Arbitration, Mediation and Conciliation · Conciliation Proceedings and International Perspective of Conciliation

Effect of Proceedings Commenced Before 23 October 2015 (Section 87)

Updated 11 October 2026 · Fact-checked

Section 87 is a transitional rule. Unless the parties agree otherwise, the 2015 amendments do not apply to arbitral proceedings begun before 23 October 2015, or to court proceedings arising from them, even if those court cases start later. They apply only to arbitrations begun on or after that date and the related court proceedings.

Understand Effect of Proceedings Commenced Before 23 October 2015

Every amendment needs a rule on old cases. Section 87 gives that rule for the Arbitration and Conciliation (Amendment) Act, 2015, which came into force on 23 October 2015. Without it, parties in a running arbitration would suddenly face new rules mid-way.

The section works in two halves. The negative half, clause (a), says the amendments do not apply to (i) arbitral proceedings commenced before 23 October 2015, and (ii) court proceedings arising out of or in relation to such arbitral proceedings. Clause (ii) adds that this holds whether the court proceedings began before or after that date.

The positive half, clause (b), says the amendments apply only to arbitral proceedings commenced on or after 23 October 2015 and to court proceedings arising out of or in relation to such arbitrations.

So the key test is the date the arbitral proceedings commenced, not the date of the contract, the dispute, or the court application. The court case follows its arbitration. An old arbitration, even if challenged in court in 2020, stays on the pre-amendment law.

The whole section opens with "Unless the parties otherwise agree". Parties can choose to have the amendments apply to an older arbitration. Section 87 was inserted by Act 33 of 2019, with effect from 23 October 2015. It also sits beside Section 85, which deals in the same way with the older 1937, 1940 and 1961 enactments repealed by the 1996 Act.

Note also that some later provisions are written to apply regardless of this date. For example, the proviso to Section 36 on unconditional stay for fraud or corruption carries an Explanation saying it applies to all court cases, whether the arbitral or court proceedings began before or after the 2015 Act commenced. Always check whether a provision carries its own applicability clause.

Key rules to remember

Cut-off date: 23 October 2015 = commencement of the Arbitration and Conciliation (Amendment) Act, 2015; Test the date on which the arbitral proceedings commenced, not the contract or dispute date.
Old arbitration rule: Arbitral proceedings commenced before 23-10-2015 → 2015 amendments do not apply; the related court proceedings also stay outside them, whenever filed; Subject to the opening words: unless the parties otherwise agree.
New arbitration rule: Arbitral proceedings commenced on or after 23-10-2015 → 2015 amendments apply, along with related court proceedings; This is clause (b), the positive limb of Section 87.
Party autonomy: Parties may agree that the amendments apply even to an earlier arbitration; Needs agreement of the parties, not a unilateral choice.
Source of Section 87: Inserted by Act 33 of 2019, w.e.f. 23-10-2015; The insertion is retrospective in effect.

How to solve Effect of Proceedings Commenced Before 23 October 2015 questions

Use this sequence for any question asking which version of the Act governs a dispute.

1Identify the amendment in question (here, the 2015 Amendment Act) and its commencement date, 23 October 2015.
2Find the date on which the arbitral proceedings commenced. Ignore the contract date and the date the dispute arose.
3Check whether the parties have agreed otherwise. If they agreed the amendments apply, apply them.
4If no agreement: arbitration before 23-10-2015 means amendments do not apply; on or after means they apply.
5Treat court proceedings as following the arbitration. A court case on an old arbitration is outside the amendments, even if filed after the cut-off.
6Check whether the specific provision has its own applicability clause, such as the Explanation to the Section 36 proviso.
7Write the conclusion clearly, naming the version of the law that governs.

Quickest way: Date-of-commencement check

When to use it: Short case-based questions where facts give several dates and ask which law applies.

Circle the date the arbitral proceedings commenced.
Compare with 23 October 2015: before means old law, on or after means amended law.
Scan for any agreement of the parties to opt in.
Attach court proceedings to the arbitration's date.
State: provision (Section 87), facts, conclusion.

