Arbitration in india has undergone a profound change with the adoption of the indian arbitration and conciliation amendment act, 2015 that has been adopted to correct several practices that had developed under the principal act, the indian arbitration and conciliation act, 1996. An analysis of the arbitration and conciliation amendment. The amendment seeks to replace the ordinance and intends to make india more investor friendly with sound legal framework. Therefore, as an attempt to make arbitration a preferred mode of settlement of commercial disputes and to make india a hub of international commercial arbitration, the president of india, on 23rd october 2015, promulgated an ordinance arbitration and conciliation amendment ordinance, 2015, amending the arbitration and conciliation act, 1996. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. This post throws light on the major areas of the new amendment to the arbitration and conciliation act, its objectives, major cases which look into the said. Concept of seat and venue under the arbitration and.
The bill amends the arbitration and conciliation act, 1996. Due to lacunae in the act, the law commission submitted its 246th report suggesting a plethora of amendments radically reforming the entire 1996 act. India the arbitration and conciliation amendment act, 2015. Applicability of the 2015 arbitration amendment act. The arbitration and conciliation amendment act, 2019. Apar gupta, is a lawyer practicing in new delhi, india. The route to the amendment act has been a rather arduous.
The arbitration and conciliation amendment bill, 2015. The arbitration and conciliation amendment bill, 2015 the bill should reflect the recommendations made by the law commission in its 246th report, however, since it is futile to proceed with an analysis on the assumption that it definitely will, an indepth analysis of the bills effect must wait. Effect of amendment act of 2015 on section 36, arbitration. The date of amendment coming into force is from october 23, 2015. Aug 12, 2019 the 2015 amendment had permitted the parties to obtain interim measures from an arbitral tribunal under section 17 of the 1996 act during the pendency of the arbitration proceedings or at any time after the making of the award, but before it was enforced in accordance with section 36. Critical analysis of arbitration and conciliation amendment.
The 2015 amendment to the arbitration and conciliation act. Aug 30, 2019 india has long hoped to become a frontrunner in arbitration and emerge as the preferred seat of arbitration for contracting parties. India arbitration and conciliation amendment act, 2015. An analysis of the arbitration and conciliation amendment act. It has been clarified that unless the parties otherwise agree, the amendments made to the act by the arbitration and conciliation amendment act, 2015 will not apply to the arbitral proceedings which commenced before the commencement of the arbitration and conciliation amendment act, 2015 i. The impact of arbitration and conciliation amendment act, 2019. It is clarified that the amendments to the arbitration and conciliation act that were introduced with effect from 23 october 2015 will be purely prospective, i. Analysis and interpretation of the arbitration and conciliation. In a nutshell, the amended provision permits an indian court to order interi. The 2015 amendment had permitted the parties to obtain interim measures from an arbitral tribunal under section 17 of the 1996 act during the pendency of the arbitration proceedings or at any time after the making of the award, but before it was enforced in accordance with section 36. The object that the amendment seeks to achieve is twofold. Arbitration and conciliation amendment ordinance 2015. A plain reading or literal interpretation of section 36 before the 2015 amendment suggests that the arbitral award automatically stays as soon as the party files an application to set aside the award in a court of law under section 34 of the arbitration act.
Relevant court for domestic and international arbitration matters. Critical analysis of the arbitration and conciliation amendment. India has long hoped to become a frontrunner in arbitration and emerge as the preferred seat of arbitration for contracting parties. May 14, 2019 since the section 34 petition in the present case is dated 30. We came away from the interviews with an appreciation for the sensitive and difficult choices that face a general counsel when weighing the pros and cons of whether and when a complex business dispute is better suited for litigation in the public courtroom or private arbitration. The courts analysis can be buttressed by the reading that section 26. Ltd, the supreme court held that amendments made to the arbitration and conciliation act, 1996 1996 act by way of the arbitration and conciliation amendment act, 2015 2015 amendment act which came into effect on october 23, 2015 are prospective in nature. In this issue we consider various court decisions, which cover issues such as the applicability of the arbitration amendment act 2015, binding nonsignatories to an award, enforcement of an award before the national company law tribunal, and the continued proarbitration approach of the. The arbitration and conciliation amendment bill, 2015 was introduced in lok sabha on december 3, 2015 by the minister for law and justice, mr. Analysis arbitration and conciliation amendment act, 2019. The arbitration and conciliation amendment act, 2019 key. Despite having recommended comprehensive changes, very few suggested amendments were actually enacted by the arbitration and conciliation amendment act, 2015 3 of 2016 the 2015 amendment. The arbitration and conciliation amendment act, 2015.
