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03 - Abstract HTTPHDL - Handle.net10603180576

The document discusses alternative dispute resolution and arbitration. It notes that as disputes are inevitable in personal, family, economic and political life, there is a need for quick and low-cost resolution methods. While courts were traditionally seen as where justice is served, they have become inaccessible to many due to barriers like poverty. The document then outlines how arbitration has grown as an alternative to address this issue. It provides definitions and examples of domestic versus international arbitration. India has reformed its arbitration laws through the Arbitration and Conciliation Act of 1996 to based on the UNCITRAL Model Law and facilitate dispute resolution in international trade. However, the Act also departs from the model law in some respects.

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MAHANTESH G
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© © All Rights Reserved
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0% found this document useful (0 votes)
79 views

03 - Abstract HTTPHDL - Handle.net10603180576

The document discusses alternative dispute resolution and arbitration. It notes that as disputes are inevitable in personal, family, economic and political life, there is a need for quick and low-cost resolution methods. While courts were traditionally seen as where justice is served, they have become inaccessible to many due to barriers like poverty. The document then outlines how arbitration has grown as an alternative to address this issue. It provides definitions and examples of domestic versus international arbitration. India has reformed its arbitration laws through the Arbitration and Conciliation Act of 1996 to based on the UNCITRAL Model Law and facilitate dispute resolution in international trade. However, the Act also departs from the model law in some respects.

Uploaded by

MAHANTESH G
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 19

ABSTRACT

Introduction

Human conflicts are inevitable. Disputes are equally inevitable. Disputes


do arise among people in relation to their personal life, family life,
economic life and political life. Since disputes are inevitable, there is an
urgent need to find a quick and easy method of resolution. Disputes
must be resolved at minimum possible cost both in terms of money and
time, so that more time and more resources are spared for constructive
pursuits.

Traditional concept of ―access to justice‖ as understood by common


man is access to courts of law. For a common man a court is where
justice is meted out to him. But the courts have become inaccessible due
to various barriers such as poverty, social and political backwardness,
illiteracy, ignorance, procedural formalities and the like. To get justice
through courts one has to go through the complex and costly procedures
involved in litigation.

Therefore a movement started throughout the world for Alternative


Dispute Resolution and Arbitration is one among them because with
Economic Liberalization and the opening up of the market, there is a
phenomenal growth of international trade, commerce, investment,
transfer of technology, developmental and construction works, banking
activities and the like. To cope with the changing scenario, India has
updated its arbitration legislation in order to provide a level playing field
for both domestic and foreign entrepreneurs. Indian arbitration law
ensures fairness and justice to all the concerned parties. India has
undertaken major reforms in its arbitration law in recent years as part of

1
the economic reforms initiated in 1991. The thrust being on the
minimization of court’s intervention in the arbitration process by
adoption of United Nations Commission on International Trade Law
(UNCITRAL) Model Law on international commercial arbitration.

Arbitration means any arbitration whether or not administered by


permanent arbitral institution. But in simple terminology arbitration
means a process by which a dispute or difference between to or more
parties as to their mutual legal rights and liabilities is submitted to and
determined judicially and with binding effect by the application of the
law by one or more person (the arbitral tribunal) instead of by a court of
law.

Domestic Arbitration takes place in India when the arbitration


proceedings, the subject matter of the contract and the merits the dispute
are all governed by Indian law. International Arbitration can take place
either within India or outside India in cases where there are ingredients
of foreign origin relating to the parties or the subject matter to the
dispute. A foreign arbitration is an arbitration conducted in a place
outside India and the resulting award is sought to be enforced as a
foreign award. In institutional arbitration the parties call upon an
arbitration center or an arbitral institution that they will have chosen to
administer the proceedings in accordance with the institutions arbitration
rules.

Following are the main International Arbitration Institutions:

1. International Court of Arbitration of the International Chamber of


Commerce.

