The Union Cabinet in India has passed an Ordinance to amend the Arbitration & Conciliation Act 1996, addressing a large number of concerns and if such Ordinance is approved by the President, could prove to be a major transformation of Arbitration & Conciliation law in India. On the basis of Law Commission Report No.246 of August 2014, we bring you the major benefits, if the proposed Ordinance is in line with the said Report.
Key Takeaways
1. INSTITUTIONAL ARBITRATION IN INDIA
It will encourage the culture like institutional arbitration in India, legal recognition to emergency arbitrator and formation of body which is entrusted to encourage institutional arbitration
2. FEES OF ARBITRATORS
It will provide for a model schedule of fees and empower the High Court to frame appropriate rules for fixation of fees for arbitrators and for which purpose it may take the said model schedule of fees into account. The schedule of fees would require regular updating, and must be reviewed every 3-4 years to ensure that they continue to stay realistic. This recommendation is however purely restricted to domestic, ad hoc, arbitration.
3. CONDUCT OF ARBITRAL PROCEEDINGS By proposing an addition of the second proviso to section 24 (1) to the Act, which is intended to discourage the practice of frequent and baseless adjournments, and to ensure continuous sittings of the arbitral tribunal for the purposes of recording evidence and for arguments. Further, a conscious use of technology, like teleconferencing, video-conferencing etc., will be encouraged and the same can easily replace the need for purely formal sittings and thereby aid in a smoother and more efficient conduct of arbitral proceedings.
4. NEUTRALITY OF ARBITRATORS
It proposes the requirement of having specific disclosures by the arbitrator, at the stage of his possible appointment, regarding existence of any relationship or interest of any kind which is likely to give rise to justifiable doubts.
5. SETTING ASIDE OF DOMESTIC AWARDS AND RECOGNITION/ENFORCEMENT OF FOREIGN AWARDS
It proposes amendment to ensures that purely domestic awards, which may also be set aside by the Court if the Court finds …………. download to read more
