 "Arbitration Bill tabled in LS")
The government on Thursday tabled a bill in the Lok Sabha to replace an ordinance on arbitration and conciliation, proposing that Indian courts can grant interim measures even if the seat of the arbitration is outside India, like the Vodafone case.
The Arbitration and Conciliation (Amendment) Bill, 2015 provides specific timelines for appointment of arbitrators to resolve cases. For instance, an endeavour should be made by the court to dispose of the matter within a period of 60 days.
In fact, it also has a provision of fast track procedure. The bill, moved by Law and Justice Minister D V Sadananda Gowda, says the parties to dispute may at any stage agree in writing that their dispute be resolved through fast track procedure and the award in such cases shall be made within a period of six months.
The Bill aims to ensure the arbitration process becomes faster, more user-friendly and cost effective.
India was ranked 178 out of 189 nations in terms of enforcing contract by the World Bank’s ease of doing business report, 2016.
The Bill says it is high time that urgent steps are taken to facilitate quick enforcement of contracts, easy recovery of monetary claims and award of just compensation for damages to encourage investment and economic activity.
“These are welcome measures to ensure the litigation process is managed well and the parties are able to settle the disputes faster,” said Yogen Vaidya, partner, Fraud Investigation and Dispute Services, EY.
In the Lok Sabha, as soon as Gowda introduced the Bill, Saugata Roy of the Trinamool Congress opposed it saying certain clauses relating to jurisdiction of courts in helping settle commercial disputes will create “two classes” in the country.
His party colleague Kalyan Banerjee also pointed out that original jurisdiction lies only with the High Courts of Calcutta, Madras and Bombay which were created before India became independent.
Gowda said though the amendment bill is clear and there is “no confusion” about settling international and other arbitrations (alternative dispute resolution mechanism), the issues raised by the members can be discussed when bill comes up for consideration and passage.