2. International Center for Settlement of Investment Disputes (ICSID)

2
3. China International and Economic and Trade Arbitration
Commission (CIETAC)

4. International Center for Dispute Resolution of the American


Arbitration Association (AAA)

5. Arbitration Institute of the Stockholm Chamber of Commerce(SCC


Institute)

6. London Court of International Arbitration (LCIA)

7. Kuala Lumpur Regional Centre for Arbitration (KLRCA)

8. Permanent court of Arbitration

9. Indian Council of Arbitration

Presently, there is a wide divergence and disparity in laws relating to


various aspects of business contracts in different countries. Such
disparities create practical difficulties and legal problems in the smooth
and swift flow of international business. With the view to promote
uniformity at least on fundamental principles in the various business
laws, UNCITRAL has either made Model laws/Conventions or has
prepared guidelines on various subjects. The Government of India has
already taken up the task of harmonization and globalization of the legal
framework relating to international trade and arbitration laws. The
present arbitration law in India is radically based on UNCITRAL Model
Law on international commercial arbitration as the Arbitration and
Conciliation Act, 1996. In the past, statutory provisions on arbitration
were contained in three different enactments, namely, the Arbitration
Act, 1940, (hereinafter referred as 1940 Act), the arbitration (Protocol
and Convention) Act, 1937 and the foreign Awards (Recognition and
Enforcement)Act 1961.

3
The 1940 Act covered only the domestic arbitration while the two Acts
dealt with enforcement of foreign awards. These three statutes have
been repealed and replaced by a consolidated, comprehensive legislation
in the Arbitration and Conciliation Act, 1996. This legislation, by and
large adopts the UNCITRAL Model Law in its entirety.

The Arbitration and Conciliation Act, 1996 is the result of borrowing the
provisions from UNCITRAL Model Law and an improvement over the
Arbitration Act 1940, which only deals with Domestic Arbitration while
the Act of 1996 is mainly for the purpose of dispute resolution in
International Trade. Although the Arbitration and Conciliation Act,1996
is based on UNCITRAL Model Law still it departs from Model Law –
Subsection. (1) of section. 10 of the 1996 Act deals with the number of
the arbitrators in an arbitral tribunal and provides that the number shall
not be of even number. The Model Law does not contain any such
limitation. Where the parties fail to determine the number of arbitrators,
the Model law provides that the number of arbitrators shall be three.
Subsection (2) of section 10 of 1996 Act provides that in such an
eventuality, the arbitral tribunal shall consist of a sole arbitrator. In the
matter of appointment of arbitrators, where the parties fail to reach an
agreement, the model law permits the party to approach a court or other
authority specified in the National Law for appointment of the third
arbitrator or sole arbitrator as the case may be. However, section 11 of
the 1996 Act empowers the Chief Justice of the High court concerned
or any person or any person or institution designated by him to appoint
the arbitrator. Further in the case of International commercial
arbitration, it is the Chief Justice of India, or any person or institution
designated by him, who is empowered to appoint the arbitrator. Sub-
section (10) of the section 11 empowers Chief Justice of India or the

4
Chief Justice of High Court, as the case may be, to make such scheme as
he may deem appropriate for dealing with such appointments.

The Model Law lays down the procedure for challenging an arbitrator. It
empowers the arbitral tribunal to decide on the challenge and, if a
challenge is not successful, the challenging party may request a court or
other authority to decide on the challenge. While such a request is
pending, the arbitral tribunal may continue the arbitral proceedings and
make an award. The corresponding provision contained in section 13 of
the 1996 Act does not permit the challenging party to approach the court
at that stage. However after the award is made the party could challenge
the award on the ground that the arbitrator has wrongly rejected the
challenge.

