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President promulgates Ordinance on Arbitration and Conciliation (Amendment) Ordinance, 2020
The President of India today passed the Arbitration and Conciliation (Amendment) Ordinance, 2020, which amended Section 36 of the Arbitration and Conciliation Act byways of amendments.
The Eighth Schedule of the Arbitration Act, which addresses the qualifications and experience of arbitrators, has been removed by the Amendment.
The government of India today enacted the Arbitration and Conciliation (Amendment) Ordinance, 2020, which amended Section 36 of the Arbitration and Conciliation Act by means of changes. The amendment will come into force retrospectively from the Ordinance Specifies of 23 October 2015.
The regulation of arbitral awards is dealt with in section 36.
Strictly speaking, the Ordinance specifies that when arbitral awards are found to have been prima facie caused by fraud or corruption, the award's compliance must remain binding until a challenge against the award under Section 34 of the Arbitration Act has been settled.
The Ordinance was adopted "to ensure that all stakeholder parties have the right to request an unconditional stay of execution of arbitral awards where bribery or misconduct is caused by the actual arbitration arrangement or contract or making the arbitral award."
An amendment has been made to Section 36 by the Ordinance promulgated today, whereby if the Court is satisfied that a prima facie case is concluded that the arbitration arrangement or contract on which the award is based has been caused or carried out by fraud or corruption, the award shall remain unconditionally pending the award of the challenge referred to in Section 34.
The clause was considered to have been inserted with effect from 23 October 2015, i.e. on the same date as the date of entry into force of the 2015 amendment.
It is further explained that the new amendment will apply to all court cases arising out of or in connexion with arbitral proceedings, irrespective of whether the arbitral or court proceedings have been initiated before or after the start of the Arbitration and Conciliation ( Amendment) Act, 2015.
