Report No. 246
176th Report of the Law Commission
14. In the year 2001, the Government made a reference to this Commission to undertake a comprehensive review of the Arbitration and Conciliation Act, 1996 in view of the various shortcomings observed in its working and also various representations received by the Government in this regard.
15. The Commission considered such representations which pointed out that the UNCITRAL Model (on the basis of which the Arbitration and Conciliation Act, 1996 was enacted) was mainly intended to enable various countries to have a common model for 'International Commercial Arbitration' but the 1996 Act had made provisions of such a Model Law applicable also to cases of purely domestic arbitration between Indian nationals. Therefore, this was giving rise to some difficulties in the implementation of the Act.
16. In addition, there were also several conflicting judgments of various High Courts with regard to the interpretation of the provisions of the 1996 Act. Several other aspects about the difficulties in the working of the Act were also brought to the notice of the Commission.
17. After an in-depth study of the law on the subject, the Commission made its recommendations for bringing amendments in the Arbitration and Conciliation Act, 1996 in the form of its 176th Report.
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