Arbitration Bill gets Lok Sabha nod February 12, 2021 It replaces ordinance that enabled certain arbitral awards to be ‘unconditionally stayed’ The Lok Sabha on Friday passed the Arbitration and Conciliation (amendment) Bill 2021 to replace an ordinance that enabled certain arbitral awards to be “unconditionally stayed”. This ordinance promulgated in November last year provided that enforcement of arbitral awards passed on the basis of arbitration agreement induced or effected by fraud/ corruption can now be “unconditionally stayed”. This would be allowed pending disposal of the challenge made in the award under Section 34 of the Arbitration & Conciliation Act 1996. The ordinance had also deleted the Eighth Schedule of the Arbitration & Conciliation Act, 1996, paving the way for foreign practitioners to act as arbitrators in India-seated arbitrations. This schedule dealt with the qualifications and experience of arbitrators.
To print this article, all you need is to be registered or login on Mondaq.com. On November 04, 2020, the President of India promulgated the Arbitration and Conciliation (Amendment) Ordinance, 2020 ( Ordinance ). The Ordinance was promulgated to ensure that all parties get an opportunity to seek unconditional stay of enforcement of arbitral awards where the underlying arbitration agreement or contract or making of the arbitral award are induced by fraud or corruption 1. Prior to the Ordinance, under Section 36 (3) of the Arbitration and Conciliation Act, 1996 ( Act ) a party could file an application seeking a stay of the arbitral award when challenging the arbitral award under Section 34 of the