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Report No. 176

18. Insertion of new sections 24A and 24B

After section 24 of the principal Act , the following sections shall be inserted, namely:-

Powers of arbitral tribunal to enforce its orders passed under sections 17, 23 and 24

"24 A (1)If without showing sufficient cause, a party fails to comply with any orders of the arbitral tribunal passed under section 17,section 23 or section 24, as the case may be, the arbitral tribunal may make a peremptory order to the same effect, prescribing such time for compliance as it considers appropriate.

(2) If a claimant fails to comply with a peremptory order passed under sub-section (1) in relation to a direction under clause (c) of section 17 for furnishing security for costs of arbitration, the arbitral tribunal may dismiss his claim and make an award accordingly.

(3) If a party fails to comply with any other peremptory order passed by the arbitral tribunal under sub-section (1), then the said tribunal may-

(a) make such order as it thinks fit as to payment of costs of the arbitral proceedings incurred in consequence of the non-compliance;

(b)direct that the party in default shall not be entitled to rely upon any allegations in his pleadings or upon any material which was the subject-matter of the order;

(c ) draw such adverse inference from the act of non-compliance as the circumstances justify;

(d) proceed to make an award on the basis of such materials as have been provided to it, without prejudice to any action that may be taken under section 25."

Powers of the Court for enforcement of the peremptory orders of the arbitral tribunal:

24 B (1) Without prejudice to the powers of the Court under section 9, the Court may, on an application made by a party, make an order requiring the party to whom the order of the arbitral tribunal was directed, to comply with the peremptory orders of the arbitral tribunal passed under sub-section (1) of Section 24 A.

(2) An application under sub-section (1) may be made by-

(a) the arbitral tribunal, after giving notice to the parties, or

(b) a party to the arbitral proceedings with the permission of the arbitral tribunal, after giving notice to other parties.

(3) No order shall be passed under sub-section (1), by the Court, unless it is satisfied that the person to whom the order of the arbitral tribunal was directed, has failed to comply with it within the time fixed in the order of the arbitral tribunal or, if no time was fixed, within reasonable time.

(4) Any order passed by the Court under sub-section (1), shall be subject to such orders, if any, as may be passed by the Court on appeal, under clause (b) of sub-section (2) of section 37."



The Arbitration and Conciliation (Amendment) Bill, 2001 Back




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