Moneycontrol
Jan 06, 2015 09:20 PM IST | Source: CNBC-TV18

Govt does U-turn on arbitration ordinance, to table in Parl

Govt plans to table amendments in Parliament to make arbitration the preferred option to settle commercial disputes in a bid to cut down on litigation and ease of doing business in the country.

Govt does U-turn on arbitration ordinance, to table in Parl

The government seems to have taken a U-turn on promulgating an ordinance to amend the Arbitration and Conciliation Act. It plans to table amendments in Parliament to make arbitration the preferred option to settle commercial disputes in a bid to cut down on litigation and ease of doing business in the country.


The amendments will also make arbitration a time-bound affair. Arbitrators to give award in nine months, else face three-year ban. Courts will also have to dispose a challenge to an arbitration award in one year.


The government may also amend the Act so arbitrators charge per case, not per hearing, sources say.


Another provision under consideration to make arbitration time bound is if an arbitration award is challenged in the courts, it must be disposed off within a year.

The government has also shelved its plans to move ordinances to amend the Mines and Minerals Act.

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