Bill No.

LXXV of 2023

THE ARBITRATION AND

CONCILIATION(AMENDMENT) BILL,2023
A

BILL
to amend the Arbitration and Conciliation Act, 1996.
BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as follows:—
1. (1) This Act may be called the Arbitration and Conciliation (Amendment) Act, 2023.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette,
appoint, and different dates may be appointed for different provisions of this Act, and any reference in any
provision to the commencement of this Act shall be construed as a reference to the coming into force of that
provision.

2. In section 10 of the principal Act, Addition to Sub-section -1 A predetermined number of arbitrators shall be
appointed in direct proportion to the volume of cases within the tribunal, supplemented by additional members as
necessary.
3. Addition to sub-section -1- (3) The arbitral tribunal shall possess the authority to expand its jurisdiction,
notwithstanding the presence of specialized courts established for expeditious case resolution."

4. Insert Sub-section -7 The arbitral tribunal is hereby vested with the authority to render an award or deliver a
ruling, even in cases where the dispute presented involves substantial legal complexities, intricate matters of fact,
or allegations of fraud, corruption, and similar matters.

5. In section 20, delete the word “Place” and add the words “Seat and Venue” before the words “of arbitration”.

i. In sub-section (1), after the words ”agree on the” delete the word “place” and add words “seat and
venue”
ii. In sub-section (3), after the words “meet at any” delete the word “place” and add word “venue”.

[NOTE: The change from the current term "place" of arbitration is suggested to align the wording of the Act with the
international usage of referring to the "seat" of arbitration, which signifies the legal home of the arbitration. This
amendment also establishes a legislatively distinguishes between the "[legal] seat" and a mere "[physical] venue" of
arbitration.]

6. After section 23 of the principal Act, the following sub sections shall be inserted, namely:—

5)“in relation to any arbitration proceeding or a proceeding pertaining to international commercial arbirtration , the
court shall have the discretion to grant an extension to the parties for the submission of statements of claim and
defence .

(6)The extension of period referred to may be on the application of any of the parties and may be granted only for
sufficient cause and on such terms and conditions as may be imposed by the Court.

7. In section 24 -after the existing sub section ( 1)of section 24 of the principal Act, the following sub-sections shall
be inserted, namely:—
“ 24 1 (a) Unless otherwise agreed by the parties,the court shall pass necessary orders regarding

- the time schedule for the presentation of oral evidence , if any

- the protocol for adducing oral evidence

- the time schedule for oral pleadings or arguments

1(B) Notwithstanding any modification in consultation with the parties, the orders passed under the above 1(A) shall
have a binding effect.

1(C) In the event that the arbitral tribunal fails to establish a time schedule or determine the procedure as provided in
sub-section (1A), or fails to comply with the established timetable, any party to the arbitration may request that the
arbitral tribunal do so. If the arbitral tribunal fail to establish a time schedule or determine the procedure within 30
days of receiving the request, or fail to comply with the established timetable, the party may apply to the court under
sub-section (2) of section 14 for the termination of the mandate of the arbitral tribunal and other consequential
orders.

8. Insertion of section 24 A-Unless otherwise agreed by the parties , For the consolidation of proceedings and
concurrent hearings,the tribunal shall have the power to order ;-

1)the consolidation of proceedings with other arbitral proceedings

2) holding concurrent hearings, on such terms as may be agreed.

9. Substitution of words in 24 (1) - After the proviso, add words “Provided further that the arbitral tribunal shall, as
far as possible, hold oral hearings for the presentation of evidence or for oral argument” , delete the words “ on day-
to-day basis” and add the words “ on continuous days”

10. In section 29 of the principal Act after sub section (2), the subsequent sub-section shall be included as follows:

"(3) Provided that the minority decision, if presented within thirty days following the receipt of the majority decision,
shall be appended to the final award."

11. Sub-sections (6),(7),(8),(9) of section 29A shall be renumbered as (7),(8),(9),(10) respectively and the following
new sub-section shall be added as sub-section(6)

(6) “The Court shall recognise a sufficient cause , while extending the time under sub-section (5), after taking into
account-

(a) The extent of completed work.

(b) The causes behind delays.

(c) The conduct of the involved parties or their representatives.

(d) The manner in which the arbitral tribunal conducted the proceedings.

(e) The additional work that must be undertaken.

