Before the much talked about Ordinance to amend the Arbitration and Conciliation Act could complete a month, questions arose regarding the meaning, scope and applicability of the Ordinance.
The Ordinance was promulgated on 23rd October, 2015. Subsequently, Reliance Industries filed an application with the Supreme Court of India for the appointment of the third arbitrator in the arbitration pending between RIL and the Government of India over the KG Basin.
Appointment of arbitrators: “if …. the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date of their appointment, the appointment shall be made, upon request of a party, by the Supreme Court or, as the case may be, the High Court, or any person or institution designated by such Court.”
Conversely, the erstwhile law provided that the appointment shall be made by the Chief Justice or any person or institution designated by him. Thus, there was confusion on two points:
Furthermore, adding to this confusion is the possibility that the Ordinance may lapse in a few weeks. All an all, not the best situation to promote investor sentiment in the country, which was the aim of the Ordinance to begin with.
Nevertheless, the Supreme Court has now issued clear directions regarding the appointment of an arbitrator as per the Ordinance. Justice Gogoi, before whom the RIL matter was pending has transferred the matter along with 23 other matters relating to the appointment of an arbitrator, to the Chief Justice of India (“CJI”). The CJI will constitute a Bench which will subsequently decide these matters.
Thus, Section 6 of the Ordinance (amending the procedure for the appointment of an arbitrator by the Court) applies to arbitrations which were initiated before the Ordinance was passed.
By : Adv. Niharika Dhall
Skip & continue
In Compliance with Indian Regulations, Kindly Review the User Acknowledgement and Disclaimer below and then Proceed.
By proceeding further and clicking on the "ACCEPT" button herein below, I acknowledge that I of my own accord wish to know more about Law Senate (LS) for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from Law Senate (LS) or any of its members to create an Attorney-Client relationship through this website. I further acknowledge having read and understood the Disclaimer below
This website (www.lawsenate.com) is a resource for informational purposes only and is intended, but not promised or guaranteed, to be correct, complete, and up-to-date. Law Senate (LS) does not warrant that the information contained on this website is accurate or complete, and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
Law Senate (LS) further assumes no liability for the interpretation and/or use of the information contained on this website, nor does it offer a warranty of any kind, either expressed or implied. The owner/Partners of this website do not intend links from this site to other internet websites to be referrals to, endorsements of, or affiliations with the linked entities. Law Senate (LS) is not responsible for, and makes no representations or warranties about, the contents of Web sites to which links may be provided from this Web site.
This website is not intended to be a source of advertising or solicitation and the contents of the website should not be construed as legal advice. The reader should not consider this information to be an invitation for a lawyer-client relationship and should not rely on information provided herein and should always seek the advice of competent counsel licensed to practice in the reader's country/state. Transmission, receipt or use of this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act, or refrain from acting, based upon any or all of the contents of this site.
Furthermore, the owner of this website does not wish to represent anyone desiring representation based solely upon viewing this Web site or in a country/state where this website fails to comply with all laws and ethical rules of that state. Finally, the reader is warned that the use of Internet e-mail for confidential or sensitive information is susceptible to risks of lack of confidentiality associated with sending email over the Internet.