Now, with the arbitration and conciliation amendment act, 2015 act being passed it will help in revamping the dispute resolution mechanism in india, boosting in turn the confidence of domestic and foreign businesses investments in india and making india a preferred seat of arbitration. Analysis arbitration and conciliation amendment act. Dec, 2019 in a decision that should enhance the attraction of the arbitration regime in india, a threejudge bench of the supreme court of india in hindustan construction company limited an. Critical analysis of the arbitration and conciliation. Jan 08, 2016 the amendment seeks to replace the ordinance and intends to make india more investor friendly with sound legal framework.
These amendments brought many significant changes to facilitate vigorous growth of arbitration in india. Bill, 2015 a bill to amend the arbitration and conciliation act, 1996. Aug 07, 2019 applicability of arbitration amendment act, 2015 to section 34 of the arbitration act, 1996. Some of the important changes brought about by the amending. In an attempt to make arbitration a preferred mode of settlement of commercial disputes and making india a hub of international commercial arbitration, the president of india on 23rd october 2015 promulgated an ordinance arbitration and conciliation amendment ordinance, 2015 amending the arbitration and conciliation act, 1996. Interim reliefs are one of the first provisions where changes made by the amendment.
The arbitration and conciliation amendment act, 2015 amending act marks an important milestone in the development of arbitration law in. In this background, to remedy the defects the 1996 act, the president on 23 rd october, 2015 has promulgated the arbitration and conciliation amendment ordinance, 2015. Mar 10, 2020 the 2019 amendment act comes close to the 2015 amendment act, considering that arbitration act 1996 was first amended only in 2015, although it was long due. Understanding arbitration amendment bill 2015 indian law watch. Section 12 of the amendment act states that it shall be deemed to be applicable from 23rd october 2015. Litigating in courts in india in case of a dispute has many setbacks. Recent amendments in the arbitration act law corner. The arbitration and conciliation amendment bill, 2018 amendments which, when passed will apply to the arbitration and conciliation act, 1996 are pursuant to the srikrishna committee report released in july, 2017, recommending further amendments on the back of the 2015 amendments, primarily to improve on or clarify various provisions. Applicability of arbitration amendment act, 2015 to section 34 of the arbitration act, 1996. An analysis of the arbitration and conciliation amendment act,2015. Salient features of the arbitration and conciliation.
The legislative agenda for the session includes a number of bills including the arbitration and conciliation amendment bill, 2015 bill. On october 23 2015 indias arbitration law was transformed in several key respects when the arbitration and conciliation amendment ordinance was promulgated by the president. Oct 28, 2015 the arbitral process suffered substantial delay. Limitation act 1963 25 arbitration and conciliation act 1996 24 indian evidence act 1872 22 case analysis 21 insolvency and bankruptcy code 2016 20 competition act 2002 19 allahabad high court 19 indian penal code 1860 19 indian contract act 1872 17 hindu succession act 1956 17 motor vehicles act 1988 17. The arbitration and conciliation amendment act, 2015 amendment act, which received the assent of the president of india on december 31, 2015 and deemed to have come into force on october 23, 2015, has proposed sweeping changes to the arbitration act.
The last decade has seen a concerted effort by the indian legislature, the executive and the judiciary to promote alternative dispute resolution in india. Jul 27, 2018 it is clarified that the amendments to the arbitration and conciliation act that were introduced with effect from 23 october 2015 will be purely prospective, i. And thus the arbitration and conciliation amendment act, 2015 hereinafter referred to as the amendment, was notified on january 1, 2016. Analysis and interpretation of the arbitration and. The bench was dealing with appeals which raise the question whether the substitution made to section 36 of the arbitration act by 2015 amendment would apply even to appeals under section 34 filed before october 23, 2015 when the amendment came into effect. An insight into 2015 amendment act and 2018 amendment bill. The hc observed that all petitions filed under section 34 of the arbitration and conciliation act, 1996 the actprior to the amendment i. Prithvij beniwal the 2015 budget session of the houses of parliament commenced on 23rd february. Arbitration and conciliation amendment act, 2015 a.
