Union Cabinet gives nod to amend Arbitration and Conciliation Bill, 2015
Union Cabinet has given its nod for amendments to the Arbitration and Conciliation Bill, 2015.
These amendments seek to make of commercial disputes more user-friendly and cost effective which in turn will lead to expeditious disposal of cases.
Key Provisions of Bill
- Mandatory for arbitrators to settle disputes within 12 months. This period can be extended by 6 months only by a court on sufficient cause.
- Cut the fees of arbitrators if the court finds that the delay has been caused due to arbitrators.
- Rewarding arbitrators with extra fees in case the matter is disposed of within 6 months and the parties agree to pay more.
- Empower arbitration tribunals to grant all kinds of interim measures that courts provide. Thus giving more teeth to them in order to make tribunals directives enforceable in the same manner as those of courts.
The amendments to this Bill are based on the Law Commission’s recommendations and suggestions received from stakeholders. Law Commission of India (LCI) in its 246th Report had recommended various amendments in Arbitration and Conciliation Act, 1996 in order to pave way for India to become a hub of International Commercial Arbitration.