What is difference between Arbitration Act 1940 and Arbitration and Conciliation Act 1996

The differences between Arbitration Act 1940 and Arbitration and Conciliation Act 1996 can be understood as follows - 

1. Extent of applicablity of Old and New Arbitration Law

Old Law only concerns with domestic arbitration proceedings while New Law concerns with domestic arbitration, international arbitration and enforcement of foreign tribunal award.

2. Role of Judiciary in Old and New Arbitration Law

OLd Law conferred wide discretion on the courts and very little on the arbitral tribunal itself while New Law limits the judicial intervention and broadens the scope of the powers vested with the arbitral tribunal.

3.  Dependency on Courts in Old and New Arbitration Law

Under Old Law heavy reliance was placed on the courts to ensure that arbitration proceedings are conducted in a particular manner. Under New Law heavy reliance on the arbitral tribunal to ensure proceedings may continue without placing unnecessary reliance on the overburdened judiciary.

4. Procedural Regulations Old and New Arbitration Law

OLd Law does not give freedom to the parties and impose a number of regulations over them while New Law gives freedom to the parties and do not impose any regulations over them.

5. Power of Tribunal in Old and New Arbitration Law

Under Old Law Arbitral Tribunal had no real powers but rather acts as a proxy for the Court but under New Law principle of competence-competence plays a pivotal role in the scheme of the new act.

6. Interim Orders in Old and New Arbitration Law

Under OLd Law arbitral tribunal does not have the power to pass interim order against the party but under New Law arbitral tribunal has the power to pass the interim order against the party.

7. Legal background of Old and New Arbitration Law

Old Law was based upon the English Arbitration Act, 1934 which prevailed in the British but New Law is based upon the UNCITRAL Model Law on International Commercial Arbitration, 1985.