(f) The arbitration fee and expenses already incurred by the parties
(g) Any other relevant circumstances based on the discretion of the court.”

12. Insertion of new section 33A. Filing of a copy of award and original arbitral records in Court.

(1) The arbitral tribunal shall, within a period of sixty days from the date of rendering the arbitral award, submit to the
Court a photocopy of the said arbitral award, with each page bearing the authentic signatures of all members of the
arbitral tribunal. This submission shall also include the original arbitral records, accompanied by a list of documents
of arbitral record."
(2) However, in cases where the High Court is considered the Court as defined under subclause (i) of clause (e) of
sub-section (1) of section 2, the arbitral award shall be submitted to the primary Civil Court that holds original
jurisdiction in the respective district. In the event of the arbitration subject-matter being located within a city, the
award shall be made in the said court. Hereinafter, this section will refer to this designated Court as the "said Court."

Explanation 1.— For the purposes of this section, “arbitral records” shall include the pleadings in the claim
filed by the parties, documentary evidence, oral evidence if recorded, pleadings in interlocutory applications,
pleadings and orders on interlocutory applications, proceedings of the arbitral tribunal and all other papers
relating to the arbitral proceedings.

(3) Upon the submission of the photocopy of the arbitral award and the arbitral records as specified in sub-section (1),
the presiding officer designated for this purpose shall endorse each page of the photocopy of the arbitral award with
their signature, date, and the official seal of the said Court. Furthermore, they shall officially acknowledge the receipt
of the arbitral award and the arbitral records, following a thorough verification process in accordance with the list
mentioned in sub-section (1).

a) The said Court shall maintain a register containing –

b) the names and addresses of the parties to the award;

c) the date of the award;

d) the names and addresses of the arbitrators;

e) the relief granted;

f) the date of filing of the award into the said Court; and

g) such other particulars as may be prescribed by rules made by the Central Government in this behalf.

(4) In the event that a party submits an application requesting a copy, the Court possesses the authority to issue a
certified copy of the photocopy of the arbitral award or the arbitral records, or the arbitral proceedings, in accordance
with the rules established by the Court.
(5) The protocol governing the return of original documents or the preservation of the arbitral records submitted shall
be subject to the rules that are presently applicable to the said Court and are subject to potential modifications over
time.
(6) the submission of the photocopy of the award under this section is solely for the purpose of maintaining an official
record.

13. Section 34- Insert in clause (4) after ‘requested by a party’- may be confirmed, modified, or vacated, as the case
may be, by the Court subject to such conditions, if any, as it may, after hearing the affected parties, deem fit.”

In sub-section (3), after the words “An application,” delete the word “for setting aside” and add the word “under the
above sub-sections”
Re-number sub-section (4) to read as sub-section (6) and insert subsection “(4) An Application under this section
shall be filed by a party only after issuing a prior Notice to the other party and such an Application shall be
accompanied by an affidavit from the Applicant endorsing compliance with this requirement.”

14. Section 43- (a) sub-section (3) shall be omitted; (b) after sub-section (4), the following sub-section shall be
inserted, namely:—
“(5) In computing the time specified in the Limitation Bill, 1963 for the commencement of proceedings in relation to
any dispute, the period between the commencement of the 97 arbitration and the date of the orders mentioned below,
shall be excluded, namely:—

(a) an order of the arbitral tribunal accepting a plea referred to in sub-section (2) or sub-section (3) of section 16;
(b) an order under clause (a) of sub-section (2) of section 37 by the Court affirming an order under clause (a) or an
order of the Supreme Court on further appeal, if any, affirming the last mentioned order;
(c) an order declaring an arbitration agreement as null and void or inoperative or incapable of being performed or as
not in existence, passed by — (i) the High Court under sub-section (13) of section 11 in the case of an arbitration,
other than an international arbitration (whether commercial or not) or by the Supreme Court on further appeal; (ii) the
Supreme Court under sub-section (13) of section 11 in the case of international arbitration (whether commercial or
not).”

15. After section 43 of the principal Act, the following sections shall be inserted, namely:—
(1) The arbitral proceedings on the commencement of the Arbitration and Conciliation (Amendment) Bill, 2023
before an arbitral tribunal —
(a) if such proceedings are pending for more than three years from the date of commencement of such proceedings,
shall be completed within a further period of six months from the commencement of the Arbitration and Conciliation
(Amendment) Bill, 2023 or within such extended period specified in sub-sections (2) and (3); (b) if such proceedings
have not been pending for three years from the date of commencement of the proceedings, the proceedings shall be
completed within a further period of one year reckoned from the date of expiry of three years of the commencement
of the arbitral proceedings or within such extended period specified in sub-sections (2) and (3).

