Amendment of section 37 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

 20. In section 37 of the principal Act, in sub-section (1), for clauses (a) and (b), the following clauses shall be substituted, namely:—
 “(a) refusing to refer the parties to arbitration under section 8;
 (b) granting or refusing to grant any measure under section 9;
 (c) setting aside or refusing to set aside an arbitral award under section 34.”.

-Amendment of section 37 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of Section 56  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 47  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of section 48  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 57   of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-THE FlFTH SCHEDULE of the Amended act of the Arbitration and Conciliation Act 1996

Amendment of Section 56 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

 23. In section 56 of the principal Act, the Explanation shall be renumbered as Explanation 1 thereof, and after the Explanation 1 as so renumbered, the following Explanation shall be inserted, namely:—

 ‘Explanation 2.——In this section and in the sections following in this Chapter, “Court” means the High Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award if the same had been the subject matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.’

-Amendment of section 37 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of Section 56  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 47  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of section 48  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 57   of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-THE FlFTH SCHEDULE of the Amended act of the Arbitration and Conciliation Act 1996

Amendment of Section 47 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

21. In section 47 of the principal Act, for the Explanation, the following Explanation shall be substituted, namely:—
 ‘Explanation.——In this section and in the sections following in this Chapter, “Court” means the High Court having original jurisdiction to decide the questions forming the subject-matter of the arbitral award if the same had been the subject matter of a suit on its original civil» jurisdiction and in other cases, in the High Court having jurisdiction to hear appeals from decrees of courts subordinate to such High Court.

-Amendment of section 37 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of Section 56  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 47  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of section 48  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 57   of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-THE FlFTH SCHEDULE of the Amended act of the Arbitration and Conciliation Act 1996

Amendment of section 48 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

22. In section 48 of the principal Act, for the Explanation to sub-section (2), the following Explanations shall be substituted, namely—
«- “Explanation l.—For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,——
' (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or
 (ii) it is in contravention with the fundamental policy of Indian law; or
(iii) it is in conflict with the most basic notions of morality or justice. Explanation 2.—-For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute”.

-Amendment of section 37 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of Section 56  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 47  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of section 48  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 57   of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-THE FlFTH SCHEDULE of the Amended act of the Arbitration and Conciliation Act 1996

Amendment of Section 57 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

24. In section 57 of the principal Act, in sub—section (1), for the Explanation, the following Explanations shall be substituted, namely:- “Explanation 1.- For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India, only if,—
 (i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or section 81; or
(ii) it is in contravention with \the fundamental policy of Indian law; or
(iii) it is in conflict with the most basic notions of morality or justice. ' Explanation 2.- For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the dispute.

-Amendment of Section 47  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of section 48  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of Section 57   of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-THE FlFTH SCHEDULE of the Amended act of the Arbitration and Conciliation Act 1996

-Amendment of section 37 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of Section 56  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

THE FlFTH SCHEDULE of the Amended act of the Arbitration and Conciliation Act 1996

THE FlFTH SCHEDULE

 [See section 12 (I)(b)]

The following grounds give rise to justifiable doubts as to the independence or impartiality of arbitrators :
 Arbitrator’s relationship with the parties or counsel

1. The arbitrator is an employee, consultant, adviser or has any other past or present business relationship with a party.
 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties. 3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties.
 4. The arbitrator is a lawyer in the same law firm which is representing one of the parties.
 5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration. .
 6. The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself.
 7. The arbitrator’s law firm currently has a significant commercial relationship with one Of the parties or an affiliate ’ of one of the parties.
 8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant financial income therefrom.
9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the persons in the management and controlling the company.
 10. A close family member of the arbitrator has a significant financial interest in one of the par-ties or an affiliate of one of the parties. ll.The arbitrator is a legal representative of an entity that is a party in the arbitration.
12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties.
13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case. 14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom.

 Relationship of the arbitrator to the dispute 

15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an affiliate of one of the parties.
 16. The arbitrator has previous involvement in the case.

 Arbitrator’s direct or indirect interest in the dispute 

' 17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held.
18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute.
19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to recourse on the part of the unsuccessful party in the dispute.

