we4uonline.blogspot.com: THE ARBITRATION AND CONCILIATION ACT, 1996

THE ARBITRATION AND CONCILIATION

ACT, 1996

(No. 26 of 1996)

[16th August 1996]

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.

PREAMBLE

WHERE AS the United Nations Commission on International Trade Law

(UNCITRAL) has adopted the UNCITRAL Model Law on International

Commercial Arbitration in 1985;

AND WHEREAS the General Assembly of the United Nations has

recommended that all countries give due consideration to the said Model Law, in

view of the desirability of uniformity of the law of arbitral procedures and the

specific needs of international Commercial arbitration practice;

AND WHEREAS the UNCITRAL has adopted the UNCITRAL Conciliation

Rules in 1980;

AND WHEREAS the General Assembly of the United Nations has

recommended the use of the said Rules in cases where a dispute arises in the

context of international commercial relations and the parties seek an amicable

settlement of that dispute by recourse to conciliation;

AND WHEREAS the said Model Law and Rules make significant contribution

to the establishment of a unified legal framework for the fair and efficient

settlement of disputes arising in international commercial relations;

AND WHEREAS it is expedient to make law respecting arbitration and

conciliation, taking into account the aforesaid Model Law and Rules;

BE it enacted by Parliament in the forty-seventh year of the Republic as follows: -

PRELIMINARY

1. Short title, extent and-commencement. –

(1) This Act maybe called the Arbitration and Conciliation Act, 1996.

(2) It extends to the whole of India:

Provided that Parts I, III and IV shall extend to the State of Jammu and

Kashmir only in so far as they relate to international commercial

arbitration or, as the case may be, international commercial conciliation.

Explanation. -In this sub-section, the expression “international

commercial conciliation” shall have the same meaning as the expression

“international commercial arbitration” in clause (f) of sub-section (1) of

section 2, subject to the modification that for the word “arbitration”

occurring therein, the word “conciliation” shall be substituted.

(3) It shall come be deemed come into force on the 25th day of January 1996.

PART I

ARBITRATION

CHAPTER I

GENERAL PROVISIONS

2. Definitions. -

(1) In this Part, unless the context otherwise requires, -

(a) “Arbitration” means any arbitration whether or not administered by

permanent arbitral institution;

(b) “Arbitration agreement” means an agreement referred to in section

(d) “Arbitral tribunal” means a sole arbitrator or a panel of arbitrators;

(e) “Court” means the principal Civil Court of original jurisdiction in a

district, and includes the High Court in exercise of its ordinary

original civil jurisdiction, having, jurisdiction to decide the

questions forming the subject-matter of the arbitration if the same

had been the subject-matter of a suit, but does not include any civil

court of a grade inferior to such principal Civil Court, or any Court

of Small Causes;

(f) “International commercial arbitration” means an arbitration

relating to disputes arising out of legal relationships, whether

contractual or not, considered as commercial under the law in force

in India and where at least one of the parties is-

(i) An individual who is a national of, or habitually resident in,

any country other than India; or

(ii) A body corporate which is in corporate in any on n try

other than India; or

(iii) A company or an association or a body of individuals

whose central management and control is exercised in any

country other than India; or

(iv). The Government of a foreign country;

(g) “Legal representative” means a person who in law represents the

estate of a deceased person, and includes any person who

intermeddles with the estate of the deceased, and, where a party

acts in a representative character, the person on whom the estate

devolves on the death of the party so acting;

(h) “Party” means a party to an arbitration agreement.

Scope

(2) This Part shall apply where the place of arbitration is in India.

(3) This Part shall not affect any other law for the time being in force by

virtue of which certain disputes may not be submitted to arbitration.

(4) This Part except sub-section (1) of section 40, sections 41 and 43 shall

apply to every arbitration under any other enactment for the time being in

force, as if the arbitration were pursuant to an arbitration agreement and as

if that other enactment were an arbitration agreement, except in so far as

the provisions of this Part are inconsistent with that other enactment or

with any rules made thereunder.

(5) Subject to the provisions of sub-section (4), and save in so far as is

otherwise provided by any law for the time being in force or in any

agreement in force between India and any other country or countries, this

Part shall apply to all arbitrations and to all proceedings relating thereto.

Construction of references

(6) Where this Part, except section 28, leaves the parties free to determine a

certain issue, that freedom shall include the right of the parties to authorise

any person including an institution, to determine that issue.

(7) An arbitral award made under this Part shall be considered as a domestic

award.

(8) Where this Part-

(a) Refers to the fact that the parties have agreed or that they may

agree, or

(b) In any other way refers to an agreement of the parties,

That agreement shall include any arbitration rules referred to in that

agreement.

(9) Where this Part, other than clause (a) of section 25 or clause (a) of subsection

(2) of section 32, refers to a claim, it shall also apply to a counterclaim,

and where it refers to a defence, it shall also apply to a defence to

that counter-claim.

3. Receipt of written communications. –

(1) Unless otherwise agreed by the parties, -

(a) Any written communication is deemed to have been received if it

is delivered to the addressee personally or at his place of business,

habitual residence or mailing address, and

(b) If none of the places referred to in clause (a) can be found after

making a reasonable inquiry, a written communication is deemed

to have been received if it is sent to the addressee’s last known

place of business, habitual residence or mailing address by

registered letter or by any other means which provides a record of

the attempt to deliver it.

(2) The communication is deemed to have been received on the day it is so

delivered.

(3) This section does not apply to written communications in respect of

proceedings of any judicial authority.

4. Waiver of right to object. -A party who knows that-

(a) Any provision of this Part from which the parties may derogate, or

(b) Any requirement under the arbitration agreement,

Has not been complied with and yet proceeds with the arbitration without

stating his objection to such non-compliance without undue delay or, if a

the limit is provided for stating that objection, within that period of time,

shall be deemed to have waived his right to so object

5. Extent of judicial intervention. -Notwithstanding anything contained in any

other law for the time being in force, in matter governed by this Part, no judicial

authority shall intervene except where so provided in this Part.

6. Administrative assistance. -In order to facilitate the conduct of the arbitral

proceedings, the parties, or the arbitral tribunal with the consent of the parties,

may arrange for administrative assistance by a suitable institution or person.

CHAPTER II

ARBITRATION AGREEMENT

7. Arbitration agreement. –

(1) In this Part, “arbitration agreement” means an agreement by the parties to

submit to arbitration all or certain disputes which have arisen or which

may arise between them in respect of a defined legal relationship, whether

contractual or not.

(2) An arbitration agreement may be in the form of an arbitration clause in a

contract or in the form of a separate agreement.

(3) An arbitration agreement shall be in writing.

(4) An arbitration agreement is in writing if it is contained in-

(a) A document signed by the parties;

(b) An exchange of letters, telex, telegrams or other means of

telecommunication which provide a record of the agreement; or

existence of the agreement is alleged by one party and not denied

by the other.

(5) There reference in a contract to a document containing an arbitration

clause constitutes an arbitration agreement if the contract is in writing

and the reference is such as to make that arbitration clause part of the

contract.

8. Power to refer parties to arbitration where there is an arbitration agreement.

(1) A judicial authority before which an action is brought in a matter, which is

the subject of an arbitration agreement, shall, if a party so applies not later

than when submitting his first statement on the substance of the dispute,

refer the parties to arbitration.

(2) The application referred to in sub-section (1) shall not be entertained

unless it is accompanied by the original arbitration agreement or a duly

certified copy thereof.

(3) Notwithstanding that an application has been made under sub-section (1)

and that the issue is pending before the judicial authority, an arbitration

may be commenced or continued and an arbitrat award made.

9. Interim measures, etc. by court. -A party may, before or during arbitral

proceedings or at any time after the making of the arbitral award but before it is

enforced in accordance with section 36, apply to a court: -

(i) For the appointment of a guardian for a minor or a person of unsound

mind for the purposes of arbitral proceedings; or

(ii) For an interim measure of protection in respect of any of the following

matters, namely: -

(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;

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

court to be just and convenient,

And the Court shall have the same power for making orders as it has for

the purpose of, and in relation to, any proceedings before it.

CHAPTER III

COMPOSITION OF ARBITRAL TRIBUNAL

10. Number of arbitrators. –

(1) The parties are free to determine the number of arbitrators, provided that

such number shall not be an even number.

(2) Failing the determination referred to in sub-section (1), the arbitral

tribunal shall consist of a sole arbitrator.

11. Appointment of arbitrators. –

(1) A person of any nationality may be an arbitrator, unless otherwise agreed

by the parties.

(2) Subject to sub-section (6), the parties are free to agree on a procedure for

appointing the arbitrator or arbitrators.

(3) Failing any agreement referred to in sub-section (2), in an arbitration with

three arbitrators, each party shall appoint one arbitrator, and the two

appointed arbitrators shall appoint the third arbitrator who shall act as the

presiding arbitrator.

(4) If the appointment procedure in sub-section (3) applies and-

(a) A party fails to appoint an arbitrator within thirty days from the

receipt of a request to do so from the other party; or

(b) The two appointed arbitrators fail to agree on the third arbitrator

within thirty days from the date of their appointment,

The appointment shall be made, upon request of a party, by the Chief

Justice or any person or institution designated by him.

(5) Failing any agreement referred to in sub-section (2), in an arbitration with

a sole arbitrator, if the parties fail to agree on the arbitrator within thirty

days from receipt of a request by one party from the other party to so

agree the appointment shall be made, upon request of a party, by the Chief

Justice or any person or institution designated by him.

