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Report No. 176

(27) Section 29A: This section is proposed to be introduced fix time limits for passing of the award and also for speeding up the arbitral process. No provision was made in the 1996 Act fixing time limit for the passing of the award, on the ground that extension applications in the Court were not being disposed of early enough and that there were long delays.

It is proposed to initially grant a period of one year, after commencement of the arbitration and also to permit parties to agree for extension upto a maximum of another one year. Thereafter, if there is further delay, the proceedings will stand suspended until an application is made in the Court, either by the parties or if the parties do not do so, until an application for extension is filed by the arbitral tribunal. The moment an application, is filed the arbitration proceedings can re-start.

It is proposed to be provided that there will be no stay of the arbitration proceedings pending consideration of the application for extension of time and that, pending the application, the arbitral tribunal shall proceed with the arbitration proceedings.

The Court shall extent the time for passing the award and shall fix the time schedule and further procedure, by taking into consideration the reasons for the delay, the conduct of the parties, the manner in which proceedings were conducted by the arbitral tribunal, the amount of money spent already towards fee and expenses, the extent of work that is already done and the extent of work that remains to be done. The Court will passed orders from time to time till the award this passed.

This provision has become necessary in view of the peculiar conditions prevailing in India even after the 1996 Act. Sub-section 8 of the proposed Section 29A requires that the first order on the extension application shall be passed within one month from the date of service on the opposite party. The 'future procedure' can be prescribed by the High Court by making rules under section 82.

(paragraph 2.21.6)



The Arbitration and Conciliation (Amendment) Bill, 2001 Back




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