Analysis of section 34 of the arbitration and conciliation. Section 34 of the arbitration and conciliation act, 1996 hereinafter referred to as the 1996 act stipulates grounds to challenge the arbitral. The 1996 act only applies to parts of the united kingdom. What are the differences between the arbitration act of 1996. Ozone overseas pvt ltd, has given a much needed interpretation and clarity to the object and purpose of issuing the notice under section 21 of the arbitration and conciliation act. Conciliation act, 1996 by the law commission report. The emergence of international commercial courts in india. For a suggested arbitration clause, see, difc courts practice direction. For the purpose of this sub section, an arbitral tribunal shall be deemed to have entered upon the reference on the date on. The arbitration act of 1940 has been replaced by the arbitration act of 1996. This article about the recent amendments in indian arbitration law is written by arjun pal from jindal global university.
Be it enacted by parliament in the fortyseventh year of the republic of india as follows. Arbitration has been a preferred way of settlement of disputes of countries across the world. Chapter vii of arbitration and conciliation act, 1996 encompasses section 34, which covers recourse against arbitral award. This paper makes an evaluation of section 34 of the 1996 act and the amendments thereto and the scope of judicial. Section 12 of the recently amended arbitration and conciliation act 1996 requires that a person who has been approached for a possible appointment as an arbitrator disclose in writing the. Section 34 3 in the arbitration and conciliation act, 1996 3 an application for setting aside may not be made after three months have elapsed from the date on which the party making that application had received the arbitral award or, if a request had been made under section 33, from the date on which that request had. The practical lawyer appointment of arbitrator under. Pdf setting aside of arbitral awards under section34 of. Section 9 of the arbitration and conciliation act, 1996, only deals with the interim measure by the court. Petition under section 34 challenging the award divorce. Conciliation, interim measures of protection, written form for. Section 8 of the 1996 act mandates that a judicial authority before whom an action is brought, which is the subject of an arbitration agreement between the parties, shall refer the parties to. An act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental. An act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for.
Oct 01, 2017 jurisdiction of the court us 34 of the arbitration and conciliation act, 1996 in indus mobile distribution pvt. Developments in arbitration laws in india 1 in india prior to 1996 arbitrations were governed by arbitration and conciliation act of 1940. Section 9 of the arbitration and conciliation act, 1996 hereinafter the 1996 act proades for the granting of interim relief before, during or after arbitral proceedings, or at any time after the making of the arbitral award, but before it is ill year, b. Saraf committee 5 report of the department related standing committee on. In a first, of hopefully many pro arbitration moves, we understand that the supreme court of india has invoked section 11 of the amended indian arbitration and conciliation act, 2015 the amended act and instructed the mcia to appoint an arbitrator in an international dispute between sun pharmaceutical industries ltd indian company and falma. Indian arbitration and conciliation act 1996 arbitration notes.
Petitioners appeared before the delhi high court under section 34 of the arbitration and conciliation act, 1996 to challenge the arbitral award. The delhi high court in a recent judgment dated february 28, 2017, delivered by justice s. Interim reliefs in arbitral proceedings nishith desai associates. Recognitionandenforcementof civilandcommercialjudgmentsindifccourtsandcourtsinindia. Sections 345 and 6 of the arbitration and conciliation. The arbitration and conciliation act of 1996, did not have a time limit upon the mandate of the arbitrator this limitation, along with other provisions of sec 29a, were inserted into the principal act by way of the 2016 amendment act. Provisions relating to the resolution of disputes in the way of arbitration are contained in the arbitration and conciliation act, 1996. Section 343 in the arbitration and conciliation act, 1996. However, recently the supreme court in its judgment in swiss timing ltd v organising committee arbitration.
