HISTORICAL EVOLUTION OF ARBITRATION LAW IN INDIA

AUTHOR – HRIDAY MINOCHA, LL.M, AMITY INSTITUTE OF ADVANCED LEGAL STUDIES, AMITY UNIVERSITY, NOIDA

BEST CITATION – HRIDAY MINOCHA, HISTORICAL EVOLUTION OF ARBITRATION LAW IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (3) OF 2026, PG. 956-961, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/JDOD5524

Abstract

This doctrinal research paper examines the historical evolution of arbitration law in India, tracing its journey from informal community based dispute resolution mechanisms such as panchayats and merchant guilds to a formal statutory framework shaped during the colonial period and beyond. It critically analyses the development and structure of key legislations, particularly the Arbitration Act of 1940, highlighting its court centric approach, procedural rigidity, and the extent of judicial interference that undermined arbitral autonomy and efficiency. The paper further explores the limitations of the pre reform regime and the growing dissatisfaction among commercial stakeholders, especially in the context of economic liberalization and increasing cross border transactions. It also evaluates the influence of international developments, including the UNCITRAL Model Law, in shaping India’s arbitration reforms. Ultimately, the study focuses on the enactment of the Arbitration and Conciliation Act of 1996 as a transformative shift towards a more autonomous, efficient, and globally aligned arbitration framework, emphasizing the balance between judicial oversight and arbitral independence in modern Indian Arbitration Law.