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Report No. 76

1.4. Approach.-

The Commission on a study of the various materials and case law on the subject is of the view that there is need to improve certain provisions of the Act that cause delay or hardship to the parties, or unnecessarily introduced clogs which hinder the smooth course of the proceedings. Although we had an initial inclination to re-number some of the sections1 because of our feeling that the subjects dealt with in those sections could be more appropriately dealt with at a different place, we realised the importance of adhering to the present numbering. A change in the numbering would have caused inconvenience to lawyers and businessmen who have become familiar with it and would, to a certain extent, have caused confusion.

In the formulation of a law on arbitration two conflicting considerations present themselves; on the one hand due weight has to be given to the arrangement made by the parties themselves relating to the personnel and machinery for the settlement of their dispute; on the other hand, unfair or impracticable arrangements have to be modified in the interests of justice.

The desirability of maintaining a certain amount of uniformity of interpretation of the law has also to be borne in mind. In making our recommendations on the subject, we have been mindful of these considerations. Before we proceed to make our recommendations on each section, we would like to deal in brief with the history of arbitration in general and history of the statutory law in India• on the subject in particular.

1. E.g. section 30, which was proposed to be transferred earlier, in the group of sections 15-17.

Arbitration Act, 1940 Back

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