Important Definitions under Arbitration Law

Section 

Term 

Definition 

2(1)(a) 

Arbitration 

Any arbitration whether or not administered by a permanent arbitral institution. 

2(1)(b) 

Arbitration Agreement 

An agreement referred to in Section 7 of the Act. 

2(1)(c) 

Arbitral Award 

Includes an interim award. 

2(1)(d) 

Arbitral Tribunal 

A sole arbitrator or a panel of arbitrators. 

2(1)(e)(i) 

Court (Domestic Arbitration) 

The principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original civil jurisdiction having jurisdiction over the subject-matter; excludes Civil Courts of inferior grade and Courts of Small Causes. 

2(1)(e)(ii) 

Court (International Commercial Arbitration) 

The High Court in exercise of its ordinary original civil jurisdiction having jurisdiction over the subject-matter; in other cases, a High Court having jurisdiction to hear appeals from decrees of courts subordinate to it. 

2(1)(f) 

International Commercial Arbitration 

An arbitration relating to disputes arising out of legal relationships (contractual or not), considered as commercial under Indian law, where at least one party is: (i) an individual who is a foreign national or habitually resident outside India; or (ii) a body corporate incorporated outside India; or (iii) an association or body of individuals whose central management and control is exercised outside India; or (iv) the Government of a foreign country. 

2(1)(g) 

Legal Representative 

A person who in law represents the estate of a deceased person; includes any person who intermeddles with the estate of the deceased and, where a party acts in a representative character, the person on whom the estate devolves. 

2(1)(h) 

Party 

A party to an arbitration agreement. 

Section 

Subject 

Rule / Provision 

2(2) 

Territorial Applicability 

Part I applies where the place of arbitration is in India. Proviso (inserted by Act 3 of 2016): Sections 9, 27, and Section 37(1)(a) and 37(3) also apply to international commercial arbitration even if the place of arbitration is outside India, subject to agreement to the contrary, provided the award is enforceable and recognised under Part II of the Act. 

2(3) 

Non-obstante — Other Laws 

Part I does not affect any other law for the time being in force by virtue of which certain disputes may not be submitted to arbitration. 

2(4) 

Application to Statutory Arbitrations 

Part I (except Section 40(1), Sections 41 and 43) applies to every arbitration under any other enactment, as if it were pursuant to an arbitration agreement and as if that enactment were an arbitration agreement — except where Part I is inconsistent with that enactment or rules made thereunder. 

2(5) 

General Applicability 

Subject to Section 2(4), and unless otherwise provided by any law in force or any bilateral agreement between India and another country, Part I applies to all arbitrations and all proceedings relating thereto. 

2(6) 

Party Autonomy 

Where Part I (except Section 28) leaves parties free to determine an issue, that freedom includes the right to authorise any person or institution to determine that issue. 

2(7) 

Domestic Award 

An arbitral award made under Part I shall be considered a domestic award. 

2(8) 

Agreement Includes Arbitration Rules 

Where Part I refers to an agreement of the parties (whether express or implied), that agreement shall include any arbitration rules referred to in that agreement. 

2(9) 

Claim Includes Counterclaim 

Except under Section 25(a) and Section 32(2)(a), any reference to a claim includes a counterclaim, and any reference to a defence includes a defence to that counterclaim.