31st December, , and is hereby published for general information: An Act to amend the Arbitration and Conciliation Act, Be it enacted by Parliament. The Arbitration and. Conciliation. (Amendment) Act, [3 of ]. The International Centre for. Alternative Dispute Resolution. Plot No. further to amend the Arbitration and Conciliation Act, dates may be appointed for different provisions of this Act and any reference in any such provision to .. Arbitration and Conciliation (Amendment) Act, shall—.

Arbitration And Conciliation Act 2015 Pdf

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(1) This Act may be called the Arbitration and Conciliation (Amendment) Act, (2) It shall be deemed to have come into force on the 23rd. PDF | This is a paper comparing the sections of the old and new Arbitration Act in light of landmark judgements of the Supreme Court of India. Arbitration and Conciliation Act, pdf - Download as PDF File .pdf), Text File .txt) or read online.

The increasing growth of global trade and the delay in disposal of cases in Courts under the normal system in several countries made it imperative to have the perception of an Alternative Dispute Resolution System, more particularly, in the matter of commercial disputes. The Arbitration Act of provides not only for domestic arbitration but spreads its sweep to International Commercial Arbitration too.

The Indian law relating to the enforcement of Foreign Arbitration Awards provides for greater autonomy in the arbitral process and limits judicial intervention to a narrower circumference than under the previous law.

To attract the confidence of International Mercantile community and the growing volume of India's trade and commercial relationship with the rest of the world after the new liberalization policy of the Government, Indian Parliament was persuaded to enact the Arbitration and Conciliation Act of in UNCITRAL model and, therefore, in interpreting any provisions of the Act Courts must not ignore the objects and purpose of the enactment of A bare comparison of different provisions of the Arbitration Act of with the provisions of the Arbitration and Conciliation Act would unequivocally indicate that Act limits intervention of Court with an arbitral process to the minimum and it is certainly not the legislative intent that each and every order passed by an authority under the Act would be a subject matter of judicial scrutiny of a Court of Law.

Under the new law the grounds on which an award of an Arbitrator could be challenged before the Court have been severely cut down and such challenge is now permitted on the basis of invalidity of the agreement, want of jurisdiction on the part of the arbitrator or want of proper notice to a party of the appointment of the arbitrator or of arbitral proceedings.

Obstructive tactics adopted by the parties in arbitration proceedings are sought to be thwarted by an express provision inasmuch as if a party knowingly keeps silent and then suddenly raises a procedural objection will not be allowed to do so. The role of institutions in promoting and organising arbitration has been recognised.

The power to nominate arbitrator has been given to the Chief Justice or to an institution or person designated by him. The time limit for making awards has been deleted. The existing provisions in Act relating to arbitration through intervention of Court, when there is no suit pending or by order of the court when there is a suit pending, have been removed.

The importance of transnational commercial arbitration has been recognised and it has been specifically provided that even where the arbitration is held in India, the parties to the contract would be free to designate the law applicable to the substance of the dispute.

Under the new law unless the agreement provides otherwise, the arbitrators are required to give reasons for the award. The award itself has now been vested with status of a decree, inasmuch as the award itself is made executable as a decree and it will no longer be necessary to apply to the court for a decree in terms of the award.

All these aim at achieving the sole object to resolve the dispute as expeditiously as possible with the minimum intervention of a Court of Law so that the trade and commerce is not affected on account of litigations before a court.

When United Nations established the Commission on International Trade Law it is on account of the fact that the General Assembly recognised that disparities in national laws governing international trade created obstacles to the flow of trade. The General Assembly regarded the Commission on International Trade Law as a medium which could play a more active role in reducing or removing the obstacles.

Such Commission, therefore, was given a mandate for progressive harmonization and unification of the law of International Trade. The Statement of Objects and Reasons of the Act clearly enunciates that the main objective of the legislation was to minimise the supervisory role of Courts in the arbitral process. Under the Act, intervention of the court was required in all the three stages of arbitration, i. The existence of an agreement and of a dispute was required to be proved.