Amendments to the arbitration and conciliation act, 1996 table of contents ch. Appointment of arbitrator under sections 114, 5 and 6 of the arbitration act. However, the challenge to the award can only be made within limitation period of three months from the date of receipt of the award. The arbitration and conciliation act, 1996 hereinafter the 1996 act supplants the arbitration act, 1940. In this article, mishika bajpai discusses the prior notice requirement under section 34 5 of the arbitration and conciliation act, 1996. However, an aggrieved party may take recourse to law court for setting aside the arbitration award on certain grounds specified in section 34 of the arbitration and conciliation act, 1996.
The period of 30 days mentioned in proviso that follows sub section 3 of section 34 of the 1996 act is not the period of limitation and, judgments on section 34 of arbitration act judgments on section 34 of the arbitration h s mulia 6 therefore. One of the intrinsic objectives behind the enactment of arbitration and conciliation act, 1996 was reducing the scope of judicial intervention. Applicability of arbitration amendment act, 2015 to. Obviously it is not within the scope of this section to inquire into the claim and the counterclaim made by both the parties in regard to the custody of the articles beyond what has been admitted by the respondent. Arbitration and conciliation act 1996, s 22 proviso. This is one of the chapter of jurisprudence interpretation and general laws of cs. In the 1996 act, intervention by courts was limited so that the object behind speedy justice could be well achieved. Limitation of time under section 34 of the arbitration and.
Section 34 of the arbitration and conciliation act, 1996 hereinafter referred to as the 1996 act stipulates grounds to challenge the arbitral award made under section 31. Arbitration and conciliation act 1996 section 35 court. It is not incompatible with an arbitration agreement for an arbitral tribunal to encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation or other procedures at any time during the arbitral proceedings to encourage settlement. Arbitration and conciliation act section 34 judgments. An international commercial arbitration may either be seated in india, or be seated in a foreign country, and this article focuses on international commercial arbitrations seated only in singapore the implication of singapore seat is that part i of the arbitration and conciliation act, 1996 the indian act, which is the curial law in india, is. Changes under the new act called arbitration and conciliation act of 1996 are summarized as under. Part ii of the arbitration and conciliation act, 1996. Notice under section 21 is mandatory before referring the. Not to be confused with arbitration act 1996 new zealand or arbitration and conciliation act 1996. Prior notice requirement section 345 of arbitration. The act of 1996 has limited a judicial intervention to a greater extend and only on grounds provided under section 34 of the act.
The arbitration act of 1996 is based upon the uncitral. An application to challenge arbitral award is made under section 34 of the indian arbitration and conciliation act, 1996 the arbitration act. Recognitionandenforcementofcivilandcommercialjudgmentsindifccourtsandcourtsinindia. An arbitral award may be set aside on an application by a party defined under section 2 h of the arbitration and conciliation act, 1996 which provides that party means a party to an arbitration agreement.
The arbitration and conciliation amendment act, 2015. If the court agrees to the challenge, the arbitral award can be set aside. Setting aside procedures are provided so as to act as a check on. The aforementioned judgment stands as a landmark precedent for every lawyer and court to follow when an issue arises as to whether the amended sections 34 5 and 6 of the arbitration and conciliation act, 1996, are to be treated as mandatory or directory in nature. In contrast, section 34 2 of the act sought to restrict the grounds for challenging an award. Judicial restraint under section 34 the preamble to the arbitration and conciliation act, 1996 sets out the lofty ideals which our legislators sought to achieve based on the realisation that a. Be it enacted by parliament in the forty seventh year of the republic as follows. National highways authority of india nhai 1 in which the court deliberated upon the amendments to s. An arbitration agreement may be in the form of an arbitration clause in a contract or in the form of a separate agreement. Limited scope of judicial intervention under arbitration act.