Selection of Topic:

Business and commercial organizations enter into numerous contracts


with its customer, clients and consumers everyday due to enormous
increase in the volume of business. When a large number of contracts
have got to be entered into by giant and large size of the commercial
organization, it is practically not possible for these commercial entities
to litigate the matters in the court of justice. To save time and for the
purpose of convenience it was felt necessary to use the alternative
dispute resolution methods to resolve the dispute expeditiously, with
less expenses and saving of time. Nowadays the use of alternative
dispute resolution method in the form of arbitration is very common in
every business, trade and industry. Thus the purpose for selecting this
topic for research is to critically analyze its importance and misuse of
arbitration law in India for resolution of disputes under the Arbitration
and Conciliation Act, 1996

5
Statement of Research Problem and Hypothesis:

Object of present study is whether arbitration law in India is satisfactory


in its working after getting influenced from the various protocols
conventions, treaties, regulations, rules and Acts etc, in the form present
enactment, the Arbitration and Conciliation Act, 1996.

The working of the Arbitration And Conciliation Act,1996 is the result


of UNCITRAL Model Law which provides provisions to fulfill the need
of the present world scenario is perfect in its self or it need to be
amended so it can cater the demands of International Trade disputes
Resolutions smoothly

The hypothesis of this present research work is that—

1. Whether the Arbitration and Conciliation Act 1996 is success?

2. What are the impact of UNCITRAL Model Law on the


Arbitration and Conciliation Act 1996?

3. How the judiciary has influenced the Arbitration and Conciliation


Act 1996?

4. What is the overall Impact of globalization on Arbitration and


Conciliation Act 1996?

Objectives of the Study:

As the arbitration is used as an alternative dispute resolution method to


resolve the dispute in today’s era of globalization. There are so many
National and International business transactions are going on and
arbitration is getting importance day by day due its advantage over
litigation. Hence, the objective of study to analyze the different

6
dimensions of the arbitration law in India in dispute resolution for the
effectiveness under the provisions of the Arbitration and Conciliation
Act, 1996.

The main object of the present study is to examine the use and the
misuse of the Arbitration Law in India and also to analyse that whether
the present statutory provisions relating to contract are sufficient to
meet any situation and are capable to do justice, or there is dearth and
scarcity of the statutory provisions in this field, and if so to make
suitable suggestions in this regard.

Research Methodology:

The present study is based on the doctrinal method. An effort is made to


study the case laws enunciated by the Supreme Court of India and
various High Courts of India and as well as of the United Kingdom and
to ascertain the attitude and the judicial response of the courts regarding
the principles of the law of arbitration and enforcement, recognition and
recourses against the arbitral awards. The present study is designed to
examine the role of the judiciary and to study the judicial response in
India in relation to arbitration law. Apart from the case law study, the
materials relied on are the Reports of the Law Commissions, Discussion
Paper and the statutory provisions relating to arbitration law in India and
of other countries of the world.

Presentation of Study:

To cover all aspects, the entire work is arranged in nine chapters.

As the Arbitration Law in India in the form Arbitration and Conciliation


Act, 1996 is a culmination of various Conventions, Treaties, Protocols,
Rules, Regulations and Acts etc. So the researcher has to see whether

7
present Arbitration Law by getting influenced from various Laws of
different nations and organizations is a success or failure.

In preceding pages of the present abstract an attempt has been made to


study the different dimensions of the Arbitration Law in India.

In the first chapter in the form of introduction researcher has tried to


discuss what is arbitration, types of arbitration, which are in practice in
India and other countries of the world? The arbitration is a process of
dispute resolution when differences arise between two parties. The
arbitration may be of:

1. Domestic Arbitration

2. International Arbitration

Both type of Arbitration can use the method of Institutional Arbitration,


Ad hoc Arbitration, Statuary Arbitration and Specialized Arbitration.
There are several institutions at international and national level which
provide institutional Arbitration e.g. Permanent Court of Arbitration,
International Chamber of Commerce, International Center for
Settlement of Investment Dispute, Inter American Commercial
Arbitration Commission, European Court of Arbitration and Indian
Council of Arbitration, Federation of Indian Chambers of Commerce of
Industry etc. While the Ad hoc Arbitration method is adopted by the
parties themselves and it is without recourse to any institution and the
procedure adopted by the Arbitrators as per the agreement or with the
concurrence of the parties. Specialized Arbitration is conducted under
the auspices of the arbitral institutions which have framed special rules
to meet the specific requirements for the conduct of the arbitration while
the statuary arbitration are conducted in accordance with the provisions

8
of certain special Acts which specifically provide for arbitration in
respect of disputes arising from matter covered by those Acts.

