Home Speak to a lawyer Meet a lawyer Flat fee services About Blog Judgements Careers Contact Us Snippet Terms & Conditions Privacy Policy Legal Topics
Snippet Details

Parliament passes Arbitration & Conciliation (Amendment) Bill, 2021

  • Date: 2021-03-11 14:18:04
  • Views: 23

On Wednesday, Rajya Sabha passed the Arbitration and Conciliation (Amendment) Bill, 2021, by voice vote. The Lok Sabha passed the Bill on February 12, 2201. It will replace an Ordinance promulgated on November 4, 2020. It seeks to amend the Arbitration and Conciliation Act, 1996 to (i) enable automatic stay on awards in certain cases and (ii) specify by regulations the qualifications, experience and norms for accreditation of arbitrators.
 
Salient Features of the Bill:
Automatic stay on awards: In the present regime, a party may apply to the Court under Section 34 of the 1996 Act to set aside an arbitral award. However, after the 2015 amendment to (Section 36 of) the Act, an automatic stay would not be granted on the award's operation by merely applying setting it aside. The Bill clarifies that a stay on the arbitral award may be granted by the Court, even during the pendency of the setting aside application, if it is prima facie satisfied that the relevant arbitration agreement or contract/ making of the award was induced by fraud or corruption. It shall be deemed effective from October 23, 2015.
Qualifications of Arbitrators: Schedule VIII to the principal Act specifies certain qualifications, experience, and accreditation norms for arbitrators. These requirements include that an arbitrator must be: (i) an advocate under the Advocates Act, 1961 with ten years of experience, or (ii) an officer of the Indian Legal Service, among others. The Bill seeks to omit Schedule VIII and states that Regulations shall specify qualifications, experience and norms for arbitrators' accreditation.

Parliamentary Debate
The discussion was interrupted by constant protest and sloganeering, demanding immediate discussion of Farm Laws and rising fuel prices. BJD MP Amar Patnaik supported the Bill. He also raised a technical query concerning the Amendment. He highlighted that, on the one hand, the proviso to Section 34(2A) provides that an award shall not be set aside merely on the ground of an erroneous application of the law or by reappreciation of evidence. However, he asked that how is it possible to establish a prima facie case that the award was induced by fraud, without reappreciation of evidence, given that any issue of fraud is a mixed fact of law and fact and cannot be decided summarily merely based on evidence recorded in the initial arbitral award.
YSRCP MP Ayodhya Ram Reddy, while supporting the Bill, remarked that it would be interesting to see how the Courts interpret the burden of proving a prima facie case of fraud or corruption. He added that Bill's provisions would also be tested where parties use it stalls the award's operation by filing Section 36 applications and waste precious time of the Court. He suggested that the courts have to be cautious in formulating a test to grant an unconditional stay on the award.
TDP MP Kanakamedala Ravindra Kumar supported the Bill. He, however, expressed apprehensions that speedy disposal, which is the artefact of the Arbitration Act, may be saddled by the provision of unconditional stay. He said that Section 36(3) of the Arbitration Act is sufficient to grant a stay on the award operation, and there is no need to make any further provisions.
Kumar added that retrospective application of Amendment Act (from 2015) concerning automatic stay might open floodgates of litigation and affect the ease of doing business.
Responding to the debate, Law Minister Ravi Shankar Prasad informed the House that the proposed Amendment to Section 36 of the Act, despite the use of words Fraud/ corruption in Section 34, was necessary as the latter does not provide for an "automatic stay" of the award. He stated that this is in furtherance of Section 34, which states that an award that conflicts with the public policy may be set aside. Concerning Schedule VIII of the Act, the Minister said that there would be greater flexibility in the Arbitration Council of India, and it will help promote institutional arbitration by inviting arbitrators from abroad, furthering the goal of making India a hub of international commercial arbitration. During a discussion on the Bill in Lok Sabha, many members had appreciated the Government for proposing to omit the 8th Schedule as it will attract eminent international arbitrators.
However, there was widespread Opposition concerning the proposed Amendment to Section 36 for the following reasons:
•    Amendment defeats the very objective of alternate dispute mechanism by drawing parties to Courts and making them prone to prolonged litigation.
•    Bill does not define Fraud/ Corruption.
•    Amendment will affect the enforcement of contracts and ultimately affect the ease of doing business in India.



