job.
• Possibility of Bias: Arbitrator is presumed to be neutral, impartial. It is also assumed that he has no personal interest in the subject matter before him. But considering human nature we can say that arbitrators may not be unbiased.
• No Interlocutory orders: The process does not provide for the grant of interlocutory measures against a party, making it easier for a party to take steps to avoid enforcement of an award, such as the relocation of assets offshore.
• Execution of Award: Arbitration awards are not directly enforceable; they are executable subject to judicial sanction. A party seeking to enforce an award must resort to judicial remedies.

Conciliation:

Conciliation is a process of persuading parties to reach settlement in existing and ongoing conflict with the help of third impartial party called conciliator with the to preserve the relationship they have with each other. There is no need of pre-agreement for starting the process of conciliation but acceptance to the process by both parties is necessary.

Advantages of Conciliation:

• It offers a more flexible alternative, for a wide variety of disputes, small as well as large;
• It obviates the parties from seeking recourse to the court system;
• No prior agreement is required.
• It reserves the freedom of the parties to withdraw from conciliation without prejudice to their legal position inter se at any stage of the proceedings;
• It is committed to maintenance of confidentiality throughout the proceedings and thereafter, of the dispute, the information exchanged, the offers and counter offers of solutions made and the settlement arrived at.
• It is cost-effective and produces quicker resolution of dispute.
• f) It facilitates the maintenance of continued relationship between the parties even after the settlement.
• There is no scope for corruption or bias.

Disadvantages of Conciliation:

• The process is not binding upon the parties to the dispute.
• There is no avenue for appeal.
• The parties may not achieve a settlement to their conflict.
• Parties may use it as a delay tactics

Mediation:

Mediation is a mode of dispute resolution, where an amicable decision arises with the help of a third party known as a ‘mediator,’ without recourse to the court of law.

Advantages of Mediation:

• Parties have complete control over the settlement.
• Less stress as compared to litigation and arbitration.
• The relationship between the parties isn’t overly damaged.
• Mediation proceedings are confidential.
• The process resolves the dispute quickly.

Disadvantages of Mediation:

• Since the decision is at the discretion of the parties, there is the possibility that a settlement between the parties may not arise.
• It lacks the support of any judicial authority in its conduct.
• The absence of formality- Mediation proceedings are lacking in any procedural formality since they are not based on any legal principle.
• The truth of an issue may not be revealed.
• There is lack of expertise in the issue of the dispute.

Negotiation:

Negotiation is a method of dispute resolution whereby a dispute between two individuals or groups is settled amicably by an impartial third person called as a negotiator, using different techniques. The negotiator, in this form of resolution, uses various communication methods to bring the parties of the dispute to a settlement.

Advantages of Negotiation:

• Flexibility: since negotiation is an informal process, it is relatively flexible.
• Quick resolutions as compared to litigation.
• It facilitates in maintaining a healthy relationship between the disputing parties.
• Takes place in a private environment

Disadvantages of Negotiation:

• The parties to the dispute may not come to a settlement.
• Lack of legal protection of the parties to the conflict.
• Imbalance of power between the parties is possible in negotiation.

Distinguishing Between Arbitration and Conciliation:

Distinguishing Between Mediation and Conciliation:

Conclusion:

ADR has distinct advantages and it offers a comparatively speedier and inexpensive mode of dispute resolution than conventional litigation. It offers a system with procedural flexibility, a broad range of remedial options, and a focus on individualized justice. The flexibility is available not only in terms of the procedure but also in terms of the solutions to the dispute. ADR, in contradistinction to a judicial adjudication, can provide creative solutions – novel ways of resolving disputes. ADR may not produce the result in each case but it will definitely be helpful in reducing the disputes. Therefore in a country like India, wherein, courts are overburdened with thousands of cases there is a strong case for enhanced use of ADR mechanism for resolution of some disputes.

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The Arbitration and Conciliation Act, 1996 proceeds on the basis of the UN Model Law so as to make our law in accordance with the United Nations Commission on International Trade Law (UNCITRAL). This Act consolidated the law of arbitration in three enactments previously in force – viz, the Arbitration Act, 1940, the Arbitration (Protocol and Convention) Act, 1937, and the Foreign Awards (Recognition and Enforcement) Act, 1961. The Act itself is a self-contained code and a complete answer for all matters relating to arbitration. It excludes the applicability of general law procedure, and is a complete code for designing, consolidating, and amending the law related to domestic arbitration, international commercial arbitration, and enforcement of foreign arbitral awards.

With a view to a recommendation by the Law Commission and to implement the recommendation of the General assembly of the United Nations. it was considered desirable to implement UNCITRAL Model Law, the UNICITRAL Arbitration Rules and the UNICITRAL Conciliation Rules, the Arbitration and Conciliation Bill, 1995, consolidating and amending the law related to domestic arbitration, international commercial arbitration, enforcement of foreign awards and to define the law of conciliation, was introduced in Rajya Sabha on 16 May 1995.