(2) If the award is not made within the further period of six months or one year, as the case may be, specified in sub-
section (1), the arbitral proceedings shall, subject to the provisions of sub-section (3), stand suspended until an
application for extension of time is made to the Court by any party to the arbitration or where none of the parties has
made an application as aforesaid until such application is made by the arbitral tribunal.

(3) The provisions of sub-sections (4) to (8) of section 29A shall, so far as may be, apply for the disposal of
application referred to in sub-section (2), with a view to speed up the arbitral proceedings, till the award is passed.

(1) The provisions of sections 6, 23 and 24 shall, so far as may be, apply to arbitral proceedings under the Arbitration
Act, 1996, on the commencement of the Arbitration and Conciliation (Amendment) Bill, 2023 and shall override any
provisions of the Arbitration Act, 1996 which are inconsistent with the said sections.

(2) In the case of non-compliance with any order passed by the sole arbitrator or arbitrators under the provisions of
the Arbitration Act, 1996 or of orders passed under sub-section (1), the sole arbitrator or arbitrators, as the case may
be, appointed under the Arbitration Act, 1996 may pass orders under section 24A.

16. Amendment to section (4) Where arbitral proceedings are pending on the commencement of the Arbitration and
Conciliation (Amendment) Bill, 2023, before the sole arbitrator or arbitrators appointed under the Arbitration Act,
1996, the proceedings shall be completed within a further period of six months from such commencement or within
such extended period specified in sub-sections (5) and (6): Provided that where the arbitral proceedings are stayed by
order of a Court, the period during which the proceedings are so stayed shall be excluded while computing the said
period of one year.
(5) If the award is not made within the further period specified in sub-section (4), the arbitral proceedings shall,
subject to the provisions of sub-section (6), stand suspended until an application for extension of time is made by any
party to the arbitration to the Court referred to in sub-section (3), by any party to the arbitration, or where none of the
parties has made an application as aforesaid, until such an application is made by the sole arbitrator or arbitrators, as
the case may be.

INSERTION OF NEW CHAPTER - CHAPTER IX A

ARBITRATION DIVISION, JURISDICTION AND SPECIAL PROCEDURE

37A. (1) Every High Court shall, under Arbitration and Conciliation (Amendment) Bill, 2023, constitute an
Arbitration Division within the High Court.
(2) The Judges of the Arbitration Division shall be such of the Judges of the High Court as the Chief Justice of that
High Court may, from time to time, nominate.
(3) Without prejudice to the provisions of section 37F, the Arbitration Division shall consist of one or more Division
Benches of the High Court, as may be constituted by the Chief Justice of the High Court and such Bench or Benches
shall dispose of every application, appeal or proceeding allocated to it.
(4) Every application under sections 34, 34A and 36 shall, on and from the commencement of the Arbitration and
Conciliation (Amendment) Bill, 2023, irrespective of the value of the subject-matter, be filed in the High Court
having
original jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the
subject-matter of a suit on its original civil jurisdiction and in other cases, in the High Court having jurisdiction to
hear appeals from decrees of Courts subordinate to such High Court and the said applications shall thereafter be
allocated to the Arbitration Division of that High Court for disposal.
(5) Any appeal under the Arbitration Act, 1996 and any proceeding for execution of a decree based on an arbitral
award under that Act shall, notwithstanding anything contained in that Act, irrespective of the value of the subject-
matter, be filed, on and from the commencement of the Arbitration and Conciliation (Amendment) Bill, 2023 in the
High Court referred to in sub-section (4) and shall thereafter be allocated to the Arbitration Division of that High
Court, for disposal in accordance with the provisions of the Arbitration Act, 1996.