(6) Where, under an appointment procedure agreed upon by the parties, -

(a) A party fails to act as required under that procedure; or

(b) The parties, or the two appointed arbitrators, fail to reach an

agreement expected of them under that procedure; or

entrusted to him or it under that procedure,

A party may request the Chief Justice or any person or institution

designated by him to take the necessary measure, unless the agreement on

the appointment procedure provides other means for securing the

appointment.

(7) A decision on a matter entrusted by sub-section (4) or sub-section (5) or

sub-section (6) to the Chief Justice or the person or institution designated

by him is final.

(8) The Chief Justice or the person or institution designated by him, in

appointing an arbitrator, shall have due regard to-

(a) Any qualifications required of the arbitrator by the agreement of

the parties; and

(b) Other considerations as are likely to secure the appointment of an

independent and impartial arbitrator.

(9) In the case of appointment of sole or third arbitrator in an international

commercial arbitration, the Chief Justice of India or the person or

institution designated by him may appoint an arbitrator of a nationality

other than the nationalities of the parties where the parties belong to

different nationalities.

(10) The Chief Justice may make such scheme, as he may deem appropriate for

dealing with matters entrusted by sub-section (4) or sub-section (5) or subsection

(6) to him.

(11) Where more than one request has been made under sub-section (4) or subsection

(5) or sub-section (6) to the Chief Justices of different High Courts

or their designates, the Chief Justice or his designate to whom the request

has been first made under the relevant subsection shall alone be competent

to decide on the request.

(12) (a) Where the matters referred to in sub-sections (4), (5), (6), (7),(8)

and (10) arise in an international commercial arbitration, the

reference to “Chief Justice” in those subsections shall be construed

as a reference to the “Chief Justice of India”.

(b) Where the matters referred to in sub-sections (4), (5), (6), (7), (8)

and (10) arise in any other arbitration, the reference to “Chief

Justice” in those sub-sections shall be construed as a reference to

the Chief Justice of the High Court within whose local limits the

principal Civil Court referred to in clause (e) of sub-section (1) of

section 2 is situate and, where the High Court itself is the Court

referred to in that clause, to the Chief Justice of that High Court.

12. Grounds for challenge. -

(1) When a person is approached in connection with his possible appointment

as an arbitrator, he shall disclose in writing any circumstances likely to

give rise to justifiable doubts as to his independence or impartiality.

(2) An arbitrator, from the time of his appointment and throughout the arbitral

proceedings, shall, without delay, disclose to the parties in writing any

circumstances referred to in sub-section (1) unless they have already been

informed of them by him.

(3) An arbitrator may be challenged only if-

(a) Circumstances exist that give rise to justifiable doubts as to his

independence or impartiality, or

(b) He does not possess the qualifications agreed to by the parties.

(4) 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.

13. Challenge procedure. –

(1) Subject to sub-section (4), the parties are free to agree on a procedure for

challenging an arbitrator.

(2) Failing any agreement referred to in sub-section (1), a party who intends

to challenge an arbitrator shall, within fifteen days after becoming aware

of the constitution of the arbitral tribunal or after becoming aware of any

circumstances referred to in sub-section (3) of section 12, send a written

statement of the reasons for the challenge to the arbitral tribunal.

(3) Unless the arbitrator challenged under sub-section (2) withdraws from his

office or the other party agrees to the challenge, the arbitrat tribunal shall

decide on the challenge.

(4) If a challenge under any procedure agreed upon by the parties or under the

procedure under sub-section (2) is not successful, the arbitral tribunal shall

continue the arbitral proceedings and make an arbitral award.

(5) Where an arbitral award is made under sub-section (4), the party

challenging the arbitrator may make an application for setting aside such

an arbitral award in accordance with section 34.

(6) Where an arbitral award is set aside on an application made under subsection

(5), the court may decide as to whether the arbitrator who is

challenged is entitled to any fees.

14. Failure or impossibility to act. –

(1) The mandate of an arbitrator shall terminate if-

(a) He becomes de jure or de facto unable to perform his functions or

for other reasons fails to act without undue delay; and

(b) He withdraws from his office or the parties agree to the

termination of his mandate.

(2) If a controversy remains concerning any of the grounds refer-red to in

clause (a) of sub-section (1), a party may, unless otherwise agreed by the

parties, apply to the court to decide on the termination of the mandate.

(3) If, under this section or sub-section (3) of section 13, an arbitrator

withdraws from his office or a party agrees to the termination of the

mandate of an arbitrator, it shall not imply acceptance of the validity of

any ground referred to in this section or sub-section (3) of section 12.

15. Termination of mandate and substitution of arbitrator. -

(1) In addition to the circumstances referred to in section 13 or section 14, the

mandate of an arbitrator shall terminate(

a) Where he withdraws from office for any reason; or

(b) By or pursuant to agreement of the parties.

(2) Where the mandate of an arbitrator terminates, a substitute arbitrator shall

be appointed according to the rules that were applicable to the

appointment of the arbitrator being replaced.

(3) Unless otherwise agreed by the parties, where an arbitrator is replaced

under subsection (2), any hearings previously held may be repeated at the

discretion of the arbitral tribunal.

(4) Unless otherwise agreed by the parties, an order or ruling of the arbitral

tribunal made prior to the replacement of an arbitrator under this section

shall not be invalid solely because there has been a change in the

composition of the arbitral tribunal.

CHAPTER IV

JURISDICTION OF ARBITRAL TRIBUNALS

16. Competence of arbitral tribunal to rule on its jurisdictional. -

(1) 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 that 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; and

(b) A decision by the arbitral tribunal that the contract is null and void

shall not entail ipso jure the invalidity of the arbitration clause.

(2) A plea that the arbitral tribunal does not have jurisdiction shall be raised

not later than the submission of the statement of defence; however, a party

shall not be precluded from raising such a plea merely because that he has

appointed, or participated in the appointment of, an arbitrator.

(3) A plea that the arbitral tribunal is exceeding the scope of its authority shall

be raise as soon as the matter alleged to be beyond the scope of its

authority is raised during the arbitral proceedings.

(4) The arbitral tribunal may, in either of the cases referred to in sub-section

(2) or subsection (3), admit a later plea if it considers the delay justified.

(5) The arbitral tribunal shall decide on a plea referred to in sub-section (2) or

sub-section (3) and, where the arbitral tribunal takes a decision rejecting

the plea, continue with the arbitral proceedings and make an arbitral

award.

(6) A party aggrieved by such an arbitral award may make an application

forgetting aside such an arbitral award in accordance with section 34.

17. Interim measures ordered by arbitral tribunal. –

(1) Unless otherwise agreed by the parties, the arbitral tribunal may, at the

request of a party, order a party to take any interim measure of protection

as the arbitral tribunal may consider necessary in respect of the subjectmatter

of the dispute.

(2) The arbitral tribunal may require a party to provide appropriate security in

connection with a measure ordered under sub-section (1).

CHAPTER V

CONDUCT OF ARBITRAL PROCEEDINGS

18. Equal treatment of parties. –The parties shall be treated with equality and each

party shall be given a full opportunity to present his case.

19. Determination of rules of procedure. –

(1) The arbitral tribunal shall not be bound by the Code of Civil Procedure,

1908 (5 of 1908) or the Indian Evidence Act, 1872 (I of 1872).

(2) Subject to this Part, the parties are free to agree on the procedure to be

followed by the arbitral tribunal in conducting its proceedings.

(3) Failing any agreement referred to in sub-section (2), the arbitral tribunal

may, subject to this Part, conduct the proceedings in the manner it

considers appropriate.

(4) The power of the arbitral tribunal under sub-section (3) includes the power

to determine the admissibility, relevance, materiality and weight of any

evidence.

20. Place of arbitration. –

(1) The parties are free to agree on the place of arbitration.

(2) Failing any agreement referred to in sub-section (1), the place of

arbitration shall be determined by the arbitral tribunal having regard to the

circumstances of the case, including the convenience of the parties.

(3) Notwithstanding sub-section (1) or sub-section (2), the arbitral tribunal

may, unless otherwise agreed by the parties, meet at any place it considers

appropriate for consultation among its members, for hearing witnesses,

experts or the parties, or for inspection of documents, goods or other

property.

21. Commencement of arbitral proceedings. -Unless otherwise agreed by the

parties, the arbitral proceedings in respect of a particular dispute commence on

the date on which a request for that dispute to be referred to arbitration is received

by the respondent.

22. Language. -

(1) The parties are free to agree upon the language or languages to be used in

the arbitral proceedings.

(2) Failing any agreement referred to in sub-section (1), the arbitral tribunal

shall determine the language or languages to be used in the arbitral

proceedings.

(3) The agreement or determination, unless otherwise specified, shall apply to

any written statement by a party, any hearing and any arbitral award,

decision or other communication by the arbitral tribunal.

(4) The arbitral tribunal may order that any documentary evidence shall be

accompanied by a translation into the language or languages agreed upon

by the parties or determined by the arbitral tribunal.

23. Statements of claim and defence. -

(1) Within the period of time agreed upon by the parties or determined by the

arbitral tribunal, the claimant shall state the facts supporting his claim, the

points at issue and the relief or remedy sought, and the respondent shall

state his defence in respect of these particulars, unless the parties have

otherwise agreed as to the required elements of those statements.

(2) The parties may submit with their statements all documents they consider

to be relevant or may add a reference to the documents or other evidence

they will submit.

(3) Unless otherwise agreed by the parties, either party may amend or

supplement his claim or defence during the course of the arbitral

proceedings, unless the arbitral tribunal considers it inappropriate to allow

the amendment or supplement having regard to the delay in making it.