More like this



Child born in live-in relationship to be construed as a child born to married couple: Kerala HC.

2021-04-12

In a momentous ruling, the Kerala HC has recognized that a child born in a live-in relationship would have to be treated as a child born to a married couple to surrender a child for adoption.

Child born in live-in relationship to be construed as a child born to married couple: Kerala HC.

SC allows the deportation of Rohingyas to Myanmar as per the procedure prescribed

2021-04-09

The SC on Thursday refused to grant relief in a petition challenging the detention of Rohingya refugees in Jammu and the move to deport them back to their parent country Myanmar.

SC allows the deportation of Rohingyas to Myanmar as per the procedure prescribed

Mask is compulsory even if driving alone: Delhi HC.

2021-04-07

The Delhi HC said today that a mask is compulsory even if a person is driving alone in a car, terming any vehicle a "public place" where Covid rules apply.

Mask is compulsory even if driving alone: Delhi HC.

86% insolvency cases pending over 270 days

2021-04-07

Over 85% of the ongoing corporate insolvency cases have dragged beyond 270 days, which was the upper limit for finalizing the process.

86% insolvency cases pending over 270 days

The SC directs the former Police Commissioner to the HC for the CBI probe

2021-03-24

The Apex Court directs the former Police Commissioner to move the HC for the CBI probe against Anil Deshmukh.

The SC directs the former Police Commissioner to the HC for the CBI probe

SC holds that a cryptic telephonic message does not amount to an FIR

2021-03-24

SC observes that a telephonic message not distinctly specifying the offense is not an FIR.

SC holds that a cryptic telephonic message does not amount to an FIR

Advocates can only earn livelihood if they come into contact with people: SC

2021-03-19

The SC on Thursday orally observed that the concerns of the legal fraternity regarding priority for COVID-19 vaccination were genuine, which require consideration.

Advocates can only earn livelihood if they come into contact with people: SC

Court judgments should be in a language that can be understood by both lawyers and citizens: SC.

2021-03-18

A Bench of Justices DY Chandrachud and MR Shah stated that the purpose of judgments is to convey the basis and reasons for its decision to lawyers and citizens who approach courts for remedy.

Court judgments should be in a language that can be understood by both lawyers and citizens: SC.

Parliament passes Arbitration & Conciliation (Amendment) Bill, 2021

2021-03-11

On Wednesday, Rajya Sabha passed the Arbitration and Conciliation (Amendment) Bill, 2021, by voice vote. The Lok Sabha passed the Bill on February 12, 2201. The bill proposes to put an automatic stay on awards induced by fraud/corruption.

Parliament passes Arbitration & Conciliation (Amendment) Bill, 2021

Wife not husband's chattel, can't be forced to live with him: SC.

2021-03-04

SC observed that a woman is not a chattel to be forced to live with her husband, hearing a case where a man sought an order from the family court at Gorakhpur to his spouse to start living with him again.

Wife not husband's chattel, can't be forced to live with him: SC.

Digital filing of pleadings and documents should be encouraged: Delhi HC.

2021-03-04

Delhi HC stated that digital filing should be encouraged before all courts to capitalize upon the learning and experience derived during the COVID-19 pandemic. The Court had even directed that an amount of INR 2.52 crore be released from its budget.

Digital filing of pleadings and documents should be encouraged: Delhi HC.

Lawyer sent to jail for sending birthday wishes to judge.

2021-03-04

The Madhya Pradesh HC will hear a bail plea today that was filed by a jailed lawyer who had downloaded the judge's photo from her Facebook account and attached it to a birthday card sent by email.

Lawyer sent to jail for sending birthday wishes to judge.

Citing poor infra, SC seeks a legislative impact study on consumer law

2021-03-02

An SC bench, headed by Justice Sanjay Kishan Kaul, directed the government to place the said study before the court to indicate if social, economic and institutional impacts were taken into account before replacing the 1986 consumer protection 2019 l

Citing poor infra, SC seeks a legislative impact study on consumer law

Delhi High Court directs Centre to constitute a committee to determine if payment gateways can be reporting entity under PMLA, 2002

2021-03-02

Delhi High Court directs the Ministry of Finance to form a committee to determine whether payment gateway service providers can be a reporting entity under PMLA, 2002.

