Section 1 of the Indian Arbitration and Conciliation Act 1996
By Nivedita Dhiman
Table of Contents
Introduction
The mentioned Act is “Arbitration and Conciliation Act, 1996”. This Act deals with both domestic and international commercial arbitration and enforcement of foreign awards.
An identifying characteristic of this Act is the introduction of law relating to conciliation and for matters connected therewith, which is in consonance with the ages old system of resolution of disputes by conciliation in panchayats.
Conciliation would help resolve matters in the beginning only. This Act is an alternative to litigation as a method of dispute resolution.
Section 1 of The Arbitration and Conciliation Act, 1996
(1) This Act may be 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 into force on such [date] as the Central Government may, by notification in the Official Gazette, appoint.
Interpretation of ‘Commercial’
The term commercial is given a wide interpretation to cover all the matters which arise from all relationships of commercial and business activities. In the context of the mentioned Act, the term commercial becomes significant as it provides a framework for resolving any disputes related to commercial partnerships, business transactions, service agreements, joint ventures and other related issues.
All Services in the modern complexities of business considered to be the lubricant for the wheels of commerce are commercial. In the modern conditions, in their wide sweep are included carriage of persons and good by road, waterways, insurance, communication of information and many more activities too numerous to be exhaustively enumerated which is the commercial intercourse.
The term is widely used to cover every possible trade and business-related disputes. This act provides an efficient mechanism to resolve commercial disputes. The amendments to the act and judicial pronouncements were evolved by the interpretation of commercial. The amendments to the act influenced the approach to commercial disputes in relation to arbitration procedures and enforcement.
Conclusion
The above-mentioned act defines its applicability to both domestic and international commercial arbitration. Section 1 is interpretated in such a way that it displays an understanding of its applicability. It ensures that various commercial disputes can be resolved under this structured framework. This section contributes to an efficient dispute resolution mechanism by aligning the act with advancing international and domestic arbitration methods.
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