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Report No. 176

Chapter III

Summary of Recommendations with Explanatory notes

The recommendations made in the previous Chapter regarding additions, modifications and substitutions in the Arbitration and Conciliation Act, 1996 are being summarized as follows: -

(1) Section 2(1)(e): In the definition of the word "Court", the 'Court of the Principal Judge, City Civil Court in a city exercising original jurisdiction', is also proposed to be included.

(paragraph 2.1.2)

(2) Section 2(1)(ea): This clause is proposed to be added and it defines 'domestic arbitration' on the same lines as the existing sub-section (7) of Section 2 which defines 'domestic award'. 'Domestic arbitration' will mean (i) where all parties are Indian nationals or (ii) where at least one party is not an Indian national, (i.e. where the arbitration is international in nature) whether the arbitration is commercial or not and the arbitration is in India. International arbitration in India shall be deemed to be 'domestic arbitration'. In sub-clause (3) a company incorporated in a country other than India has not been included.

(paragraph 2.1.3A)

(3) Section 2(1)(eb): This clause is proposed to be added and it defines 'international arbitration' as arbitration where at least one party is not an Indian national. This arbitration need not necessarily be commercial. In this definition also, in sub-clause (iii), a company incorporated in a country other than India has not been included. Reference to a company incorporated in a country other than India in this clause will fall within the meaning of the word "body corporate incorporated in any country other than India". (paragraph 2.1.3A)

(4) Section 2(1)(f): This clause is proposed to be modified by defining 'international commercial arbitration' as 'international arbitration', which is commercial in nature.

(paragraph 2.1.3A)

(5) Section 2(1)(fa): This clause is proposed to be introduced. Under Section 8, when an action is filed before a 'judicial authority', the said authority has to refer the dispute to arbitration, if the respondent relies upon an arbitration clause. A definition of 'judicial authority' is therefore proposed to be included stating that 'judicial authority' includes any 'quasi-judicial statutory authority'. This word occurs in Section 8 and also in the amendments proposed in Section 5 and Section 42.

(paragraph 2.1.4)



The Arbitration and Conciliation (Amendment) Bill, 2001 Back




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