• The Fifth  Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

-Amendment of section 37 of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015

-Amendment of Section 56  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 47  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of section 48  of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-Amendment of Section 57   of the Arbitration and Conciliation Act 1996 by the Arbitration and Conciliation (Amendment) Act, 2015
-THE FlFTH SCHEDULE of the Amended act of the Arbitration and Conciliation Act 1996

Justifiable Ground for the Independence or impartiality of the Arbitrator :- Relationship between an arbitrator and another arbitrator or counsel.

Justifiable Ground for the Independence or impartiality  of the Arbitrator

Relationship between an arbitrator and another arbitrator or counsel.

 25. The arbitrator and another arbitrator are lawyers in the same law firm.
 26. The arbitrator was within the past three years a partner of, or otherwise affiliated with, another arbitrator or any of the counsel in the same arbitration.
27. A lawyer in the arbitrator’s law firm is an arbitrator in another dispute involving the same party or parties or an affiliate of one of the parties.
 28. A close family member of the arbitrator is a partner or employee of the law firm representing one of the parties, but is not assisting with the dispute.
29. The arbitrator has within the past three years received more than three appointments by the same counsel or the same law firm.

• The Fifth Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

THE SIXTH SCHEDULE of the Amended act of Arbitration and conciliation act 1996

THE SIXTH SCHEDULE
 [See section 12 (1)(b)]

 ' NAME: CONTACT DETAILS:

 PRIOR EXPERIENCE (INCLUDING EXPERIENCE WITH ARBITRATIONS):

 NUMBER OF ON-GOING ARBITRATIONS:

 CIRCUMSTANCES DISCLOSING ANY PAST OR PRESENT RELATIONSHIP WITH OR INTEREST IN ANY OF THE PARTIES OR IN RELATION TO THE SUBJECT MATTER IN DISPUTE, WHETHER FINANCIAL, BUSINESS, PROFESSIONAL OR OTHER KIND, WHICH IS LIKELY TO GIVE RISE TO JUSTIFIABLE DOUBTS AS TO YOUR INDEPENDENCE OR IMPARTIALITY (LIST OUT):

CIRCUMSTANCES WHICH ARE LIKELY TO AFFECT YOUR ABILITY TO DEVOTE SUFFICIENT TIME TO THE ARBITRATION AND IN PARTICULAR YOUR ABILITY TO FINISH THE ENTIRE ARBITRATION WITHIN TWENTY-FOUR MONTHS AND RENDER AN AWARD WITHIN THREE MONTHS (LIST OUT):

• The Fifth  Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

Justifiable Ground for the Independence or impartiality of the Arbitrator:- Arbitrator’s direct or indirect interest in the dispute

Justifiable Ground for the Independence or impartiality  of the Arbitrator:-

  Arbitrator’s direct or indirect interest in the dispute

17. The arbitrator holds shares, either directly or indirectly, in one of the parties or an affiliate of one of the parties that is privately held.

 18. A close family member of the arbitrator has a significant financial interest in the outcome of the dispute.

 19. The arbitrator or a close family member of the arbitrator has a close relationship with a third party who may be liable to ' recourse on the part of the unsuccessful party in the dispute.

 Explanation l.~ The term, “close family member” refers to a spouse, sibling, child, parent or life partner.

Explanation 2.— The term “affiliate” encompasses all companies in one group of companies including the parent company. Explanation 3.-— For the removal of doubts, it is clarified that it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to   draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequentlyI to appoint the same arbitrator in different cases, this 'is a relevant fact to be taken into aeoount while applying the rules set out above.’.

• The Fifth Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

Justifiable Ground for the Independence or impartiality of the Arbitrator:-Relationship between arbitrator and party and others involved in the arbitration

Justifiable Ground for the Independence or impartiality  of the Arbitrator:-

Relationship between arbitrator and party and others involved in the arbitration Matters  

30. The arbitrator’s law firm is currently acting adverse to one of the parties or an affiliate of one of the parties.

31. The arbitrator had been associated within the past three years with a party or an affiliate of one of the parties in a ’ professional capacity, such as a former employee or partner.
 Other circumstances

 32. The arbitrator holds shares, either directly or indirectly, which by reason of number or de-nomination constitute a material holding in one of the parties or an affiliate of one of the parties that is publicly listed.

