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Report No. 176

2.17.2 After section 24 of the principal Act , the following section 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 Sections 17, 23 or 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 sub-section (1) of Section 17 for furnishing security for costs of arbitration, the arbitral tribunal may make an award dismissing his claim.

(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."

The Arbitration and Conciliation (Amendment) Bill, 2001 Back

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