In the second chapter an attempt has been made to discuss the Genesis
of the Arbitration Law in India in which it has been discussed that the
arbitration is not a new phenomenon in our country but it has its
existence from Vedic era that’s why Yajnavalkya refers to three types of
popular courts and at the time of Britishers several regulations came into
existence and before the 1996 Act, the three Acts i.e The Arbitration Act
1940, Arbitration (Protocol and Convention )Act 1937 and the foreign
awards (Recognition and enforcement) Act 1961 were in existence for
Arbitration Law in India and on the recommendation of United Nations
Commission on International Trade Law i.e UNCITRAL Model Law
India adopted several provisions and result was Arbitration and
Conciliation Act 1996. The various stages of growth of arbitration Law
is discussed in this chapter. It is also discussed in this chapter why there
was a need for Arbitration and Conciliation Act, 1996. As the
UNCITRAL Model Law was available to guide us for dispute resolution
in International Trade as well as Law Commission of India also
recommended change to be made in the Arbitration Law to face the pace
of International changing scenario. So the present Arbitration and
Conciliation Act, 1996 was the need of the day.

In chapter three researcher has attempted to discuss Commercial


Arbitration and UNCITRAL Model Law. Commercial Arbitration is of
several forms of dispute resolution for commercial agreements.
Commercial Arbitration has many different issues. According to Fali S.
Nariman, ―My exhortation to all who administer the Commercial
Arbitration is to work towards an arbitral regime which rekindles the
spirit of arbitration that gives the life‖. Commercial Arbitration must

9
have existed since the dawn of commerce. Commercial Arbitration is
distinguished from other types of Arbitration in as much as the
Commercial Arbitration derives their authority solely from contract,
they resolve the whole dispute and generally do so according to law.
UNCITRAL Model Law is also well connected to the Commercial
Arbitration as the United Nations Commission on International Trade
Law (UNCITRAL) adopted in 1985, the Model Law on International
Commercial Arbitration because the General Assembly of the United
Nation recommended that all countries should give due consideration to
the said Model Law, in view of the desirability of uniformity of the law
of Arbitral procedure and the specific need of International Commercial
Arbitration practice.

Although the said UNCITRAL Model Law and rules were intended to
deal with International Commercial Arbitration and Conciliation, they
could, with appropriate modifications, serve as a model for legislation
on Domestic Arbitration and Conciliation. The Arbitration and
Conciliation Act, 1996, has taken into account the UNCITRAL Model
Law and Rules.

Further an attempt has been made to discuss the Mechanism of


Commercial Arbitration in chapter four. Mechanism of commercial
Arbitrations is provided in the Arbitration and Conciliation Act 1996
from Section 7 to 60 in which Arbitration Agreement, Arbitral Tribunal
jurisdiction and its composition, conduct of arbitral proceedings, making
of arbitral award, termination of arbitral proceeding, recourse against
arbitral awards finality and enforcement of arbitral awards appeals and
enforcement of certain foreign awards.

10
In chapter five the researcher has attempted to discuss the use of
Arbitration in resolution of Intellectual Property Rights Disputes as the
Intellectual Property is emerging is one of the most valuable
commodities in the global market, the global economy has come to be
dependent on technology invariably increasing the importance of its
protection through Intellectual Property Laws. Arbitration mechanism
has been outlined in the recent multilateral agreements with the
recognition that the traditional litigation is no longer the most viable
means of settling International Property Disputes. World Intellectual
Property Organization (WIPO) framed WIPO arbitration rules which
became effective since October 1,1994. WIPO arbitration rules shall be
deemed to be the part of the arbitration agreement if arbitration
agreement has been done to settle the disputes. The tribunal which is
formed for the resolution of dispute regarding the IPR shall consist of
such of arbitrators as has been agreed by the parties. The sole arbitrator
shall also be appointed and any arbitrator may be challenged by a party
if circumstances exists that give rise to justifiable doubt as to the
arbitrators impartiality or independence. The experts are appointed for
the tribunal as the intellectual property disputes requires the tribunal
shall decide the substance of the dispute in accordance with the law or
the rules of law chosen by the party. The tribunal may make
preliminary, interim, interlocutory, partial or final awards. The
arbitration should where ever be reasonably possible, be heard and the
proceedings declared closed within not more than nine month after
either the delivery of the statement of defense or the establishment of
the tribunal whichever event occurs later. This shows that the arbitration
is being used in the resolution of IPR disputes.