33. The arbitrator holds a position in an arbitration institution with appointing authority over the dispute.

34. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties, where the affiliate is not directly involved in the matters in dispute in the arbitration.

 Explanation 1.—— The term “close family member” refers to a spouse, sibling, child, parent or life partner.

 Explanation 2.~—The term “affiliate” encompasses all companies in one group of companies including the parent company.
 Explanation 3.—-— For the removal of doubts, it is clarified that it may be the practice in certain specific kinds of arbitration, such as maritime or commodities arbitration, to draw arbitrators from a small, specialised pool. If in such fields it is the custom and practice for parties frequently to appoint the same arbitrator in different cases, this is a relevant fact to be taken into account while applying the rules set out above. 

• The Fifth Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

Justifiable Ground for the Independence or impartiality of the Arbitrator: Arbitrator’s relationship with the parties or counsel

Justifiable Ground for the Independence or impartiality  of the Arbitrator:

THE SEVENTH SCHEDULE

 [See Section 12(5)]

 Arbitrator’s relationship with the parties or counsel

 1. The arbitrator is an employee, consultant, advisor or has any other past or present business relationship with a party.

 2. The arbitrator currently represents or advises one of the parties or an affiliate of one of the parties

. 3. The arbitrator currently represents the lawyer or law firm acting as counsel for one of the parties.

 4. The arbitrator is a lawyer in the same law firm which is representing one of the parties

. 5. The arbitrator is a manager, director or part of the management, or has a similar controlling influence, in an affiliate of one of the parties if the affiliate is directly involved in the matters in dispute in the arbitration.

 6. The arbitrator’s law firm had a previous but terminated involvement in the case without the arbitrator being involved himself or herself.

 7. The arbitrator’s law firm currently has a significant commercial relationship with one of the parties or an affiliate of one of the parties.

 8. The arbitrator regularly advises the appointing party or an affiliate of the appointing party even though neither the arbitrator nor his or her firm derives a significant financial income therefrom.

 9. The arbitrator has a close family relationship with one of the parties and in the case of companies with the persons in the management and controlling the company.

 10. A close family member of the arbitrator has a significant financial interest in one of the parties or an affiliate of one of the parties.

 1 l.The arbitrator is a legal representative of an entity that is a party in the arbitration.

 12. The arbitrator is a manager, director or part of the management, or has a similar controlling influence in one of the parties.

 13. The arbitrator has a significant financial interest in one of the parties or the outcome of the case.

 14. The arbitrator regularly advises the appointing party or an affiliate of the appointing party, and the arbitrator or his or her firm derives a significant financial income therefrom.

• The Seventh Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

Relationship of the arbitrator to the dispute

Justifiable Ground for the Independence or impartiality  of the Arbitrator:-

Relationship of the arbitrator to the dispute

 15. The arbitrator has given legal advice or provided an expert opinion on the dispute to a party or an afliliate of one of the parties.

 16. The arbitrator has previous involvement in the case.

• The Fifth Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

Justifiable Ground for the Independence or impartiality of the Arbitrator:-Previous services for one of the parties or other involvement in the case

Justifiable Ground for the Independence or impartiality  of the Arbitrator:-

 Previous services for one of the parties or other involvement in the case of arbitration Matter

 20. The arbitrator has within the past three years served as counsel for one of the parties or an affiliate of one of the parties or has previously advised or been consulted by the party or an affiliate of the party making the appointment in an unrelated matter, but the arbitrator and the party or the affiliate of the party have no ongoing relationship.

21. The arbitrator has within the past three years‘served as counsel against one of the parties or an affiliate of one of the parties in an unrelated matter.

 22. The arbitrator has within the past three years been appointed as arbitrator on two or more occasions by one of the parties or an affiliate of one of the parties.

 23. The arbitrator’s law firm has within the past three years acted for one of the parties or an affiliate of one of the parties in an unrelated matter without the involvement of the arbitrator.

