Arbitration Law In India

INTRODUCTION

There is an increase in the role of international trade in the development of economy all over the nations over the last few decades. This has also been accompanied by a tremendous increase in the cases of commercial disputes as well. In India also, the fast globolization of the economy and as a result increase in the competition has also led to an increase in commercial disputes. At the same time, the rate of industrial growth, modernization, and the improvements in socio-economic circumstances has, outpaced the rate of growth of dispute resolution mechanisms. In many parts of the country, increase in development has meant increased case loads for the already overburdened courts, further leading to the notoriously slow adjudication

In ancient times too, people would voluntarily submit their disputes to a group of wise men of a particular community also popularly knowm as the ‘panchayat’ for a binding resolution.3

The modern arbitration law in the country was created by the Bengal Resolutionsin in the year 1772, during the British rule. The Bengal Resolutions provided for a reference of by the court to arbitration, with the consent of both the parties, in lawsuits for breach of contract, partnership deeds, and accounts, amongst

Thereafter, through Schedule II of the Code of Civil Procedure, 1908, the various provisions relating to the law of arbitration were extended to the other parts of the British ruled India. On 23rd October 1937, India bcame a signatory to both the Geneva Protocol on Arbitration Clauses 1923 and Geneva Convention of 1937. The Arbitraion (Protocol and Convention) Act 1937 was enacted in India to give effect to the above said conventions. Later, based on the English Arbitration Act 1934, the Arbitration Act 1940 was enacted in India to consolidate and amend the law relating to arbitration. The New York Convention which came into force on 7th June 1959 was an improvement on the geneva Convention of 1927. India also became a signatory to thr New York Convention on 13th July 1960. Accordingly, the foreign Awards (Recognition and Enforcement) Act 1961 was adopted by the Indian Govt. so as to give effect to the New York Convention. In the Foreign Awards Act, there was no provision to challenge the foreign award on merits similar/identical to the provisions that were contained in the Arbitration Act 1940. Until 1996, the law governing arbitration in the country consisted mainly of three