The Arbitration and Conciliation Act, 1996 was enacted to consolidate and amend India’s laws relating to domestic arbitration, international commercial arbitration, and the enforcement of foreign arbitral awards, along with defining the legal framework for conciliation. The Act replaced the earlier Arbitration Act, 1940, the Arbitration (Protocol and Convention) Act, 1937, and the Foreign Awards (Recognition and Enforcement) Act, 1961, aligning India’s arbitration regime with the UNCITRAL Model Law on International Commercial Arbitration (1985) and the UNCITRAL Conciliation Rules (1980).
The Act was introduced to address the inefficiencies and delays in traditional court litigation by promoting alternative dispute resolution (ADR) mechanisms. It aimed to provide a time-bound, cost-effective, and party-driven arbitration process while minimizing judicial intervention. Over the years, amendments—particularly in 2015, 2019, and 2021—were introduced to enhance efficiency, transparency, and enforceability of arbitral awards.

The Arbitration and Conciliation Act, 1996 is a comprehensive legislation aimed at modernizing India’s dispute resolution system by promoting arbitration and conciliation. Subsequent amendments have strengthened its framework, ensuring speed, fairness, and enforceability while reducing judicial interference. The Act aligns India with global arbitration standards, making it an attractive destination for commercial dispute resolution.