Professional Documents
Culture Documents
2015
Email Facebook Tweet Linked-in
Preface:
Considering these factors and the need of time, the current Government promulgated
the Arbitration and Conciliation (Amendment) Ordinance, 2015 to amend certain
provisions of the Arbitration and Conciliation Act 1996 which received assent from the
President on 23rd October, 2015. The Arbitration and Conciliation (Amendment) Bill, 2015
(Amendment Bill) was introduced in both houses of Parliament in its recent session to
replace the Arbitration and Conciliation (Amendment) Ordinance, 2015 and was
subsequently passed by the Lok Sabha and Rajya Sabha on 17th December, 2015 and on
23rd December, 2015 respectively. This Amendment Bill has now become an Act after
having received the President’s assent on 31.12.2015 and shall be deemed to have come
into force on the 23rd October, 2015.
KEY AMENDMENTS:
The Amendment Act has introduced some major changes in the principal Act. We have
prepared a brief summary of the following key amendments for your quick reference:
Amendment to Section 8: Unless the judicial authority finds that prima facie no
valid arbitration agreement exists, said judicial authority shall refer to the parties
to the Arbitration on the action brought by party to arbitration agreement or
person claiming through or under him. If the party applying for reference to
arbitration has not having original or certified copy of arbitration agreement
between them but the said copy is retained by other party then such party can
make application to the Court to call upon other party to produce original or
certified true of the arbitration agreement before that court.
Amendment to Section 9: Where the Court passes an order for any interim
measure under sub-section (1) of Section 9 before the commencement of arbitral
proceedings, the arbitral proceedings shall be commenced within a period of
ninety days from the date of such order. It further provides that once the arbitral
tribunal is constituted, the Court shall not entertain an application for interim
measure unless it finds circumstances that may render the remedy provided
under section 17 inefficacious
Amendment to Section 17: The arbitral tribunal shall have power to grant all
kinds of interim measures which the Court is empowered to grant under section 9
of the Act. Such interim measures can be granted by the arbitral tribunal during
the arbitral proceedings or at any time after making the arbitral award, but before
it is enforced under section 36 of the Act. Any order issued by the arbitral tribunal
for grant of interim measures shall be deemed to be an order of the Court for all
purposes and shall be enforceable under the Code of Civil Procedure, 1908 in the
same manner as if it were an order of the Court.
Amendment to Section 24: The Arbitral tribunal shall hold oral hearing for the
presentation of evidence or oral arguments on the day-to-day basis and shall not
grant any adjournments without any sufficient cause.
Insertion of a new provision- Section 29B: This Section provides for a fast track
procedure for conducting arbitral proceedings, in cases where the parties
mutually agree for such procedure. In such cases, the arbitral tribunal consisting
of a sole arbitrator shall decide the dispute on the basis of written pleadings,
documents and written submission and shall not hold oral hearing. The award is
to be made within a period of six months from the date the arbitral tribunal
enters upon the reference.
Insertion of new sub section (5) in Section 34: An application for setting aside
of award under this section is to be filed after issuing prior notice to the other
party.
Insertion of new sub section (6) in Section 34: A period of one year has been
prescribed for disposal of an application for setting aside an arbitral award.
Epilogue:
The Amendment Bill has introduced certain welcome amendments to the Act that have
brought clarity on many aspects that which were previously part of judicial
interpretation. These amendments to the Act will help conclude the arbitration process
expediently and in transparent manner.
by Dhanesh Rale (Partner) and Sanjana Sinharoy (Associate) of Abhay Nevagi and
Associates, Pune
Disclaimer:
This document provides general information and guidance as on date of preparation and
does not express views or expert opinions of the authors. Contents of this document should
neither be regarded as comprehensive nor sufficient for making any decisions. No one
should act on the basis of information provided in this document without obtaining proper
expert professional advice. The authors disclaim any responsibility and hereby accept no
liability for consequences of any person acting or omitting or refraining to act on the basis
of any information contained herein.