Arbitration and Conciliation Act, 1996
85. Repeal and savings.—
(1) The Arbitration (Protocol and Convention) Act, 1937 (6 of 1937), the Arbitration Act, 1940 (10 of 1940) and the Foreign Awards (Recognition and Enforcement) Act, 1961 (45 of 1961) are hereby repealed.
(2) Notwithstanding such repeal,—
(a) the provisions of the said enactments shall apply in relation to arbitral proceedings which commenced before this Act came into force unless otherwise agreed by the parties but this Act shall apply in relation to arbitral proceedings which commenced on or after this Act comes into force;
(b) all rules made and notifications published, under the said enactments shall, to the extent to which they are not repugnant to this Act, be deemed respectively to have been made or issued under this Act.
Agreement providing arbitration under the provisions of the Arbitration Act, 1940
By section 85 of the Act of 1996, the earlier Act of 1940 was repealed and the only exception is provided in sub-section (2) of said section where a proceeding which had commenced when the Act of 1940 was in force and continued even after coming into force of Act of 1996 and all the parties thereto agreed that the old Act of 1940 shall apply to the said proceeding. Where the agreement was made in the year 2000, and the suit filed in the year 2003 when the Act of 1940 had already been repealed by the Act of 1996, parties cannot take the help of the exception provided in sub-section (2) of the Act of 1996; Rajan Kumar Verma v. Sachchidanand Singh, AIR 2006 Pat 1.
Enforcement of Foreign award
The foreign award given after the commencement of the Arbitration and Conciliation Act, would be governed by that Act, although the proceedings of arbitration had commenced prior to enforcement of the Arbitration and Conciliation Act, 1996; Fuerst Day Lawson Ltd. v. Jindal Export Ltd., AIR 2001 SC 2293.