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Report No. 76

2.21. Recommendation to amend section 2(a).-

However, an amendment of the law is necessary, since there is a certain amount of conflict on the subject, as is revealed by case law.1 We therefore, recommend the insertion of an Explanation below section 2(a), on the following lines2:-

"Explanation 2.-Where an arbitration agreement provides for the submission of future difference to arbitration, and a difference subsequently arises which it is proposed to refer to arbitration thereunder it shall not be necessary that fresh consent of both the parties or all the parties, as the case may be, to the reference should be obtained at the time of referring the dispute to such arbitration."

1. Paras. 2.12 to 2.18, supra.

2. For Explanation 1, see para. 2.10, supra.

Arbitration Act, 1940 Back

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