On 12th February 2021, Lok Sabha (Lower House of parliament) gave has passed the Arbitration and Conciliation (Amendment) Bill 2021. This bill was passed by voice vote.
The Union Minister of Law and Justice, Ravi Shankar Prasad, introduced the bill in Lower House on 4th February 2021. The provisions of the bill were, however, already into force through an ordinance that was promulgated on 4th November 2020.
Ravi Shankar Prasad highlighted that; India wants to be an excellent hub for the arbitration. So, Government of India has passed the bill and is working in direction of making India a big hub for domestic and international arbitration.
Provisions of the Amendment Bill
- This Bill deal with the domestic and international arbitration.
- The Bill also defines the law to conduct the conciliation proceedings.
- The Bill replaces the ordinance containing same provisions that was promulgated on 4th November, 2020.
- It will amend the Arbitration and Conciliation Act of 1996.
- With the amendment, the bill will enable automatic stay on awards in some cases.
- Under this amendments, omit the eighth schedule of the act that specify through the regulations of qualifications, experience and norms of the accreditation of arbitrators.
- It will stay on the arbitral award may be provided by the Court. It can be provided even during the pendency of the setting aside application.
- It also amends the section 36 of the Arbitration and Conciliation Act of 1996.
Arbitration and Conciliation Act of 1996
The Arbitration and Conciliation Act of 1996 regulates the domestic arbitration in India. This act was amended in 2015. It’s another amendment was passed in Lok Sabha in August by 2019.
Arbitration is a form of alternative dispute resolution (ADR). In this mechanism, the disputes are resolved outside the courts. The disputes are decided by one or more persons called the ‘arbitrators’. The arbitrators give the arbitration award which stands legally binding on both sides. The award is also enforceable in the courts. It is often used to resolve the commercial disputes particularly related to international commercial transactions.
Arbitration and Conciliation (Amendment) Bill 2021 Arbitration and Conciliation (Amendment) Bill 2021 Arbitration and Conciliation (Amendment) Bill 2021