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.
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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