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Report No. 176

2.13. Power to supersede arbitration:

Under the old Act, sec.19 permitted the court to supercede the arbitration agreement itself in certain situations - such as, where an award has become void under sec.16(3) or has been set aside. Under sec.16(3) an award remitted under sub-section (1) of section 16 becomes void on failure of the arbitrator or umpire to reconsider it and submit his decision within the time fixed.

Sometimes, if the named arbitrators are guilty of serious 294 misconduct, the court have decided that it would not be desirable to remit the case for arbitration. In such cases, under the old Act, the reference itself could be superseded leaving it open to the parties to go for a suit.

The 1996 Act does not contain any provision for superseding the arbitration clause. The English Act does not also contain any provision. Question is whether it is necessary to have a provision for supersession of the reference.

The Arbitration and Conciliation (Amendment) Bill, 2001 Back

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