Topics Covered: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.
The Arbitration and Conciliation (Amendment) Ordinance, 2020:
Context:
President Ram Nath Kovind promulgated the Arbitration and Conciliation (Amendment) Ordinance, 2020 to further amend Arbitration and Conciliation Act.
The ordinance:
- Seeks to ensure that stakeholder parties can seek an unconditional stay on enforcement of arbitral awards in cases where the “arbitration agreement or contract is induced by fraud or corruption.”
- Also does away with the 8th Schedule of the Act that contained the necessary qualifications for accreditation of arbitrators.
- Added a proviso in Section 36 of the Arbitration Act and will come into effect retrospectively from October 23, 2015. As per this amendment, if the Court is satisfied that a prima facie case is made out that the arbitration agreement or contract which is the basis of the award was induced or effected by fraud or corruption, it will stay the award unconditionally pending disposal of the challenge made to the award under Section 34.
Background:
Until recently, an arbitration award was enforceable even if an appeal was filed against it in the court under Section 36 of the law. The court, however, could grant a stay on the award on conditions as it deemed fit.
InstaLinks:
Prelims Link:
- What is Arbitration?
- Recent Amendments.
- About the International Court of Arbitration.
- About the Arbitration Council of India.
- Appointment of arbitrators under the 1996 Act.
Mains Link:
Discuss the significance of the Arbitration and Conciliation (Amendment) Act.
Sources: the Hindu.
