In force · As amended up to 2026-08
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 7;
1. The proviso and Explanation omitted by the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, vide notification No. S.O. 1123(E) dated (18-3-2020) and vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).
2. 22nd August, 1996, vide notification No. G.S.R 375(E), dated 22nd August, 1996, see Gazette of India, Extraordinary, Part II, sec. 3(i).
(c) "arbitral award" includes an interim award;
(d) "arbitral tribunal" means a sole arbitrator or a panel of arbitrators;
1[(e) "Court" means —
(i) in the case of an arbitration other than international commercial arbitration, 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;
(ii) in the case of international commercial arbitration, 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, and in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to that High Court;]
(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 incorporated in any country other than India; or
(iii)[2] * 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.
(2) This Part shall apply where the place of arbitration is in India:
3 [Provided that subject to an agreement to the contrary, the provisions of sections 9, 27 and clause (a) of sub-section (1) and sub-section (3) of section37 shall also apply to international commercial arbitration, even if the place of arbitration is outside India, and an arbitral award made or to be made in such place is enforceable and recognised under the provisions of Part II of this Act.]
(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.
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.
(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.
(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.
1. Subs. by Act 3 of 2016, s. 2, for clause (e) (w.e.f. 23-10-2015).
2. The words "a company or" omitted by s. 2 , ibid. (w.e.f. 23-10-2015).
3. Ins. by s. 2, ibid . (w.e. f. 23-10-2015).
(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,
2. The term "agreement in writing" shall include an arbitral clause in a contract or an arbitration agreement, signed by the parties or contained in an exchange of letters or telegrams.
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 sub-section (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 counterclaim.
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
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
2. The Geneva Protocol on Arbitration Clauses of 1923 and the Geneva Convention on the Execution of Foreign Arbitral Awards of1927 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
2. This Convention shall be ratified and the instrument of ratification shall be deposited with the Secretary-General of the United Nations.
ARTICLE 1X
2. Accession shall be effected by the deposit of an instrument of accession with the Secretary-General of the United Nations.
ARTICLE X
2. At any time thereafter any such extension shall be made by notification addressed to the SecretaryGeneral 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.
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
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 SecretaryGeneral.
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 of the countries which they represent, the following provisions: —
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.
2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties.
Source: India Code