Notes On Arbitration & Conciliation (Amendment) Ordinance, 2020

Prepared By: Ravi B. Gogia Advocate Prepared By: Gaurav Anand Gogia Founder-cum-Publishing Editor, The Legal Vidya


In regards with Section 36 of the Arbitration and Conciliation Act, 1996

  1. That, Section 36 of the Arbitration and Conciliation Act, 1996, had provided that during the pendency of Section 34 application regarding challenge of award, the award simply becomes un-executable until the final outcome in the Section 34 proceedings. The said statutory provision of Section 36 is/was amended and substituted via the Arbitration & Conciliation (Amendment) Ordinance, 2015 on 23-10-2015, which provides that the filing of appeal challenging the award of the Arbitration proceedings will not ispo facto be resulted into stay of the execution/enforcement proceedings of award. The said amended provision of 2015 further provides that applicant of Section 34 application, while challenging the award shall have to obtain express order from the Court regarding the stay over the award. Means merely on account of the pendency of the Application under Section 34, would not ispo facto operate as the stay over the award.

Now by way of amendment of 04-11-2020, in Section 36 of the Arbitration Act, following provision has been inserted. The impact of the said amendment would be as under:

  1. The said amendment provides that in case in the proceedings relating to Section 34 of the Act, whereby award is challenged by the party to the proceedings, on the ground that the Arbitration agreement or Contract, which is the basis of award under challenge and/or in making of the award itself is by way of fraud or corruption, and the court prima facie found the same as correct and/or the court prima facie found the substance in the said contentions, can stay the award unconditionally until the final disposal of the application under Section 34 of the Act. Means, by way of this amendment, the parties to the proceedings, who challenges the award, is saved from the conditions, which court may impose in normal circumstances for stay of the award, and by this amended provision in case of fraud or corruption the stay may be granted unconditionally by the court.

In regards with Section 43J of the Arbitration and Conciliation Act, 1996

  1. Further, Section 43J of the Arbitration and Conciliation act was substituted by the Arbitration & Conciliation (Amendment) Ordinance, 2019 in regards to the Norms of Accreditation in which the act stated that the qualifications, experience and norms for accreditation of Arbitrator is to be as it is specified in the Eighth Schedule.

Amendment after 04-11-2020

  1. After the Amendment dated 04-11-2020 Section 43J is substituted with the following.

  2. After the amendment the section states that the qualifications, experience and the norms for accreditation of arbitrators shall be such as may be specified by the regulations.

The Eighth Schedule of the Arbitration and Conciliation Act, 1996 should be omitted.

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