Recourse to a court against an arbitral award may be made only by an application for setting aside such award in accordance with sub section 2 and subsection 3. The arbitration act 1996 c 23 is an act of parliament which regulates arbitration proceedings within the jurisdiction of england and wales and northern ireland. The indian legislature in conformity with article 5 of the uncitral model law on international commercial arbitration 1985 vii enacted section 5 of the act which eliminates the scope of judicial intervention and enumerates that. Section 34 of the arbitration and conciliation act, 1996 gives the court or the judiciary the power to intervene in the arbitration process for the purpose of setting aside the award rendered by the arbitration tribunal. It was found to be advantageous to combine the provisions of the 1923. After the enactment of the arbitration and conciliation act, 1996, the ica brought out a study comparing the old and the new law. Arbitration and conciliation act section 37 judgments. Definitions 1 in this part unless the context otherwise requires aarbitration means any arbitration whether or not administered by permanent arbitral institution. There is no provision for appeal against an arbitral award and it is final and binding between the parties. Because of the new enactment with reference to arbitration law in india, civil procedure code cpc of 1908 has been amended and s. The ordinance has introduced significant changes to the act and seeks to address some of the issues, such as delays and high costs, w. T he section 9 of the arbitration and conciliation act, 1996, is very wide in scope and it would extend even to third parties in whom the properties or goods are vested, even though such parties may not be a party to the arbitration clause in an agreement.
The newly introduced section 29a in the arbitration and conciliation act 1996 will expedite arbitration in india section 29a. Introductionthe arbitration and conciliation act, 1996 act has been amended by the arbitration and conciliation amendment ordinance, 2015 ordinance, promulgated by the president of india on october 23, 2015. Analysis of section 34 of the arbitration and conciliation act setting aside of arbitral award and courts interference. The authors are third year students of gujarat national law university, gandhinagar. Laws of the federation of nigeria 1990 14 th march, 1998. The practical lawyer rajshekhar rao on saving the arbitration. The guide to challenging and enforcing arbitration awards. The appellant argued that the new provisions meant. Arbitration and conciliation act, 1996 bare acts law. Application of law of limitation in computing time period under. Article 34 goes on to state that the court may lay down modifications as to the form.
Object of section 21 of the arbitration and conciliation act 1996. A misturning on section 125 of the arbitration act. Title pages i background to the report 1 history of arbitration law in india 1 scheme of the arbitration and conciliation act, 1996 3 176th report of the law commission 4 justice b. The arbitration and conciliation act, 1996 26 of 1996 26th august, 1996 an act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto. The arbitration and conciliation act, 1996 and the amendments under the arbitration and conciliation amendment act, 2015 have given definite character to section 34 of the act and resolved certain issues pertaining to it. Changes to legislation revised legislation carried on this site may not be fully up to date.
Section 8 of the arbitration and conciliation act, 1996, inter alia, seeks to remedy the defects noticed in the working of section 34 of the old act. However, the challenge to the award can only be made within limitation period of. There are currently no known outstanding effects for the arbitration act 1996, section 34. National highways authority of india nhai, civil appeal no. An arbitral award may be set aside on an application by a party defined under section 2 h of the arbitration and conciliation. The said clauses have been added to the act of 1996 by amending act 3 of 2016 w. Section 34 in the arbitration and conciliation act, 1996. Section 29 a of the arbitration and conciliation act 1996.
An evaluation with case laws aishwarya padmanabhan this paper discusses in detail section 34 of the arbitration and conciliation act, 1996, and tries to. In an attempt to make arbitration a preferred mode of settlement of commercial disputes and making india a hub of international commercial arbitration, the president of india on 23 october 2015 promulgated an ordinance arbitration and conciliation amendment ordinance, 2015 amending the arbitration and conciliation act, 1996. The most recent debate that reverberated in the halls of the apex court was on the issue whether section 34 5 of the arbitration and conciliation act, 1996, inserted by amending act 3 of 2016 w. Prior to the enactment of the 1996 act, section 30 of the indian arbitration act, 1940, contained rather broad grounds for setting aside an arbitral award. Arbitration act 1996 is up to date with all changes known to be in force on or before 14 april 2020. Managing partner introduction the indian judiciary has been criticised for a domineering. Section 36 of the 1996 act provides for enforcement of an arbitral award. An act further to amend the arbitration and conciliation act, 1996. Over a dispute between petitioner and respondents buyer and seller, petitioners one fine day received a notice from a sole arbitrator appointed by the respondent that the dispute between them will be arbitrated over by him. An evaluation of section 34 of the arbitration and. Setting aside of arbitral awards under section 34 of indian arbitration and conciliation act, 1996.
