New Delhi, Aug 27 (KNN) With the view to promote ease of doing business in India, the Union Cabinet chaired by the Prime Minister Narendra Modi gave its approval for amendments to the Arbitration and Conciliation Bill, 2015 that aims at ensuring speedy settlement of commercial disputes.
 
“The Government of India has decided to amend the Arbitration and Conciliation Act, 1996 by introducing the Arbitration and Conciliation (Amendment) Bill, 2015 in the Parliament,” said an official statement. 
 
In order to ensure neutrality of arbitrators, the Bill proposes to amend Section 12 to the effect that when a person is approached in connection with possible appointment of arbitrator, he shall disclose in writing about existence of any relationship or interest of any kind, which is likely to give rise to justifiable doubts. Further, if a person is having specified relationship, he shall be ineligible to be appointed as an arbitrator.

The Bill seeks to make it imperative for arbitrators to settle disputes within 12 months. The period could be extended up to another six months by the parties beyond which any extension could be granted only by a court "on sufficient cause".
 
The Bill has a provision to cut the fees of arbitrators if the court finds that the delay has been caused due to arbitrators.

Further, the Bill proposes to allow "fast tracking" of arbitration wherein the parties may agree that their dispute be decided with the help of a "fast track procedure". In such cases, disputes have to be resolved within six months. Once a tribunal decides on a case, a challenge thrown to its verdict needs to be decided equally quickly by a court.

According to the Bill, merely filing of an application to challenge an award would not automatically stay its execution. "Award can only be stayed where the court passed any specific order...," it proposes.
 
The Bill also proposes “Amendment of Section 34 relating to grounds for challenge of an arbitral award, to restrict the term 'Public Policy of India" (as a ground for challenging the award) by explaining that only where making of award was induced or affected by fraud or corruption, or it is in contravention with the fundamental policy of Indian Law or is in conflict with the most basic notions of morality or justice, the award shall be treated as against the Public Policy of India.”
 
The Cabinet also seeks to add new sub-section in Section 11 to the effect that an application for appointment of an Arbitrator shall be disposed of by the High Court or Supreme Court as expeditiously as possible and an endeavour should be made to dispose of the matter within 60 days.
 
A new Section 31A is also to be added for providing comprehensive provisions for costs regime. It is applicable both to arbitrators as well as related litigation in Court. “It will avoid frivolous and meritless litigation/arbitration,” the Cabinet said.

The Bill calls to amend Section 17 for empowering the Arbitral tribunal to grant all kinds of interim measures which the Court is empowered to grant, under Section 9 and such order shall be 'enforceable in the same manner as if it is an order of Court. (KNN Bureau)