The Arbitration and Conciliation Act, 1996

Step 6: 20-09-2025

👋 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: SEC 5.

5. Extent of judicial intervention.

Notwithstanding anything contained in any other law for the time being in force, in matters governed by this Part, no judicial authority shall intervene except where so provided in this Part.

Guruji’s Step-by-Step Study Plan with Illustrations 👇

Guruji explains — Section 5: “Extent of judicial intervention” (Arbitration & Conciliation Act, 1996) 📜🥽

Ahhh… come close, beta — Guruji will explain law-ka-dhamaka in simple language, with tea ☕, emojis, and short stories.
Short translation first (in plain, no-jargon English): “Courts should not meddle in arbitration — except when this law itself allows them to.” — i.e. no judicial interference unless the Act specifically says so.

1) Why did Parliament write this line? (Purpose — Guruji-style)

Think of arbitration as a private temple where parties go to settle disputes quickly — not a public bazaar where everybody argues all day. Section 5 protects that temple: it tells judges, “Aiyyo — please stay away unless this Act gives you permission to step in.” That idea comes straight from the international model (UNCITRAL Model Law).

2) Where does Section 5 apply? (Seat matters!)

Important technical point: Section 5 applies to Part I of the Act — i.e., where the place (seat) of arbitration is in India. So, if the seat is in India, Section 5’s “no interference” rule governs. (There are limited statutory exceptions that still apply even for foreign seat arbitrations — but Guruji’s main point: seat matters).

3) So when can courts step in? (The permitted windows — with short examples)

Section 5 is a general ban on intervention, but the Act itself lets courts intervene at specific points. Here are the common ones — read them like traffic lights: 🚦

Pre-trial → Refer to arbitration (Section 8)
If a lawsuit is filed but an arbitration clause exists, the court usually must send the parties to arbitration (unless it is plainly clear there is no valid arbitration agreement).
Illustration: A suitor files a suit about a contract; Guruji says: “Arbitration clause? Off you go to the temple!”

Interim reliefs — stop the mischief (Section 9)
Courts can give interim orders (e.g., freeze assets, interim injunctions, preserve evidence) before/during/and even after an award but before enforcement, to protect the arbitration’s effectiveness.
Illustration: If one party is about to sell a factory, the other gets a court order under S.9 to prevent dissipation. Guruji: “No selling the cow before the final verdict!” 🐄🔒.

Appointment of arbitrators when parties can’t agree (Section 11)
If parties fail to pick arbitrators as agreed, the court (or designated authority) can step in to appoint so arbitration can proceed. The court’s enquiry here is limited — mainly whether an arbitration agreement exists.
Illustration: Two parties can’t pick an umpire — court appoints one so the match can start. ⚖️🏏

Court assistance to take evidence (Section 27)
If the tribunal needs a witness or documents and someone refuses, the tribunal (or a party with tribunal approval) may apply to the court to summon witnesses or obtain documents — but the court’s role is executory, not to re-decide relevance.
Illustration: Tribunal says “Bring the bank records”; court issues summons to the bank. Guruji: “Court helps fetch tea, but let the arbiter taste it.” 🍵📑

Challenge / setting aside the award (Section 34) and appeals (Section 37)
After the award, a party has limited grounds to ask a court to set it aside (e.g., incapacity, invalid arbitration agreement, breach of public policy, failure of natural justice). This is not a full re-trial of merits — courts are narrowly confined. Appeals from such orders go under Section 37.
Illustration: If the award was made without giving someone a chance to speak, court may set it aside — but you can’t reargue the whole case just because you don’t like the umpire’s call. ⚖️📣

(These statutory references come from the Act itself — they are the exceptions to Section 5’s “no interference” rule.)

4) Little flowchart — Guruji’s one-line map

Court sees dispute → Is there an arbitration clause?
Yes → Refer under S.8 → Arbitration proceeds (court only enters S.9/S.11/S.27/S.34 where Act allows).
No → Court decides case in normal way.

5) Recent judicial twist (2025) — can courts modify awards? 🧐

Traditionally courts could set aside awards but not rewrite them. However, a 2025 Constitution-Bench decision (Gayatri Balasamy v ISG Novasoft) held by a 4:1 majority that, in limited circumstances, courts may modify an arbitral award when hearing a Section 34/37 challenge — for example to correct clerical errors, sever invalid parts, or handle post-award interest in narrowly prescribed situations. So the principle of minimal interference remains, but the Supreme Court allowed a small safety valve. (This is important — courts still cannot act like a full appeal court and re-decide merits.)

6) Practical takeaways — what every party should do (Guruji’s checklist ✅)

Specify a clear seat of arbitration (India vs foreign seat) — seat decides whether Part I / S.5 applies.

If urgent relief is needed, apply early under Section 9 (don’t wait until the opponent vanishes with the assets).

If appointment stalls, use Section 11 — courts will intervene narrowly to keep the process moving.

When tribunal asks for evidence, remember S.27: court assists — but tribunal decides relevance.

Don’t expect courts to re-write awards — challenges are limited; post-2025 modification power exists but only in narrow cases.

7) Guruji’s one-line moral (with emoji)

Arbitration = fast, private, and finalise. Courts are like wise helpers at the temple gate — they open the door when statute asks, fetch the evidence on request, and sometimes fix small clerical bumps — but they shouldn’t move in and start redecorating the shrine. 🛕✨

Dear Friends,

🚀 Step 6 done… Step 7 coming tomorrow! Guruji doesn’t deliver pizza, only wisdom 🍕

😂 Don’t run away! Guruji’s Step 6 will land tomorrow like a hot samosa from the kadai!