 24. The arbitrator currently serves, or has served within the past three years, as arbitrator in an-other arbitration on a related issue involving one of the parties or an affiliate of one of the parties. 

• The Seventh Schedule:-Arbitration Act 2015, Justifiable ground for the independence or impartiality of the Arbitrator
•   Arbitrator’s direct or indirect interest in the dispute

• Relationship between arbitrator and party and others involved in the arbitration Matters.

• Arbitrator’s relationship with the parties or counsel

•  Relationship of the arbitrator to the dispute
•  Previous services for one of the parties or other involvement in the case of arbitration Matter

Amendment in Section 34 of The Arbitration and Conciliation Act 1996

18. In section 34 of the principal Act,—

(I) in sub—section (2), in clause (b), for the Explanation, the following Explanations shall be substituted, namely:—

“Explanation 1,—For the avoidance of any doubt, it is clarified that an award is in conflict with the public policy of India. only if,—-——

(i) the making of the award was induced or affected by fraud or corruption or was in violation of section 75 or

section 81; or

(ii) it is in contravention with the fundamental policy of Indian law; or

(iii) it is in conflict with the most basic notions of morality or justice.

Explanation 2.~—For the avoidance of doubt, the test as to whether there is a contravention with the fundamental policy of Indian law shall not entail a review on the merits of the

dispute”;

(1]) after sub—section (2), the following subsection shall be inserted, narnelyz— -

“(2A) An arbitral award arising out of arbitrations other than international commercial arbitrations, may also be set aside by the Court, if the Court finds that the award is vitiated by patent illegality appearing on the face of the award:

Provided that an award shall not be set aside merely on the ground of an erroneous application of the law or by re- appreciation of evidence”;

(11]) after sub-section (4), the following sub-sections shall be inserted, namely:—— ‘

“(5) An application under this section shall be filed by a party only after issuing a prior notice to the other party and such application shall be accompanied by an afhdavit by the applicant endorsing compliance with the said requirement.

(6) application under this section shall be disposed of expeditiously, and in any event, within a period of one year from the date on which the notice referred to in sub-section (5) is serVed upon the other party”.

Insertion of Section 31A in the Arbitration and conciliation act 1996

17. After section 31 of the principal Act, the following new section shall be inserted, namely:—

“31A.( 1) In relation to any arbitration proceeding or a proceeding under any of the provisions of this Act pertaining to the arbitration, the Court or arbitral tn'bunal, notwithstanding anything contained in the Code of Civil Procedure, 1 908, shall have the discretion to determine—

(a) whether costs are payable by one party to another; (b) the amount of such costs; and (c) when such costs are to be paid.

Explanation—For the purpose of this sub-section, “costs” means reasonable costs relating to—

(i) the fees and expenses of the arbitrators, Courts and witnesses; '

(ii) legal fees and expenses;

(iii) any administration fees of the institution
supervising the arbitration; and

(iv) any other expenses incurred in connection with the arbitral or Court proceedings and the arbitral award.

(2) If the Court or arbitral tribunal decides to make an order as to payment of costs,—

(a) the general rule is that the unsuccessful party will be ordered to pay the costs of the successful party; or

(b) the Court or arbitral tribunal may make a different order for reasons to be recorded in writing.

(3) In determining the costs, the Court or arbitral tribunal shall have regard to all the circumstances, including—~

(a) the conduct of all the parties; (b) whether a party has succeeded partly in the case;

(c) whether the party had made a frivolous counter claim leading to delay in the diSposal of the arbitral proceedings; and

(d) whether any reasonable offer to settle the dispute is made by a party and refused by the other party.

(4) The Court or arbitral tribunal may make any order under this section including the order that a party shall pay—-

(a) a proportion of another party’s costs;

(b) a stated amount in respect of another party’s costs; (c) costs from or until a certain date only;

(d) costs incurred before proceedings have begun;

(e) costs relating to particular steps taken in the proceedings;

(1) costs relating only to a distinct part of the proceedings; and (g) interest on costs from or until a certain date. (5) An agreement which has the effect that a party is to pay the whole or part of the costs of the arbitration in any event

shall be only valid if such agreement is made after the dispute in question has arisen”.

