Arbitration and Conciliation (Amendment) Act 2015

Arbitration and conciliation (amendment) Act 2015

The salient features of the amendment are

High Court has power in International Commercial Arbitration.

An Indian registered company cannot claim as non Indian party  (international status) as its management and control is outside India.

All the provisions applicable to “Domestic Arbitration” will applicable to “International Commercial Arbitration” also.

Included “communication through electronic means’ for determining if an arbitration agreement is in writing.

The party who is not having duly certified arbitration agreement can approach the court for arbitration and a petition requesting the Court to call upon the other party to produce the original or the duly certified copy of the arbitration agreement.

Arbitral proceeding must commence within 90 days of a Court granting interim measure of protection.

The appointment of arbitrator powers given to the High Court and Supreme Court instead of Chief Justice and its judges of respective courts.

Arbitrator appointment application will be disposed of within a period of 60 (Sixty) days from the date of service of notice on the opposite party.

Empowers High Court to frame rules and fix arbitration tribunal between Rs. 45,000/- and Rs. 30,00,000/- depending on the sum of the dispute.

If it is sole arbitrator tribunal the arbitrator can entitled for 25% addition to the above fee.

Arbitrator should make a disclosure in writing about his impartiality.

The opposite party can file counter claim and set off of the claimants claim.

The arbitral tribunal will hold oral hearings for production of evidence or for arguments thereof on a day-to-day basis.

If the respondent fails to file a statement of defence in time, his right to do so will stand forfeited.

The arbitral tribunal has a duty to take into consideration the terms of the contract and the pertinent trade usages applicable.

An arbitral award will be made within 12 months from the date of entry of the arbitral tribunal upon reference and may be extent up to a maximum of 6 months.

Introduced Fast Track procedure where no oral hearing take place. It should be completed with 6 months from the date of constitution.

The tribunal can award interest as per Interest Act.

Award cost relating to the fees and expenses of the arbitrators, Courts, witnesses, legal fees and expenses, any administration fees of the institution supervising the arbitration and any other expenses incurred

If it is found that the delay was attributable to the tribunal, then 5% of the arbitrator’s fees may be reduced by the Court.

Can execute the arbitral award during the pendency of the appeal, if no stay granted by the appellate court.

The amendment has specified an elaborate list of grounds that can give justifiable doubts as to the independence or impartiality of the arbitrator, and if any of these grounds apply, the arbitrator is required to make disclosure in writing to this effect, in a specific format attached in Sixth schedule.