Cases Not Referred to Arbitration under the Arbitration and Conciliation Act, 1996

Introduction

Welcome to the official blog of the Law Offices of Kr. Vivek Tanwar Advocate and Associates, where we are dedicated to providing litigation support services for matters related to the Arbitration and Conciliation Act, 1996. In today’s blog post, we aim to shed light on the prevailing issues surrounding the Arbitration and Conciliation Act, of 1996, the legal framework in place for their protection, and the steps we can take as a society to combat these acts. Join us as we explore this critical subject and empower you with the knowledge to protect your rights and safety.

Understanding the Arbitration and Conciliation Act, 1996

Arbitration has emerged as a popular alternative dispute resolution mechanism, providing a quicker and more cost-effective way to resolve disputes than traditional litigation. However, not all disputes are eligible for arbitration. The Arbitration and Conciliation Act, of 1996, which governs arbitration proceedings in India, outlines specific cases that are not referred to arbitration. In this article, we explore these exceptions to shed light on when arbitration may not be the appropriate avenue for dispute resolution.

Cases Not Referred to Arbitration

While arbitration offers many advantages, there are instances where disputes are deemed ineligible for arbitration. According to Section 2(3) of the Arbitration and Conciliation Act, 1996, the following cases cannot be referred to arbitration:

1. Winding Up Proceedings of Companies: Matters related to the winding up of a company, as exemplified in the case of Haryana Telecom Ltd. v. Sterlite Industries (1999), are excluded from arbitration proceedings. This ensures that the legal process for dissolving a company is carried out in a court of law.
2. Disputes Mandated for Tribunal Determination: Certain disputes are required by law to be resolved by designated tribunals. In such cases, arbitration is not an option, and the prescribed tribunal must handle the matter.
3. Insolvency-Related Proceedings: Disputes pertaining to insolvency, where a business or individual is unable to meet their financial obligations, fall outside the scope of arbitration. These proceedings are typically adjudicated in specialized insolvency courts.
4. Probate Proceedings: Cases involving the validation and execution of wills, commonly known as probate proceedings, are typically ineligible for arbitration. These matters require the scrutiny and supervision of a court.
5. Will Authenticity and Genuineness: Disputes concerning the authenticity and legitimacy of wills, a critical aspect of probate proceedings, are not suitable for arbitration.
6. Guardianship Matters: Legal conflicts arising from guardianship arrangements, such as the appointment of guardians for minors or incapacitated individuals, are generally not arbitrated. These cases involve sensitive decisions that require court oversight.
7. Succession Disputes: Disputes arising from the distribution of assets and inheritance, often referred to as succession disputes, are typically beyond the scope of arbitration.
8. Immovable Property Disputes: Cases involving disputes related to immovable property, such as real estate and land, are usually not subject to arbitration. These disputes often require the court’s intervention due to their complexity.
9. Illegal Transaction Cases: Matters involving transactions deemed illegal or against the law are generally excluded from arbitration. These cases raise questions of legality that must be resolved through the judicial system.
10. Proceedings Under Section 145 of the Code of Criminal Procedure: Cases initiated under Section 145 of the Code of Criminal Procedure, which deal with disputes regarding possession of land, are not typically arbitrated. These disputes often involve multiple parties and complex land-related issues.
11. Criminal Cases: Criminal cases, by their very nature, are typically beyond the scope of arbitration. Allegations of criminal conduct necessitate criminal legal proceedings in a court of law.

Conclusion

The Arbitration and Conciliation Act, of 1996, has significantly streamlined the arbitration process in India, making it a preferred method of dispute resolution for many. However, it is essential to recognize that not all disputes are amenable to arbitration. The Act’s Section 2(3) provides a comprehensive list of cases that are not referred to arbitration, ensuring that certain matters, such as winding up of companies, insolvency proceedings, and criminal cases, receive the appropriate legal scrutiny and attention they deserve in a court of law. Understanding these exceptions is crucial for both legal practitioners and parties involved in potential disputes to make informed decisions regarding the most suitable dispute resolution mechanism.

We are a law firm in the name and style of Law Offices of Kr. Vivek Tanwar Advocate and Associates at Gurugram and Rewari. We are providing litigation support services for matters related to the Arbitration and Conciliation Act, of 1996.