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                 THE ARBITRATION AND CONCILIATION ACT, 1996
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54.Power of judicial authority to refer parties to arbitration.- Notwithstanding anything contained in Part I or in the Code of Civil
Procedure, 1908 (5 of 1908), a judicial authority, on being seized of a dispute regarding a contract made between persons to whom
section 53 applies and including an arbitration agreement, whether referring to present or further differences, which is valid under
that section and capable of being carried into effect, shall refer the parties on the application of either of them or any person
claiming through or under him to the decision of the arbitrators and such reference shall not prejudice the competence of the judicial
authority in case the agreement or the arbitration cannot proceed or becomes inoperative.
55.Foreign awards when binding.- Any foreign award which would be enforceable under this Chapter shall be treated as binding for
all purposes on the persons as between whom it was made, and may accordingly be relied on by any of those persons by way of
defence, set off or otherwise in any legal proceedings in India and any references in this Chapter to enforcing a foreign award shall
be construed as including references to relying on an award.
56.Evidence.- (1) The party applying for the enforcement of a foreign award shall, at the time of application procedure before the
Court----
(a) the original award or a copy thereof duly authenticated in the manner required by the law of the country in which it was made;
(b) evidence proving that the award has become final; and
(c) such evidence as may be necessary to prove that the conditions mentioned in clauses (a) and (c) of sub-section (1) of section
57 are satisfied.
(2) Where any document requiring to be produced under sub-section (1) is in a foreign language, the party seeking to enforce the
award shall produce a translation into English certified as correct by a diplomatic or consular agent of the country to which that party
belongs or certified as correct in such other manner as may be sufficient according to the law in force in India.
Explanation.---In this section and all the following sections of this Chapter, "Court" means 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 over the
subject-matter of the award 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.
57.Conditions for enforcement of foreign awards.- (1) In order that a foreign award may be enforceable under this Chapter, it shall
be necessary that---
(a) the award has been made in pursuance of a submission to arbitration which is valid under the law applicable thereto;
(b) the subject-matter of the award is capable of settlement by arbitration under the law of India;
(c) the award has been made by the arbitral tribunal provided for in the submission to arbitration or constituted in the manner
agreed upon by the parties and in conformity with the law governing the arbitration procedure;
(d) the award has become final in the country in which it has been made, in the sense that it will not be considered as such if it is
open to opposition or appeal or if it is proved that any proceedings for the purpose of contesting the validity of the award the
pending;
(e) the enforcement of the award is not contrary to the public policy or the law of India.
Explanation.---Without prejudice to the generality of clause (e), it is hereby declared, for the avoidance, of any doubt, that an award
is in conflict with the public policy of India if the making of the award was induced or affected by fraud or corruption.
(2) Even if the conditions laid down in sub-section (1) are fulfilled, enforcement of the award shall be refused if the Court is satisfied
that---
(a) the award has been annulled in the country in which it was made;
(b) the party against whom it is sought to use the award was not given notice of the arbitration proceedings in sufficient time to
enable him to present his case; or that, being under a legal incapacity, he was not properly represented;
(c) the award does not deal with the differences contemplated by or falling within the terms of the submission to arbitration or that it
contains decisions on matters beyond the scope for the submission or arbitration; Provided that if the award has not covered all the differences submitted to the arbitral tribunal, the Court may, if it thinks fit,
postpone such enforcement or grant it subject to such guarantee as the Court may decide.
(3) If the party against whom the award has been made proves that under the law governing the arbitration procedure there is a
ground, other than the grounds referred to in clauses (a) and (c) of sub-section (1) and clauses (b) and (c) of sub-section (2)
entitling him to contest the validity of the award, the Court may, if it thinks fit, either refuse enforcement of the award or adjourn the
consideration thereof, giving such party a reasonable time within which to have the award annulled by the competent tribunal.
58.Enforcement of foreign awards.- Where the Court is satisfied that the foreign award is enforceable under this Chapter, the award
shall be deemed to be a decree of the Court.