11
In chapter six Enforcement and Recourses against arbitral awards is
discussed. The nature of arbitral award has been changed after following
the UNCITRAL Model Law because before the Arbitration and
Conciliation Act 1996, came into existence the arbitral awards was filed
in the court of Law. On receiving the arbitral award the court use to
convert the arbitral award into a judgment form than converted into a
decree than it was executed. Therefore the award holder has to face
several obstacles before the execution of the arbitral awards. But after
the Act of 1996 the position has been changed and now the arbitral
award is deemed as a decree and enforceable without facing the
obstacles like earlier. There are also recourses against the arbitral
awards i.e under the Act of 1996 the arbitral award. Even the Supreme
Court has observed that section 34 of the Act is based on the
UNCITRAL Model Law and it will be noticed that under the 1996 Act
the scope of the provision for setting aside the award is far less as it was
under section 30 or 33 of the 1940 Act.

In chapter seven the researcher has attempted to discuss the Impact of


Globalization Arbitration Law of India. It was either Arbitration Act
1940 or Arbitration and Conciliation Act 1996. Arbitration Act 1940
was having the impact of English Arbitration Act of 1934, Geneva
Protocol, Geneva Convention and New York Convention. The
Arbitration and Conciliation Act has followed the UNCITRAL Model
Law which was recommended by the United Nations to resolve the
disputes of international trade. India not only followed the UNCITRAL
Model Law for International Commercial Arbitration but also for
Domestic Arbitration.

In chapter nine the researcher has tried to discuss that enactment can not
fill the gap of huge lacunae of the existing law therefore the Supreme

12
Court and the High Court of this country have contributed a lot in the
development of Law in various fields. So the researcher has discussed
various case laws under this chapter to through some light on the
approach of judges towards the Law of Arbitration and its relevance in
today’s ―Global World‖.

Conclusion

The law or arbitration as is known to modern India owes its elaboration,


in phases, to the British rule of India. Through a series of what were
known as Regulations framed by the East India Company in exercise of
the power vested in it by the British government, beginning with the
Bengal Regulations of 1772. The successive Civil Procedure Codes
enacted in 1859, 1877 and 1882 which codified the procedure of civil
courts, dealt with both arbitration between parties to a suit and
arbitration without the Intervention of a court.

The first Indian Arbitration Act was enacted in 1899, based on the
English Arbitration Act, 1889.

The Code of Civil Procedure enacted in 1908 originally left the


arbitration provision much as they were in the earlier Codes expect that
it placed the said provisions in a Schedule-the Second Schedule-in the
hope that they would be transferred later into a comprehensive
Arbitration Act.

The year 1940 is an important year in the history of the law of


arbitration in British India as in that year was enacted the Arbitration
Act, 1940. It consolidated and amended the Law relating to arbitration
as contained in the Indian Arbitration Act, 1899. It was also largely
based on the English Arbitration Act of 1934 and came into force on 1

13
July 1940. It extended to the whole of India expect the State of Jammu
and Kashmir. The Act dealt with broadly three kinds of arbitration: (i)
arbitration without intervention of a court, (ii) arbitration with
intervention of a court where there is no suit pending, and (iii)
arbitration in suits.

