The Lok Sabha has passed the Arbitration and Conciliation (Amendment) Bill, 2021 (“Amendment Bill”), with a view to further amend the Arbitration and Conciliation Act, 1996. The Amendment Bill seeks to replace the Arbitration and Conciliation (Amendment) Ordinance, 2020.
The amended portions have been tabulated below:
| Principal Act | Amendment Bill | Implication |
| 36. Enforcement.—
(1) Where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same manner as if it were a decree of the court. (2) ….. (3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).] |
36. Enforcement.—
(1) Where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908 (5 of 1908), in the same manner as if it were a decree of the court. (2) ….. (3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908 (5 of 1908).] “Provided further that where the Court is satisfied that a prima facie case is made out that,— (a) the arbitration agreement or contract which is the basis of the award; or (b) the making of the award, was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the challenge under section 34 to the award. Explanation.––For the removal of doubts, it is hereby clarified that the above proviso shall apply to all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or court proceedings were commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015.”. |
This is with a view to grant unconditional stay of enforcement of arbitral awards, where the underlying arbitration agreement, contracts or arbitral award is induced by fraud or corruption. |
| Section 43J – The qualifications, experience and norms for accreditation of arbitrators shall be such as specified in the Eighth Schedule: Provided that the Central Government may, after consultation with the Council, by notification in the Official Gazette, amend the Eighth Schedule and thereupon, the Eighth Schedule shall be deemed to have been amended accordingly. | Section 43J – The qualifications, experience and norms for accreditation of arbitrators shall be such as specified in the Eighth Schedule: Provided that the Central Government may, after consultation with the Council, by notification in the Official Gazette, amend the Eighth Schedule and thereupon, the Eighth Schedule shall be deemed to have been amended accordingly
43J. The qualifications, experience and norms for accreditation of arbitrators shall be such as may be specified by the regulations.”.
|
The Eight Schedule which prescribed the qualifications, experience and norms for accreditation of arbitrators have been proposed to be done away with and it is proposed that Arbitration Council of India may by regulations specify the qualifications, experience and norms for accreditation of arbitrators. |
| ‘‘The Eighth Schedule”
Qualifications and Experience of Arbitrator (i) … (ii) … |
‘‘The Eighth Schedule”
Qualifications and Experience of Arbitrator (i) … (ii) …
|
The Eighth Schedule has been proposed to be done away with. |