59.Appealable orders.- (1) An appeal shall lie from the order refusing----
(a) to refer the parties to arbitration under section 54: and
(b) to enforce a foreign award under section 57,
(2) No second appeal shall lie from an order passed in appeal under this section, but nothing in this section shall affect or take away
any right to appeal to the Supreme Court.
60.Saving.- Nothing in this Chapter shall prejudice any rights which any person would have had of enforcing in India of any award
or of availing himself in India of any award if this Chapter had not been enacted.
61.Application and scope.- (1) Save as otherwise provided by any law for the time being in force and unless the parties have
otherwise agreed, this Part shall apply to conciliation of disputes arising out of legal relationship, whether contractual or not and to
all proceedings relating thereto.
(2) This Part shall not apply where by virtue of any law for the time being in force certain disputes may not be submitted to
conciliation.
62.Commencement of conciliation proceedings.- (1) The party initiating conciliation shall send to the other party a written invitation
to conciliate under this Part, briefly identifying the subject of the dispute.
(2) Conciliation proceedings shall commence when the other party accepts in writing the invitation to conciliate.
(3) If the other party rejects the invitation, there will be no conciliation proceedings.
(4) If the party initiating conciliation does not receive a reply within thirty days from the date on which he sends the invitation, or
within such other period of time as specified in the invitation, be may elect to treat this as a rejection of the invitation to conciliate
and if he so elects, he shall inform in writing the other party accordingly.
63.Number of conciliators.- (1) There shall be one conciliator unless the parties agree that there shall be two or three conciliators.
(2) Where there is more than one conciliator, they ought, as a general rule, to act jointly.
64.Appointment of conciliators.- (1) Subject to sub-section (2)---
(a) in conciliation proceedings with one conciliator, the parties may agree on the name of a sole conciliator;
(b) in conciliation proceedings with two conciliators, each party may appoint one conciliator;
(c) in conciliation proceedings with three conciliators, each party may appoint one conciliator and the parties may agree on the
name of the third conciliator who shall act as the presiding conciliator.
(2) Parties may enlist the assistance of a suitable institution or person in connection with the appointment of conciliators and in
particular,----
(a) a party may request such an institution or person to recommend the names of suitable individuals to act as conciliator; or
(b) the parties may agree that the appointment of one or more conciliators be made directly by such an institution or person;
Provided that in recommending or appointing individuals to act as conciliator, the institution or person shall have regard to such
considerations as are likely to secure the appointment of an independent and impartial conciliator and, with respect to a sole or third conciliator, shall take into account the advisability of appointing a conciliator of a nationality other than the nationalities of the
parties.
65.Submission of statements to conciliator.- (1) The conciliator, upon his appointment, may request each party to submit to him a
brief written statement of his position and the facts and grounds in support thereof, supplement by any documents and other
evidence that such party deems appropriate.The party shall send a copy of such statement, documents and other evidence to the
other party.
(2) The Conciliator may request each party to submit to him a further written statement of his position and the facts and grounds in
support thereof, supplemented by any documents and other evidence that such party deems appropriate.The party shall send a
copy of such statement, documents and other evidence to the other party.
(3) At an stage of the conciliation proceedings, the conciliator may request a party to submit to him such additional information as
he deems appropriate.
Explanation.----In this section and all the following sections of this Part, the term "conciliator" applies to a sole conciliator, to or three
conciliators as the case may be.
66.Conciliator not bound by certain enactments.- The conciliator is not bound by the Code of Civil Procedure, 1908 (5 of 1908)or
the Indian Evidence Act, 1872 (1 of 1872).
67.Role of conciliator.- (1) The conciliator shall assist the parties in an independent and impartial manner in their attempt to reach
an amicable settlement of their dispute.
(2) The conciliator shall be guided by principles of objectivity, fairness and justice, giving consideration to, among other things, the
rights and obligations of the parties, the usages of the trade concerned and the circumstances surrounding the dispute, including
any previous business practices between the parties.