37B. (1) Any application filed and pending in any Court subordinate to the High Court immediately before the
commencement of the Arbitration and Conciliation (Amendment) Bill, 2023 shall, stand transferred to the High Court
having jurisdiction over such subordinate Courts and shall thereafter be allocated to the Arbitration Division of that
High Court for disposal.
(2) Any filed immediately before the commencement of the Arbitration and Conciliation (Amendment) Bill, 2023 and
pending in the High Court shall, on and from such commencement, be allocated to the Arbitration Division of that
High Court for disposal
(3) Any appeal or proceeding referred to in sub-section (5) of section 37A pending in any Court subordinate to the
High Court shall, on the commencement of the Arbitration and Conciliation (Amendment) Bill, 2023, stand
transferred to the High Court having jurisdiction over such subordinate Court and shall thereafter be allocated to the
Arbitration Division of that High Court for disposal in accordance with the provisions of the Arbitration Act, 1996.
(4) Any appeal or proceeding referred to in sub-section (5) of section 37A, pending in the High Court shall, on the
commencement of the Arbitration and Conciliation (Amendment) Bill, 2023, be allocated to the Arbitration Division
of that High Court for disposal in accordance with the provisions of the Arbitration Act, 1996.
37C. (1) The Arbitration Division, while dealing with an application under sub-section (1) of section 34, or any
appeal referred to in sub-section (5) of section 37A, filed on and from the commencement of the Arbitration and
Conciliation (Amendment) Bill, 2023, may, if it thinks fit so to do, and after fixing a date for hearing the applicant or
his counsel and hearing him accordingly if he appears on that day, dismiss the application or appeal, as the case may
be, without giving notice to the respondent, for reasons in brief to be recorded in writing, if there are no merits in
the application or appeal. (2) No award passed by the arbitral tribunal shall be set aside, on an application under
sub-section (1) of section 34 or an appeal filed under sub-section (5) of section 37A unless substantial prejudice is
shown.
(3) The provisions of sub-sections (1) and (2) shall also apply to applications under sub-section (1) of section 34, any
appeal under section 37 or any appeal referred to in sub-section (5) of section 37A, pending on the commencement of
the Arbitration and Conciliation (Amendment) Bill, 2023, if no notice has been issued
by the Court before such commencement.
37D. (1) Every application referred to in sub-section (1) of section 34 or section 36 shall be
disposed of by the Arbitration Division within one year from the date of service of
notice on the opposite party: Provided that in case the Arbitration Division adjourns the proceedings under subsection
(5) of section 34, the period of one year shall be reckoned from the date of receipt of the order from the arbitral
tribunal under that sub-section.
(2) Every appeal or proceeding for execution of decrees referred to in sub-section (5) of section 37A shall be disposed
of within one year from the date of service of notice on the opposite party. (3) Every application, appeal or
proceeding referred to in sub-sections (1) to (4) of section 37B, pending on the commencement of the Arbitration and
Conciliation
(Amendment) Bill, 2023, shall be disposed of within a period of six months from the date of service of notice on the
opposite party or from such commencement, whichever is later.

37E. (1) The applicants or appellants in matters referred to in sub-sections (1) and (2) of section 37D shall, within
sixty days from the date of service of notice on the opposite party, file paper books containing relevant documents
including copies of oral evidence recorded , if any, and the opposite party shall likewise file a paper book within sixty
days from the date of service of notice on such party.

(2) The applicants or appellants, in matters referred to in sub-section (3) of section 37D, and the opposite parties shall
file paper books within sixty days from the date of service of notice on such parties or from the commencement of the
Arbitration and Conciliation (Amendment) Bill, 2023, whichever is later.
(3) Within thirty days from the date of filing of the paper books, all parties to the proceedings shall file brief written
submissions after exchanging copies of the same. 4) Where any party fails to comply with the time limits referred to
in sub-sections (1) to (3), the Arbitration Division may, if reasonable cause is shown, extend the time
for a further period not exceeding thirty days, subject, however, to such order as to costs as it may deem fit.
(5) In all matters coming up before the Arbitration Division, time limit for arguments shall be fixed by the Arbitration
Division in advance at the case management conference referred to in sub-section (2) of section 37F.

37F. (1) Save, where conditional orders are passed which may lead to disposal of the matter for default or ex parte, a
single Judge sitting in the Arbitration Division shall deal with the fixation of time schedules and dates for the
purposes of section 37E.2) For the purposes of sub-section (1), case management conferences may be held by the
Judge referred to in that sub-section.
 RAJYA SABHA

A
BILL
To amend the Arbitration and Concilliation Act, 1996

(Shri Arjun Ram Meghwal, Minister of Law and Justice)

(13-09-2023)