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The Arbitration and Conciliation Act, 1996 is based on
  • a)
    the Supreme Court recommendations
  • b)
    the UNCITRAL 
  • c)
    the Indian Constitution
  • d)
    the UN recommendations
Correct answer is option 'B'. Can you explain this answer?
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The Arbitration and Conciliation Act, 1996 is based ona)the Supreme Co...
The Arbitration and Conciliation Act of 1996 is the relevant legislation that governs the process of arbitration in India. The statute provides for an elaborate codified recognition of the concept of arbitration, which has largely been influenced by significant movements of judicial reforms and conflict management across the world. The Indian Arbitration and Conciliation Act of 1996 is similarly modelled on the UNCITRAL model law.
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The Arbitration and Conciliation Act, 1996 is based ona)the Supreme Co...
The correct answer for the given question is option B, the UNCITRAL (United Nations Commission on International Trade Law). Now let's understand why this is the correct answer and explore the details.

The Arbitration and Conciliation Act, 1996 is a legislation enacted by the Indian government to govern the law relating to both domestic and international arbitration and conciliation in India. The Act is based on the UNCITRAL Model Law on International Commercial Arbitration, which was formulated by the United Nations Commission on International Trade Law (UNCITRAL).

- What is UNCITRAL?
UNCITRAL is a subsidiary body of the United Nations General Assembly, established in 1966. Its primary objective is to promote the progressive harmonization and unification of international trade law. UNCITRAL plays a crucial role in formulating international instruments and standards that facilitate cross-border trade and investment.

- UNCITRAL Model Law on International Commercial Arbitration:
The UNCITRAL Model Law on International Commercial Arbitration was adopted by UNCITRAL in 1985. It provides a comprehensive framework for the conduct of international commercial arbitration proceedings and the enforcement of arbitral awards. The Model Law has been widely adopted by many countries around the world, including India.

- Influence on the Arbitration and Conciliation Act, 1996:
When the Indian government decided to reform its arbitration laws, it sought to align them with international best practices and standards. The UNCITRAL Model Law served as a reference point for this purpose. The government considered the Model Law's provisions and adapted them to suit the Indian legal system and requirements.

- Salient Features:
The Arbitration and Conciliation Act, 1996, incorporates several key provisions of the UNCITRAL Model Law. Some of the salient features influenced by the Model Law include:
1. Definition of arbitration agreement
2. Composition of arbitral tribunal
3. Conduct of arbitral proceedings
4. Setting aside of arbitral awards
5. Recognition and enforcement of foreign arbitral awards

The Act also includes certain modifications and additions to the Model Law, catering to the specific needs and circumstances of India.

In conclusion, the correct answer is option B - the UNCITRAL. The Arbitration and Conciliation Act, 1996, is based on the provisions of the UNCITRAL Model Law on International Commercial Arbitration, which serves as a global framework for arbitration. India adopted and adapted the Model Law to form its domestic legislation on arbitration and conciliation.
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Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.According to the passage, what is a necessary component to enable arbitration between parties in a dispute?

Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.Chand was alleged by Suraj on the acquisition of his house in Delhi which was decided to be dealt under the Arbitration Act. The arbitrator asked Chand to submit his statement within a month. Chand failed to submit his statement within the stipulated time. The arbitrator terminated the proceedings on account that Chand failed to submit the statement. Is the termination valid?

Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.What are the main attributes that arbitration should possess to be an alternative to litigation?

Directions: Read the following passage carefully:Arbitration has been the toast of the legal community for a long time. It has been long expected that arbitration will replace business litigation to a great extent one day. Lawyers have been encouraging parties to have an arbitration agreement in all their business transaction documents for more than two decades now. However, arbitration has not been proven to be effective too often.A lot of lawyers have begun to re-evaluate if they should put in those arbitration clauses blindly in the agreements they draft. Also, a lot of people who have already put in binding arbitration clauses in their agreements, are finding arbitration very difficult to navigate and too expensive when disputes actually arise.Even after 23 years since the introduction of Arbitration and Conciliation Act of 1996, arbitration seems to be slowly evolving and not really making a dent on pendency of litigation situation and more costly unlike litigation. The Act empowers the arbitrator to terminate the proceedings where without any sufficient cause, the claimant fails to communicate his statement of claim within the stipulated period. If the respondent fails to submit his statement of defence within the predetermined period, the arbitrator shall continue with the proceedings without treating such a failure in itself as an admission of claimants allegations.Would it ever become the mature alternative that Indian businesses can safely rely on for reliable, fast, efficient and cost-effective dispute resolution, especially given the terrible state of civil justice?The BN Srikrishna Committee Report on Institutionalisation of Arbitration Mechanism in India states that a lack of governmental support to promote arbitration is also one of the reasons why arbitration has not become the most preferred way of resolution. The report goes on to suggest that there should be awareness programmes and training to make arbitration a more popular concept. However, such awareness campaigns are very unlikely to attract parties to arbitration given the way it functions at present.Quality of arbitration and arbitrators can often be suspect. The courts have settled the legal proposition that an arbitration agreement is not required to be in any particular form. Courts in India regularly interfere and do not respect party autonomy. The award is expected to be up for appeal or review in the higher courts and that really does not instill confidence in the parties involved in disputes. These factors are putting off parties from adopting arbitration. At present, it appears that only in a handful of matters involving very large claims, arbitration is still viable in India.Q.Rama and Bose agreed to an arbitration trial. On conclusion of the arbitration trial, Rama was awarded to indemnify Bose with Rs. 50,000 by the end of February 2020. During February 2020, Rama refused to pay Bose the said amount. Rama in defence said that the arbitration agreement was not in written form and hence doesnt bind him to indemnify Bose. Is the plea by Rama valid?

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The Arbitration and Conciliation Act, 1996 is based ona)the Supreme Court recommendationsb)the UNCITRALc)the Indian Constitutiond)the UN recommendationsCorrect answer is option 'B'. Can you explain this answer?
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