India: Contracts and Commercial Law

The Arbitration and Conciliation Act, 1996 (“Act”) was introduced to modernize India’s arbitration framework, harmonize procedures with global norms and reduce court interference to only cases with immediate urgency. However, no arbitration mechanism can operate efficiently without measures that safeguard the dispute’s subject matter while arbitration is ongoing. Commercial dealings often include assets that fluctuate in worth, items that deteriorate, and entitlements that may be irrevocably changed and financial guarantees whose improper use can lead to permanent damage.