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Report No. 176

(6) Section 2(2): Section 2(2) is proposed to be amended by adding clauses (a) and (b). Section 2(2) states that Part - I of the Act applies to arbitration in India. That would mean that in the case of arbitration between Indian nationals and also where one party is not an Indian national, and where the place of the arbitration is in India, Part I of the Act will apply.

While the UNCITRAL Model Law permits certain Articles like 8, 9, 35 and 36 to apply to arbitrations outside the Country, there is an omission in this behalf in the 1996 Act. Consequently, for example in the absence of availability of Section 9 in the case of an arbitration outside India, the Indian party is unable to obtain interim measures from Indian Courts, before arbitration starts outside India.

The absence of an express provision as stated above has led to conflicting judgments in the Delhi and Calcutta High Courts. It is proposed to allow Section 9 to the invoked whenever arbitration is outside India. Similarly, the provisions of Section 8, 27, 35 and 36 are proposed to be made available whenever arbitration is outside India. Almost all countries which have adopted the Model Law allow views of these provisions to arbitrations outside the country.

The proposed clause (a) of Section 2(2) states that Part - I of the Act applies to domestic arbitration in India and the proposed clause (b) states that Sections 8, 9, 27, 35 and 36 will be available for international arbitrations outside India.

(paragraphs 2.1.5 & 2.1.7)

(7) Section 2(10): This clause is proposed to be introduced to allow the Principal Courts referred to in Section 2(1)(e) to transfer matters before them to Courts of coordinate jurisdiction. This clause is proposed to get over some judgment of the High Courts which have stated that the Principal Court in Section 2(1)(e) cannot transfer matters to other Courts. This proposal will reduce congestion in the Principal Courts.

(paragraph 2.1.2A)

The Arbitration and Conciliation (Amendment) Bill, 2001 Back

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