Amendment in section 36 of The Arbitration and Conciliation Act 1996

19. For section 36 of the principal Act, the following section shall be substituted, namely
“36.(1) Where the time for making an application to set aside the arbitral award under section 34 has expired, then, subject to the provisions of sub-section (2), such award shall be enforced in accordance with the provisions of the Code of Civil Procedure, 1908, in the same manner as if it were a decree of the court.

(2) Where an application to set aside the arbitral award has been filed in the Court under section 34, the filing of such an application shall not by itself render that award unenforceable, unless the Court grants an order of stay of the operation of the said arbitral award in accordance with the provisions of sub—section (3), on a separate application made for that purpose.

(3) Upon filing of an application under sub-section (2) for stay of the operation of the arbitral award, the Court may, subject to such conditions as it may deem fit, grant stay of the operation of such award for reasons to be recorded in writing: '

Provided that the Court shall, while considering the application for grant of stay in the case of an arbitral award for payment of money, have due regard to the provisions for grant of stay of a money decree under the provisions of the Code of Civil Procedure, 1908.”.

Amendment of Section 31,the Arbitration and Conciliation Act 1996

Section 36 of the Arbitration and Conciliation Act 1996

31. Form and contents of arbitral award.—

(1) An arbitral award shall be made in writing and shall be signed by the members of the arbitral tribunal.

(2) For the purposes of sub-section (1), in arbitral proceedings with more than one arbitrator, the signatures of the majority of all the members of the arbitral tribunal shall be sufficient so long as the reason for any omitted signature is stated.

(3) The arbitral award shall state the reasons upon which it is based, unless—

(a) the parties have agreed that no reasons are to be given, or

(b) the award is an arbitral award on agreed terms under section 30.

(4) The arbitral award shall state its date and the place of arbitration as determined in accordance with section 20 and the award shall be deemed to have been made at that place.

(5) After the arbitral award is made, a signed copy shall be delivered to each party.

(6) The arbitral tribunal may, at any time during the arbitral proceedings, make an interim arbitral award on any matter with respect to which it may make a final arbitral award.

(7) (a) Unless otherwise agreed by the parties, where and in so far as an arbitral award is for the payment of money, the arbitral tribunal may include in the sum for which the award is made interest, at such rate as it deems reasonable, on the whole or any part of the money, for the whole or any part of the period between the date on which the cause of action arose and the date on which the award is made.

(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of eighteen per centum per annum from the date of the award to the date of payment.

(8) Unless otherwise agreed by the parties,—

(a) the costs of an arbitration shall be fixed by the arbitral tribunal;

(b) the arbitral tribunal shall specify—

(i) the party entitled to costs,

(ii) the party who shall pay the costs,

(iii) the amount of costs or method of determining that amount, and

(iv) the manner in which the costs shall be paid. Explanation.—For the purpose of clause (a), “costs” means reasonable costs relating to—

(i) the fees and expenses of the arbitrators and witnesses,

(ii) legal fees and expenses,

(iii) any administration fees of the institution supervising the arbitration, and

(iv) any other expenses incurred in connection with the arbitral proceedings and the arbitral award.

16. In section 31 of the principal Act,—

0) in sub-section (7), fm clause (b), the following shall be substituted, namely:——

‘(b) A sum directed to be paid by an arbitral award shall, unless the award otherwise directs, carry interest at the rate of two per cent. higher than the current rate of

interest prevalent on the date of award, from the date of award to the date of payment.

Explanation—The expression “current rate of interest” shall have the same meaning as assigned to it under clause (b) of section 2 of the Interest Act, 1978.’;

(ii) for sub-section (8), the following sub-section shall be substituted, namely:—

“(8) The costs of an arbitration shall be fixed by the arbitral tribunal in accordance with section 31A,”.

Insertion of new sections 29A and 29B, Time limit for arbitral award, THE ARBITRATION AND CONCILIATION (AMENDMENT) ORDINANCE, 2015

Section 29 of the THE ARBITRATION AND CONCILIATION 1996

Decision making by panel of arbitrators.—

(1) Unless otherwise agreed by the parties, in arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made by a majority of all its members.

