India’s arbitration framework has been evolving rapidly, with the Arbitration and Conciliation Act, 1996 (as amended) undergoing multiple revisions in 2015, 2019, and 2021 to address shortcomings and bring Indian arbitration law closer to international standards. The amendments have been aimed at reducing judicial intervention, expediting arbitral proceedings, and making India a more attractive destination for commercial arbitration.
Key Amendments Over the Years
The 2015 amendments, which came into force in October 2015, were the most comprehensive revision of the original Act. They introduced crucial changes including limiting the grounds for challenging awards, expediting the appointment of arbitrators, setting time limits for completion of arbitral proceedings, and clarifying the scope of interim relief available from courts.
The 2019 amendments established the Arbitration Council of India (ACI), introduced a mechanism for grading arbitral institutions, and made the Arbitration and Conciliation (Amendment) Ordinance changes permanent. The 2021 amendments further refined the law by modifying certain provisions relating to the challenge of arbitral awards and institutional arbitration.
Section 34 and Judicial Scrutiny of Awards
Section 34, which governs applications for setting aside arbitral awards, has been one of the most litigated provisions. Courts have been called upon to define the meaning of “public policy” as a ground for challenge, with the Supreme Court in ONGC v. Saw Pipes (2003) and subsequent cases progressively narrowing this ground.
The Supreme Court in Ssangyong Engineering and Construction Co. Ltd. v. NHAI (2019) consolidated the position that the public policy ground under the amended Act is significantly narrower than under the original version, limiting interference with arbitral awards.
Emergency Arbitration and Interim Relief
Courts have addressed the enforceability of interim orders passed by emergency arbitrators appointed under institutional rules. The Bombay High Court and Delhi High Court have addressed questions about whether emergency arbitrator orders can be enforced under Section 17(2) of the Act.
India as an Arbitration Hub
India has been working to position itself as a major arbitration destination. The Mumbai Centre for International Arbitration (MCIA) and Delhi International Arbitration Centre (DIAC) are among the institutions that have grown in prominence. The government has also established India International Arbitration Centre (IIAC) as a statutory body to promote institutional arbitration.
Source: Arbitration and Conciliation Act, 1996 | Analysis: Justice Order | June 2026