While the Act was perceived to be a good piece of legislation in its actual operation and implementation by all concerned - the parties, arbitrators, lawyers and the courts, it proved to be ineffective and was widely felt to have become outdated. The Arbitration and Conciliation Act, The Arbitration and Conciliation Bill [14] was introduced in the Rajya Sabha on 16th May with an object of all three preexisting laws of Arbitration.

The Arbitration and Conciliation Act, [15] hereinafter referred to as the Act received the Presidential assent and was brought into force from 16 August The Act has two significant parts — Part I provides for any arbitration conducted in India and enforcement of awards there under.

Part II provides for enforcement of foreign awards.

Any arbitration conducted in India or enforcement of award there under whether domestic or international is governed by Part I, while enforcement of any foreign award to which the New York Convention or the Geneva Convention applies, is governed by Part II of the Act.

The Government of India enacted the Act by an ordinance, and then extended its life by another ordinance, before Parliament eventually passed it without reference to a Parliamentary Committee. The Law Commission of India prepared a report on the experience of the Act and suggested a number of amendments.

The Constitutional validity of the Act was challenged in Babar Ali v. Union of India [23] on the ground that it takes away the power of Courts to Judicial Review. The court while deciding the question of Constitutional validity held as follows; The Arbitration and Conciliation Act, is neither unconstitutional nor in any way offends the basic structure of the Constitution of India, as Judicial review is available for challenging the award in accordance with the procedure laid down therein.

The time and manner of the judicial scrutiny can be legitimately laid down by the Act passed by the parliament.

Law Commission of India: th Report, The objective was that a commercial case of high value should be disposed of within a period of one year or at the most two years in all the States in India. Stress was given on fast track arbitration of commercial matters in this report. The Committee submitted its report on 29th January Committee however recommended the formation of completely new bill as in its opinion the bill allowed more intervention of court than Act.

The Arbitration and Conciliation Act It is a wellknown fact that Indian courts are seething under the weight of backlog of cases.

Chapter 1:

On a rough estimate there are about 30 million cases pending on the dockets of all Courts in this country from the lowest strung to the highest Court of the country. Therefore, to enable India to advance from 20th to 21st century, it is necessary to develop alternative dispute redressal mechanism, which is in tune with the practices adopted by the international community as well as to retain its Indian flavour to deal with the Indian conditions. The Act comprehensively covers; i.

It was held to come into force from 23 October , the date of the Ordinance. These developments signal a welcome change in approach. The provisions of the Bill closely follow the recommendations of the Law Commission and go a long way towards reforming Indian arbitration law.

Some of the major changes are outlined below. Key changes Appointment of arbitrators The Bill amends section 12 of the Act, which deals with the grounds for challenging the appointment of an arbitrator. It introduces significantly greater clarity and detail on the circumstances affecting the neutrality of arbitrators.

Section 11 of the Act provides for the judicial appointment of arbitrators and was previously a major bar to the prompt conclusion of arbitration proceedings. Changes introduced by the Bill include: clarifying that delegation of the power of appointment is not a delegation of judicial power, thereby permitting delegation; providing that appointment decisions are final and not subject to appeal; restricting the scope of judicial scrutiny at this stage to determining the existence of an arbitration agreement; and, requiring courts to attempt to dispose of such applications within 60 days.

Reducing delays The Bill inserts a new provision into the Act section 29A requiring arbitral tribunals to render awards within 12 months, subject to a six month extension with the agreement of the parties, and upon showing sufficient cause, a further extension by the court. Given that arbitration in India is currently extremely protracted, this is a welcome and significant development. Wherever amendments are proposed in this paper, the amendments are emphasised in bold and are underlined, unless expressly stated otherwise.

The 1996 Arbitration and Conciliation Act with Amendments of 2015

The author writes on arbitration and contract law in various fora, including at the Practical Academic Blog www. Views stated herein are personal. Email: lawbadri gmail. It is well-established that disputing parties feel confidentiality and privacy of arbitration to be one of the key advantages over litigation.

Recognising the importance of confidentiality, Section 9 of the Bill seeks introduction of Section 42A to the Arbitration and Conciliation Act, Act.