24. Hearings and written proceedings. –

(1) Unless otherwise agreed by the parties, the arbitral tribunal shall decide

whether to hold oral hearings for the presentation of evidence or for or a

argument, or whether the proceedings shall be conducted on the basis of

documents and other materials:

Provided that the arbitrat tribunal shall hold oral hearings, at an

appropriate state of the proceedings, on a request by a party, unless the

parties have agreed that no oral hearing shall be held.

(2) The parties shall be given sufficient advance notice of any hearing and of

any meeting of the arbitral tribunal for the purposes of inspection of

documents, goods or other property-

(3) All statements, documents or other information supplied to, or

applications made to the arbitral tribunal by one party shall be

communicated to the other party, and any expert report or evidentiary

document on which the arbitral tribunal may rely in making its decision

shall be communicated to the parties.

25. Default of a party. -Unless otherwise agreed by the parties, where, without

showing sufficient cause, -

(a) The claimant fails to communicate his statement of claim in accordance

with subsection (1) of section (2), the arbitral tribunal shall terminate the

proceedings;

(b) The respondent fails to communicate his statement of defence in

accordance with sub-section (1) of section 23, the arbitral tribunal shall

continue the proceedings without treating that failure in itself as an

admission of the alienations by the claimant;

evidence, the arbitral tribunal may continue the proceedings and make the

arbitrat award on the evidence before it.

26. Expert appointment by arbitral tribunal. –

(1) Unless otherwise agreed by the parties, the arbitral tribunal may-

(a) Appoint one or more experts to report to it on specific issues to be

determined by the arbitral tribunal, and

(b) Require a party to give the expert any relevant information or to

produce, or to provide access to, any relevant documents, goods or

other property for his inspection.

(2) Unless otherwise agreed by the parties, if a party so requests or if the

arbitral tribunal considers it necessary, the expert shall, after delivery of

his written or oral report, participate in an oral hearing where the parties

have the opportunity to put questions to him and to present expert

witnesses in order to testify on the points at issue.

(3) Unless otherwise agreed by the parties, the expert shall, on the request of a

party, make available to that party for examination all documents, goods

or other property in the possession of the expert with which he was

provided in order to prepare his report.

27. Court assistance in taking evidence. –

(1) The arbitral tribunal, or a party with the approval of the arbitral tribunal,

may apply to the court for assistance in taking evidence.

(2) The application shall specify-

(a) The names and addresses of the parties and the arbitrators;

(b) The general nature of the claim and the relief sought;

(i) The name and address of any person to be beard as witness

or expert witness and a statement of the subject-matter of

the testimony required;

(ii) The description of any document to be produced or

property to be inspected.

(3) The court may, within its competence and according to its rules on taking

evidence, execute the request by ordering that the evidence be provided

directly to the arbitral tribunal.

(4) The court may, while making an order under sub-section (3), issue the

same processes to witnesses as it may issue in suits tried before it.

(5) Persons failing to attend in accordance with such process, or making any

other default, or refusing to give their evidence, or guilty of any contempt

to the arbitral tribunal during the conduct of arbitral proceedings, shall be

subject to the like disadvantages, penalties and punishments by order of

the court on the representation of the arbitral tribunal as they would incur

for the like offences in suits tried before the court.

(6) In this section the expression “Processes” includes summonses and

commissions for the examination of witnesses and summonses to produce

documents.

CHAPTER-VI

MAKING OF ARBITRAL AWARD AND TERMINATION OF

PROCEEDINGS

28. Rules applicable to substance of dispute. –

(1) Where the place of arbitration is situate in India, -

(a) In an arbitration other than an international commercial arbitration,

the arbitral tribunal shall decide the dispute submitted to arbitration

in accordance with the substantive law for the time being in force

in India;

(b) In international commercial arbitration, -

(i) The arbitrat tribunal shall decide the dispute in accordance

with the rules of law designated by the parties as applicable

to the substances of the dispute;

(ii) Any designation by the p arties of the law or legal system

of a given country shall be construed, unless otherwise

expressed, as directly referring to the substantive law of

that country and not to its conflict of laws rules;

(iii) Failing any designation of the law under clause (a) by the parties,

the arbitrat tribunal shall apply the rules of law it considers to be

appropriate, given all the circumstances surrounding the dispute.

(2) The arbitral tribunal shall decide ex aequo et bono or as amiable

compositeur only if the parties have expressly authorised it to do so.

(3) In all cases, the arbitral tribunal shall decide in accordance with the terms

of the contract and shall take into account the usages of the trade

applicable to the transaction.

29. Decision making by panel of arbitrators. -

(1) Unless otherwise a-reed by the parties, in arbitral proceedings with more

than one arbitrator, any decision of the arbitrat tribunal shall be made by a

majority of all its members.

(2) Notwithstanding sub-section (1), if authorised by the parties or all the

members of the arbitrat tribunal, questions of procedure may be decided

by the presiding, arbitrator.

30. Settlement. –

(1) It is not incompatible with an arbitration agreement for an arbitrat tribunal

to encourage settlement of the dispute and, with the agreement of the

parties; the arbitrat tribunal may use mediation, conciliation or other

procedures at any time during the arbitral proceedings to encourage

settlement.

(2) If, during, arbitral proceedings, the parties settle the dispute, the arbitral

tribunal shall terminate the proceedings and, if requested by the parties

and not objected to by the arbitral tribunal, record the settlement in the

form of an arbitrat award on agreed terms.

(3) An arbitral award on agreed terms shall be made in accordance with

section 31 and shall state that it is an arbitrat award.

(4) An arbitrat award on a-reed terms shall have the same status and effect as

any other arbitral award on the substance of the dispute.

31. Form and contents of arbitral award. –

(1) An arbitral award shall be made in writing and shall be signed by the

members of the arbitral tribunal.

(2) For the purposes of sub-section (1), in arbitrat proceeding with more than

one arbitrator, the signatures of the majority of all the members of the

arbitral tribunal shall be sufficient so long as the reason for any omitted

signature is stated.

(3) The arbitral award shall state the reasons upon which it is based, unless-

(a) The parties have agreed that no reasons are to be given, or

(b) The award is an arbitral award on a-reed terms under section 30.

(4) The arbitral award shall state its date and the place of arbitration as

determined in accordance with section 20 and the award shall be deemed

to have been made at that place.

(5) After the arbitral award is made, a signed copy shall be delivered to each

party.

(6) The arbitral tribunal may, at any time during the arbitral proceedings,

make an interim arbitral award on any matter with respect to which it may

make a final arbitral award.

(7) (a) Unless otherwise a reed by the parties, where and in so far as an

arbitral award is for the payment of money, the arbitral tribunal

may include in the sum for which the award is made interest, at

such rate as it deems reasonable, on the whole or any part of the

money, for the whole or any part of the period between the date on

which the cause of action arose and the date on which the award is

made.

(b) A sum directed to be paid by an arbitral award shall, unless the

award otherwise directs, carry interest at the rate of eighteen

percentum per annum from the date of the award to the date of

payment.

(8) Unless otherwise agreed by the parties, -

(a) The costs of an arbitration shall be fixed by the arbitral tribunal

(b) The arbitral tribunal shall specify-

(i) The party entitled to costs,

(ii) The party who shall pay the costs,

(iii) The amount of costs or method of determining that amount,

and

(iv) The manner in which the costs shall be paid.

Explanation. -For the purpose of clause (a), “costs” means reasonable costs

relating to-

(i) The fees and expenses of the arbitrators and witnesses,

(ii) Legal fees and expenses,

(iii) Any administration fees of the institution supervising the

arbitration, and

(iv) Any other expenses incurred in connection with the arbitral

proceeding and the arbitral award.

32. Termination of proceedings. –

(1) The arbitral proceeding shall be terminated by the final arbitral award or

by all order of the arbitral tribunal under subsection (2).

(2) The arbitral tribunal shall issue an order for the termination of the arbitral

proceedings where-

(a) The claimant withdraws his claim, unless the respondent objects to

the order and the arbitral tribunal recognizes a legitimate interest

on his part in obtaining a final settlement of the dispute,

(b) The parties agree on the termination of the proceedings as, or

any other reason become unnecessary or impossible.

(3) Subject to section 33 and sub-section (4) of section 34, the mandate of the

arbitral tribunal shall terminate with the termination of the arbitral

proceedings.

33. Correction and interpretation of award; additional award. –

(1) Within thirty days from the receipt of the arbitral award, unless another

period of time has been agreed upon by the parties-

(a) A party, with notice to the other party, may request the arbitral

tribunal to correct any computation errors, any clerical or

typographical errors or any other errors of a similar nature

occurring in the award;

(b) If so agreed by the parties, a party, with notice to the other party,

may request the arbitral tribunal to give an interpretation of a

specific point or part of the award.

(2) If the arbitral tribunal considers the request made under sub-section (1) to

be justified, it shall make the correction or give the interpretation within

thirty days from the receipt of the request and the interpretation shall form

part of the arbitral award.

(3) The arbitral tribunal may correct any error of the type referred to in clause

(a) of subsection (1), on its own initiative, within thirty days from the date

of the arbitral award.

(4) Unless otherwise a-reed by the parties, a party with notice to the other

party, may request, within thirty days from the receipt of the arbitral

award, the arbitral tribunal to make an additional arbitral award as to

claims presented in the arbitral proceedings but omitted from the arbitral

award.

(5) If the arbitral tribunal considers the request made under sub-section (4) to

be justified, it shall make the additional arbitral award within sixty days

from the receipt of such request.

(6) The arbitral tribunal may extend, if necessary, the period of time with in

which it shall make a correction, give an interpretation or make an

additional arbitral award under sub-section (2) or sub-section (5).

(7) Section 31 shall apply to a correction or interpretation of the arbitral award

or to an additional arbitral award made under this section.

