Amendments
to the Arbitration and Conciliation Bill, 2015
The Union
Cabinet chaired by the Prime Minister, Shri Narendra Modi, today gave its
approval for amendments to the Arbitration and Conciliation Bill, 2015 taking
into consideration the Law Commission’s recommendations and suggestions
received from stake holders. The Government of India has decided to amend the
Arbitration and Conciliation Act, 1996 by introducing the Arbitration and
Conciliation (Amendment) Bill, 2015 in the Parliament.
The
salient features of the amendments are as under:-
(i). In
order to ensure neutrality of arbitrators, it is proposed to amend Section 12
to the effect that when a person is approached in connection with possible
appointment of arbitrator, he shall disclose in writing about existence of any
relationship or interest of any kind, which is likely to give rise to
justifiable doubts. Further, if a person is having specified relationship, he
shall be ineligible to be appointed as an arbitrator.
(ii).
Insertion of a new provision that the Arbitral Tribunal shall make its award
within a period of 12 months. Parties may extend such period up to six months.
Thereafter, it can only be extended by the Court, on sufficient cause. The
Court while extending the period may also order reduction of fees of
arbitrator(s) not exceeding five percent for each month of delay, if the court
finds that the proceedings have been delayed for reasons attributable to the
arbitral tribunal. If the award is made within a period of six months,
arbitrator may get additional fees if the parties may agree.
(iii). It
is proposed to insert a provision for fast track procedure for conducting
arbitration. Parties to the dispute may agree that their dispute be resolved
through fast track procedure. Award in such cases shall be given in six months
period.
(iv).
Amendment of Section 34 relating to grounds for challenge of an arbitral award,
to restrict the term ‘Public Policy of India” (as a ground for challenging the
award) by explaining that only where making of award was induced or affected by
fraud or corruption, or it is in contravention with the fundamental policy of
Indian Law or is in conflict with the most basic notions of morality or
justice, the award shall be treated as against the Public Policy of India.
(v). A
new provision to provide that application to challenge the award is to be
disposed of by the Court within one year.
(vi).
Amendment to Section 36 to the effect that mere filing of an application for
challenging the award would not automatically stay execution of the award.
Award can only be stayed where the Court passed any specific order on an
application filed by the party.
(vii). A
new sub-section in Section 11 to be added to the effect that an application for
appointment of an Arbitrator shall be disposed of by the High Court or Supreme
Court as expeditiously as possible and an endeavour should be made to dispose
of the matter within 60 days.
(viii). A
new Section 31A is to be added for providing comprehensive provisions for costs
regime. It is applicable both to arbitrators as well as related litigation in
Court. It will avoid frivolous and merit less litigation/arbitration.
(ix).
Section 17 is to be amended for empowering the Arbitral tribunal to grant all
kinds of interim measures which the Court is empowered to grant, under Section
9 and such order shall be ‘enforceable in the same manner as if it is an order
of Court.
Apart
from above, amendments in Sections 2(1)(e) , 2(1)(f)(iii), 7(4)(b), 8(1) and
(2), 9, 11, 14(1), 23, 24, 25, 28(3), 31(7)(b), 34 (2A) 37, 48, 56 and in
Section 57 are also proposed for making the arbitration process more effective.
For More Details & Regular Updates:
Download our Android App (Download, Like and Comment.)
Visit us: www.shining-star.org
No comments:
Post a Comment