There are certain international conventions which deal with enforcement


of foreign arbitral awards like the Geneva Protocol on Arbitration
Clauses, 1923, the Geneva Convention on the Execution of Foreign
Arbitral Awards, 1927. India became a party to both the Protocol and
the convention on 23 October, 1937. For giving effect to the obligations
under the said instruments, India enacted the Arbitration (Protocol and
Convention) Act, 1937. More recently, the New York Convention on the
recognition and Enforcement of Foreign Arbitral Awards, 1958 came
into force on 7 June 1959. India became a party to this Convention,
India enacted the Foreign Awards (Recognition and Enforcement) Act,
1961.

Thus, prior of the commencement of the Arbitration and conciliation


Act, 1996, the law of arbitration in India was contained in three
enactments: the 1937 Act, the 1940 Act, and the 1961 Act. The Act
consolidates and amends the law relating in India.

The need for enactment of the Act had arisen on account of several
factors. Though the English Arbitration Act, 1934, on which the 1940
Act was based, had been replaced by the English Arbitration Act, 1950
which in turn was amended by the Arbitration Act, 1975 and the
Arbitration Act, 1979, to keep pace with the developments in the field of
arbitration, the Indian Act had remained static. The Indian courts have
noted for evolving effective safeguards to prevent such abuses. The

14
Supreme Court observed in Guru Nanak Foundation v. M/s Ratan Singh
& Sons, AIR 1981 SC 2075.

“The way in which the Proceedings under the Act are


conducted and without an exception challenged in
Courts, has made lawyers laugh and legal philosophers
weep. Experience shows and law reports bear ample
testimony that the proceeding under the Act have become
highly technical accompanied by unending prolixity, at
every stage providing a legal trap to the unwary”.
The Public Accounts Committee of the Lok Sabha in its 210th Report
(1975-76) had also commented adversely on the working of the
Arbitration Act. In the light of these adverse comments, the Government
of India decided to have a second look at the provisions of the
Arbitration Act and, for this purpose, referred the matter, in 1977, to the
Law Commission for its examination. The Law Commission's
recommendations in this regard are contained in this Seventy- sixth
Reports submitted to the Government in November 1978.

More recently, the Arrears Committee, popularly known as the


Malimath Committee, constituted by the government of India on the
recommendations of the Chief Justices' Conference, made a number of
recommendations in a Reports submitted in 1990. The Malimath
Committee as also the Law Commission had recommended a number of
alternative modes such as arbitration, conciliation and mediation for
dispute resolution.

On 4th December 1993, a meeting of the Chief Ministers and Chief


Justices was held under the chairmanship of the Prime Minister of India
to evolve a strategy or dealing with the congestion of cases in courts
and other fora. While dealing with the arrears of cases in courts and
tribunals, the resolution also recommended that a number of disputes

15
lent themselves to resolution by alternative means such as arbitration
mediations and negotiation. The resolution further emphasized the
desirability of disputants taking advantage of alternative disputes
resolution (ADR) which provided procedural flexibility, saved valuable
time and and money and avoided the stress of a conventional trail.

The need for reform in the law relating to arbitration thus became
necessary and urgent. The question then was whether the 1940 Act
should be amended or the new Law be written on a clean slate.

The government had also before it several international models


including the UNCITRAL Model Law on International Commercial
Arbitration and the ICC Rule on Conciliation and Arbitration.

The United Nations Commission on International Trade Law


(UNCITRAL) was established by General Assembly resolution 2205
(XXI) on 17 December 1966. The Commission's object is promotion of
the progressive harmonization and unification of the law of international
trade. Even since its inception, India has been a member of this
Commission. Largely at the instance of the Asian-African Legal
Consultative Committee and on the basis of extensive deliberation held
in its Working Group on International Contract Practices and
Consultations with arbitral institution and individual arbitration experts,
the commission adopted the Model Law on 21 June, 1985.

