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A new India-seated arbitration agreement made in 2026 clearly requires disputes to be arbitrated, but refers to the repealed Arbitration Act, 1940. Which statutory regime governs the arbitration?

Question and options

A new India-seated arbitration agreement made in 2026 clearly requires disputes to be arbitrated, but refers to the repealed Arbitration Act, 1940. Which statutory regime governs the arbitration?

  1. The arbitration would be governed by the provisions of Arbitration and Conciliation Act, 1996.

  2. The arbitration would be governed by the provisions of Arbitration Act, 1940.

  3. The arbitration clause is void.

  4. The arbitration would be governed by the provisions of the Arbitration Act, 1940 as well as of the Arbitration and Conciliation Act, 1996.

Answer and explanation

Correct answer: A - The arbitration would be governed by the provisions of Arbitration and Conciliation Act, 1996.

A new India-seated arbitration is governed by the Arbitration and Conciliation Act, 1996. Section 85 repealed the 1940 Act and saves its operation for proceedings commenced before the new regime. Merely citing the repealed statute in a new arbitration clause neither revives it as the governing enactment nor necessarily destroys the agreement to arbitrate.

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