Common mistakes in Effect of Proceedings Commenced Before 23 October 2015

Using the date of the contract or arbitration agreement as the test.
Students assume the law is fixed when the contract is signed.
Fix: Section 87 looks at when the arbitral proceedings commenced. A pre-2015 contract can still get the amendments if the arbitration began on or after 23 October 2015.
Applying the amendments to a court case filed after 23 October 2015 on an old arbitration.
Students look at the court filing date alone.
Fix: Clause (a)(ii) covers court proceedings arising from old arbitrations whether commenced before or after the cut-off.
Forgetting the opening words, unless the parties otherwise agree.
The rule looks mandatory at first read.
Fix: Always check the facts for an agreement to apply the amendments, and mention it in the answer.
Saying Section 87 applies to all later amendments.
Students treat it as a general transitional clause.
Fix: It deals only with the Arbitration and Conciliation (Amendment) Act, 2015.
Treating Section 87 as absolute and ignoring provisions with their own applicability clause.
Students memorise the general rule only.
Fix: Note that the proviso to Section 36 on fraud or corruption has an Explanation applying it to all court cases irrespective of when proceedings commenced.

Worked examples

Example 1

Alpha Infra Ltd and Beta Steel Ltd signed a contract in 2013. Alpha issued a notice invoking arbitration in March 2015. The award was made in 2017, and Beta filed a challenge in court in 2018. Which version of the Act governs the challenge?

Show the solution

Provision: under Section 87(a), unless the parties otherwise agree, the 2015 amendments do not apply to arbitral proceedings commenced before 23 October 2015, or to related court proceedings, whether filed before or after that date.
Facts: arbitral proceedings commenced in March 2015, before the cut-off. The challenge in 2018 arises out of those proceedings.
Check agreement: no facts show the parties agreed to apply the amendments.
Conclusion: the challenge is governed by the Act as it stood before the 2015 amendments.

Answer: The pre-amendment Act governs the 2018 challenge, because the arbitration commenced before 23 October 2015 and the court case follows it.

Example 2

Gamma Textiles Ltd signed an arbitration agreement in 2012. A dispute arose in 2016 and arbitral proceedings commenced in January 2016. Gamma now asks which version of the Act applies. Advise.

Show the solution

Provision: Section 87(b) says the 2015 amendments apply only to arbitral proceedings commenced on or after 23 October 2015, and to court proceedings arising out of them.
Facts: the agreement dates from 2012, but the proceedings commenced in January 2016, after the cut-off. The contract date is irrelevant.
Check agreement: nothing is needed, as the amendments already apply by default.
Conclusion: the amended Act applies to the arbitration and to any related court proceedings.

Answer: The Act as amended in 2015 applies, since the arbitral proceedings commenced after 23 October 2015, whatever the date of the agreement.

Exam tips

Write the section number, the cut-off date and the words unless the parties otherwise agree in every answer.
In case questions, underline the commencement date of arbitral proceedings and ignore other dates.
Always state the conclusion as a named version of the law: pre-amendment or amended.
Mention that court proceedings follow the arbitration, and that this is true whether filed before or after the cut-off.
If a question touches Section 36, mention that the fraud or corruption proviso has its own Explanation covering all court cases.

Practice questions from Conciliation Proceedings and International Perspective of Conciliation

Effect of Proceedings Commenced Before 23 October 2015: frequently asked questions

What does Section 87 of the Arbitration and Conciliation Act say?

It says that, unless the parties agree otherwise, the 2015 amendments do not apply to arbitral proceedings commenced before 23 October 2015 or to related court proceedings. They apply only to arbitrations commenced on or after that date and the related court proceedings.

Which date decides whether the 2015 amendments apply?

The date on which the arbitral proceedings commenced decides it. The date of the contract, the dispute or the court filing is not the test. Court proceedings follow the date of the arbitration they arise from.

Can parties choose to apply the 2015 amendments to an old arbitration?

Yes. Section 87 begins with the words unless the parties otherwise agree. So the parties can agree that the amendments will apply even though the arbitration began earlier.

When was Section 87 inserted?

It was inserted by Act 33 of 2019, with effect from 23 October 2015. This is why it operates as if it had been part of the law from the date the 2015 amendments commenced.