Impact of 2015 Amendments to Arbitration & Conciliation Act,1996 on the International Arbitrations & Enforcement of Foreign awards.

1. Impact of 2015 Amendments to Arbitration & Conciliation
Act,1996 on the International Arbitrations & Enforcement
of Foreign awards
2nd India International Arbitration Summit 23rd March 2017
Presented by
S. Ravi Shankar, Arbitration lawyer & Senior Partner
Law Senate Law Firm – New Delhi, Mumbai
ravi@lawsenate.com
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2. Major changes of the Arbitration &
Conciliation (Amendment) Act 2015
 Arbitration & Conciliation (Amendment) Act, 2015 (23rd October 2015)
 Deals with many major challenges faced by parties arbitrating in India
and outside India.
 Courts should try to dispose applications seeking appointment of
arbitrators within 60 days from the date of Notice (S.11)
 Power to Chief Justice to designate an Institution to appoint
arbitrators
 After getting an interim order under S.9, Parties need to start the
arbitration proceedings within 60 days
 Fees fixed for the ad-hoc arbitrators on the basis of the value of the
dispute (4th Schedule) (No sitting, reading & writing fee)
 Arbitral Institutions are allowed to have a higher Fee scale
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3. Major changes of the Arbitration &
Conciliation (Amendment) Act 2015
 An arbitration has to be completed within 12 months S.29A
 Both parties can jointly extend the completion period by 6 months
 After that only court can extended the time for completion
 While extending the time for completion court can fix terms
 Fast Track Arbitration S.29B to be completed with in 6 months
 No need for oral hearing in Fast track arbitrations, matter will be
decided on the basis of pleadings & Documents
 If Arbitrator can not complete the arbitration within the time limit he
looses the mandate to continue the arbitration
 Interim orders can be granted by Indian Courts in support of Foreign
seated International Arbitrations
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4. Major changes of the Arbitration &
Conciliation (Amendment) Act 2015
 No automatic stay on filing of an appeal challenging an
Arbitral award S.36, while granting stay courts can impose
terms
 Disclosure to be made by Arbitrators about their relationship
with parties & counsels (Fifth Schedule) to ensure
impartiality in the lines of “ IBA Guidelines on Conflict of
interest in International Arbitrations.
 Costs follow the event S.31.A
 Costs including counsel fees, expenses, arbitrator fees can
be claimed
 Narrow scope for the Term Public Policy S.34 to avoid courts
interference into the arbitral awards
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5. Enforcement of Foreign awards
 A Foreign award is binding if passed in a New York
convention seat which is notified by India on reciprocity
basis
 Party wishes to enforce a foreign award should produce
 Original or certified copy of the award
 Original or certified copy of the arbitration agreement
 Other evidences to prove it is foreign award, If court is
satisfied it will be deemed to be a decree of the court S.58
 A Foreign seated arbitration award can not be challenged in
India
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6. Refusal to Enforce a Foreign award
 A Court can refuse a Foreign award only when there is proof that
there was
 In capacity of parties to enter into the contract
 Deficiency of notice to parties by the arbitrator/ Institution
 The issues decided in the arbitration are not arbitrable
 Tribunal was not formed as per the arbitration clause
 Award is set aside by the competent court in the seat of arbitration
 Award is Contrary to Public Policy of India
 Normally Courts do not interfere into the foreign seated arbitration
awards

7. Public Policy of India
 Intervention by courts on the issue of “Public Policy of India” is
reduced
 Public Policy gets violated if Award was by fraud corruption
 Or Contravention to the fundamental policy of Indian Law
 Or Conflict with the most basic notions of morality of Justice
 But it is clarified that contravention with fundamental Policy of Indian
law shall not entail a review on the merits of the dispute
 Hence Arbitration scene in India has become more
effective & Efficient after 2015 amendments.

8. PROGRESSIVE APPROACH OF COURTS
 “All disputes or Differences whatsoever arising between the parties out of,
or relating to, the construction, meaning and operation or effect of the
contract or the breach thereof shall be settled by arbitration in India
through the arbitration panel of the Indian Council of Arbitration in
accordance with the Rules of ICA.
 If either party is in disagreement with the arbitration result in India,
either party will have the right to appeal to a second arbitration in
London, UK in accordance with the Rules of Conciliation and arbitration of
the International Chamber of Commerce in effect on the date hereof and
the result of this second arbitration will be binding on both the parties.
Judgment upon the award may be entered in any court in jurisdiction. “
 (2016) SCC Online SC 1482 Centro trade Minerals & Metals Inc Vs Hindustan
Copper Ltd.,
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9. THANKS
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