Arbitration and Conciliation Act, 1996
Section 11A of Arbitration Act: Power of Central Government to Amend Fourth Schedule
Section 11A of the Arbitration and Conciliation Act, 1996 empowers the Central Government to amend the Fourth Schedule by notification in the Official Gazette, subject to a draft notification being placed before both Houses of Parliament for the statutory period and Parliamentary control specified in sub-section (2).
Section 11A - Power of Central Government to Amend Fourth Schedule
(1) If the Central Government Government is satisfied that it is necessary or expedient so to do, it may, by notification in the Official Gazette, amend the Fourth Schedule and thereupon the Fourth Schedule shall be deemed to have been amended accordingly.
(2) A copy of every notification proposed to be issued under sub-section (1), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by the both Houses of Parliament.
Insertion note: Section 11A was inserted by the Arbitration and Conciliation (Amendment) Act, 2015, with effect from 23-10-2015.
Meaning and Scope of Section 11A
Section 11A creates a specific statutory mechanism for changing the Fourth Schedule without requiring a separate amendment Act each time the Schedule needs to be revised. The power is conferred on the Central Government, but it is subject to the Parliamentary scrutiny procedure contained in sub-section (2).
The provision therefore combines delegated legislative power with legislative oversight by both Houses of Parliament.
What Is the Fourth Schedule?
The Fourth Schedule to the Arbitration and Conciliation Act, 1996 contains the statutory model fee structure for arbitrators referred to in Section 11(14). It prescribes fee slabs linked to the sum in dispute and also contains a note dealing with the additional fee payable where the arbitral tribunal consists of a sole arbitrator.
Power to Amend the Fourth Schedule by Official Gazette Notification
Under Section 11A(1), the Central Government may amend the Fourth Schedule if it is satisfied that doing so is necessary or expedient. The amendment is made by notification in the Official Gazette.
Once the notification takes effect in accordance with Section 11A, the Fourth Schedule is deemed to have been amended accordingly.
Parliamentary Procedure Under Section 11A(2)
Insertion in 2015 and Amendment of the Fourth Schedule
Section 11A was introduced by the Arbitration and Conciliation (Amendment) Act, 2015. The provision was later used for amendment of the Fourth Schedule through Central Government notification.
A Ministry of Law and Justice notification dated 12-11-2018, issued as S.O. 5674(E), exercised the power under Section 11A(1) to substitute the Fourth Schedule.
The current India Code record continues to list Section 11A as "Power of Central Government to amend Fourth Schedule" and separately lists the Fourth Schedule as part of the Act.
Relationship With Section 11
Section 11A should be read with Section 11, which deals with appointment of arbitrators. The Fourth Schedule is referred to in Section 11(14) in connection with determination of arbitral tribunal fees.
Official Sources
India Code records the Arbitration and Conciliation Act, 1996 as Act No. 26 of 1996 under the Ministry of Law and Justice, Department of Legal Affairs, and lists Section 11A and the Fourth Schedule as part of the Act.
View the Arbitration and Conciliation Act, 1996 on India Code