The Arbitration is the submission for a determination of disputed matters to private unofficial persons selected in a manner provided by Law or Agreement. The Arbitration is governed under the Arbitration and Conciliation Act 1996. The present arbitration system in India is still plagued with many loopholes and shortcomings and the quality of arbitration has not adequately developed as a quick and cost-effective mechanism for resolution of disputes. It is necessary to remove the difficulties and lacunas in the Arbitration Act and in practice to make it effective, inexpensive and speedy. In many parts of India, rapid development in infrastructure has meant an increased number of disputes and caseloads for already overburdened courts. Arbitrations conducted in India are mostly ad hoc. The advantages of institutional arbitration over ad hoc arbitration in India need no emphasis and the wide prevalence of ad hoc arbitration has its ramifications in affecting speedy and cost-effectiveness of the arbitration process. This study makes an attempt to study the Arbitration and Conciliation Act of 1996 with the help of five case studies and try to identify the shortcomings of this act. Also, an attempt is made to suggest some remedies in the regard of improving the arbitration practices followed in India.