Delhi High Court directs Centre to constitute a committee to determine if payment gateways can be reporting entity under PMLA, 2002

Supreme Court dismisses petition challenging supremacy of Central Government over States in transferring IPS Cadres

2021-03-02

Supreme Court dismisses challenge to Rule 6(1) of the IPS Service Cadre Rules giving supremacy to Central Government over States in officers' transfer.

Supreme Court dismisses petition challenging supremacy of Central Government over States in transferring IPS Cadres

Car manufacturer not liable for the sale of a worn-out car by the dealer without the manufacturer's knowledge: Supreme Court

2021-03-01

The Supreme Court held that a car manufacturer could not be held liable for delivery of a defective car by the car dealer in the manufacturer's absence of knowledge.

Car manufacturer not liable for the sale of a worn-out car by the dealer without the manufacturer's knowledge: Supreme Court

SC to consider PIL to include Legal field in the Covid-19 vaccination priority list

2021-02-16

On Tuesday, the SC agreed to hear a PIL for the addition of judges, lawyers and court staff to be included in the priority list for Covid-19 vaccination.

SC to consider PIL to include Legal field in the Covid-19 vaccination priority list

DNA Technology Regulation Bill, 2019.

2021-02-12

The DNA Technology (Use and Application) Regulation Bill, 2019, aims to establish the identity of victims, offenders, undertrials, missing people, unknown dead people, suspects and undertrials. It proposes a DNA Regulatory Board to address concerns a

DNA Technology Regulation Bill, 2019.

HC discusses the invocation of arbitration clause if one party appoints arbitrator on 'ex-parte' basis.

2021-02-10

Justice Kameswar Rao will decide a petition wherein, on the arbitration clause' invocation, one of the parties appointed the sole arbitrator and did not receive confirmation from the other party.

HC discusses the invocation of arbitration clause if one party appoints arbitrator on 'ex-parte' basis.

Comedian Munawar Faruqui granted bail; SC says ‘FIR Vague.’

2021-02-08

On Friday, the SC granted bail to stand-up comedian Munawar Faruqui, stating that the procedure of the notice before his arrest was not followed correctly. The SC believed that the FIR was vague.

Comedian Munawar Faruqui granted bail; SC says ‘FIR Vague.’

Cryptocurrency Ban: India plans to introduce new law prohibiting all 'Private Cryptocurrencies.'

2021-02-04

The government at the Centre is planning to introduce a new law banning all private cryptocurrencies. However, the new law will allow certain exceptions to promote the underlying technology of cryptocurrency and its uses.

Cryptocurrency Ban: India plans to introduce new law prohibiting all 'Private Cryptocurrencies.'

SC stays Bombay HC Judgement of the interpretation of 'Sexual Assault' under the POCSO Act.

2021-02-01

The SC stayed the acquittal of the accused, wherein it was held that pressing of a minor girl's breasts without disrobing does not amount to "sexual assault" within the meaning of Section 8 of POCSO Act. Meanwhile, the NCPCR has asked the Maharashtra

SC stays Bombay HC Judgement of the interpretation of 'Sexual Assault' under the POCSO Act.

SC drops UP Govt's plea to stop HC from examining Love-Jihad Laws

2021-01-28

On Monday, the SC dismissed the UP government's plea seeking to prevent the Allahabad HC from investigating the state's controversial anti-conversion law and that no constitutional court should be "lightly" pursued.

SC drops UP Govt's plea to stop HC from examining Love-Jihad Laws

SC drops policy of excluding the reserved community from competing

2021-01-27

Under Article 32, two female nominees from reserved groups approached the SC opposing the appointment process undertaken in 2013 to fill the vacancies of constables in the UP Police. The SC dropped the policy that excluded the reserved community from

SC drops policy of excluding the reserved community from competing

Will non-payment of stamp duty, hold the contract's arbitration clause invalid?

2021-01-25

The Constitutional Bench of the Supreme Court has determined that non-payment of the stamp duty on a commercial contract will not invalidate the arbitration provision which forms part of that contract.