Arbitration and conciliation act of 1996 was the result of recommendations for reform,1 particularly in the matter of. Mar 17, 2014 this section is inapplicable where the seat of arbitration is not in india and where part i of the act cannot be applied. An act to provide a unified legal frame work for the fair and efficient settlement of commercial disputes by arbitration and conciliation. In the arbitration and conciliation page 1 legal alert brief overview of proposed changes act, 1996 act contributed by. Section 42 of arbitration and conciliation act, 1996 and the.
New act was passed in 1996 which brought changes in the said law in india. A copy of the study on the arbitration and conciliation law in india which compares the main features of the old and new law of arbitration is enclosed copy available on request to ica sdk. Applicability of arbitration amendment act, 2015 to section 34 of the arbitration act, 1996. Indiasingapore arbitration, singapore seated arbitration. Jul 21, 2014 there is no provision for appeal against an arbitral award and it is final and binding between the parties. The arbitration and conciliation amendment bill, 2015. Brief overview of proposed changes in arbitration and. And whereas it is expedient to make law respecting arbitration and conciliation, taking into account the aforesaid model law and rules. Ltd vs aditya developers 1, held that courts are not empowered to adjudicate upon the validity of an order passed by an arbitral tribunal under section 27 section 27 2 of the arbitration and conciliation act, 1996 act.
Arbitration and conciliation act, 1996 part i chapter i general provisions 2. This section deals with the procedure for the application and also the grounds for setting aside the arbitral award. Dec 08, 2015 conciliation it means the process by which a conciliator who is appointed by parties or by the court, as the case may be, conciliates the disputes between the parties to the suit by the application of the provisions of the arbitration and conciliation act, 1996 26 of 1996 in so far as they relate to conciliation, and in particular, in. The paper will then go on to address in brief cases in which the arbitration and conciliation act, 1996 is given precedence over other statutes such as the insolvency and bankruptcy code, 2016 and viceversa. Judgments on section 34 of arbitration and counciliation act, 1996. The arbitration and conciliation act, 1996 long title. Commercial%20courtsscr%20commercial%20courts%20bill. Enforcement of arbitral awards and decrees in india. The appellant in sc had argued that section 34 2aiv of the 1996 act was attracted to the facts of the case as the majority award contained decisions on matters beyond the scope of the. The court also noted that once a claim merges into a decree of the court it transcends.
Be it enacted by parliament in the seventieth year of the republic of india as follows. Section 47 which is in part ii of the arbitration act, 1996 dealing with enforcement of certain foreign awards has defined the term court as a court having jurisdiction over the subjectmatter of the award. Section 30 in the arbitration and conciliation act, 1996. Jurisdiction of the court us 34 of the arbitration and conciliation act, 1996 in indus mobile distribution pvt. Devesh juvekar and dikshat mehra august 27 2015 conciliation act, 1996 by the law commission report. Analysing the amendments to arbitration and conciliation act. Section 34 provides that parties can move an application to court for setting aside an award. The 1996 arbitration and conciliation act with amendments of 2015. The scope of public policy under the arbitration and conciliation act, 1996 though this statement of law was made in the context of enforcement of a foreign new york convention award, it has been held to be relevant for setting aside arbitral awards under section 34 2bii on the ground that the award is in. Scope under section 9 of of the arbitration and conciliation act, 1996.
1140 951 197 834 191 76 1287 19 2 1431 1040 183 743 63 473 698 722 1069 408 426 758 77 277 17 778 1083 813 509 502 624 1325 1099 1088 386 1296 1151 261 979 135 1319 1329 879