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SC flags gaps in arbitration law, urges changes to 2024 amendment Bill
The Supreme Court on Friday expressed its concern over continued absence of statutory clarity in the arbitration regime in the country even after nearly thirty years since the 1996 Act was enacted.
Taking note of the Arbitration and Conciliation Bill, 2024, a bench of Justices JB Pardiwala and R Mahadevan, remarked that it fails to address a long-standing legislative vacuum, reported Bar and Bench.
"It is indeed very sad to note that even after these many years, procedural issues such as the one involved in the case at hand, have continued to plaque the arbitration regime of India," the court noted.
"What is expressly missing in the Act, 1996 is still missing in the Arbitration and Conciliation Bill, 2024, despite a catena of decisions of this court as well as the various high courts, highlighting the need for statutory recognition of such power in order to obviate all possibilities of confusion," the bench added.
The bill is currently under consideration of the ministry of law and justice.
The court further urged the department of legal affairs under the ministry to take a serious look at the current arbitration regime in India and bring about necessary changes while the Arbitration and Conciliation Bill, 2024 is still being considered.
The apex court made these observations in an appeal challenging a July 2024 decision by the Delhi High Court in an arbitration matter. The High Court had upheld the arbitral tribunal's decision dismissing the appellant firm's objection to its impleadment in arbitral proceedings, despite it being a non-signatory to the arbitration agreement.
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