CHAPTER VII

RECOURSE AGAINST ARBITRAL AWARD

34. Application for setting aside arbitral award. –

(1) Recourse to a court against an arbitral award may be made only by an

application for setting aside such award in accordance with sub-section (2)

and subsection (3).

(2) An arbitral award may be set aside by the court only if-

(a) The party making the application furnishes proof that-

(i) A party was under some incapacity, or

(ii) The arbitration agreement is not valid under the law to

which the parties have subjected it or, failing any indication

thereon, under the law for the time being in force; or

(iii) The party making the application was not given proper

notice of the appointment of an arbitrator or of the arbitral

proceedings or was otherwise unable to present his case; or

(iv) The arbitral award deals with a dispute not contemplated by

or not falling within the terms of the submission to

arbitration, or it contains decisions on matters beyond the

scope of the submission to arbitration:

Provided that, if the decisions on matters submitted to arbitration can be

separated from those not so submitted, only that part of the arbitral award

which contains decisions on matters not submitted to arbitration may be

set aside; or

(v) The composition of the arbitral tribunal or the arbitral procedure

was not in accordance with the agreement of the parties, unless

such agreement was in conflict with a provision of this Part from

which the parties cannot derogate, or, failing such agreement, was

not in accordance with this Part; or

(b) The court finds that-

(i) The subject-matter of the dispute is not capable of

settlement by arbitration under the law for the time being in

force, or

(ii) The arbitral award is in conflict with the public policy of India.

Explanation. -Without prejudice to the generality of sub-clause (ii), it is

hereby declared, for the avoidance of any doubt, that an award is in

conflict with the public policy of India if the making of the award was

induced or affected by fraud or corruption or was in violation of section 75

or section 81.

(3) An application for setting aside may not be made after three months have

elapsed from the date on which the party making that application had

received the arbitral award or, if a request had been made under section

33, from the date on which that request had been disposed of by the

arbitral tribunal:

Provided that if the court is satisfied that the applicant was prevented by

sufficient cause from making the application within the said period of

three months it may entertain the application within a further period of

thirty days, but not thereafter.

(4) On receipt of an application under sub-section (1), the court may, where it

is appropriate and it is so requested by a party, adjourn the proceedings for

a period of time determined by it in order to give the arbitral tribunal an

opportunity to resume the arbitral proceedings or to take such other action

as in the opinion of arbitral tribunal will eliminate the grounds for setting

aside the arbitral award.

CHAPTER VIII

FINALITY AND ENFORCEMENT OF ARBITRAL AWARDS

35. Finality of arbitral awards. -Subject to this Part an arbitral award shall be final

and binding on the parties and persons, claiming under them respectively.

36. Enforcement. - Where the time for making an application to set aside the arbitral

award under section 34 has expired, or such application having been made, it has

been refused, the award shall be enforced under the Code of Civil Procedure,

1908 (5 of 1908) in the same manner as if it were a decree of the court.

CHAPTER IX

APPEALS

37. Appealable orders. –

(1) An appeal shall lie from the following orders (and from no others) to the

court authorised by law to hear appeals from original decrees of the court

passing the order, namely: -

(a) Granting or refusing to grant any measure under section 9;

(b) Setting aside or refusing to set aside an arbitral award under

section 34.

(2) An appeal shall also lie to a court from an order of the arbitral tribunal--

(a) Accepting the plea referred to in sub-section (2) or sub-section (3)

of section 16; or

(b) Granting or refusing to grant an interim measure under section 17.

(3) No second appeal shall lie from an order passed in appeal under this

section, but nothing in this section shall affect or take away any right to

appeal to the Supreme Court.

CHAPTER X

MISCELLANEOUS

38. Deposits. –

(1) The arbitral tribunal may-fix the amount of the deposit or supplementary

deposit, as the case may be, as an advance for the costs referred to in subsection

(8) of section 31, which it expects will be incurred in respect of the

claim submitted to it:

Provided that where, apart from the claim, a counter-claim has been

submitted to the arbitrat tribunal, it may fix separate amount of deposit for

the claim and counter claim.

(2) The deposit referred to in sub-section (1) shall be payable in equal shares

by the parties:

Provided that where one party fails to pay his share of the deposit, the

other party may pay that share:

Provided further that where the other party also does not pay the aforesaid

share in respect of the claim or the counter-claim, the arbitral tribunal may

suspend or terminate the arbitral proceedings in respect of such claim or

counter-claim, as the case may be.

Upon termination of the arbitral proceedings, the arbitral tribunal shall render an

accounting to the parties of the deposits received and shall return any unexpended

balance to the party or parties’, as the case may be.

39. Lien on arbitral award and deposits as to costs. –

(1) Subject to the provisions of sub-section (2) and to any provision to the

contrary in the arbitration agreement, the arbitral tribunal shall have a lien

on the arbitral award for any unpaid costs of the arbitration.

(2) (2) If in any case an arbitral tribunal refuses to deliver its award except on

payment of the costs demanded by it, the court may, on an application in

this behalf, order that the arbitral tribunal shall deliver the arbitral award

to the applicant on payment into court by the applicant of the costs

demanded, and shall, after such inquiry, if any, as it thinks fit, further

order that out of the money so paid into court there shall be paid to the

arbitral tribunal by way of costs such sum as the court may consider

reasonable and that the balance of the money, if any, shall be refunded to

the applicant.

(3) An application under sub-section (2) may be made by any party unless the

fees demanded have been fixed by written agreement between him and the

arbitral tribunal, and the arbitral tribunal shall be entitled to appear and be

heard on any such application.

(4) The court may make such orders as it thinks fit respecting the costs of the

arbitration where any question arises respecting such costs and the arbitral

award contains no sufficient provision concerning them.

40. Arbitration agreement not to be discharged by death of party thereto. –

(1) An arbitration agreement shall not be discharged by the death of any party

thereto either as respects the deceased or as respects any other party, but

shall in such event be enforceable by or against the legal representative of

the deceased.

(2) The mandate of an arbitrator shall not be terminated by the death of any

party by whom he was appointed.

(3) Nothing in this section shall affect the operation of any law by virtue of

which any right of action is extinguished by the death of a person.

41. Provisions in case of insolvency. –

(1) Where it is provided by a term in a contract to which an insolvent is a

party that any dispute arising there out or in connection therewith shall be

submitted to arbitration, the said term shall, if the receiver adopts the

contract, be enforceable by or against him so far as it relates to any such

dispute.

(2) Where a person who has been adjudged an insolvent had, before the

commencement of the insolvency proceedings, become a party to an

arbitration agreement, and any matter to which the agreement applies is

required to be determined in connection with, or for the purposes of, the

insolvency proceedings, then, if the case is one to which sub-section (1)

does not apply, any other party or the receiver may apply to the judicial

authority having jurisdiction in the insolvency proceedings for an order

directing that the matter in question shall be submitted to arbitration in

accordance with the arbitration agreement, and the judicial authority may,

if it is of opinion that, having regard to all the circumstances of the case,

the matter ought to be determined by arbitration, make an order

accordingly.

(3) In this section the expression “receiver” includes an Official Assignee.

42. Jurisdiction. -Notwithstanding anything contained elsewhere in this Part or in

any other law for the time being in force, where with respect to an arbitration

agreement any application under this Part has been made in a court, that court

alone shall have jurisdiction over the arbitral proceedings and all subsequent

applications arising out of that agreement and the arbitral proceedings shall be

made in that court and in no other court.

43. Limitations. –

(1) The Limitation Act, 1963 (36 of 1963), shall apply to arbitrations as it

applies to proceedings in court.

(2) For the purposes of this section and the Limitation Act, 1963 (36 of 1963),

an arbitration shall be deemed to have commenced on the date referred in

section 21.

(3) Where an arbitration agreement to submit future disputes to arbitration

provides that any claim to which the agreement applies shall be barred

unless some step to commence arbitral proceedings is taken within a time

fixed by the agreement, and a dispute arises to which the agreement

applies, the court, if it is of opinion that in the circumstances of the case

undue hardship would otherwise be caused, and notwithstanding that the

time so fixed has expired, may on such terms, if any, as the justice of the

case may require, extend the time for such period as it thinks proper.

(4) Where the court orders that an arbitral award be set aside, the period

between the commencement of the arbitration and the date of the order of

the court shall be excluded in computing the time prescribed by the

Limitation Act, 1963 (3 6 of 1963), for the commencement of the

proceedings (including arbitration) with respect to the dispute so

submitted.

PART II

ENFORCEMENT OF CERTAIN FOREIGN AWARDS

CHAPTER I

NEW YORK CONVENTION AWARDS

44. Definition. -In this Chapter, unless the context otherwise requires, “foreign

award” means an arbitral award on differences between persons arising out of

legal relationships, whether contractual or not, considered as commercial under

the law in force in India, made on or after the 11th day of October, 1960-

(a) In pursuance of an agreement in writing for arbitration to which the

Convention set forth in the First Schedule applies, and

(b) In one of such territories as the Central Government, being satisfied that

reciprocal provisions have been made may, by notification in the Official

Gazette, declare to be territories to which the said Convention applies.

45. Power of judicial authority to refer parties to arbitration. -Notwithstanding

anything contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908) a

judicial authority, when seized of an action in a matter in respect of which the

parties have made an agreement referred to in section 44, shall, at the request of

one of the parties or any person claiming through or under him, refer the parties to

arbitration, unless it finds that the said agreement is null and void, inoperative or

incapable of being performed.

46. When foreign award binding. - Any foreign award which would be, enforceable

under this Chapter shall be treated as binding for all purposes on the persons as

between whom it was made, and may accordingly be relied on by any of those

persons by way of defence, set off or otherwise in any legal proceedings in India

and any references in this Chapter to enforcing a foreign award shall be construed

as including references to relying on; an award.

