Section 87 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 87 deals with the 2015 amendments and arbitral proceedings, and related court proceedings, begun before 23rd October, 2015. Two other places in the India Code text speak about the same date: section 26 of the 2015 Amendment Act, printed in the Appendix, and the Explanation to section 36(3). This article sets the three side by side as printed and does not say which prevails. It follows the India Code consolidated text consulted.
Section 87 begins "Unless the parties otherwise agree". The 2015 amendments do not apply to arbitral proceedings commenced before 23rd October, 2015 or to court proceedings arising out of or in relation to such proceedings, whether commenced before or after that date (clause (a)); they apply only to arbitral proceedings commenced on or after that date and to court proceedings arising out of or in relation to them (clause (b)). The footnote shows section 87 as inserted by Act 33 of 2019, s. 13 (r.w.e.f. 30-8-2019). The Appendix and the Explanation to section 36(3) speak on related ground in different words.
What this article does and does not do
The three provisions are printed in the same text. They speak about the same date and about proceedings before and after it, but their words differ. We quote each as printed and put them in a table. We do not say which one governs a particular case, and we cite no decision on the point. The text consulted also does not say whether a given proceeding "commenced" on a given day; for that, section 21 of Part I (see our article on section 21) is the relevant provision to read.
If you hold an arbitration that began around that time and need to know which version of the Act applies, our legal dispute resolution team can help you map the dates and the agreement.
Section 87 as printed
The heading is "Effect of arbitral and related court proceedings commenced prior to 23rd October, 2015". The text reads, in substance:
Unless the parties otherwise agree, the amendments made to this Act by the Arbitration and Conciliation (Amendment) Act, 2015 shall:
- (a) not apply to
- (i) arbitral proceedings commenced before the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 (23rd October, 2015);
- (ii) court proceedings arising out of or in relation to such arbitral proceedings irrespective of whether such court proceedings are commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015;
- (b) apply only to arbitral proceedings commenced on or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 and to court proceedings arising out of or in relation to such arbitral proceedings.
The footnote
The footnote reads: "Ins. by Act 33 of 2019, s. 13 (r.w.e.f. 30-8-2019)." The abbreviation "r.w.e.f." is printed as stated; the text consulted does not expand it, and we draw no conclusion from it. The section sits inside brackets, as an insertion.
Reading section 87 clause by clause
| Part | What it says |
|---|---|
| Opening words | "Unless the parties otherwise agree" |
| Clause (a)(i) | The 2015 amendments do not apply to arbitral proceedings commenced before 23rd October, 2015 |
| Clause (a)(ii) | Nor to court proceedings arising out of or in relation to such arbitral proceedings, whether commenced before or after that date |
| Clause (b) | They apply only to arbitral proceedings commenced on or after that date, and to court proceedings arising out of or in relation to such arbitral proceedings |
Points to notice:
- The opening words allow agreement. The text consulted does not describe how the parties would agree.
- Court proceedings follow the arbitral proceedings. Clause (a)(ii) ties the court proceedings to the arbitral proceedings they arise out of, not to the date on which the court proceedings themselves began.
- "Commencement" is the date of the 2015 Amendment Act's commencement, given in brackets as 23rd October, 2015.
The Appendix: extracts from the 2015 Amendment Act (3 of 2016)
After the Schedules, the text prints an Appendix headed "Extracts from the Arbitration and Conciliation (Amendment) Act, 2015 (3 of 2016)". It is not a Schedule. Rows of asterisks show omitted portions. It prints sections 1, 26 and 27 of the 2015 Amendment Act.
| Section of the 2015 Amendment Act | Text as printed |
|---|---|
| 1(1) | This Act may be called the Arbitration and Conciliation (Amendment) Act, 2015 |
| 1(2) | It shall be deemed to have come into force on the 23rd October, 2015 |
| 26, "Act not to apply to pending arbitral proceedings" | Nothing contained in this Act shall apply to the arbitral proceedings commenced, in accordance with the provisions of section 21 of the principal Act, before the commencement of this Act unless the parties otherwise agree but this Act shall apply in relation to arbitral proceedings commenced on or after the date of commencement of this Act |
| 27(1) | The Arbitration and Conciliation (Amendment) Ordinance, 2015 (Ord. 9 of 2015) is hereby repealed |
| 27(2) | Notwithstanding such repeal, anything done or any action taken under the principal Act, as amended by the said Ordinance, shall be deemed to have been done or taken under the corresponding provisions of the principal Act, as amended by this Act |
The Explanation to section 36(3)
Section 36 deals with enforcement of an arbitral award and stay. Its second proviso to sub-section (3) says that where the Court is satisfied that a prima facie case is made out that the arbitration agreement or contract which is the basis of the award, or the making of the award, was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the challenge under section 34. The footnote shows that proviso and Explanation as inserted by Act 3 of 2021, s. 2 (w.e.f. 23-10-2015). The Explanation then reads: "For the removal of doubts, it is hereby clarified that the above proviso shall apply to all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or court proceedings were commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015 (3 of 2016)." See our article on section 36.
