Report No. 176
(13) Section 9 (i) This Section is proposed to be amended by restructuring it and bringing the latter part of the section which deals with the wider powers of the Court to the forefront and for relegating the enumerated powers of the Court to the latter part of the section. As the section now stands, it gives an impression that the powers of the Court which are referred to in the latter part of the section are as limited as those in the earlier part of the section. This position is being clarified by dividing the existing section into sub-sections (1) to (3).
(ii) Sub-Sections (4) to (6) are proposed to be added to see that a party who obtains an interim order from the Court, does not refrain from taking steps to have an arbitral tribunal appointed. Otherwise, he would be reaping the benefits of the interim order without time limit.
The proposed sub-sections (4) to (6) require the Court, while granting interim orders under Section 9 to further direct that the party must take steps within 30 days to have an arbitral tribunal appointed under Section 11, and that otherwise the interim order will stand vacated, unless the time is extended by the Court. It is also provided that if the party does not take such steps and if the interim order is vacated, the Court may pass such orders as to restitution as may be necessary, in the circumstances of the case.
(14) Section 10 A: This section is proposed to be introduced to see that a party (not being the Government or a public sector undertaking or a statutory authority), will not appoint its own employee, consultant or other person having common business interest, etc as an arbitrator. Such clauses in arbitration agreements shall be void to that extent. Further, it is provided that this provision does not apply to international arbitration agreements where the place of arbitration is in India.