47. Evidence. –

(1) The party applying for the enforcement of a foreign award shall, at the

time of the application, produces before the court-

(a) The original award or a copy thereof, duly authenticated in the

manner required by the law of the country in which it was made;

(b) The original agreement for arbitration or a duly certified copy

thereof, and

foreign award.

(2) If the award or agreement to be produced under sub-section (1) is in a

foreign language, the party seeking to enforce the award shall produce a

translation into English certified as correct by a diplomatic or consular

agent of the country to which that party belongs or certified as correct in

such other manner as may be sufficient according to the law in force in

India.

Explanation. -In this section and all the following sections of this

Chapter, “Court” means the principal Civil Court of original jurisdiction in

a district, and includes the High Court in exercise of its ordinary original

civil jurisdiction, having jurisdiction over the subject-matter of the award

if the same had been the subject-matter of a suit, but does not include any

civil court of a grade inferior to) such principal Civil Court, or any Court

of Small, Causes.

48. Conditions for enforcement of foreign awards. –

(1) Enforcement of a foreign award may be refused, at the request of the party

against whom it is invoked, only if that party furnishes to the court proof

that-

(a) The parties to the agreement referred to in section 44 were, under

the law applicable to them, under some incapacity, or the said

agreement is not valid under the law to which the parties have

subjected it or, failing any indication thereon, under the law of the

country where the award was made; or

(b) The party against whom the award is invoked was not given proper

notice of the appointment of the arbitrator or of the arbitral

proceedings or was otherwise unable to present his case; or

falling within the terms of the submission to arbitration, or it

contains decisions on matters beyond the scope of the submission

to arbitration:

Provided that, if the decisions on matters submitted to arbitration can be

separated from those not so submitted, that part of the award which

contains decisions on matters submitted to arbitration may be enforced; or

(d) The composition of the arbitral authority or the arbitral procedure

was not in accordance with the agreement of the parties, or, failing

such agreement, was not in accordance with the law of the country

where the arbitration took place; or

(e) The award has not yet become binding on the parties, or has been

set aside or suspended by a competent authority of the country in

which, or under the law of which, that award was made.

(2) Enforcement of an arbitral award may also be refused if the court finds

that-

(a) The subject-matter of the difference is not capable of settlement by

arbitration under the law of India; or

(b) The enforcement of the award would be contrary to the public

policy of India.

Explanation. -Without prejudice to the generality of clause (b) of this

section, it is hereby declared, for the avoidance of any doubt, that an

award is in conflict with the public policy of India if the making of the

award was induced or affected by fraud or corruption.

(3) If an application for the setting aside or suspension of the award has been

made to a competent authority referred to in clause (e) of sub-section (1)

the court may, if it considers it proper, adjourn the decision on the

enforcement of the award and may also, on the application of the party

claiming enforcement of the award, order the other party to give suitable

security.

49. Enforcement of foreign awards. -Where the court is satisfied that the foreign

award is enforceable under this Chapter, the award shall be deemed to be a decree

of that court.

50. Appealable orders. –

(1) An appeal shall lie from the order refusing to-

(a) Refer the parties to arbitration under section 45;

(b) Enforce a foreign award under section 48, to the court authorised

by law to hear appeals from such order.

(2) No second appeal shall lie from an order passed in appeal under this

section, but nothing in this section shall affect or take away any right to

appeal to the Supreme Court.

51. Saving. –Nothing in this Chapter shall prejudice any rights, which any person

would have had of enforcing in India of any award or of availing himself in India

of any award if this Chapter had not been enacted.

52. Chapter II not to apply. -Chapter II of this Part shall not apply in relation to

foreign awards to which this Chapter applies.

CHAPTER II

GENEVA CONVENTION AWARDS

53. Interpretation. -In this Chapter “foreign award” means an arbitral award on

differences relating to matters considered as commercial under the law in force in

India made after the 28th day of July, 1924, -

(a) In pursuance of an agreement for arbitration to which the Protocol set

forth in the Second Schedule applies, and

(b) Between persons of whom one is subject to the jurisdiction of some one of

such Powers as the Central Government, being satisfied that reciprocal

provisions have been made, may, by notification in the Official Gazette,

declare to be parties to the Convention set forth in the Third Schedule, and

of whom the other is subject to the jurisdiction of some other of the

Powers aforesaid, and

reciprocal provisions have been made, may, by like notification, declare to

be territories, to which the said Convention applies, And for the purposes

of this Chapter an award shall not be deemed to be final if any proceedings

for the purpose of contesting the validity of the award are pending in the

country in which it was made

54. Power of judicial authority to refer parties to arbitration. -Notwithstanding

anything contained in Part I or in the Code of Civil Procedure, 1908 (5 of 1908), a

judicial authority, on being seized of a dispute regarding a contract made between

persons to whom section 53 applies and including an arbitration agreement,

whether referring to present or future differences, which is valid under that

section and capable of being carried into effect, shall refer the parties on the

application, of either of them or any person claiming through or under him to the

decision of the arbitrators and such reference shall not prejudice the competence

of the judicial authority in case the agreement or the arbitration cannot proceed or

becomes inoperative.

55. Foreign awards when binding. -Any foreign award which would be enforceable

under this Chapter shall be treated as binding for all purposes on the persons as

between whom it was made, and may accordingly be relied on by any of those

persons by way of defence, set off or otherwise in any legal proceedings in India

and any references in this Chapter to enforcing a foreign award shall be construed

as including references to relying on an award.

56. Evidence. –

(1) The party applying for the enforcement of a foreign award shall, at the

time of application, produces before the court-

(a) The original award or a copy thereof duly authenticated in the

manner required by the law of the country in which it was made;

(b) Evidence proving that the award has become final; and

mentioned in clauses (a) and (c) of sub-section (1) of section 57 are

satisfied.

(2) Where any document requiring to be produced under sub-section (1) is in

a foreign language, the party seeking to enforce the award shall produce a

translation into English certified as correct by a diplomatic or consular

agent of the country to which that party belongs or certified as correct in

such other manner as may be sufficient according to the law in force in

India.

Explanation. –In this section and all the following sections of this

Chapter, “Court” means the principal Civil Court of original jurisdiction in

a district, and includes the High Court in exercise of its ordinary original

civil jurisdiction, having jurisdiction over the subject-matter of the award

if the same had been the subject-matter of a suit, but does not include any

civil court of a grade inferior to such principal ‘Civil Court, or any Court

of Small Causes.

57. Conditions for enforcement of foreign awards. –

(1) In order that a foreign award may be enforceable under this Chapter, it

shall be necessary that-

(a) The award has been made in pursuance of a submission to

arbitration, which is valid under the law applicable thereto;

(b) The subject-matter of the award is capable of settlement by

arbitration under the law of India;

the submission to arbitration or constituted in the manner agreed

upon by the parties and in conformity with the law governing the

arbitration procedure;

(d) The award has become final in the country in which it has been

made, in the sense that it will not be considered as such if it is open

to, opposition or appeal or if it is proved that any proceedings for

the purpose of contesting the validity of the award are pending;

(e) The enforcement of the award is not contrary to the public policy

or the law of India.

Explanation. -Without prejudice to the generality of clause (e), it is hereby

declared, for the avoidance of any doubt, that an award is in conflict with the

public policy of India if the making of the award was induced or affected by fraud

or corruption.

(2) Even if the conditions laid down in sub-section (1) are fulfilled,

enforcement of the award shall be refused if the court is satisfied that-

(a) The award has been annulled in the country in which it was made;

(b) The party against whom it is sought to use the award was not given

notice of the arbitration proceedings in sufficient time to enable

him to present his case; or that, being under a legal incapacity, he

was not properly represented;

falling within the terms of the submission to arbitration or that it

contains decisions on matters beyond the scope of the submission

to arbitration:

Provided that if the award has not covered all the differences submitted to

the arbitral tribunal, the court may, if it thinks fit, postpone such

enforcement or grant it subject to such guarantee as the court may decide.

(3) If the party against whom the award has been made proves that under the

law governing the arbitration procedure there is a ground, other than the

grounds referred to in clauses (a) and (c) of sub-section (1) and clauses (b)

and (c) of sub-section (2) entitling him to contest the validity of the award,

the court may, if it thinks fit, either refuse enforcement of the award or

adjourn the consideration thereof, giving such party a reasonable time

within which to have the award annulled by the competent tribunal.

58. Enforcement of foreign awards. -Where the court is satisfied that the foreign

award is enforceable under this Chapter, the award shall be deemed to be a decree

of the court.

59. Appealable orders. –

(1) An appeal shall lie from the order refusing-

(a) To refer the parties to arbitration under section 54; and

(b) To enforce a foreign award under section 57, to the court

authorised by law to hear appeals from such order.

(2) No second appeal shall lie from an order passed in appeal under this

section, but nothing in this section shall affect or take away any right to

appeal to the Supreme Court. .

60. Saving-Nothing in this Chapter shall prejudice any right, which any person would

have had of enforcing in India of any award or of availing himself in India of any

award if this Chapter had not been enacted.

PART III

CONCILIATION

61. Application and scope. -

(1) Save as otherwise provided by any law for the time being in force and

unless the parties have otherwise agreed, this Part shall apply to

conciliation of disputes arising out of legal relationship, whether

contractual or not and to all proceedings relating thereto.

(2) This Part shall not apply where by virtue of any law for the time being in

force certain disputes may not be submitted to conciliation.

62. Commencement of conciliation proceedings. –

(1) The party initiating conciliation shall send to the other party a written

invitation to conciliate under this Part, briefly identifying the subject of the

dispute.

