ECL : TOP Amendments “Arbitration & Reconciliation Act” (2015)

TOP Amendments “Arbitration & Reconciliation Act” (2015) 

‘Court’ Section 2(e):

Certain provisions of Part I of the Act such as

·         interim relief (section 9),

·         court assistance in taking evidence (section 27) and

·         appeal to interim relief order under section 9 (section 37)

Shall also apply to International Commercial Arbitration, In case of International Commercial Arbitration, the High Court shall be the ‘court’ for reliefs under the Act.

Amendment to Section 7:

Communication through electronic means shall be treated as an arbitration agreement in writing.

Amendment to Section 8:

Unless the judicial authority finds that prima facie no valid arbitration agreement exists, said judicial authority shall refer to the parties to the Arbitration on the action brought by party to arbitration agreement or person claiming through or under him. If the party applying for reference to arbitration has not having original or certified copy of arbitration agreement between them but the said copy is retained by other party then such party can make application to the Court to call upon other party to produce original or certified true of the arbitration agreement before that court.

Amendment to Section 9:

If the Court passes an order for any interim measure under sub-section (1) of Section 9 before the commencement of arbitral proceedings, the arbitral proceedings shall be commenced within a period of ninety days from the date of such order.

Amendment to Section 11:

Appointment of arbitrator shall now be made by the Supreme Court or the High Court, as the case may be, instead of the Chief Justice of India or the Chief Justice of the High Court. An application for appointment of arbitrator(s) shall be disposed of within a period of sixty days from the date of service of notice on the opposite party. 

Amendment to Section 12:

Ensuring neutrality of arbitrators, Person to be appointed as Arbitrator is required to disclose in the writing the existence of any relationship or interest of any kind which may affect his neutrality.

He is also required to disclose any circumstances which are likely to affect his ability to devote sufficient time to the arbitration and complete the arbitration within the specified period.

A person having relationships as specified in the Seventh Schedule shall be ineligible to be appointed as an arbitrator;

Amendment to Section 14:

On termination of mandate of an arbitrator, he is to be substituted by another arbitrator.

Amendment to Section 17:

The arbitral tribunal shall have power to grant all kinds of interim measures which the Court is empowered to grant under section 9 of the Act. Such interim measures can be granted any time before enforcement of  arbitral award, under section 36.

Amendment to Section 23:

The respondent, in support of his case, may also submit a counterclaim or a set-off, if such counterclaim or set-off falls within the scope of the arbitration agreement.

Amendment to Section 24:

The Arbitral tribunal shall hold oral hearing for the presentation of evidence or oral arguments on the day-to-day basis and shall not grant any adjournments without any sufficient cause.

Amendment to Section 25:

The right of the respondent to file the statement of defence has been forfeited, if the respondent fails to communicate such statement in accordance with the time line agreed by the parties or Arbitral Tribunal (section 23(1) of the Act) without reasonable cause.

Insertion of a new provision- Section 29A:

The Tribunal shall ensure speedy completion of Arbitration proceedings and pass the award within a period of twelve months from the date of reference. However, the parties may extend such period for a further period not exceeding six months.

Insertion of a new provision- Section 29B:

where the parties mutually agree for fast track procedure  procedure. arbitral tribunal consisting of a sole arbitrator shall decide the dispute on the basis of written pleadings, documents and written submission and shall not hold oral hearing. The award is to be made within a period of six months from the date the arbitral tribunal enters upon the reference.

Amendments to Section 31:

A sum directed to be paid by an arbitral award shall, carry interest at the rate of two per cent higher than the current rate of interest prevalent on the date of award, and shall be payable from the date of award to the date of payment.