Arbitration and ADR Notes for LLB Students

Arbitration and Alternative Dispute Resolution (ADR) is a growing elective and practice area in India. These notes cover the Arbitration and Conciliation Act, 1996 and the broader ADR framework.

Arbitration and Conciliation Act, 1996

Based substantially on the UNCITRAL Model Law, the Act (amended in 2015, 2019 and 2021) governs domestic and international commercial arbitration seated in India, and enforcement of foreign awards. Section 7 defines a valid arbitration agreement (must be in writing); Section 8 requires judicial authorities to refer parties to arbitration where a valid arbitration agreement exists, subject to narrow exceptions.

Appointment and Powers of Arbitrators

Sections 10-15 govern the number and appointment of arbitrators (an even number is disfavoured; parties are free to agree the procedure, failing which Section 11 provides for court/institutional appointment). Section 16 embodies the doctrine of kompetenz-kompetenz — the arbitral tribunal can rule on its own jurisdiction, including objections to the existence or validity of the arbitration agreement.

Interim Measures and the Award

Section 9 allows parties to seek interim relief from a court before or during arbitral proceedings; Section 17 gives the tribunal itself similar interim powers once constituted. Section 34 is the sole ground for setting aside a domestic award (limited grounds: incapacity, invalid agreement, lack of proper notice, award beyond scope of submission, composition not in accordance with agreement, or conflict with India’s public policy) — courts cannot review the award on merits.

Conciliation, Mediation and Lok Adalat

Part III of the Act governs conciliation as a distinct, non-binding process requiring mutual agreement on settlement terms. Section 89, CPC empowers courts to refer suitable cases to arbitration, conciliation, judicial settlement (including Lok Adalat), or mediation. The Mediation Act, 2023 now provides a comprehensive, standalone framework for mediation in India, including pre-litigation mediation and mediated settlement agreements enforceable as a court decree.

Key exam questions to prepare

• Explain the doctrine of kompetenz-kompetenz under Section 16.
• Grounds for setting aside an arbitral award under Section 34.
• Distinguish arbitration from conciliation and mediation.

More: all LL.B. subject notes