Arbitration: 2019 Amendment To Section 29A Timeline Has Retrospective Effect From 23 October 2015, Holds Delhi HC [Read Judgment]
Infusing clarity on the applicability of the amended Section 29A of the Arbitration and Conciliation Act, 1996,, the Single Judge of the Delhi High Court in the case of ONGC PETRO ADDITIONS LIMITED vs. FERNS CONSTRUCTION CO. INC, pronounced on 21 July 2020, has found that the amendments to Section 29A in 2019, fixing the 12 month time frame from the completion of pleadings and excluding international commercial arbitrations in India from its scope are "retrospectively applicable to arbitration proceedings commenced after 23 October 2015." On this basis, the Petitioner contended that changes brought about in Section 29A vide the Arbitration and Conciliation Act, 2019 will have retrospective effect from 23 October 2015, i.e. The Respondent agreed to the Petitioner's position Issue Since International Commercial Arbitration is excluded from Section 29A of the 2019 Amendment and with the respondent being a foreign party, the question before the Court was if the proceedings before the Arbitral Tribunal is an ICA, then whether the time limit as fixed by the Earlier Order shall be applicable. Rather, it establishes a mechanism for the Arbitral Tribunal to render the award, which determines rights and liabilities in 12 months In view thereof, the Court held that Section 29A shall be "applicable to all pending arbitrations seated in India as on August 30, 2019 and commenced after October 23, 2015".
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