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THE ARBITRATION ACT, 1940

Title : THE ARBITRATION ACT, 1940

Year : 1940

A Small Cause Court shall have no jurisdiction over any arbitration proceedings or over any application arising there out save on application made under section 21.

Subject to the provisions of this Act and of rules made there under :

(a) The provisions of Code of Civil Procedure, 1908 (5 of 1908), shall apply to all proceedings before the Court, and to all appeals, under this Act, and

(b) The Court shall have, for the purpose of, and in relation to, arbitration proceedings, the same power of making orders in respect of any of the matters set out in the Second Schedule as it has for the purpose of, and in relation to any proceedings before the Court:

Provided that nothing in Cl. (b) shall be taken to prejudice any power which may be vested in an arbitrator or umpire for making orders with respect to any of such matters.

Any notice required by this Act to be served otherwise than through the Court by a part to an arbitration agreement or by an arbitrator or umpire shall be served in the manner provided in the arbitration agreement, or if there is no such provision, either -

(a) By delivering it to the person on whom it is to be served, or

(b) By sending it by post in a letter addressed to that person at his usual or last known place of abode or business in 1*[India] and registered under Chapter VI of the Indian Post Office Act, 1898 (6 of 1898).

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1. Substituted by A.O. 1950, for "the Provinces".

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(1) The Court shall issue the same processes to the parties and witnesses whom the arbitrator or umpire desire to examine as the Court may issue in suits tried before it.

(2) Persons failing to attend in accordance with such process, or making any other default, or refusing to give their evidence, or guilty of any contempt to the arbitrator or umpire during the investigation of the reference, shall be subject to the like disadvantages, penalties and punishments by order of the Court on the representation of the arbitrator or umpire as they would incur for the like offences in suits tried before the Court.

(3) In this section the expression "processes" includes summonses and commissions for the examination of witnesses and summonses to produce documents.

The High Court may make rules consistent with this Act as to -

(a) The filing of awards and all proceedings consequent thereon or incidental thereto;

(b) The filing and hearing of special cases and all proceedings consequent thereon or incidental thereto ;

(c) The staying of any suit or proceeding in contravention of an arbitration agreement;

(d) The forms to be used for the purposes of this Act;

(e) Generally, all proceedings in Court under this Act;


The provisions of this Act shall be binding on the Government.


The provisions of this Act, except sub-section (1) of Sec. 6 and Sections. 7, 12,1*[36] and 37, 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 this Act is inconsistent with that other enactment or with any rules made there under.

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1. Inserted By Act 25 of 1952, Sec. 3 and Schedule. II

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Subject to the provisions of Sec. 46, and save in so far as is otherwise provided by any law for the time being in force, the provisions of this Act shall apply to all arbitrations and to all proceedings there under:

Provided that an arbitration award otherwise obtained may with the consent of all the parties interested be taken into consideration as a compromise or adjustment of a suit by any Court before which the suit is pending.

The provisions of this Act shall not apply to any reference pending at the commencement of this Act, to which the law in force immediately before the commencement of this Act shall, notwithstanding any repeal effected by this Act, continue to apply.

[Repealed by the Repealing and Amending Act, 1945, Sec. 2 and Schedule I].


Schedule I - FIRST SCHEDULE

(See section 3.)

IMPLIED CONDITIONS OF ARBITRATION AGREEMENTS


1. Unless otherwise expressly provided, the reference shall be to a sole arbitrator.

2. If the reference is to an even number of arbitrators, the arbitrators shall appoint an umpire not later than one month from the latest date of their respective appointments.

3. The arbitrators shall make their award within four months after entering on the reference or after having been called upon to act by notice in writing from any party to the arbitration agreement or within such extended time as the Court may allow.

4. If the arbitrators have allowed their time to expire without making an award or have delivered to any party to the arbitration agreement or to the umpire a notice in writing stating that they cannot agree, the umpire shall forthwith enter on the reference in lieu of the arbitrators.

5. The umpire shall make his award within two months of entering on the reference or within such extended time as the Court may allow.

6. The parties to the reference and all persons claiming under them shall, subject to the provisions of any law for the time being in force, submit to be examined by the arbitrators or umpire on oath or affirmation in relation to the matters in difference and shall, subject as aforesaid, produce before the arbitrators or umpire all books, deeds, papers, accounts, writings and documents within their possession or power respectively, which may be required or called for, and do all other things which, during the proceedings on the reference, the arbitrators or umpire may require.

7. The award shall be final and binding on the parties and persons claiming under them respectively.

8. The costs of the reference and award shall be in the discretion of the arbitrators or umpire who may direct to, and by whom, and in what manner, such costs or any part thereof shall be paid, and may tax or settle the amount of costs to be so paid or any part thereof and may award costs to be paid as between legal practitioner and client.


Schedule II - SECOND SCHEDULE

(See section 41.)

POWERS OF COURT

1. The preservation, interim custody or sale of any goods which are the subject-matter of the reference.

2. Securing the amount in difference in the reference.

3.The detention, preservation or inspection of any property or thing which is the subject of the reference or as to which any question may arise therein and authorising for any of the aforesaid purposes any person to enter upon or into any land or building in the possession of any party to the reference, or authorising any samples to be taken or any observation to be made, or experiment to be tried, which may be necessary or expedient for the purpose of obtaining full information or evidence.

4. Interim injunctions or the appointment of a receiver.             

5. The appointment of a guardian for a minor or person of unsound mind for the purposes of arbitration proceedings.


Schedule III - THIRD SCHEDULE

[Repealed by Section 2 and Schedule I of the Repealing and Amending Act, 1945 (6 of 1945).]


Schedule IV - FOURTH SCHEDULE

[Repealed by Section 2 and Schedule I of the Repealing and Amending Act, 1945 (6 of 1945).]

Last updated on May, 2016

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