The Arbitration and Conciliation Bill, 1995, was passed by both the Houses of the Parliament in August 1996 and received the assent of the President on 16 August 1996, which became the Arbitration and Conciliation Act, 1996. However, it is deemed to have commenced from 25 January 1996. Therefore, the provisions of this Act will only be application on arbitrations commenced post 25 January 1996. It extends to the whole of India.

Objects of the Arbitration and Conciliation Act, 1996:

The preamble of the Act reads as follows: “An Act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto”.

The main object of the Act is to consolidate and amend the law relating to:

1. domestic arbitration;
2. international commercial and business arbitration;
3. enforcement and implementation of foreign arbitral awards; and
4. to define the laws relating to conciliation and matters that are connected therewith or incidental thereto.

Some of the other objects, as provided in the Statement of Objects and Reasons for the Arbitration and Conciliation Bill, 1995 are as follows:

• To ensure that rules are laid down for international as well as domestic arbitration and conciliation;
• To ensure that arbitration proceedings are just, fair, effective, and capable of meeting the needs of specific arbitration;
• To ensure that the arbitral tribunal gives reasons for its award given;
• To ensure that the arbitral tribunal remains within the limits of its jurisdiction;
• To minimize the supervisory role of courts in the arbitral process;
• To permit the arbitral tribunal to use methods such as mediation and conciliation during the procedure of arbitration to encourage settlement of disputes;
• To ensure that every final arbitral award is enforceable as a decree of the court of law;
• To ensure that the settlement agreement reached by parties as a result of conciliation proceedings may be treated as arbitral awards on agreed terms on the substance of the dispute rendered by an Arbitral Tribunal;
• To treat awards given in a foreign country to which any one of the two international conventions to which India is a party.

Salient Features of the Arbitration and Conciliation Act, 1996:

Following are some of the key features of the Arbitration and Conciliation Act, 1996:

1. Replacement of three old statutes: The Act is a consolidation of three laws of arbitration previously in force – viz, the Arbitration Act, 1940, the Arbitration (Protocol and Convention) Act, 1937, and the Foreign Awards (Recognition and Enforcement) Act, 1961 into one enactment. Though the three Acts have been consolidated the provisions regarding each of the acts have been kept distinct within the 1996 Act.
2. Necessity of Arbitration Agreement: The Act emphasizes the importance of the Arbitration agreement without which arbitration proceedings cannot be instituted. The arbitration agreement is a clause in a contract or an agreement between parties stating that any dispute will be referred to arbitration proceedings. The Act mentions that the arbitration agreement or arbitration clause must contain the following information – the subject matter of dispute, the timing of dispute (past/present/future), number of arbitrators, qualifications of arbitrators, jurisdiction, and composition of the tribunal.
3. Application to Domestic and International Arbitration: The Act provides the procedure not only for domestic arbitration but also includes International Commercial Arbitration. The 1996 Act is a law that relates to the enforcement of foreign Arbitration awards and ensures greater autonomy in the process of arbitration and puts a limit on the intervention of the judiciary.
4. Procedural Advantage:  Arbitral Tribunal has full powers to decide the procedure to be followed unless parties agree on the procedure to be followed. The Tribunal also has powers to determine the admissibility, relevance, materiality, and weight of any evidence. The place of arbitration will be decided by mutual agreement. However, if the parties do not agree to the place, the same will be decided by a tribunal. Similarly, language to be used in arbitral proceedings can be mutually agreed upon. Otherwise, Arbitral Tribunal can decide. The Act allows parties to choose the substantive law to be applied by the arbitration tribunal and this must also be mentioned in the arbitration agreement.
5. Party Autonomy: The concept of party autonomy is the central theme of the Act. The expressions used in the Act – ‘unless otherwise agreed by the parties’, ‘with the agreement of parties’, `if the parties in dispute have expressly authorized’ etc., strengthens the idea of party autonomy.
6. Minimal Interference by Judiciary: One of the major defects of earlier arbitration law was that the party could access court almost at every stage of arbitration – right from the appointment of an arbitrator to implementation of the final award. Thus, the defending party could approach the court at various stages and stall the proceedings. Now, the approach to court has been drastically curtailed. In some cases, if an objection is raised by the party, the decision on that objection can be given by Arbitral Tribunal itself. After the decision, the arbitration proceedings are continued and the aggrieved party can approach Court only after Arbitral Award is made.
7. Arbitral Award: Decision of Arbitral Tribunal is termed as ‘Arbitral Award’. The arbitrator can decide the dispute ex aequo et bono (In justice and in good faith) if both the parties expressly authorized him to do so.  The decision of the Arbitral Tribunal will be by majority. The arbitral award shall be in writing and signed by the members of the tribunal. The award should be dated and the place, where it is made, should be mentioned. Copy of award should be given to each party.
8. Reasoned Award: The award must be in writing and signed by the members of the Arbitral Tribunal. It must state the reasons for the award unless the parties have agreed that no reason for the award is to be given. Previous to this Act reasoning of the award by the arbitrator was not mandatory.
9. Enforceability of Award: Under this Act, every final arbitral award is enforceable as a decree of the court of law and not required to be made a “rule of court”.
10. Over-Riding Effect of the Act: Section 5 of the Act clarifies that notwithstanding anything contained in any other law for the time being in force, in matters governed by the Act, the judicial authority can intervene only as provided in this Act and not under any other Act.
11. Applicability of the Limitation Act: For this purpose, the date on which the aggrieved party requests another party to refer the matter to arbitration shall be considered. If on that date, the claim is barred under Limitation Act, the arbitration cannot continue. If the Arbitration award is set aside by Court, time spent in arbitration will be excluded for purpose of the Limitation Act. 
12. Aligning Procedure with the UNCITRAL Model Law: The Act has been enacted taking into account the United Nation’s Commission on International Trade Law (UNCITRAL) Model Law and UNCITRAL Conciliation Rules. This promotes unification and harmonization of International Tarde Law by harmonizing concepts of Arbitration and Conciliation of the legal system of the world.
13. Clear Distinction Between Arbitration and Conciliation: The provisions that relate to the process of Arbitration are contained in Part I which includes Chapters I to IX, while the provisions that relate to the process of Conciliation are dealt with in Part III that includes section 61 to 81.
14. Conciliation: Conciliation is the amicable settlement of disputes between the parties, with the help of a conciliator. Part III of the Act makes provision for conciliation proceedings. In conciliation proceedings, there is no agreement for arbitration. In fact, conciliation can be done even if there is an arbitration agreement. The conciliator only brings parties together and tries to solve the dispute using his good offices. The conciliator has no authority to give an award. He only helps parties in arriving at a mutually acceptable settlement. After such an agreement, they may draw and sign a written settlement agreement. However after the settlement agreement is signed by both the parties and the conciliator, it has the same status and effect as if it is an arbitral award.