(2) Notwithstanding sub-section (1), if authorised by the parties or all the members of the arbitral tribunal, questions of procedure may be decided by the presiding arbitrator.

Amendments

15. After section 29 of the principal Act, the following new sections shall be inserted, namely:—-

“29A. (1) The award shall be made within a period of twelve months from the date the arbitral tribunal enters upon the reference.

Explanation—For the purpose of this sub-section, an arbitral tribunal shall be deemed to have entered upon the reference on the date on which the arbitrator or all the arbitrators, as the case may be, have received notice, in writing, of their appointment.

(2) If the award is made within a period of six months from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree.

(3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a further period not exceeding six months.

(4) If the award is not made within the period specified in sub-section (1) or the extended period specified under sub-section (3), the mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period:

Provided that while extending the period under this sub- section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may order reduction of fees of arbitrator(s) by not exceeding five per cent. for each month of such delay.

(5) The extension of period referred to in sub-section (4) may be on the application of any of the parties and may be - granted only for sufficient cause and on such terms and conditions as may be imposed by the Court.

(6) While extending the period referred to in sub-section (4), it shall be open to the Court to substitute one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall continue from the stage already reached and on the basis of the evidence and material already on record, and the arbitrator(s) appointed under this section shall be deemed to have received the said evidence and material.
(7) In the event of arbitrator(s) being appointed under this section, the arbitral tribunal thus reconstituted shall be deemed to be in continuation of the previously appointed

arbitral tribunal.

(8) It shall be open to the Court to impose actual 0r exemplary costs upon any of the parties under this section.

(9) An application filed under sub-section (5) shall be disposed of by the Court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the

opposite party.

Fast tract procedure , THE ARBITRATION AND CONCILIATION (AMENDMENT) ORDINANCE, 2015

29B. (1) Notwithstanding anything contained in this Act, the parties to an arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal, agree in writing to have their dispute resolved by fast track procedure specified in sub-section (3).

(2) The parties to the arbitration agreement, while agreeing for resolution of dispute by fast track procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the parties.

(3) The arbitral tribunal shall follow the following procedure while conducting arbitration proceedings under

sub—section (1):

(a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents and submissions filed by the parties without any oral hearing;

(b) The arbitral tribunal shall have power to call for any further information or clarification from the parties in addition to the pleadings and documents filed by them;

(c) An oral hearing may be held only, if, allithe parties make 'a request or if the arbitral tribunal considers it necessary to have oral hearing for clarifying certain issues;

(d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for expeditious disposal of the case.

(4) The award under this section shall be made within a period of six months from the date the arbitral tribunal

enters upon the reference.

(5) If the award is not made within the period specified in sub-section (4), the provisions of sub-sections (3) to (9) of section 29A shall apply to the proceedings.

(6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be agreed between the arbitrator and the parties”.

Amendment of Section 24, THE ARBITRATION AND CONCILIATION (AMENDMENT) ORDINANCE, 2015

Section 24  THE ARBITRATION AND CONCILIATION Act 1996

24. Hearings and written proceedings.—

(1) Unless otherwise agreed by the parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials: Provided that the arbitral tribunal shall hold oral hearings, at an appropriate stage of the proceedings, on a request by a party, unless the parties have agreed that no oral hearing shall be held.

(2) The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of documents, goods or other property.

(3) All statements, documents or other information supplied to, or applications made to the arbitral tribunal by one party shall be communicated to the other party, and any expert report or evidentiary document on which the arbitral tribunal may rely in making its decision shall be communicated to the parties.

12. In section 24 of the principal Act, after the proviso to sub-section (1), the following proviso shall be inserted, namely:—

“Provided further that the arbitral tribunal shall, as far as possible, hold oral hearings for the presentation of evidence or for oral argument on day-to-day basis, and not grant any adjournments unless sufficient cause is made out, and may impose costs including exemplary costs on the party seeking adjournment without any sufficient cause”. ‘