Lok Sabha Gave Nod to the Arbitration and Conciliation (Amendment) Bill 2021
The Lok Sabha on 12.2.2021 passes the “Arbitration and conciliation (Amendment) Bill 2021″ via voice note. Law Minister Ravi Shankar Prasad led this bill on 4th February of 2021 in Lok Sabha. The said bill is already in force before the passing of the bill by Lok Sabha. Because earlier the ordinance was promulgated in regard to this amendment on 4th November 2020.
The “Arbitration and Conciliation (Amendment) Bill 2021 contains two important features. These are as follows:
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Automatic Stay on Awards in Certain Cases
Presently the applicant can file the application for setting aside an arbitral award under section 34 of the Arbitration Act. But the amendment of 2015; in an application to set aside the arbitral award, the court will not grant the automatic stay on the operation of award; by the mere filing of an application to set aside the award. But the bill clarifies that the court can grant stay even during the pendency of an application for setting aside. If the court satisfies itself that, the arbitration agreement or award was a product of corruption or fraud.
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Set qualification for arbitrators
Earlier the schedule VIII of the ‘Arbitration and Conciliation Act’ prescribes the qualification for an arbitrator. It provides as follows:
The Arbitrator must be
- An advocate under Advocates Act 1961 with the experience of 10 years.
- An officer of Indian Legal Services.
But now the amendment repeals schedule VIII. And, states that, the regulations shall specify:
- The qualification of an arbitrator
- Experience to become an arbitrator
- Norms for accreditation.
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