Report No. 176
26. Insertion of new section 37A
After section 37 of the principal Act, the following section shall be inserted, namely:-
Substantial prejudice to be shown for intervention under sections 34 and 37 and time limits
"37A (1) The court referred to in sub-section (1) of section 34, while dealing with an application under that sub-section or the court referred to in sub-section (1) or sub-section (2) of section 37 while dealing with an appeal under any of those sub-sections, may , if it thinks fit so to do, and after fixing a day for hearing the applicant or appellant or his counsel and hearing him accordingly if he appears on that day, dismiss the application or appeal, as the case may be, without giving notice to the respondent ,for reasons in brief to be recorded in writing ,if there are no merits in the application or the appeal, as the case may be.
(2) No award passed by the arbitral tribunal shall be set aside on an application under sub-section (1) of section 34 and no order passed by the arbitral tribunal or by the court shall be set aside in an appeal under sub-section (1) or sub-section (2) of section 37, as the case may be, unless substantial prejudice is shown.
(3) Every application or appeal, referred to in sub-section (1), shall be disposed of within six months from the date of service of notice on the opposite party:
Provided that, while dealing with an application under sub section (1) of section 34, if the court adjourns the proceedings under sub-section (5) of that section, the period of six months shall be reckoned from the date of receipt of the order from the arbitral tribunal under that sub-section"