Section 9 reads: "Notwithstanding anything contained in any other law for the time being in force, the arbitrator, the arbitral institution and the parties to the arbitration agreement shall keep confidentiality of all arbitral proceedings except award where its disclosure is necessary for the purpose of implementation and enforcement of award. There are numerous instances where arbitral awards have been ordered to be disclosed where the arbitration involved public authorities as defined in the Right to Information Act, It is well-known that the concept of privacy of arbitration is not the same as that of confidentiality of arbitration.

Privacy in this context means that arbitration is essentially a private affair between the parties and, unlike courts, public does not have an inherent right to interfere in the conduct of an arbitration.

This aspect is least controversial where all the parties to the arbitration are private parties. The question arises in respect of arbitrations arising out of government contracts: can a member of the public claim as a matter of right to attend an arbitration proceeding in which at least one of the parties is a government entity.

Ordinarily, a third party is not expected to know about the hearing dates fixed by the arbitrator. But what if she does and claims a right to participate?

The second aspect pertains to the extent and scope of confidentiality of arbitration. There are several questions that require comprehensive answers from courts: for instance, whether a member of the public can have access to the proceedings under arbitration involving a government entity, whether the evidence used in such proceedings can be used in another arbitration, whether evidence collected through the RTI Act of such proceedings could be used in another arbitration, and so on.

It is an important tool in the fight against corruption. Reasons for non-transparency can also exist in the context of government contract and arbitration. It is precisely why the RTI Act includes "contracts", "records", "documents", and generally "any material in any form" to include contracts, documents or records thereunder and even arbitral awards.

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Since public procurement in India is substantial, it is important that government actions through the records, including arbitration and court litigation, are accessible to public. Chockalingam v.

Solanki v. This position is now likely to be upset by the newly proposed Section 42A. A bare perusal of the proposed section conveys that the parties are mandated to keep the arbitral proceedings confidential irrespective of any law in force, except the award, which can be disclosed for the purpose of implementation and enforcement.

The non-obstante clause theoretically includes the RTI Act also. This has serious implications on transparency in government contracting and pursuit of government litigation. While the right to information is a constitutional right, Section 42A, if enacted in the current form, would only be a statutory right.

But this is likely to take some years for the courts to decide. Meantime, the Information Commissioners will have a free ride in rejecting information relating to arbitration proceedings. It is important that the Bill should exempt the Right to Information Act, from the operation of Section 42A with appropriate modifications. The provision can be modified by adding the phrase "but subject to the provisions of the Right to Information Act, " in Section 42A in the following manner: "Notwithstanding anything contained in any other law for the time being in force, the arbitrator, the arbitral institution and the parties to the arbitration agreement shall keep confidentiality of all arbitral proceedings except award where its disclosure is necessary for the purpose of implementation and enforcement of award.

Opportunity of Hearing to Arbitrators? Section 29A 1 fixed a period of twelve months from the date the tribunal enters upon reference to pass the arbitral award. Section 29A 3 provides for extension of up to six months based on agreement between the parties. Proviso to Section 29A 4 states that in extending the period, if the court finds that the tribunal was responsible for the delay, the court could reduce the fee of the tribunal.

It is in respect of this proviso that the further provisos are sought to be added.

Arbitration and Conciliation Act, 2015.pdf

This provision has been made pursuant to the recommendations of Srikrishna Report. Even if such an opportunity were to be afforded, practically, it would lead to problems affecting the integrity of the arbitral process.

Arbitrators would be wary of being foisted with a reduction in fees and have a perverse incentive to rush through proceedings to render the award within the stipulated time period.Ramesan Ck. The other Chapters of Part I of the Act form part of the proper law. Download the PDF. The sub-section 1 has been amended envisaging that notwithstanding any judgment, decree or order of the Supreme Court or any court, the judicial authority shall refer the parties to the arbitration unless it finds that prima facie no valid arbitration agreement exists.

The Constitutional validity of the Act was challenged in Babar Ali v. Provided that an award shall not be set aside merely on the ground of an erroneous application of the law or by reappreciation of evidence.

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