Report No. 76

1.27. Working of the agreement.-

An arbitration agreement is primarily an agreement and, therefore, to be construed as any other agreement. But, by virtue of section 3, certain provisions are deemed to be included in the agreement (if the agreement is silent on these points). These provisions are of a practical and detailed nature, intended to ensure the smooth working of the agreement.Further, sometimes the machinery for appointment of an arbitrator, as provided by the agreement, may not be complete, and the law, therefore, steps in by making suitable provisions to ensure that the agreement does not fail by reason of a lacuna on this subject (sections 4 to 10).

Again, in order that the arbitration may not fail by reason of want of diligence or misconduct on the part of the arbitrators or umpire, the Act gives certain powers to the court for removal and appointment of arbitrators etc. (sections 11 and 12). And, to facilitate the effective discharge by the arbitrators of their functions, the Act confers certain powers on them (section 13).