Will non-payment of stamp duty, hold the contract's arbitration clause invalid?

Supreme Court: Committee will proceed with or without protesting farmers.

2021-01-22

The Supreme Court stated that the panel members are the agricultural fields' brilliant minds, and no one is pressuring the farmers to come before the Committee against their will. The court said that Committee would move ahead with or without the pre

Supreme Court: Committee will proceed with or without protesting farmers.

Petitions filed by scholars against MPPSC dismissed by Madhya Pradesh HC.

2021-01-22

Madhya Pradesh HC dismissed the petitions of former scholars aspiring to become assistant professors and observed that petitioners had made a mistake while filling the form, hence they cannot be given the benefit of extra points.

Petitions filed by scholars against MPPSC dismissed by Madhya Pradesh HC.

SC Issues Notice on PILs For Uniform Law.

2021-01-22

A three-judge bench of the Supreme Court (SC) including CJI SA Bobde, J. AS Bopanna and J. V Ramasubramanian issued a notice on two Public Interest Litigations looking for consistency in the personal laws regulating divorce, maintenance and alimony f

SC Issues Notice on PILs For Uniform Law.

Supreme Court rejects Aadhaar review plea in 4:1 verdict.

2021-01-22

The Supreme Court on Wednesday, by a majority vote of 4:1, rejected a collection of petitions demanding a reversal of its 2018 judgement, which established the constitutional validity of the Aadhaar flagship scheme of the Centre.

Supreme Court rejects Aadhaar review plea in 4:1 verdict.

Protection granted to the creators of

2021-01-22

Bombay High Court issued anticipatory transit bail for three weeks to the Taandav series director, producer and authors, Amazon Prime India.

Protection granted to the creators of "Tandav" series.

Delhi HC awarded 10 lakh compensation for negligence of BSES

2021-01-21

The Delhi HC awarded 10 lakh compensation to the family of deceased for the negligence by BSES Rajdhani Power Ltd. in maintaining electric wires in a Petition under Article 226 of the Constitution.

Delhi HC awarded 10 lakh compensation for negligence of BSES

Supreme Court : Notice issued in plea challenging AIBE Rules

2021-01-21

The Supreme Court issues notice in a Petition filed by a newly enrolled advocate challenging the AIBE Rules 2010 which mandates that an Advocate has to qualify the AIBE to practice law after enrolment.

Supreme Court : Notice issued in plea challenging AIBE Rules

Cyber data privacy in peril

2021-01-21

The recent controversy triggered by WhatsApp's move to unilaterally amend its privacy policy appears to have acted as a catalyst to shake Indian citizens out of complacency. Hopefully, the government comes up with an effective mechanism to deal with

Cyber data privacy in peril

SC: One-sided and unreasonable clauses constitutes an unfair trade practice.

2021-01-14

SC held that Developer cannot compel the buyers to be bound by the one-sided contractual terms in the Agreement as it is in violation of the Consumer Protection Act.

SC: One-sided and unreasonable clauses constitutes an unfair trade practice.

Allahabad HC: Compulsory Publication of Notice Under Sec 6 of Special Marriage Act is violative of Right to Privacy

2021-01-14

The Allahabad High Court has directed that while giving notice under Sec 5 of the Special Marriage Act, it shall be optional for the parties to make a request in writing to publish or not to publish a notice under Sec 6 of the Act.

Allahabad HC: Compulsory Publication of Notice Under Sec 6 of Special Marriage Act is violative of Right to Privacy

SC: An accused released on default bail cannot be re-arrested.

2021-01-11

In an appeal, the SC held that an accused released on default bail cannot be re-arrested on filing of charge-sheet by the police.

SC: An accused released on default bail cannot be re-arrested.

SC: Legal rights of Parties cannot be thrown away

2021-01-11

While allowing the appeal arising out of Motor Accident Compensation Claim filed by heirs of a deceased couple, the SC observed that Advocates cannot throw away legal rights or enter into arrangements contrary to law.

SC: Legal rights of Parties cannot be thrown away

Happy Clients

Let us assist you in taking care of all your legal worries and immune you from legal risks.