📘Arbitration & Conciliation Act, 1996 MCQs & Short Notes
1. The Arbitration & Conciliation Act, 1996 is based on:
A. English Arbitration Act
B. UNCITRAL Model Law
C. Indian Contract Act
D. CPC
Answer: B
2. The Act extends to:
A. Whole India
B. Whole India except J&K (originally)
C. Only metropolitan cities
D. Only commercial disputes
Answer: B
3. Arbitration agreement is defined under:
A. Section 2
B. Section 7
C. Section 9
D. Section 11
Answer: B
4. Arbitration agreement must be:
A. Oral
B. Written
C. Registered
D. Notarized
Answer: B
5. Interim measures by court are under:
A. Section 7
B. Section 8
C. Section 9
D. Section 34
Answer: C
6. Referral to arbitration by judicial authority is under:
A. Section 8
B. Section 9
C. Section 11
D. Section 34
Answer: A
7. Number of arbitrators is governed by:
A. Section 7
B. Section 10
C. Section 11
D. Section 34
Answer: B
8. Default number of arbitrators:
A. 1
B. 2
C. 3
D. 5
Answer: A
9. Appointment of arbitrators is under:
A. Section 9
B. Section 10
C. Section 11
D. Section 34
Answer: C
10. Grounds for challenge of arbitrator under:
A. Section 12
B. Section 13
C. Section 14
D. Section 16
Answer: A
11. Arbitrator challenge procedure:
A. Section 12
B. Section 13
C. Section 14
D. Section 15
Answer: B
12. Failure or impossibility to act by arbitrator:
A. Section 12
B. Section 13
C. Section 14
D. Section 16
Answer: C
13. Competence of arbitral tribunal (Kompetenz-Kompetenz):
A. Section 14
B. Section 15
C. Section 16
D. Section 17
Answer: C
14. Interim measures by arbitral tribunal:
A. Section 9
B. Section 16
C. Section 17
D. Section 34
Answer: C
15. Place of arbitration is governed by:
A. Section 19
B. Section 20
C. Section 21
D. Section 23
Answer: B
16. Commencement of arbitral proceedings:
A. Section 20
B. Section 21
C. Section 23
D. Section 24
Answer: B
17. Statement of claim and defense:
A. Section 21
B. Section 22
C. Section 23
D. Section 24
Answer: C
18. Hearings and written proceedings:
A. Section 23
B. Section 24
C. Section 25
D. Section 26
Answer: B
19. Default of party:
A. Section 24
B. Section 25
C. Section 26
D. Section 27
Answer: B
20. Expert appointed by tribunal:
A. Section 25
B. Section 26
C. Section 27
D. Section 28
Answer: B
21. Court assistance in evidence:
A. Section 26
B. Section 27
C. Section 28
D. Section 29
Answer: B
22. Rules applicable to substance of dispute:
A. Section 27
B. Section 28
C. Section 29
D. Section 30
Answer: B
23. Decision-making by tribunal:
A. Section 28
B. Section 29
C. Section 30
D. Section 31
Answer: B
24. Settlement during arbitration:
A. Section 29
B. Section 30
C. Section 31
D. Section 32
Answer: B
25. Form and contents of arbitral award:
A. Section 30
B. Section 31
C. Section 32
D. Section 33
Answer: B
26. Termination of proceedings:
A. Section 31
B. Section 32
C. Section 33
D. Section 34
Answer: B
27. Correction and interpretation of award:
A. Section 32
B. Section 33
C. Section 34
D. Section 35
Answer: B
28. Setting aside arbitral award:
A. Section 33
B. Section 34
C. Section 35
D. Section 36
Answer: B
29. Finality of arbitral award:
A. Section 34
B. Section 35
C. Section 36
D. Section 37
Answer: B
30. Enforcement of arbitral award:
A. Section 35
B. Section 36
C. Section 37
D. Section 38
Answer: B
31. Appealable orders are under:
A. Section 36
B. Section 37
C. Section 38
D. Section 39
Answer: B
32. Deposits:
A. Section 37
B. Section 38
C. Section 39
D. Section 40
Answer: B
33. Lien on arbitral award:
A. Section 38
B. Section 39
C. Section 40
D. Section 41
Answer: B
34. Arbitration agreement survives termination:
A. Section 7
B. Section 16
C. Doctrine of separability
D. Section 34
Answer: C
35. Conciliation provisions begin from:
A. Section 50
B. Section 60
C. Section 61
D. Section 70
Answer: C
36. Conciliation is governed by:
A. Part I
B. Part II
C. Part III
D. Part IV
Answer: C
37. Conciliator appointment:
A. Section 62
B. Section 64
C. Section 66
D. Section 70
Answer: B
38. Confidentiality in conciliation:
A. Section 70
B. Section 75
C. Section 80
D. Section 81
Answer: B
39. Settlement agreement status:
A. Contract only
B. Decree of court
C. Not binding
D. Optional
Answer: B
40. Foreign awards covered under:
A. Part I
B. Part II
C. Part III
D. Part IV
Answer: B
(Continuing…)
41–100 (Advanced & Analytical MCQs)
41. New York Convention under Act: Section 44
Answer: B
42. Geneva Convention: Section 53
Answer: B
43. Public policy ground: Section 34
Answer: B
44. Patent illegality applies to: Domestic awards
Answer: B
45. Limitation for Section 34: 3 months + 30 days
Answer: A
46. Fast-track arbitration: Section 29B
Answer: B
47. Time limit for award: 12 months
Answer: B
48. Extension by court: Section 29A
Answer: B
49. Independence of arbitrator: Fifth Schedule
Answer: B
50. Ineligibility: Seventh Schedule
Answer: B
51. Interim relief enforceable like decree: Section 17
Answer: B
52. Arbitrator fees: Fourth Schedule
Answer: B
53. Court defined under: Section 2(1)(e)
Answer: A
54. International commercial arbitration: Section 2(1)(f)
Answer: B
55. Seat vs venue distinction: Judicial interpretation
Answer: B
56. Section 9 available: Before/after arbitration
Answer: D
57. Section 8 amendment: Mandatory referral
Answer: B
58. Section 11 power: Judicial (post amendment)
Answer: B
59. Arbitrability decided by: Tribunal (Section 16)
Answer: B
60. Res judicata applies: Yes
Answer: A
61. Ex parte award possible: Yes
Answer: A
62. Costs regime: Section 31A
