There are some feature of Arbitration and Conciliation Act 1996
A more extensive rule
The Intervention and Mollification Act, 1996 is more thorough than the previous Demonstration of 1940. It comprises of 86 segments isolated into 4 sections.
Arbitral decision considered equally with a ruling
The fact that the settlement reached during conciliation proceedings and the arbitral award have to agree with the court's ruling is another noteworthy aspect of the Act of 1996. In other words, the arbitral ruling is just as legally binding as a court order.
Limitation of the legal process
When compared to the earlier 1940 Arbitration Act, the 1996 Act significantly reduced the court's authority. The arbiter is entirely immune and gifted with unlimited authority.
Abolishing the Umpire System
The Act of 1996 also abolished the umpire system, which is a significant change. The previous Act of 1940 stated that the umpire should enter on the reference instead of the arbitrators when an even number of arbitrators were chosen and such arbitrator failed to make an award within the allotted time or where there was a difference of opinion between two arbitrators.
The parties may now choose the number of arbitrators to resolve the dispute under the new Act of 1996, with the only restriction being that an even number of arbitrators may not be chosen. A third arbitrator known as the Presiding Arbitrator will be chosen by the arbitrators who have been thus designated (umpire).
Arbitrator qualifications
According to the former Arbitration Act of 1940, there were no requirements for appointment as an arbitrator. Nonetheless, the Act of 1996 currently stipulates that the arbitrator must be qualified. These disputes can only be properly resolved by arbitrators who are qualified and knowledgeable in such subjects because a significant portion of disputes that arise between the parties today are of a technical nature.
Help from the court in certain circumstances
According to the Act of 1996, the Arbitral tribunal or a party may ask the court for help gathering evidence only in specified circumstances. Hence, the judge may direct the witness to provide testimony immediately before the arbitral panel. Yet, the legislation gives the arbitral tribunal no authority to call witnesses. As a result, the court may be requested to assist in gathering evidence by the arbitral tribunal or a party with the approval of the arbitral tribunal.
Ability to issue interim orders
The Act of 1996 includes a provision pertaining to interim measures that gives the arbitrator or arbitral tribunal the authority, at a party's request, to issue interim orders regarding the topic of the dispute.
Arbitral award in conflict with public policy is void
According to the new Act of 1996, an arbitral award in conflict with public policy in India is null and void and can be set aside by the court.
International Commercial Arbitration
Under Section 2(1)(f) of the Act of 1996, the term "International Commercial Arbitration" is defined as "an arbitration relating to disputes arising out of legal relationships, whether contractual or not, considered commercial under the law in force in India and where at least one of the parties, whether an individual, body corporate, or a company, is having business or residing abroad, and in the case of the government, the arbitration shall be held in India."
Conciliation has a broader scope
Part III of the Act of 1996 addresses a new international approach to conciliation and explains its application scope. As a result, the scope of conciliation is expanded.
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