(2) Conciliation proceedings shall commence when the other party accepts in

writing the invitation to conciliate.

(3) If the other party rejects the invitation, there will be no conciliation

proceedings.

(4) If the party initiating conciliation does not receive a reply within thirty

days from the date on which he sends the invitation, or within such other

period of time as specified in the invitation, he may elect to treat this as a

rejection of the invitation to conciliate and if he so elects, he shall inform

in writing the other party accordingly.

63. Number of conciliators. –

(1) There shall be one conciliator unless the parties agree that there shall be

two or three conciliators.

(2) Where there is more than one conciliator, they ought, as a general rule, to

act jointly.

64. Appointment of conciliators. –

(1) Subject to sub-section (2), -

(a) In conciliation proceedings with one conciliator, the parties may

agree on the name of a sole conciliator;

(b) In conciliation proceedings with two conciliators, each party may

appoint one conciliator;

appoint one conciliator and the parties may agree on the name of

the third conciliator who shall act as the presiding conciliator.

(2) Parties may enlist the assistance of a suitable institution or person in

connection with the appointment of conciliators, and in particular, -

(a) A party may request such an institution or person to recommend

the names of suitable individuals to act as conciliator; or

(b) The parties may agree that the appointment of one or more

conciliators be made directly by such an institution or person:

Provided that in recommending or appointing individuals to act as

conciliator, the institution or person shall have regard to such

considerations as are likely to secure the appointment of an independent

and impartial conciliator and, with respect to sole or third conciliator, shall

take into account the advisability of appointing conciliators of a

nationality other than the nationalities of the parties.

65. Submission of statements to conciliator. -

(1) The conciliator, upon his appointment, may request each party to submit

to him a brief written statement describing the general nature of the

dispute and the points at issue. Each party shall send a copy of such

statement to the other party.

(2) The conciliator may request each party to submit to him a further written

statement of his position and the facts and grounds in support thereof,

supplemented by any documents and other evidence that such party deems

appropriate. The party shall send a copy of such statement, documents

and other evidence to the other party.

(3) At any stage of the conciliation proceedings, the conciliator may request a

party to submit to him such additional information, as he deems

appropriate.

Explanation. -In this section and all the following sections of this Part,

the term “conciliator” applies to a sole conciliator, two or three

conciliators as the case may be.

66. Conciliator not bound by certain enactments. -The conciliator is not bound by

the Code of Civil Procedure, 1908 (5 of 1908) or the Indian Evidence Act, 1872

(1 of 1872).

67. Role of conciliator. -

(1) The conciliator shall assist the parties in an independent and impartial

manner in their attempt to reach an amicable settlement of their dispute.

(2) The conciliator shall be guided by principles of objectivity, fairness and

justice, giving consideration to, among other things, the rights and

obligations of the parties, the usages of the trade concerned and the

circumstances surrounding the dispute, including any previous business

practices between the parties.

(3) The conciliator may conduct the conciliation proceedings in such a

manner as he considers appropriate, taking into account the circumstances

of the case, the wishes the parties may express, including any request by a

party that the conciliator hear oral statements, and the need for a speedy

settlement of the dispute.

(4) The conciliator may, at any stage of the conciliation proceedings, make

proposals for a settlement of the dispute. Such proposals need not be in

writing and need not be accompanied by a statement of the reasons

therefor.

68. Administrative assistance. -In order to facilitate the conduct of the conciliation

proceedings, the parties, or the conciliator with the consent of the parties, may

arrange for administrative assistance by a suitable institution or person.

69. Communication between conciliator and parties. –

(1) The conciliator may invite the parties to meet him or may communicate

with them orally or in writing. He may meet or communicate with the

parties together or with each of them separately.

(2) Unless the parties have agreed upon the place where meetings with the

conciliator are to be held, such place shall be determined by the

conciliator, after consultation with the parties, having regard to the

circumstances of the conciliation proceedings.

70. Disclosure of information. -When the conciliator receives factual information

concerning the dispute from a party, he shall disclose the substance of that

information to the other party in order that the other party may have the

opportunity to present any explanation, which he considers appropriate:

Provided that when a party gives any information to the conciliator subject to a

specific condition that it be kept confidential, the conciliator shall not disclose

that information to the other party.

71. Co-operation of parties with conciliator. -The parties shall in good faith

cooperate with the conciliator and, in particular, shall endeavor to comply with

requests by the conciliator to submit written materials, provide evidence and

attend meetings.

72. Suggestions by parties for settlement of dispute. -Each party may, on his own

initiative or at the invitation of the conciliator, submit to the conciliator

suggestions for the settlement of the dispute.

73. Settlement agreements, -

(1) When it appears to the conciliator that there exist elements of a settlement,

which may be acceptable to the parties, he shall formulate the terms of a

possible settlement and submit them to the parties for their observations.

After receiving the observations of the parties, the conciliator may

reformulate the terms of a possible settlement in the light of such

observations.

(2) If the parties reach agreement on a settlement of the dispute, they may

draw up and sign a written settlement agreement. If requested by the

parties, the conciliator may draw up, or assist the parties in drawing up,

the settlement agreement.

(3) When the parties sign the settlement agreement, it shall be final and

binding on the parties and persons claiming under them respectively.

(4) The conciliator shall authenticate the settlement agreement and furnish a

copy thereof to each of the parties.

74. Status and effect of settlement agreement. -The settlement agreement shall

have the same status and effect as if it is an arbitral award on agreed terms on the

substance of the dispute rendered by an arbitral tribunal under section 30.

75. Confidentiality. -Notwithstanding anything contained in any other law for the

time being in force, the conciliator and the parties shall keep confidential all

matters relating to the conciliation proceedings. Confidentiality shall extend also

to the settlement agreement, except where its disclosure is necessary for purposes

of implementation and enforcement.

76. Termination of conciliation proceedings. -The conciliation proceedings shall be

terminated--

(a) By the signing of the settlement agreement by the parties on the date of the

agreement; or

(b) By a written declaration of the conciliator, after consultation with the

parties, to the effect that further efforts at conciliation are no longer

justified, on the date of the declaration; or

effect that the conciliation proceedings are terminated, on the date of the

declaration; or

(d) By a written declaration of a party to the other party and the conciliator, if

appointed, to the effect that the conciliation proceedings are terminated, on

the date of the declaration.

77. Resort to arbitral or judicial proceedings. -The parties shall not initiate, during

the conciliation proceedings, any arbitral or judicial proceedings in respect of a

dispute that is the subject-matter of the conciliation proceedings except that a

party may initiate arbitral or judicial proceedings where, in his opinion, such

proceedings are necessary for preserving his rights.

78. Costs. –

(1) Upon termination of the conciliation proceedings, the conciliator shall fix

the costs of the conciliation and give written notice thereof to the parties.

(2) For the purpose of sub-section (1), “costs” means reasonable costs relating

to-

(a) The fee and expenses of the conciliator and witnesses requested by

the conciliator with the consent of the parties;

(b) Any expert advice requested by the conciliator with the consent of

the parties;

of section 64 and section 68;

(d) Any other expenses incurred in connection with the conciliation

proceedings and the settlement agreement.

(3) The costs shall be home equally by the parties unless the settlement

agreement provides for a different apportionment. All other expenses

incurred by a party shall be home by that party.

79. Deposits. -

(1) The conciliator may direct each party to deposit an equal amount as an

advance for the costs referred to in sub-section (2) of section 78 which he

expects will be incurred.

(2) During the course of the conciliation proceedings, the conciliator may

direct supplementary deposits in an equal amount from each party.

(3) If the required deposits under sub-sections (1) and (2) are not paid in full

by both parties within thirty days, the conciliator may suspend the

proceedings or may make a written declaration of termination of the

proceedings to the parties, effective on the date of that declaration.

(4) Upon termination of the conciliation proceedings, the conciliator shall

render an accounting to the parties of the deposits received and shall return

any unexpended balance to the parties.

80. Role of conciliator in other proceedings. -Unless otherwise agreed by the

parties, -

(a) The conciliator shall not act as an arbitrator or as a representative or

counsel of a party in any arbitral or judicial proceeding in respect of a

dispute that is the subject of the conciliation proceedings;

(b) The conciliator shall not be presented by the parties as a witness in any

arbitral or judicial proceedings.

81. Admissibility of evidence in other proceedings. -The parties shall not rely on or

introduce as evidence in arbitral or judicial proceedings, whether or not such

proceedings relate to the dispute that is the subject of the conciliation

proceedings, -

(a) Views expressed or suggestions made by the other party in respect of a

possible settlement of the dispute;

(b) Admissions made by the other party in the course of the conciliation

proceedings;

(d) The fact that the other party had indicated his willingness to accept a

proposal for settlement made by the conciliator.

PART IV

SUPPLEMENTARY PROVISIONS

82. Power of High Court to make rules. -The High Court may make rules consistent

with this Act as to all proceedings before the court under this Act.

83. Removal of difficulties. –

(1) If any difficulty arises in giving effect to the provisions of this Act, the

Central Government may, by order published in the Official Gazette, make

such provisions, not inconsistent with the provisions of this Act as appear

to it to be necessary or expedient for removing the difficulty:

Provided that no such order shall be made after the expiry of a period of

two years from the date of commencement of this Act.

(2) Every order made under this section shall, as soon as may be after it is

made, be laid before each House of Parliament.

84. Power to make rules. –

(1) The Central Government may, by notification in the Official Gazette,

make rules for carrying out the provisions of this Act.

