Step 2: 16-09-2025

👋 Dear friends, ✨
👉 Get ready, friends! Time to decode India’s arbitration law with laughter, logic, and learning. 😅⚖️

Guruji’s Step-by-Step Study Plan 👇

THE ARBITRATION AND CONCILIATION ACT, 1996 ACT No. 26 OF 1996[16th August, 1996.]

Preamble.—WHEREAS the United Nations Commission on International Trade Law (UNCITRAL) has adopted the UNCITRAL Model Law on International Commercial Arbitration in 1985;

AND WHEREAS the General Assembly of the United Nations has recommended that all countries give due consideration to the said Model Law, in view of the desirability of uniformity of the law of arbitral procedures and the specific needs of international commercial arbitration practice;

ANDWHEREAS the UNCITRAL has adopted the UNCITRAL Conciliation Rules in 1980;

ANDWHEREAS the General Assembly of the United Nations has recommended the use of the said Rules in cases where a dispute arises in the context of international commercial relations and the parties seek an amicable settlement of that dispute by recourse to conciliation;

ANDWHEREAS the said Model Law and Rules make significant contribution to the establishment of a unified legal framework for the fair and efficient settlement of disputes arising in international

commercial relations;

ANDWHEREAS it is expedient to make law respecting arbitration and conciliation, taking into account the aforesaid Model Law and Rules;

BE it enacted by Parliament in the Forty-seventh Year of the Republic of India as follows:—

PRELIMINARY

1. Short title, extent and commencement.—(1) This Act may be called the Arbitration and Conciliation Act, 1996.

(2) It extends to the whole of India:

(3) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

Guruji’s Step-by-Step Study Plan 👇

👍 Let me break this down for you in a simple, illustrated way, so you can easily understand the essence of The Arbitration and Conciliation Act, 1996 (Act No. 26 of 1996).

📜 Preamble – Explained with Illustrations:

1. UNCITRAL Model Law (1985)

⚖️ UNCITRAL (United Nations Commission on International Trade Law) created a Model Law on International Commercial Arbitration.

🎯 Goal: To make arbitration rules uniform across countries.

Illustration
🇮🇳 An Indian company exports machinery to 🇩🇪 a German company. A dispute arises. Instead of confusion about which law applies, both follow the Model Law → clear and uniform.

2. UNCITRAL Conciliation Rules (1980)

🤝 Conciliation is a peaceful settlement method where parties negotiate with the help of a neutral conciliator.

🌍 UN General Assembly recommended these rules for international business disputes.

Illustration
🇮🇳 An Indian software firm and 🇯🇵 a Japanese client have a payment dispute.
Instead of going to court, they appoint a conciliator 🧑‍⚖️ who helps them talk and reach a mutual settlement.

3. Purpose of Model Law & Rules

📐 Together, they provide a unified legal framework.

📦 India wanted to modernize its outdated arbitration law, so it adopted these rules in 1996.

Illustration
Before 1996, India’s arbitration laws were scattered 📚 and old.
After adopting UNCITRAL principles, India became aligned with global trade practices 🌐.

📜 Preliminary (Section 1) – Explained with Emojis

(1) Short Title

📖 This Act is called The Arbitration and Conciliation Act, 1996.

Illustration
Like a book title for easy reference 📘.

(2) Extent

🗺️ The Act extends to the whole of India.

Illustration
Whether in 🏔️ Kashmir, 🌊 Kanyakumari, 🌴 Andaman, or 🏜️ Rajasthan → this Act applies everywhere.

(3) Commencement

📢 The Act comes into force on the date the Central Government notifies in the Official Gazette.

Illustration
Parliament passes the law ✅, but it starts only when the govt rings the bell 🔔 by publishing in the Gazette.

✅ Summary

🌍 UNCITRAL gave Model Law (1985) & Conciliation Rules (1980).