Report No. 176
2.43.1 Section 34 of the amending Act:
Time limit for disposal of arbitrations, applications and appeals pending under the Arbitration Act, 1940 It has been brought to the notice of the Commission that several arbitrations which were commenced under the 1940 Act are still pending at the stage of arbitration or at the stage of application to make the award a rule of Court/objections to the award, or at the stage of appeals under sec. 39 of that Act or at the stage of appeals or revision applications under the 1940 Act or under the Code of Civil Procedure, 1908.
The Commission has felt that if arbitrations commenced under the 1940 Act have not been completed even after the commencement of 1996 Act from 25.1.1996, it will be necessary to speed up such arbitrations by the application of the provisions of sec. 23 and 24 of the 1996 Act, as proposed to be amended, and also by the application of sec. 24A and 24B which give powers to the arbitral tribunal and the Courts to see that their orders are obeyed by the parties promptly.
It has therefore been proposed, that notwithstanding anything inconsistent with the above provisions, in the 1940 Act, the above provisions should be applicable to arbitrations under the 1940 Act which will be pending on the date of the commencement of the proposed amending Act.
So far the time limit for completing the pending arbitrations under the 1940 Act is concerned, the Commission proposed that they should be completed within one year from the date of the commencement of the proposed amending Act or within such further time as may be granted by the Court in clause © of sec. 2 or sec. 21 of the 1940 Act, by the application of the provisions of sub section (4) to (8) of sec. 29A, as proposed to be inserted in the 1996 Act.
In other words all pending arbitrations under the 1940 Act, if they are not completed in one year from the date of commencement of the proposed amending Act, it will be necessary for the parties or the arbitrators, to file applications in the above Court for extension of time, extension is to be granted in every case and the Court will fix the time schedule for completion of the proceedings and shall pass orders from time to time till the award is passed.
This is so far the pending arbitration proceedings under the 1940 Act are concerned. Similarly, it has been noticed that several applications to make the awards passed under the 1940 Act a rule of Court/objections to the award are pending in the Court as defined under clause © of sec. 2 or under sec. 21 of the 1940 Act. Several appeals under sec. 39 of the 1940 Act are also pending in the Courts.
It has been decided to see that they are disposed of within one year from the date of commencement of the proposed amendment. So far as appeals or revision applications arising out of interim orders passed by the Courts which may be pending at the commencement of the amending Act, the Commission is of opinion that they should be disposed of in six months from the date of commencement of the proposed amending Act.