Report No. 176
2.29.8 Proposed section 37A:
Scope of Courts's powers of intervention in matters under sections 34 and 37A - Court can dismiss in limini or dismiss if substantial prejudice is not shown and matters to be disposed of within 6 months:
This is one of the most important amendments proposed. The Commission wants to strengthen the appeal procedure by permitting dismissals in limini if there are no merits. Even after notice, substantial prejudice is to be shown for Court interference.
2.29.9 A general discretion is to be vested in the court to reject applications or appeals in limini. The proposal is that's the court will not interfere in appeals before the award (under section 37 (2)) or after the award (under section 34) and can reject them in limini.
2.29.10 Proposal is also to require substantial prejudice to be shown for interferences. This provision is to apply both to purely domestic or international arbitrations. A provision for disposal of all applications and appeals under sections 34 and 37 within six months is also proposed, to expedite the Court proceedings. Of course, brief reasons have to be recorded, if the applications or appeals are dismissed in limini.
Where applications are filed challenging all awards coming under section 34 or appeals filed in respect of all orders of the arbitral tribunal referred to in section 37(2) or appeals filed in respect of orders of the Court in section 37(1), the following procedure will be adopted by the Court.