2019 Amendment To Arbitration Act

Introduction

The term "arbitration act" could refer to any one of several different laws that pertain to arbitration, which is a process of alternative dispute resolution in which a neutral third party called an arbitrator hears and decides a dispute between two parties. The specific arbitration act that applies to a particular arbitration proceeding depends on the jurisdiction in which the arbitration is taking place and the specific rules that have been agreed to by the parties. In the United States, for example, there are several different arbitration acts that may apply to different types of disputes, including the Federal Arbitration Act, which applies to disputes that involve interstate commerce, and various state arbitration acts. Other countries also have their own arbitration acts that regulate the arbitration process within their borders.

History of arbitration

The history of arbitration as a means of alternative dispute resolution can be traced back to ancient civilizations, where it was used to resolve commercial disputes and other conflicts. The modern concept of arbitration, however, has its roots in the legal systems of Europe, particularly in the laws of England and France.In England, the use of arbitration to resolve commercial disputes gained popularity in the seventeenth and eighteenth centuries, and the first English arbitration act was enacted in 1793. This act, which was called the English Arbitration Act 1793, established procedures for the conduct of arbitration proceedings and provided for the enforcement of arbitration awards.

The modern concept of arbitration as an alternative to litigation in the courts also emerged in France in the nineteenth century, and the first French arbitration act was enacted in 1806. This act, which was called the Code de Commerce, established the principles and procedures for arbitration that are still in use today.In the United States, the Federal Arbitration Act (FAA) was enacted in 1925. The FAA establishes the rules for the enforcement of arbitration agreements and awards in the United States and applies to disputes involving interstate commerce. Many states have also enacted their own arbitration acts, which may apply to disputes that arise within the state.

Arbitration acts have been enacted in many other countries as well, and international arbitration has become an important means of resolving disputes in the global economy. There are also several international conventions and treaties that establish rules and procedures for international arbitration, such as the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration.

There have been many cases involving the arbitration process and various arbitration acts. Some examples of cases that have dealt with issues related to arbitration include:

AT&T Mobility LLC v. Concepcion: This case, which was decided by the Supreme Court of the United States in 2011, concerned the enforceability of a provision in a consumer contract that required disputes to be resolved through arbitration. The Court held that the Federal Arbitration Act pre-empted a state law that prohibited such provisions, and that the provision in the contract was enforceable.

Stolt-Nielsen S.A. v. Animal Feeds International Corp: This case, which was also decided by the Supreme Court of the United States, involved a dispute over whether an arbitration panel had the authority to impose class arbitration on parties that had not agreed to it. The Court held that the panel did not have the authority to do so, and that the parties were required to agree to class arbitration in order for it to be permitted.

JAMS v. Singh: This case, which was decided by a court in California, concerned the enforceability of an arbitration agreement between an employee and an employer. The court held that the arbitration agreement was enforceable and that the employee was required to submit his employment discrimination claims to arbitration.

Indian perspective

The first arbitration act in India was enacted in 1899, and was called the Indian Arbitration Act. This act established the principles and procedures for arbitration that are still in use today, and provided for the enforcement of arbitration awards. The act was later amended several times, with the most significant amendment being the Arbitration and Conciliation Act of 1996, which brought Indian arbitration law into conformity with the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration.In India, arbitration is governed by both federal and state laws, and there are several specialized arbitration centres and institutions that administer arbitration proceedings. The use of arbitration has grown significantly in India in recent years, and it is now a widely accepted means of resolving commercial disputes in the country.

The 2019 amendment in India

The Arbitration and Conciliation (Amendment) Bill, 2019 (the "Bill") was introduced in the Indian Parliament in July 2019 and seeks to amend the Arbitration and Conciliation Act, 1996 (the "Act"). The Act provides the legal framework for the resolution of disputes through arbitration and conciliation in India.

The Bill seeks to make several significant changes to the Act, including:

Appointing authority for arbitrators: The Bill proposes that the Chief Justice of India (CJI) or a person nominated by the CJI will act as the appointing authority for arbitrators, instead of the Chief Justices of the High Courts as provided under the Act.

Emergency arbitrator: The Bill introduces the concept of an "emergency arbitrator," who can be appointed to provide interim relief in urgent cases before the constitution of the arbitral tribunal.

Time limits for completion of arbitration: The Bill proposes to set time limits for the completion of arbitral proceedings, with a maximum duration of 12 months for international commercial arbitrations and 6 months for domestic commercial arbitrations.

Confidentiality of arbitral proceedings: The Bill proposes to make the confidentiality of arbitral proceedings mandatory, unless disclosure is necessary for the enforcement of the award or is required by law.

Challenge to arbitral awards: The Bill proposes to limit the grounds on which an arbitral award can be challenged in court. It also proposes to establish a time limit of one year for challenging an arbitral award.

There have been mixed reactions to the Bill. Some have praised the Bill for bringing much-needed reforms to the arbitration process in India, while others have raised concerns about the concentration of power in the hands of the CJI and the potential for undue influence on the appointment of arbitrators. It is worth noting that the Bill has not yet been passed into law and is still being considered by the Indian Parliament. Therefore, it is not possible to provide a detailed analysis of the Bill in light of case law at this time.

There have been many cases involving the arbitration process and the arbitration act in India. Some examples of notable cases include:

Bhatia International v. Bulk Trading S.A: This case, which was decided by the Supreme Court of India in 2002, concerned the jurisdiction of Indian courts over arbitration proceedings that took place outside of India. The Court held that Indian courts had the authority to support and assist in the enforcement of foreign arbitration awards, even if the arbitration proceedings took place outside of India.

SBP & Co. v. Patel Engineering Ltd: This case, which was also decided by the Supreme Court of India, involved a dispute over the enforceability of an arbitration agreement between two parties. The Court held that the arbitration agreement was enforceable and that the parties were required to submit their dispute to arbitration.

ONGC v. Saw Pipes Ltd: This case concerned a dispute over the interpretation of an arbitration clause in a contract between two parties. The Supreme Court of India held that the arbitration clause was valid and that the parties were required to submit their dispute to arbitration.

CONCLUSION

The Arbitration and Conciliation (Amendment) Bill, 2019 is important because it seeks to make significant changes to the legal framework for the resolution of disputes through arbitration and conciliation in India. If passed into law, the Bill would bring about several key changes to the arbitration process in India, including the appointment of an "emergency arbitrator" to provide interim relief in urgent cases, the introduction of time limits for the completion of arbitral proceedings, and the mandatory confidentiality of arbitral proceedings, among others. These changes have the potential to improve the efficiency and effectiveness of the arbitration process in India, which could in turn help to improve the country's business environment and encourage greater use of arbitration as a means of dispute resolution.