Title: Arbitration & Conciliation (Amendment) Act, 2021: Return of the Unconditional Stay on Enforcement of Awards- A Retrograde Step?
Author(s): Nilovna Maelzer (View Profile)
Journal: Indian Review of International Arbitration
Source: www.iriarb.com
Abstract:
The Arbitration & Conciliation Act, 1996, has undergone a series of amendments in order to keep pace with the rapidly changing arbitration landscape in India. The aim of these amendments has been to foster and promote a strong regulatory framework to strengthen the cause of arbitration in India. However, the latest blow to the cause of arbitration in India, happens to be in the form of the most recent, Arbitration & Conciliation (Amendment) Act, 2021). The 2021 Amendment introduces a new proviso to the text of section 36 (3) which introduces fraud and corruption as a ground to seek unconditional stay on the enforcement of awards even under section 34. Furthermore, not only does it introduce these vague standards to seek an enforcement but also does so retrospectively meaning thereby that this amendment will have the effect of undoing the awards which have already been rendered prior to the introduction of this amendment. This could open the floodgates to frivolous litigation but also prevent the award-holder from realizing the fruits of their award. Through this research article the author aims to shed light on the hindrances that stand in the way of arbitration in India caused by the 2021 amendment.
Keywords: Arbitration, Corruption, Enforcement, Fraud, Proviso to Section 36 (3), 2021 Amendment, Unconditional Stay
Cite this as: Nilovna Maelzer, “Arbitration & Conciliation (Amendment) Act, 2021: Return of the Unconditional Stay on Enforcement of Awards- A Retrograde Step?” 3 IRIArb (2023).
*The views expressed are of author(s) only.
