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Report No. 246

Amendment of Section 28

16. In section 28,

(i) In sub-section (1), after the words "Where the", delete the word "place" and add the word "seat" and after the words "of arbitration is" delete the word " situate"

[Note: This amendment is only clarificatory, and follows on from the amendment to S 20.]

(ii) In sub-section (3), after the words "tribunal shall decide" delete the words "in accordance with" and add the words "having regard to"

[Note: This amendment is intended to overrule the effect of ONGC Ltd. v. Saw Pipes Ltd., (2003) 5 SCC 705, where the Hon'ble Supreme Court held that any contravention of the terms of the contract would result in the award falling foul of Section 28 and consequently being against public policy.]

Amendments to the Arbitration and Conciliation Act, 1996 Back

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