Report No. 246
Amendment of Section 48
22. In section 48,
(i) In sub-section (2), in the "Explanation.-", delete the words "Without prejudice to the generality of clause (b), it is hereby declared, for" and add the word "For" and after the words "avoidance of any doubt," add the words "it is clarified" and after the words "the public policy of India" add the word "only" and after the word "if" delete "-" and ";" and insert sub-clause "(a)" before the words "the making of the award" and delete "." And add ";" after the words "by fraud or corruption" and add sub-clauses "(b)it is in contravention with the fundamental policy of Indian law; (c) it is in conflict with India's most basic notions of morality or justice."
(ii) Re-number sub-section "(3)" as sub-section "(5)" and add sub-section "(3) An objection under the above sub-sections shall not be made after three months have elapsed from the date on which the party making such objections has received notice of the application under section 47 of the Act:
Provided that if the Court is satisfied that the party raising the objection was prevented by sufficient cause from making the application within the said period of three months it may entertain the application within a further period of thirty days, but not thereafter.
(iii) insert sub-section "(4) An objection under this section shall be disposed off expeditiously and in any event within a period of one year from the date on which the notice issued pursuant to an application under section 47 is served."
[Note: The above provisions have been incorporated to set a time frame for hearing an objection under section 48. The above time frame is in tune with the time frame set for hearing an application under section 34]
(iv) insert sub-section "(6) The costs regime set out in section 6A of the Act shall apply to a proceeding in relation to sections 47 and 48 of the Act."
[Note: This provision has been included to ensure that the "costs follow the event" regime also applies to proceeding under sections 47 and 48]