'India Cannot Become Hub Of Arbitration If You Go On Like This' : Justice Nariman Tells Centre On Sec 87 Of Arbitration Act
5 years, 5 months ago

'India Cannot Become Hub Of Arbitration If You Go On Like This' : Justice Nariman Tells Centre On Sec 87 Of Arbitration Act

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While hearing a petition challenging constitutionality of Section 87 inserted in the Arbitration and Conciliation Act by the 2019 amendment, Supreme Court judge Justice R F Nariman expressed his criticism about the provision. "You have put the clock back", the judge told Solicitor General Tushar Mehta about the Section which nullified the effect of 2018 SC judgment deciding the prospective application of automatic stay provision in the Act. The bench comprising Justices Nariman and Navin Sinha held in Kochi Cricket Pvt Ltd case that the 2015 amendment to Section 36 will apply only to: arbitral proceedings commenced on or after October 23, 2015 ; and arbitration-related court proceedings filed on or after October 23, 2015, even where the arbitral proceedings had been commenced before the amendments came into force. The immediate effect of the proposed Section 87 would be to put all the important amendments made by the Amendment Act on a back-burner, such as the important amendments made to Sections 28 and 34 in particular, which, as has been stated by the Statement of Objects and Reasons, ".have resulted in delay of disposal of arbitration proceedings and increase in interference of courts in arbitration matters, which tend to defeat the object of the Act", and will now not be applicable to Section 34 petitions filed after 23rd October,2015, but will be applicable to Section 34 petitions filed in cases where arbitration proceedings have themselves commenced only after 23rd October, 2015.

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