Report No. 76

2.4. History of section 47.-

It may be stated that section 47, as drafted in the original Bill, rendered unenforceable an arbitration award obtained otherwise than under the Act. The Select committee re-drafted it as it stands now, observing, "This clause has been re-drafted in order to remove the dangers of the provision that an arbitration award obtained otherwise than in accordance with the provisions of the Bill should be unenforceable for any purpose. The effect which this section, as re-drafted, is designed to produce is that arbitrations shall not be conducted in any way repugnant to the Act and that any arbitration award may, with the consent of the parties, be used for the purposes of rule 3 of Order 23 of the Code of Civil Procedure.1

The case law discussed above shows that the position cannot be regarded as beyond doubt.2 A clarification seems to be required. The object of the Act would be defeated if awards made in pursuance of oral arbitration agreements are regarded as enforceable.3

1. N.D. Basu Arbitration Act, (1977), p. 849, quoting the Report of the Select Committee.

2. See also the Madras case, para. 2.6, infra.

3. Para. 2.3, supra.