News: President of India has promulgated the Arbitration and Conciliation (Amendment) Ordinance, 2020 to further amend Arbitration and Conciliation Act.
- Aim: To ensure that all the stakeholders get an opportunity to seek unconditional stay of enforcement of arbitral awards where the underlying arbitration agreement or contract is induced by fraud or corruption.
- Amendment to Section 36: If the arbitration award is being given on the basis of an agreement based on fraud or corruption, then the court will not impose a condition to stay the award and grant an unconditional stay during the pendency of the appeal.
- Till now, an arbitration award was enforceable even if an appeal was filed against it in the court.But the court could grant a stay on the award on conditions as it deemed fit.
- Omission of Eighth Schedule: The ordinance has also deleted Eighth Schedule of the Arbitration & Conciliation Act 1996 which enables foreign practitioners to act as arbitrators in India.
- Arbitration: It is a procedure in which the dispute is submitted to an arbitral tribunal which makes a decision on the dispute that is binding on the parties.
- Conciliation: It is a non-binding procedure in which an impartial third party, the conciliator assists the parties to a dispute in reaching a mutually satisfactory agreed settlement of the dispute.