The Act, being based on the Model Law which is also broadly
compatible with the Rule of Arbitration of the International chamber of
Commerce, puts India on the international map of arbitration. The most
significant feature of this Act is the recognition it a accords to the
freedom of the parties to agree on how their arbitration should be
conducted. In certain respects, the Act constitutes an improvement over

16
the Model Law inasmuch as it nearly takes away the role of courts
except in a few matters. Though the Model Law was conceived in the
context of international commercial arbitration, the Act uses it, with
certain modifications, as the basic for domestic arbitration of all arbitral
disputes. It was felt that a well conceive law of international commercial
arbitration would be equally appropriate for domestic arbitration.

The Arbitration and Conciliation Act, 1996 contains 86 sections, besides


the Preamble and three Schedules. The Act is divided into four Parts.
Parts I contains general provisions on arbitration. Part II deals with
enforcement of certain foreign awards. Part III deals with conciliation.
Part IV contain supplementary provisions.

Thus the Arbitration Law in the form of Arbitration and Conciliation


Act 1996 is not a total success and requires certain amendments for
which the Law Commission of India also recommended. Although
Arbitration and Conciliation Act, 1996, has played an important role in
dispute resolution as it has several advantages over the 1940 Act is that
the important departure made by the 1996 Act from the previous Law is
in regard to the judicial intervention with the process and the product of
Arbitration like where there is an arbitration Agreement the court is
required to direct the parties to resort to arbitration as per the
agreement, the grounds on which the award of an arbitrator could be
challenged before the court under the 1940 Act have been severely cut
down such a challenge is now permitted only on the basis of invalidity
of the agreement, want of jurisdiction on the part of arbitrator or want of
proper notice to a party of the appointment of the arbitrator or of the
arbitral proceedings or a party being unavailable to present its case, the
powers of the arbitrator have been amplified, obstructive tactics
sometimes adopted by the parties in arbitration proceedings are sought

17
to be thwarted by an express provision where under a party who
knowingly keeps silent and then suddenly raises a procedural objection
will not be allowed to do so, the role of arbitral institutions in promoting
and organizing arbitration has been recognized for the first time in law,
the Act provides a considerable improvement in the nature of
appointment of arbitrators with the formulation of the Chief Justice
Scheme which takes the task of selecting an arbitrator by courts outside
the litigation process and makes it an administrative act. The
requirement of formal arbitral agreement under the 1949 Act has now
been relaxed to include even a informal agreement, the 1996 Act has
clothed the arbitrator with the power to grant interim orders in respect of
the preservation of the property and for ordering security; the arbitrator
can now decide on his own jurisdiction; the 1996 Act also provides for
various other time saving measure such as requiring an arbitrator to
disclose any possible bias at the threshold itself; when an arbitrator is
replaced the proceedings conducted by him are protected and finally the
arbitrators are required to give reasons for the award and the award has
now been vested with the status of the decree. Thus Arbitration Law in
India is in transitional phase.

Suggestions

In last it is duty of the researcher to provide some suggestion, which


may be considered by legislature, judges and jurists for their help while
dealing research problem before them. There are few suggestions which
are as follows;

1. The scope of Domestic Arbitration, International


Arbitration and International Commercial Arbitration must
be defined.

18
2. Extend of Judicial intervention must be defined.

3. Certain preliminary issues at the stage of Sect. 8 should be


decided.

4. Certain situations in which Preliminary issues could be


decided under Sect. 8 must be laid down.

5. Provision to be made for stay of action in case reference is


made under Sect. 8.

6. Interim measures and powers of the arbitral tribunal to be


further amplified.

7. Powers to be granted to the arbitral tribunal to enforce its


orders to speed up the arbitral process.

8. Procedure for enforcement of peremptory orders passed by


the arbitral tribunal under section 23, 24 of the court.

9. The time limit for completion of arbitral proceedings in


India for both International and Domestic Arbitration
should be laid down.

10. Copy of award to be filed in the court for purposes of


record along with original arbitral record and courts to
maintain the register of awards.

11. Substantial error of law apparent on the face of award for


upholding the rule of law.

12. Provision for fast track arbitration should be added.

——

19

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