An act to amend the arbitration and conciliation act, 1996. These amendments in the act were declared as an important effort by the government of india to encourage institutional arbitration in india and further streamline the arbitration process by removing practical difficulties in applicability of the first round of amendments made by the arbitration and conciliation amendment act, 2015. Need for amendment the indian government has been taking considerable steps time and again to make india also an international commercial arbitration hub similar to the likes of paris, geneva or new york. Applicability of arbitration and conciliation amendment act, 2015. The government had initiated these efforts in 2015 with the arbitration and conciliation amendment act, 2015 the 2015 amendment act. Apr 25, 2019 in an attempt to make arbitration a preferred mode of settlement of commercial disputes and making india a hub of international commercial arbitration, the president of india on 23rd october 2015 promulgated an ordinance arbitration and conciliation amendment ordinance, 2015 amending the arbitration and conciliation act, 1996. V, a student of government law college, ernakulam, kerala analyses and interprets the amendments to the arbitration and conciliation amendment act, 2015. The arbitration and conciliation amendment act, 2015 amending act marks an important milestone in the development of arbitration law in india. The 2019 amendment act comes close to the 2015 amendment act, considering that arbitration act 1996 was first amended only in 2015, although it was long due. On october 23 2015 indias arbitration law was transformed in several key respects when the arbitration and conciliation amendment ordinance was promulgated by. 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 23 rd october, 2015. The following act of parliament received the assent of the president on the 31st december, 2015, and is hereby published for general information. In a decision that should enhance the attraction of the arbitration regime in india, a threejudge bench of the supreme court of india in hindustan construction company limited an. Understanding arbitration amendment bill 2015 indian law.
Ambiguities in applicability of arbitration amendment act 2015. The arbitration and conciliation act, 1996 and the amendments under the arbitration and conciliation amendment act, 2015 have given definite character to section 34 of the act and resolved certain issues pertaining to it. Applicability of arbitration amendment act, 2015 to section. An evaluation of section 34 of the arbitration and. Interim reliefs under the arbitration and conciliation.
Introduction this article is an attempt at understanding of pros and cons of the arbitration and conciliation amendment act, 2015, it is an efforts by government of india to improve the ease of doing business in india. The 2019 act clarifies that the 2015 act shall only apply to arbitral. Since the section 34 petition in the present case is dated 30. Under the act, the relevant court for all arbitration matters would be a principal civil court or high.
Arbitration amendment act, 2015 shall apply retrospectively to court proceedings in relation to arbitral proceedings. May 25, 2016 the arbitration and conciliation amendment act, 2015 amendment act, which received the assent of the president of india on december 31, 2015 and deemed to have come into force on october 23, 2015, has proposed sweeping changes to the arbitration act. Analysis supreme court strikes down section 87 of the. Arbitration and conciliation amendment bill, 2015 in the parliament. Critical analysis of arbitration and conciliation amendment act, 2019. In a somewhat belated realisation, the arbitration and conciliation amendment act 2015 has made changes that impact the ability of parties in international commercial arbitrations seated outside india offshore arbitrations to seek interim remedies before indian courts. Herbert smith freehills has issued the latest edition of its indian international arbitration ebulletin.
However, section 26 1 inserted in the newly enacted amendment act stipulates that nothing in the amended act, shall apply to arbitral. On october 23 2015 indias arbitration law was transformed in several key respects when the arbitration and conciliation amendment ordinance was. The arbitration and conciliation amendment act, 2015 amendment act has introduced certain amendments to the provisions of the arbitration and conciliation act, 1996 act and is deemed to be effective from october 23, 2015. Applicability of arbitration amendment act, 2015 to. This article is an attempt at understanding of pros and cons of the arbitration and conciliation amendment act, 2015, it is an efforts by government of india to. In december, the union cabinet approved an ordinance regarding the amendment of the arbitration and conciliation act, 1996 arbitration act. Jun 04, 2018 due to lacunae in the act, the law commission submitted its 246th report suggesting a plethora of amendments radically reforming the entire 1996 act. The parliament has passed the arbitration and conciliation amendment bill, 2015. The important changes introduced are discussed below. The 2019 amendment act is intended to fix the loopholes created by the arbitration and conciliation amendment act, 2015, and is a step. Sep 15, 2016 the last decade has seen a concerted effort by the indian legislature, the executive and the judiciary to promote alternative dispute resolution in india. Arbitration laws of india have been under foreign scrutiny since a long time now. This itself speaks about the central governments keenness to develop the arbitration regime in india. A final solution to arbitration in india the financial express.
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