Upon reaching arbitration, the appellant moved to the delhi high court under section 34 of the arbitration and conciliation act, 1996 hereinafter act to set aside the award on the ground of patent illegality. Power and function of arbitration under arbitration and conciliation act, 1996, section 12, 18 17, 23 law notes, adr blog, our legal world. The scope of public policy under section 34 of the arbitration and conciliation act, 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. Arbitral process under arbitration and conciliation act, 1996. The said clauses have been added to the act of 1996 by amending act 3 of 2016 w. 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 sub section 3. Prior notice requirement section 345 of arbitration. Changes and effects are recorded by our editorial team in lists which can be. 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. Lok adalat,a concept of alternate dispute resolution, at mukherjee nagar coaching duration.
This version of this act contains provisions that are prospective. Sections 345 and 6 of the arbitration and conciliation. A bench of 2 judges including justices rohinton fali nariman and indu malhotra, gave a judgment that deals with the nature of sections 34 5 and 6 of the arbitration and conciliation act, 1996. Arbitration and conciliation amendment act 2019 a primer. Amidst coronavirus lockdown, the new chief justice of bombay high court to be sworn in at a small ceremony as former chief justice retires. Chapter vii of arbitration and conciliation act, 1996 encompasses section 34, which covers recourse against arbitral award. Scope under section 9 of of the arbitration and conciliation. The petitioner challenged the subject arbitration award passed by a sole arbitrator under section 34 of the arbitration and conciliation act, 1996 on the ground, inter alia, that he did not receive a notice of arbitrators appointment as well as arbitration proceedings. There are currently no known outstanding effects for the arbitration act 1996, section 34.
Limitation of time under section 34 of the arbitration and. And whereas it is expedient to make law respecting arbitration and conciliation, taking into account the aforesaid model law and rules. An analysis of section 34 of the arbitration and conciliation act, 1996 according to whartons law lexicon, award envisages a binding decision of judicial or quasijudicial authority. On the termination of the agreement, the arbitration. An arbitral award on agreed terms shall be made in accordance with section 31 and shall state that it is an arbitral award. The author is a fourth year student of mnlu mumbai. Prior notice requirement section 345 of arbitration and. Text of the arbitration act 1996 as in force today including any amendments within the united kingdom, from legislation. Revised legislation carried on this site may not be fully up to date.
The newly introduced section 29a in the arbitration and conciliation act 1996 will expedite arbitration in india section 29a. Nov, 2017 scope under section 9 of of the arbitration and conciliation act, 1996. These clauses were added to the act of 1996 by amending act 3 of 2016 w. Section 34 of the act of 1996 was also amended and the scope of. The learned judge did not find a reason to interfere with the award as the view of the majority was drawn on a plausible. Be it enacted by parliament in the fortyseventh year of the republic of india as follows. Arbitration and conciliation act, 1996 latest laws.
In section 34 of the principal act, in sub section 2, in clause a, for the words furnishes proof that, the words establishes on the basis of the record of the arbitral tribunal that shall be substituted. Arbitration act 1996 is up to date with all changes known to be in force on or before february 2020. Judgments on section 34 of arbitration and counciliation act, 1996. Oct 01, 2017 jurisdiction of the court us 34 of the arbitration and conciliation act, 1996 in indus mobile distribution pvt. Section 34 of the arbitration and conciliation act. 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. Pdf judgments on section 34 of arbitration and conciliation. The arbitration and conciliation act, 1996 envisages provisions pertaining to arbitral proceedings and awards in india. However, the challenge to the award can only be made within limitation period. The petition was accompanied by an application under sub section 3 of section 34 of the act, for condonation of delay of 28 days in filing the petition. Unilateral addition to contract violates the most basic notions of justice under section 34 of arbitration and conciliation act 1996.
Power and function of arbitration under arbitration and conciliation act, 1996, section 12. Limited scope of judicial intervention under arbitration act. An arbitral award may be set aside on an application by a party defined under section 2 h of the arbitration and conciliation. An evaluation with case laws aishwarya padmanabhan this paper discusses in detail section 34 of the arbitration and conciliation act, 1996, and tries to. Section 34 provides that parties can move an application to court for setting aside an award. In this article, tarun gaur, advocate, delhi high court discusses section 8 of the arbitration and conciliation act, 1996. One of the intrinsic objectives behind the enactment of arbitration and conciliation act, 1996 was reducing the scope of judicial intervention. Dec 15, 2015 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. 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. In the arbitration and conciliation act, 1996 hereinafter referred to as the. Oct 31, 2018 the said clauses have been added to the act of 1996 by amending act 3 of 2016 w.