(2) Every rule made by the Central Government under this Act shall be laid,

as soon as may be, after it is made before each House of Parliament while

it is in session, for a total period of thirty days which may be comprised in

one session or in two or more successive sessions, and if, before the expiry

of the session immediately following the session or the successive sessions

aforesaid, both Houses agree in making any modification in the rule or

both Houses agree that the rule should not be made, the rule shall

thereafter have effect only in such modified form or be of no effect, as the

case may be; so, however, that any such modification or annulment shall

be without prejudice to the validity of anything previously done under that

rule.

85. Repeal and saving. –

(1) The Arbitration (Protocol and Convention) Act, 1937 (6 of 1937), the

Arbitration Act, 1940 (10 of 1940) and the Foreign Awards (Recognition

and Enforcement) Act, 1961 (45 of 1961) are hereby repealed.

(2) Notwithstanding such repeal, -

(a) The provisions of the said enactments shall apply in relation to

arbitral proceedings which commenced before this Act came into

force unless otherwise agreed by the parties but this Act shall

apply in relation to arbitral proceedings which commenced on or

after this Act comes into force;

(b) All rules made and notifications published, under the said

enactments shall, to the extent to which they are not repugnant to

this Act, be deemed respectively to have been made or issued

under this Act.

86. Repeal of Ordinance 27 of 1996 and Saving. –

(1) The Arbitration and Conciliation (Third) Ordinance, 1996 (27 of 1996) is

hereby repealed.

(2) Notwithstanding such repeal, any order, rule, notification or scheme made

or anything done or any action taken is pursuance of any provision of the

said Ordinance shall be deemed to have been made, done or taken under

the corresponding provisions of this Act

THE FIRST SCHEDULE

(See section 44)

CONVENTION ON THE RECOGNITION AND

ENFORCEMENT OF

FOREIGN ARBITRAL AWARDS

ARTICLE I

1. This Convention shall apply to the recognition and enforcement or arbitral

awards made in the territory of a State other than the State where the

recognition and enforcement of' such awards are sought, and arising out of

differences between persons, whether physical or legal. It shall also apply

to arbitral awards not considered as domestic awards in the State where

their recognition and enforcement are sought.

2. The term “arbitral awards” shall include not only awards made by

arbitrators appointed for each case but also those made by permanent

arbitral bodies to which the parties have submitted.

3. When signing, ratifying or acceding to this Convention, or notifying

extension under article X hereof, any State may on the basis of reciprocity

declare that it will apply the Convention to the recognition and

enforcement of awards made only in the territory of another Contracting

State. It may also declare that it will apply the Convention only to

differences arising out of legal relationships, whether contractual or not,

which are considered as commercial under the national law of the State

making such declaration.

ARTICLE II

1. Each Contracting State shall recognise an agreement in writing under

which the parties under take to submit to arbitration all or any differences

which have arisen or which may arise between them in respect of defined

legal relationship, whether contractual or not, concerning a subject-matter

capable of settlement by arbitration.

2. The term “agreement in writing” shall include all arbitral clauses in a

contract or an arbitration agreement, signed by the parties or contained in

an exchange of letters or telegrams.

3. The Court of a Contracting State when seized of an action in a matter in

respect of which the parties have made an agreement within the meaning

of this article, shall, at the request of one of the parties, refer the parties to

arbitration, unless it finds that the said agreement is null and void,

inoperative and incapable of being performed.

ARTICLE III

Each Contracting State shall recognize arbitral awards as binding and

enforce them in accordance down in the following articles. There shall not

be imposed substantially more onerous conditions a with the rules of

procedure of the territory where the award is relied upon, under the

condition and or higher fees or charges on the recognition or enforcement

of arbitral awards to which this Convention applies than are imposed on

the recognition or enforcement of domestic arbitral awards.

ARTICLE IV

1. To obtain the recognition and enforcement mentioned in the preceding

article, the party applying for recognition and enforcement shall, at the

time of the application, supply: -

(a) The duly authenticated original award or a duly certified copy

thereof,

(b) The original agreement referred to in article II or a duly certified

copy thereof.

2. If the said award or agreement is not made in an official language of the

country in which the award is relied upon, the party applying for

recognition and enforcement of the award shall produce a translation of

these documents into such language. The translation shall be certified by

an official or sworn translator or by a diplomatic or consular agent.

ARTICLE V

1. Recognition and enforcement of the award may be refused, at the request

of the party against whom it is invoked, only if that party furnishes to the

competent authority where the recognition and enforcement is sought,

proof that--

(a) The parties to the agreement referred to in article II were, under the

law applicable to them, under some incapacity, or the said

agreement is not valid under the law to which the parties have

subjected it or, failing any indication thereon, under the law of the

country where the award was made; or

(b) The party against whom the award is invoked was not given proper

notice of the appointment of the arbitrator or of the arbitration

proceedings or was otherwise unable to present his case; or

falling within the terms of the submission to arbitration, or it

contains decisions on matters beyond the scope of the submission

to arbitration; provided that, if the decisions on matters submitted

to arbitration can be separated from those not so submitted, that

part of the award which contains decisions on matters submitted to

arbitration may be recognised and enforced; or

(d) The composition of the arbitral authority or the arbitral procedure

was not in accordance with the agreement of the parties, or, failing

such agreement, was not in accordance with the law of the country

where the arbitration took place; or

(e) The award has not yet become binding on the parties, or has been

set aside or suspended by a competent authority of the country in

which, or under the law of which, that award was made.

2. Recognition and enforcement of an arbitral award may also be refused if

the competent authority in the country where recognition and enforcement

is Sought finds that-

(a) The subject-matter of the difference is not capable of settlement by

arbitration under the law of that country; or

(b) The recognition or enforcement of the award would be contrary to

the public policy of that country.

ARTICLE VI

If an application for the setting aside or suspension of the award has been

made to a competent authority referred to in article V (1) (e), the authority

before which the award is sought to be relied upon may, if it considers it

proper, adjourn the decision on the enforcement of the award and may

also, on the application of the party claiming enforcement of the award,

order the other party to give suitable security.

ARTICLE VII

1. The provisions of the present Convention shall not affect the validity of

multilateral or bilateral agreements concerning the recognition and

enforcement of arbitral awards entered into by the Contracting States nor

deprive any interested party of any right he may have to avail himself of

an arbitrat award in the manner and to the extent allowed by the law or the

treaties of the country where such award is sought to be relied upon.

2. The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva

Convention on the Execution of Foreign Arbitral Awards of 1927 shall

cease to have effect between Contracting States on their becoming bound

and to the extent that they become bound by this Convention.

ARTICLE VIII

1. This Convention shall be open until 31st December, 1958 for signature on

behalf of any Member of the United Nations and also on behalf of any

other State which is or hereafter becomes member of any specialized

agency of the United Nations, or which is or hereafter becomes a party to

the Statute of the International Court of Justice, or any other State to

which an invitation has been addressed by the General Assembly of the

United Nations.

2. This Convention shall be ratified and the instrument of ratification shall be

deposited with the Secretary-General of the United Nations.

ARTICLE IX

1. This Convention shall be open for accession to all States referred to in

article VIII.

2. Accession shall be effected by the deposit of an instrument of accession

with the Secretary-General of the United Nations.

ARTICLE X

1. Any State may, at the time of signature, ratification or accession, declare

that this Convention shall extend to all or any of the territories for the

international relations of which it is responsible. Such a declaration shall

take effect when the Convention enters into force for the State concerned.

2. At any time thereafter any such extension shall be made by notification

addressed to the Secretary-General of the United Nations and shall take

effect as from the ninetieth day after the day of receipt by the Secretary-

General of the United Nations of this notification, or as from the date of

entry into force of the Convention for the State concerned, whichever is

the later.

3. With respect to those territories to which this Convention is not extended

at the time of signature, ratification or accession, each State concerned

shall consider the possibility of taking the necessary steps in order to

extend the application of this Convention to such territories, subject,

where necessary for constitutional reasons, to the consent of the

Governments of such territories.

ARTICLE XI

In the case of a federal or non-unitary State, the following provisions shall apply:-

(a) With respect of those articles of this Convention that come within the

legislative jurisdiction of the federal authority, the obligations of the

federal Government shall to this extent be the same as those of

Contracting States which are not federal States;

(b) With respect to those articles of this Convention that come within the

legislative jurisdiction of constituent States or provinces which are not,

under the constitutional system of the federation, bound to take legislative

action, the federal Government shall bring such articles with a favorable

recommendation to the notice of the appropriate authorities of constituent

States or provinces at the earliest possible moment;

Contracting State transmitted through the Secretary-General of the United

Nations, supply a statement of the law and practice of the federation and

its constituent units in regard to any particular provision of this

Convention, showing the extent to which effect has been given to that

provision by legislative or other action.

ARTICLE XII

1. This Convention shall come into force on the ninetieth day following the

date of deposit of the third instrument of ratification or accession.

2. For each State ratifying or acceding to this Convention after the deposit of

the third instrument of ratification or accession, this Convention shall

enter into force on the ninetieth day after deposit by such State of its

instrument of ratification or accession.

ARTICLE XIII

1. Any Contracting State may denounce this Convention by a written

notification to the Secretary General of the United Nations. Denunciation

shall take effect one year after the date of receipt of the notification by the

Secretary-General.

2. Any State which has made a declaration or notification under article X

may, at any time thereafter, by notification to the Secretary-General of the

United Nations, declare that this Convention shall cease to extend to the

territory concerned one year after the date of the receipt of the notification

by the Secretary-General.

3. This Convention shall continue to be applicable to arbitral awards in

respect of which recognition or enforcement proceedings have been

instituted before the denunciation takes effect.

