Our “Legal Section of the Day” series takes one provision of an Indian statute and explains it in plain English: what the section says, what it means in practice, and where the courts have taken it. This page gathers several provisions from the series in one place – from the seat of arbitration to the crossing of a cheque – and links to our full-length articles on individual sections. Section numbers are those of the statute as it stands today; where a provision has been renumbered by the 2023 criminal law reforms, both numbers are given.
On this page
- Section 20, Arbitration and Conciliation Act, 1996 – place (seat) of arbitration
- Section 91, Negotiable Instruments Act, 1881 – dishonour by non-acceptance
- Section 123, Negotiable Instruments Act, 1881 – cheque crossed generally
- Section 29, Air Force Act, 1950 – immunity from arrest for debt
- Section 4, Anti-Hijacking Act, 2016 – punishment for hijacking
- Section 10, Child and Adolescent Labour (Prohibition and Regulation) Act, 1986 – disputes as to age
Section 20, Arbitration and Conciliation Act, 1996 – Place of arbitration
What the section says. (1) The parties are free to agree on the place of arbitration. (2) Failing such agreement, the arbitral tribunal determines the place, having regard to the circumstances of the case, including the convenience of the parties. (3) Unless the parties agree otherwise, the tribunal may nevertheless meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspecting documents, goods or other property.
What it means in practice. Section 20 draws the line between the seat of an arbitration and a mere venue. Sub-sections (1) and (2) deal with the seat – the legal home of the arbitration, which decides which courts supervise it and which law governs the arbitration agreement. Sub-section (3) deals with venue – where hearings physically happen, which can change without legal consequence. The Supreme Court settled this in Bharat Aluminium Co. v. Kaiser Aluminium Technical Services (BALCO), (2012) 9 SCC 552, holding that “place” in Section 20(1) and (2) means the juridical seat, and in BGS SGS Soma JV v. NHPC Ltd, (2019) that a clause naming a “venue” will ordinarily be read as the seat unless the contract shows otherwise.
Why it matters. The seat fixes which court hears applications under Section 9 (interim measures), Section 11 (appointment of arbitrators) and Section 34 (setting aside the award), because Section 2(1)(e) ties “court” to the seat. A drafting slip – writing “venue: Delhi” when the parties meant the seat to be Mumbai – can send the parties to the wrong court for years. A well-drafted clause names the seat expressly and separately from any venue.
Section 91, Negotiable Instruments Act, 1881 – Dishonour by non-acceptance
What the section says. A bill of exchange is dishonoured by non-acceptance when the drawee (or one of several drawees who are not partners) defaults in accepting it after being duly required to accept, or where presentment for acceptance is excused and the bill is not accepted. Where the drawee is incompetent to contract, or gives only a qualified acceptance, the bill may be treated as dishonoured.
What it means in practice. A bill of exchange is an order by the drawer directing the drawee to pay the payee. Until the drawee “accepts” by signing the bill, there is no obligation on the drawee. Section 91 fixes the moment at which a refusal to accept becomes a legal dishonour, so that the holder can proceed against the drawer and prior endorsers. It must be read with Section 92 (dishonour by non-payment) and Section 93 (to whom notice of dishonour must be given) – see our article on Section 93 of the NI Act. Note that cheques are never “accepted”, so dishonour of a cheque is always dishonour by non-payment, and the criminal remedy for a bounced cheque lies in Section 138, not here.
Section 123, Negotiable Instruments Act, 1881 – Cheque crossed generally
What the section says. Where a cheque bears across its face two parallel transverse lines – with or without the words “and company” (or an abbreviation), and with or without the words “not negotiable” – that addition is a crossing, and the cheque is crossed generally.
What it means in practice. A generally crossed cheque cannot be paid in cash over the counter; under Section 126 the paying banker must pay it only to a banker, so the money lands in a bank account and leaves a trail. Section 124 provides for a special crossing, which names a particular bank and restricts payment to that bank. Adding “not negotiable” (Section 130) does not stop transfer of the cheque but means a transferee gets no better title than the transferor had – protection against a stolen cheque being passed on. “Account payee” is not defined in the Act but is universally honoured by banks and treated by the courts as a direction to credit only the named payee’s account. In the era of UPI and NEFT cheques are used less, but when they are, crossing remains the simplest protection against fraud.
Section 29, Air Force Act, 1950 – Immunity from arrest for debt
What the section says. No person subject to the Act shall, so long as he belongs to the Forces, be liable to be arrested for debt under any process issued by, or by the authority of, any civil or revenue court or revenue officer.
What it means in practice. Serving Air Force personnel cannot be arrested in execution of a civil money decree. The provision protects the service, not the debt: a creditor can still sue, obtain a decree and execute it against the airman’s property or, within the limits of the Act and the Code of Civil Procedure, against pay. What the creditor cannot do is have the airman arrested and detained in civil prison, which would remove a trained person from duty. The Army Act, 1950 (Section 28) and the Navy Act, 1957 contain the same protection, and the neighbouring sections of the Air Force Act add related privileges – service arms, clothing and equipment cannot be attached in execution of a decree, and courts give priority to cases in which serving personnel are parties. The immunity lasts only while the person “belongs to the Forces”; it ends on discharge or retirement.
