Arbitration and Conciliation (Amendment) Act, 2021 Notified
Objective of Amendment
The changes have been brought to make India as a hub of international commercial arbitration by attracting eminent arbitrators to the country.
It has also provided to seek an unconditional stay of enforcement of arbitral awards, where the underlying arbitration agreement or contract or making of the arbitral award is induced by fraud or corruption.
Assent
It got the assent of President of India on 11th March, 2021.
Applicability
This will be deemed to have come into force on the 4th day of November, 2020.
Repeal & Savings
The Arbitration and Conciliation (Amendment) Ordinance, 2020 has been repealed.
Notwithstanding such repeal, anything done or any action taken under the said Ordinance shall be deemed to have been done or taken under this Act.
Retrospective Applicability w.e.f 23rd day of October, 2015
This amendment has retrospective applicability especially for section 36(3)wherein after the proviso, the following shall be inserted and shall be deemed to have been inserted with effect from the 23rd day of October, 2015, namely:
“Provided further that where the Court is satisfied that a prima facie case is made out that,— (a) the arbitration agreement or contract which is the basis of the award; or (b) the making of the award, was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the challenge under section 34 to the award.
Explanation.––For the removal of doubts, it is hereby clarified that the above proviso shall apply to all court cases arising out of or in relation to arbitral proceedings, irrespective of whether the arbitral or court proceedings were commenced prior to or after the commencement of the Arbitration and Conciliation (Amendment) Act, 2015.”.
Substitution – Norms for accreditation of arbitrators
Section 43J has been substituted, as below;
The qualifications, experience and norms for accreditation of arbitrators shall be such as may be specified by the regulations.”.
Omission
The Eighth Schedule to the principal Act shall be omitted.
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