The trend of arbitration has increased tremendously over the past decade, at both national and international level. Section 34 specifies about the application for setting aside an award. Arbitration and conciliation act, 1996 bare acts law. 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. Section 34 3 in the arbitration and conciliation act, 1996 3 an application for setting aside may not be made after three months have. 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. Apr 25, 2014 the court thus held that subsection 4 of s. International commercial arbitration in india issues and. The grounds based on which an arrest should or should not be made while reading sections 41 and 41a of the code of criminal procedure, 1973 and the consequential effect of. 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. Be it enacted by parliament in the seventieth year of the republic of india as follows. Time limitation under section 34 singhania and partners.
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. 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. 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. Analysis of section 34 of the arbitration and conciliation act setting aside of arbitral award and courts interference. Section 29 a of the arbitration and conciliation act 1996. In this part, unless the context otherwise requires, a. Scope of section 8 of the arbitration and conciliation act.
This paper makes an evaluation of section 34 of the 1996 act and the amendments thereto and the scope of judicial. Section 343 in the arbitration and conciliation act, 1996. 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. In the arbitration and conciliation act, 1996 hereinafter referred to as the principal act, in section 2, i in subsection 1. Aug 30, 2019 the 2019 amendment act not only felicitously revamps the arbitration and conciliation act, 1996. History and development of arbitration law in india. Provided that parts i, iii and iv shall extend to the state of jammu and kashmir only in so far as they relate to international commercial arbitration or, as the case may be, international commercial conciliation. The same have been briefly discussed in the present article. Recently in 2019, both houses of the parliament passed a bill to amend the arbitration and conciliation act, 1996 the act. 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 no. Section 34 of arbitration and conciliation act 1996. Arbitration act 1996 is up to date with all changes known to be in force on or before 15 april 2019. Be it enacted by parliament in the sixtysixth year of the republic of india as follows.
In this article, mishika bajpai discusses the prior notice requirement under section 34 5 of the arbitration and conciliation act, 1996. An act further to amend the arbitration and conciliation act, 1996. It is not incompatible with an arbitration agreement for an arbitral tribunal to encourage settlement of the dispute and. Recent amendment arbitration and conciliation amendment act, 2015.
Mar 09, 2020 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. Recently, a number of judgments have been passed while interpreting section 34. The arbitration contract is not valid under the law to which parties have been subjected to. 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. There are changes that may be brought into force at a future date. The arbitration and conciliation amendment bill, 2015 a bill to amend the arbitration and conciliation act, 1996. Analysis of section 34 of the arbitration and conciliation. Setting aside of arbitral awards under section 34 of indian arbitration and conciliation act, 1996. National highways authority of india nhai, civil appeal no.
To further the aforesaid objective, the 1996 act harbours many provisions. Reflections on section 36 of the indian arbitration act. Section 30 in the arbitration and conciliation act, 1996. The arbitration and conciliation act, 1996 hereinafter the 1996 act supplants the arbitration act, 1940. Changes to legislation revised legislation carried on this site may not be fully up to date. Applicability of arbitration amendment act, 2015 to. Section 34 of the arbitration and conciliation act, 1996. The arbitration and conciliation act, 1996 long title. However, the challenge to the award can only be made within limitation period of three months from the date of receipt of the award. Interestingly, the act of 1996 was based on uncitral model law on international commercial arbitration, 1985 and covered both domestic and international arbitration.
An evaluation of section 34 of the arbitration and. Be it enacted by parliament in the forty seventh year of the republic as follows. 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. Section 34 in the arbitration and conciliation act, 1996. This act may be cited as the arbitration and conciliation act and shall apply throughout the federation. In the 1996 act, intervention by courts was limited so that the object behind speedy justice could be well achieved. This is one of the chapter of jurisprudence interpretation and general laws of cs. 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.