Section 4, Anti-Hijacking Act, 2016 – Punishment for hijacking
What the section says. Whoever commits the offence of hijacking shall be punished (a) with death, where the offence results in the death of a hostage, of security personnel, or of any other person not involved in the offence, as a direct consequence of the hijacking; or (b) in every other case, with imprisonment for life – meaning imprisonment for the remainder of the person’s natural life – and with fine, and the person’s movable and immovable property is also liable to be confiscated.
What it means in practice. The 2016 Act replaced the Anti-Hijacking Act, 1982 and gave effect to the 2010 Beijing Protocol. Section 3 defines hijacking widely – seizing or exercising control of an aircraft in service by force, threat, coercion or “any other form of intimidation, or by any technological means”, and includes attempts, abetment and organising others to commit the offence. Section 4 then fixes a two-tier punishment: death where any uninvolved person dies, mandatory life imprisonment for the rest of the offender’s natural life in every other case. There is no lesser sentence available under Section 4 itself; connected offences such as violence against passengers or crew are dealt with separately. Indian courts have jurisdiction over hijackings of Indian-registered aircraft wherever committed, and over other aircraft when they land in India with the offender on board or when the offender is an Indian citizen or found in India.
Section 10, Child and Adolescent Labour (Prohibition and Regulation) Act, 1986 – Disputes as to age
What the section says. If any question arises between an Inspector and an occupier as to the age of a child who is employed or permitted to work in an establishment, the question shall – in the absence of a certificate of age granted by the prescribed medical authority – be referred by the Inspector for decision to the prescribed medical authority.
What it means in practice. Age is the whole case in a child-labour prosecution, so the Act takes the question away from argument and gives it to a medical authority. An employer who disputes that a worker is a “child” (below 14) or an “adolescent” (14 to 18, after the 2016 amendment) cannot simply assert it; without an age certificate the Inspector refers the question for a medical determination, and that finding is what the court acts on. The 2016 amendment also renamed the Act, prohibited the employment of children below 14 in all occupations (with narrow exceptions for family enterprises after school hours and for child artists), barred adolescents from hazardous occupations, and raised the penalty under Section 14 to imprisonment of six months to two years, or a fine of ₹20,000 to ₹50,000, or both. Section 10 is the procedural hinge on which those penalties turn.
More sections explained on this blog
Indian Penal Code (now Bharatiya Nyaya Sanhita): Section 34 – joint liability · Section 86 – intoxication · Section 120B – criminal conspiracy · Section 255 – counterfeiting Government stamps · Section 272 – adulteration of food · Section 302 – murder · Section 304A – death by negligence · Section 306 – abetment of suicide · Section 353 – assault on a public servant · Section 379 – theft · Section 397 – robbery or dacoity with attempt to cause death · Section 411 – receiving stolen property · Section 498A – cruelty · Section 510 – drunken misconduct in public
Code of Criminal Procedure (now Bharatiya Nagarik Suraksha Sanhita): Section 70 – warrant of arrest · Section 149 – police to prevent cognizable offences · Section 251 – summons cases · Section 379 – appeal against conviction by High Court
Evidence Act (now Bharatiya Sakshya Adhiniyam): Section 106 – facts especially within knowledge · Section 122 – communications during marriage · Section 141 – leading questions · Section 164 – refusal to produce a document
Civil, property and family law: Section 114 CPC – review · Section 22, Limitation Act · Section 49, Registration Act · Section 61, Transfer of Property Act · Section 6A, Delhi Rent Control Act · Section 4, Dowry Prohibition Act · Section 17, Domestic Violence Act · Section 33, Domestic Violence Act · Section 93, Negotiable Instruments Act
Constitution and special laws: Article 14 – equality before law · Article 346 – official language between States · Article 351 – development of Hindi · Section 2(h), Arms Act · Section 27, Arms Act · Section 13, National Security Act · Section 3, Prevention of Insults to National Honour Act
Frequently asked questions
Do the old IPC, CrPC and Evidence Act sections still apply?
For offences committed before 1 July 2024, yes – the old Codes continue to govern those cases. For offences from that date, the Bharatiya Nyaya Sanhita, Bharatiya Nagarik Suraksha Sanhita and Bharatiya Sakshya Adhiniyam apply. Civil statutes such as the Negotiable Instruments Act, the Arbitration and Conciliation Act and the Air Force Act are unaffected. Our legal code comparison tool converts old section numbers to new ones.
Where can I read the official text of a section?
The authoritative text is published on the India Code portal (indiacode.nic.in) maintained by the Legislative Department, which also shows amendments. The extracts on this page are reproduced from the statute but paraphrased in places for readability; always check the official text before relying on it.
This page is for general information and is not legal advice. For advice on a specific matter, contact Century Law Firm.