ARTICLE XIV

A Contracting State shall not be entitled to avail itself of the present

Convention against other Contracting States except to the extent that it is

itself bound to apply the Convention.

ARTICLE XV

The Secretary-General of the United Nations shall notify the States contemplated

in article VIII of the following: -

(a) Signatures and ratifications in accordance with article VIII;

(b) Accessions in accordance with article IX;

(d) The date upon which this Convention enters into force in accordance with

article XII;

(e) Denunciations and notifications in accordance with article XIII.

ARTICLE XVI

1. This Convention, of which the Chinese, English, French, Russian and

Spanish texts shall be equally authentic, shall be deposited in the archives

of the United Nations.

2. The Secretary-General of the United Nations shall transmit a certified

copy of this Convention to the States contemplated in article XIII.

THE SECOND SCHEDULE

(See section 53)

PROTOCOL ON ARBITRATION CLAUSES

The undersigned, being duly authorised, declare that they accept, on

behalf for the countries which they represent, the following provisions:-

1. Each of the Contracting States recognises the validity of an agreement

whether relating to existing or future differences between parties subject

respectively to the jurisdiction of different Contracting States by which the

parties to a contract agree to submit to arbitration all or any differences

that may arise in connection with such contract relating to commercial

matters or to any other matter capable of settlement by arbitration, whether

or not the arbitration is to take place in a country to whose jurisdiction

none of the parties is subject.

Each Contracting State reserves the right to limit the obligation mentioned

above to contracts which arc considered as commercial under its national

law. Any Contracting State which avails itself of this right will notify the

Secretary-General of the League of Nations in order that the other

Contracting States may be so informed.

2. The arbitral procedure, including the constitution of the Arbitral Tribunal,

shall be governed by the will of the parties and by the law of the country

in whose territory the arbitration takes place.

The Contracting States agree to facilitate all steps in the procedure, which

require to be taken in their own territories, in accordance with the

provisions of their law governing arbitral procedure applicable to existing

differences.

3. Each Contracting State undertakes to ensure the execution by its

authorities and in accordance with the provisions of its national laws of

arbitral awards made in its own territory under the preceding articles.

4. The Tribunals of the Contracting Parties, on being seized of a dispute

regarding a contract made between persons to whom Article I applies and

including an Arbitration Agreement whether referring to present or future

differences which is valid in virtue of the said article and capable of being

carried into effect, shall refer the parties on the application of either of

them to the decision of the Arbitrators.

Such reference shall not prejudice the competence of the judicial tribunals

in case the agreement or the arbitration cannot proceed or becomes

inoperative.

5. The present Protocol, which shall remain open for signature by all States,

shall be ratified. The ratification shall be deposited as soon as possible

with the Secretary-General of the League of Nations, who shall notify

such deposit to all the Signatory States.

6. The present Protocol will come into force as soon as two ratifications have

been deposited. Thereafter it will take effect, in the case of each

Contracting State, one month after the notification by the Secretary-

General of the deposit of its ratification.

7. The present Protocol may be denounced by any Contracting State on

giving one year's notice. Denunciation shall be effected by a notification

addressed to the Secretary-General of the League, who will immediately

transmit copies of such notification to all the other Signatory States and

inform them of the date on which it was received. The denunciation shall

take effect one year after the date on which it was notified lo the

Secretary-General, and shall operate only in respect of the notifying State.

8. The Contracting States may declare that their acceptance of the present

Protocol does not include any or all of the under-mentioned territories:

that is to say, their colonies, overseas possessions or territories,

protectorates or the territories over which they exercise a man date.

The said States may subsequently adhere separately on behalf of any

territory thus excluded. The Secretary-General of the League of Nations

shall be informed as soon as possible of such adhesions. He shall notify

such adhesions to all Signatory States. They will take effect one month

after the notification by the Secretary-General to all Signatory States.

The Contracting States may also denounce the Protocol separately on

behalf of any of the territories referred to above. Article 7 applies to such

denunciation.

THE THIRD SCHEDULE

(See section 53)

CONVENTION ON THE EXECUTION OF FOREIGN

ARBITRAL AWARDS

Article 1. (1) In the territories of any High Contracting Party to which the present

Convention applies, an arbitral award made in pursuance of an agreement,

whether relating to existing or future differences (hereinafter called “a

submission to arbitration”) covered by the Protocol on Arbitration Clauses

opened at Geneva on September 24th, 1923, shall be recognised as

binding and shall be enforced in accordance with the rules of the

procedure of the territory where the award is relied upon, provided that the

said award has been made in a territory of one of the High Contracting

Parties to which the present Convention applies and between persons who

are subject to the jurisdiction of one of the High Contracting Parties.

(2) To obtain such recognition or enforcement it shall, further, be necessary: -

(a) That the award has been made in pursuance of a submission to

arbitration, which is valid under the law applicable thereto;

(b) That the subject-matter of the award is capable of settlement by

arbitration under the law of the country in which the award is

sought to be relied upon;

for in the submission to arbitration or constituted in the manner

agreed upon by the parties and in conformity with the law

governing the arbitration procedure;

(d) That the award has become final in the country in which it has

been made, in the sense that it will not be considered as such if it is

open to opposition, appeal or pourvoi en cessation (in the countries

where such forms of procedure exist) or if it is proved that any

proceedings for the purpose of contesting the validity of the award

are pending;

(e) That the recognition or enforcement of the award is not contrary to the

public policy or to the principles of the law of the country in which it is

sought to be relied upon.

Article 2. -Even if the conditions laid down in Article I hereof are fulfilled,

recognition and enforcement of the award shall be refused if the court is

satisfied: -

(a) That the award has been annulled in the country in which it was made;

(b) That the party against whom it is sought to use the award was not

given notice of the arbitration proceedings in sufficient time to

enable him to present his case; or that, being under a legal

incapacity, he was not properly represented;

failing with in the terms of the submission to arbitration or that it

contains decisions on matters beyond the scope of the submission

to arbitration.

If the award has not covered all the questions submitted to the arbitral

tribunal, the competent authority of the country where recognition or

enforcement of the award is sought can, if it thinks for postpone such

recognition or enforcement or grant it subject to such guarantee as that

authority may decide.

Article 3. -If the party against whom the award has been made proves that, under

the law governing the arbitration procedure, there is a ground, other than

the grounds reefed to in Article I (a) and (c), and Article 2(b) and (c),

entitling him to contest the validity of the award in a Court of Law, the

court may, if it thinks fit, either refuse recognition or enforcement of the

award or adjourn the consideration thereof, giving such party a reasonable

time within which to have the award annulled by the competent tribunal.

Article 4. -The party relying upon an award or claiming its enforcement must

supply, in particular: -

(1) The original award or a copy thereof duly authenticated, according to the

requirements of the law of the country in which it was made;

(2) Documentary or other evidence to prove that the award has become final,

in the sense defined in Article I (d), in the country in which it was made;

(3) When necessary, documentary or other evidence to prove that the

conditions laid down in Article 1, paragraph (1) and paragraph (2) (a) and

(c), have been fulfilled.

A translation of the award and of the other documents mentioned in this

Article into the official language of the country where the award is sought

to be relied upon may be demanded. Such translations must be certified

correct by a diplomatic or consular agent of the country to which the party

who seeks to rely upon the award belongs or by a sworn translator of the

country where the award is sought to be relied upon.

Article 5. -The provisions of the above articles shall not deprive any interested party

of the right of availing himself of an arbitral award in the manner and to

the extent allowed by the law or the treaties of the country where such

award is sought to be relied upon.

Article 6-The present Convention applies only to arbitral awards made after the

coming into force of the Protocol on Arbitration Clauses opened at

Geneva on September 24th, 1923.

Article 7. -The present Convention, which will remain open to the signature of all

the signatories of the Protocol of 1923 on Arbitration Clauses, shall be

ratified.

It may be ratified only on behalf of those Members of the League of

Nations and Non-Member States on whose behalf the Protocol of 1923

shall have been ratified.

Ratification shall be deposited as soon as possible with the Secretary-

General of the League of Nations, who will notify such deposit to all the

signatories.

Article 8. -The present Convention shall come into force three months after it shall

have been ratified on behalf of two High Contracting Parties. Thereafter,

it shall take effect, in the case of each High Contracting Party, three

months after the deposit of the ratification on its behalf with the Secretary-

General of the League of Nations.

Article 9. -The present Convention may be denounced on behalf of any Member of

the League or Non-Member State. Denunciation shall be notified in

writing to the Secretary-General of the League of Nations, who will

immediately send a copy thereof, certified to be in conformity with the

notifications, to all the other Contracting Parties, at the same time

informing them of the date on which he received it.

The denunciation shall come into force only in respect of the High

Contracting Party, which shall have notified it, and one year after such

notification shall have reached the Secretary-General of the League of

Nations.

The denunciation of the Protocol on Arbitration Clauses shall entail, ipso

facto, the denunciation of the present Convention.

Article 10. -The present Convention does not apply to the colonies, protectorates

or territories under suzerainty or mandate of any High Contracting Party

unless they are specially mentioned.

The application of this Convention to one or more of such colonies,

protectorates or territories to which the Protocol on Arbitration Clauses

opened at Geneva on September 24th, 1923, applies, can be effected at

any time by means of a declaration addressed to the Secretary-General of

the League of Nations by one of the High Contracting Parties.

Such declaration shall take effect three months after the deposit thereof.

The High Contracting Parties can at any time denounce the Convention for

all or any of the Colonies, Protectorates or territories referred to above.

Article 9 hereof applied to such denunciation.

Article 11. -A certified copy of the present Convention shall be transmitted by the

Secretary General of the League of Nations to every Member of the

League of Nations and to every Non-Member State, which signs the same.

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