Answer: B
63. Interest on award: Section 31(7)
Answer: B
64. Enforcement stayed automatically? No
Answer: B
65. Amendment year major reform: 2015
Answer: B
66. 2019 amendment introduced: Arbitration Council of India
Answer: B
67. Confidentiality section: Section 42A
Answer: B
68. Immunity of arbitrator: Section 42B
Answer: B
69. Challenge award appeal: Section 37
Answer: B
70. Enforcement of foreign award: Section 48
Answer: B
71. Refusal grounds: Section 48
Answer: B
72. Conciliation settlement enforceability: Section 74
Answer: B
73. Conciliator role: Neutral facilitator
Answer: B
74. Arbitration vs conciliation difference: Binding vs non-binding
Answer: B
75. Institutional arbitration promoted by: 2019 Amendment
Answer: B
76. Arbitration agreement separable: Yes
Answer: A
77. Arbitration clause validity independent: Yes
Answer: A
78. Domestic arbitration governed by: Part I
Answer: A
79. Foreign arbitration enforcement: Part II
Answer: B
80. Appeal scope limited: Yes
Answer: A
81. Tribunal bound by CPC? No
Answer: B
82. Evidence Act applicability: No
Answer: B
83. Language of arbitration: Section 22
Answer: B
84. Majority decision rule: Yes
Answer: A
85. Dissent award binding? No
Answer: B
86. Award must be reasoned: Yes
Answer: A
87. Stamp duty applicability: Yes
Answer: A
88. Arbitration agreement survives contract: Yes
Answer: A
89. Court intervention minimized: Yes
Answer: A
90. Arbitration is alternative dispute resolution: Yes
Answer: A
91. Foreign award binding: Yes
Answer: A
92. Seat determines jurisdiction: Yes
Answer: A
93. Arbitration speedy remedy: Yes
Answer: A
94. Conciliation voluntary: Yes
Answer: A
95. Arbitration binding: Yes
Answer: A
96. Tribunal decides procedure: Section 19
Answer: B
97. Waiver of right: Section 4
Answer: B
98. Equal treatment of parties: Section 18
Answer: B
99. Arbitration notice essential: Yes
Answer: A
100. Objective of Act: Efficient dispute resolution
Answer: A
Short Notes (≈60 words each)
1. Arbitration Agreement
An arbitration agreement under Section 7 is a written agreement between parties to submit disputes to arbitration. It may be a clause in a contract or a separate agreement. It must clearly indicate intent to arbitrate. It is legally enforceable and survives termination of the main contract under the doctrine of separability.
2. Doctrine of Separability
This doctrine ensures that the arbitration clause remains independent of the main contract. Even if the main contract is void or terminated, the arbitration agreement survives. It is recognized under Section 16 and allows arbitral tribunals to decide their own jurisdiction without being affected by disputes over the main contract.
3. Kompetenz-Kompetenz Principle
Under Section 16, arbitral tribunals have the power to rule on their own jurisdiction, including objections regarding validity of the arbitration agreement. This minimizes court interference and ensures efficiency. It reinforces the autonomy of arbitration proceedings and supports quick resolution of jurisdictional disputes.
4. Interim Measures
Interim measures under Sections 9 and 17 allow courts and arbitral tribunals to grant temporary relief such as injunctions, asset protection, or evidence preservation. After the 2015 amendment, tribunal orders under Section 17 are enforceable as court decrees, strengthening arbitration effectiveness and reducing reliance on courts.
5. Arbitral Award
An arbitral award under Section 31 is the final decision of the tribunal. It must be written, reasoned, and signed. It is binding on parties and enforceable like a court decree under Section 36. Awards may include interest and costs. It brings finality to disputes unless challenged under Section 34.
6. Setting Aside Award (Section 34)
Section 34 allows courts to set aside arbitral awards on limited grounds such as incapacity, invalid agreement, lack of proper notice, or violation of public policy. Courts cannot review merits. The limitation period is three months extendable by 30 days. It ensures judicial oversight without excessive interference.
7. Public Policy Ground
Public policy is a key ground for challenging awards. It includes fraud, corruption, contravention of fundamental policy of Indian law, or conflict with morality. After amendments, its scope is narrowed to prevent misuse and excessive judicial interference, ensuring finality and efficiency of arbitral awards.
8. Conciliation
Conciliation under Part III is a non-binding dispute resolution process where a neutral conciliator assists parties in reaching a settlement. It is flexible, confidential, and voluntary. If successful, the settlement agreement has the same status as an arbitral award under Section 74.
9. International Commercial Arbitration
Defined under Section 2(1)(f), it involves at least one foreign party. It enhances cross-border dispute resolution. Indian law aligns with UNCITRAL Model Law, making arbitration globally acceptable. Courts have limited interference, and foreign awards are enforceable under Part II.
10. Amendments (2015, 2019)
The 2015 amendment introduced timelines, fast-track arbitration, reduced court intervention, and enforceability of interim orders. The 2019 amendment established the Arbitration Council of India and promoted institutional arbitration. These reforms aim to make India a global arbitration hub with efficiency and transparency.
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