(3) The conciliator may conduct the conciliation proceedings in such a manner as he considers appropriate, taking into account the
circumstances of the case, the wishes the parties may express, including any request by a party that the conciliator hear oral
statements, and the need for a speedy settlement of the dispute.
(4) The conciliator-may, at any stage of the conciliation proceedings, make proposals for a settlement of the dispute.Such proposals
need not be writing and need not be accompanied by a statement of the reasons therefor.
68.Administrative assistance.- In order to facilitate the conduct of the conciliation proceedings, the parties, or the conciliator with the
consent of the parties, may arrange for administrative assistance by a suitable institution or person.
69.Communication between conciliator and parties.- (1) The conciliator may invite the parties to meet him or may communicate with
them orally or in writing.He may meet or communicate with the parties together or with each of them separately.
(2) Unless the parties have agreed upon the place where meetings with the conciliator are to be held, such place shall be
determined by the conciliator, after consultation with the parties, having regard to the circumstances of the conciliation proceedings.
70.Disclosure of information.- When the conciliator receives factual information concerning the dispute from a party, he shall
disclose the substance of that information to the other party in order that the other party may have the opportunity to present any
explanation which he considers appropriate:
Provided that when a party gives any information to the conciliator subject to a specific condition that it be kept confidential, con
conciliator shall not disclose that information to the other party.
71.Co-operation of parties with conciliator.- The parties shall in good faith co-operate with the conciliator and, in particular, shall
endeavour to comply with requests by the conciliator to submit written materials, provide evidence and attend meetings.
72.Suggestions by parties for settlement of dispute.- Each party may, on his own initiative or at the invitation of the conciliator,
submit to the conciliator suggestions for the settlement of the dispute.
73.Settlement agreement.- (1) When it appears to the conciliator that there exist elements of a settlement which may be acceptable
to the parties, he shall formulate the terms of a possible settlement and submit them to the parties for their observations.After
receiving the observations of the parties, the conciliator may reformulate the terms of a possible settlement in the light of such
observations. (2) If the parties reach agreement on a settlement of the dispute, they may draw up and sign a written settlement agreement.If
requested by the parties, the conciliator may draw up, or assist the parties in drawing up, the settlement agreement.
(3) When the parties sign the settlement agreement, it shall be final and binding on the parties and persons claiming under them
respectively.
(4) The conciliator shall authenticate the settlement agreement and furnish a copy thereof to each of the parties.
74.Status and effect of settlement agreement.- The settlement agreement shall have the and effect as if it is an arbitral award on
agreed terms on the substance of the dispute rendered by an arbitral tribunal under section 30.
75.Confidentiality.- Notwithstanding anything contained in any other law for the time being in force, the conciliator and the parties
shall keep confidential all matter relating to the conciliation proceedings.Confidentiality shall extend also to the settlement
agreement, except where its disclosure is necessary for purposes of implementation and enforcement.
76.Termination of conciliation proceedings.- The conciliation proceedings shall be terminated
(a) by the signing of the settlement agreement by the parties; on the date of the agreement; or
(b) by a written declaration of the conciliator, after consultation with the parties, in the effect that further efforts at conciliation are no
longer justified, on the date of the declaration; or
(c) by a written declaration of the parties addressed to the conciliator to the effect that the conciliation proceedings are terminated ,
on the date of the declaration; or
(d) by a written declaration of a party to the other party and the conciliator, if appointed, to the effect that the conciliation
proceedings are terminated, on the date of the declaration.
77.Resort to arbitral or judicial proceedings.- The parties shall not initiate, during the conciliation proceedings, any arbitral or judicial
proceedings in respect of a dispute that is the subject- matter of the conciliation proceedings except that a party may initiate arbitral
or judicial proceedings, where, in his opinion, such proceedings are necessary for preserving his rights.
urred by a party shall be borne by that party.
79.Deposits.- (1) The conciliator may direct each party to deposit an equal amount as an advance for the costs referred to in subsection (2)

 

 

 





 
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