In Centrotrade Minerals & Metals Inc. v. Hindustan Copper Ltd., (2006) 11 SCC 245 case, the Court gave beneficial features of the Arbitration and Conciliation Act as follows:

• fair resolution of a dispute by an impartial tribunal without any unnecessary delay or expense;
• party autonomy is paramount subject only to such safeguards as are necessary in public interest; and
• the Arbitral Tribunal is enjoined with a duty to act fairly and impartially.

In the same case Court also gave the shortcomings of the Act as follows:

• no provision is made for expediting awards or the subsequent proceedings in the courts where applications are filed for setting aside awards;
• an aggrieved party has to start again from the District Court for challenging the award.

In Fuerst Day Lawson Ltd. v. Jindal Exports Ltd., (2011) 8 SCC 333 case, the Court observed that the object of the Act is to provide a speedy and alternative solution to the dispute and avoid protraction of litigation. The provisions of the Act have to be interpreted accordingly.

The Arbitration and Conciliation Act, 1996 is Self-Contained Code:

In Girnar Traders v. State of Maharashtra (2011) 3 SCC 1 case, the apex code held that for an Act to be a self-contained code, it must be shown that the special statute is a complete legislation for the purpose for which it was enacted, or under which the applicability of any other statute is barred by specific language, or by necessary implication.

The Arbitration and Conciliation Act, 1996 excludes the applicability of general law procedure, and is a complete code for designing, consolidating, and amending the law relating to domestic arbitration, international commercial arbitration, and enforcement of foreign arbitral awards.

In Fuerst Day Lawson Ltd. v. Jindal Exports Ltd., (2011) 8 SCC 333 case, the Court held that where a special Act sets out self-contained code, the applicability of general law procedure would be impliedly excluded. Since the 1940 Act was held to be a self-contained code from its inception till 2004, the 1996 Act, which aimed at consolidating, amending, and designing the law relating to Arbitration, must be held to be more so. The 1996 Act carries with it, “ a negative import that only such acts as are mentioned in the Act are permissible to be done, and acts or things not mentioned therein are not permissible to be done”.

Thus, the Arbitration and Conciliation Act, 1996 is a self-contained code and exhaustive in nature.

Conclusion:

The Arbitration and Conciliation Act, 1986 is the consolidation of three previous statutes. It takes into consideration all the essential ingredients necessary for providing an easy and unambiguous procedure for dispute resolution. It makes the procedure provided by it in line with the Model Law. The Act tries to make the procedure smooth by minimizing the interference by Courts. The reasoned award makes the procedure transparent.

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