The three provisions side by side
| Point | Section 87 | Section 26 of the 2015 Amendment Act (Appendix) | Explanation to section 36(3) |
|---|---|---|---|
| Place in the text | Part IV of the Act | Appendix | Within section 36 |
| Footnote | Ins. by Act 33 of 2019, s. 13 (r.w.e.f. 30-8-2019) | None (an extract from the 2015 Amendment Act) | Ins. by Act 3 of 2021, s. 2 (w.e.f. 23-10-2015) |
| Opening qualifier | "Unless the parties otherwise agree" | "unless the parties otherwise agree" | None |
| Arbitral proceedings begun before 23rd October, 2015 | The amendments "shall not apply" | "Nothing contained in this Act shall apply" | Speaks of arbitral or court proceedings "commenced prior to or after" the commencement; the proviso it explains is stated to apply to "all court cases" |
| Court proceedings | Addressed: clause (a)(ii) and clause (b) | Not mentioned in the extract | Addressed: "all court cases arising out of or in relation to arbitral proceedings" |
| Arbitral proceedings begun on or after | Amendments "apply only to" them (and related court proceedings) | "this Act shall apply" to them | Not addressed |
| Reference to section 21 | None | "in accordance with the provisions of section 21 of the principal Act" | None |
Three provisions, three formulations. The text consulted does not say how they interact, and we do not reconcile them or say which prevails. Where the date of an arbitral or court proceeding makes the difference to your case, the safe course is to read all three together with the agreement and take advice.
Why the three do not simply repeat each other
Without drawing any conclusion, some differences stand out in the printed words:
- Section 87 speaks of "the amendments made to this Act by" the 2015 Amendment Act, whereas section 26 of the 2015 Amendment Act speaks of "Nothing contained in this Act".
- Section 26 of the 2015 Amendment Act ties arbitral proceedings to section 21 of the principal Act; section 87 does not mention section 21.
- Section 87 and the Explanation to section 36(3) both speak of court proceedings "prior to or after" the commencement; the extract of section 26 does not mention court proceedings.
- The footnotes carry three different pairs of dates: 30-8-2019 for section 87 (with "r.w.e.f."), 23-10-2015 for the Explanation (with "w.e.f."), and none for the Appendix extract.
An illustration
Kapoor Infrastructure Ltd began an arbitration against a contractor in September 2015, before 23rd October, 2015. A court application connected with it is filed in 2017. Reading section 87, clause (a)(i) and (ii) speak of arbitral proceedings commenced before the 2015 Amendment Act and court proceedings arising out of them "irrespective of whether such court proceedings are commenced prior to or after". Kapoor's advisers would also read section 26 of the 2015 Amendment Act in the Appendix and, if fraud or corruption is alleged, the Explanation to section 36(3), and then ask whether the parties have agreed otherwise. The names, dates and facts are invented.
Need help placing an older arbitration?
The date on which arbitral proceedings commenced can change which text of the Act you read. Our legal dispute resolution team can help you establish the commencement date from the notice and the agreement and set out the provisions that need to be read together.
Key takeaways
- Section 87 opens "Unless the parties otherwise agree".
- The 2015 amendments do not apply to arbitral proceedings commenced before 23rd October, 2015 or to related court proceedings, whenever those court proceedings began (clause (a)).
- They apply only to proceedings commenced on or after that date and related court proceedings (clause (b)).
- The footnote shows section 87 as inserted by Act 33 of 2019, s. 13 (r.w.e.f. 30-8-2019), printed as stated.
- Section 26 of the 2015 Amendment Act (Appendix) and the Explanation to section 36(3) speak on related ground in different words.
- The text consulted does not say which of the three prevails, and this article does not either.
Read next
- Section 36: enforcement of the arbitral award and stay
- Sections 85 and 86: repeal of earlier arbitration laws and savings
- Section 21: commencement of arbitral proceedings
- 2015 and 2019 Amendments to the Arbitration Act: key changes
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.