Section 29A Of The A&C Act Applies Prospectively Does Not Apply To Arbitration That Commenced Before The 2015 Amendment: Bombay High Court
Live LawThe High Court of Bombay has held that Section 29A of the A&C Act that provides a timeline of 12 months for passing an arbitral award would not apply to arbitration that commenced before the 2015 Amendment to the Act. Kulkarni held that provisions of Section 29A of the A&C Act, which was incorporated into the principal act via the 2015 Amendment Act, would not apply to an arbitration proceeding commenced on 3rd Feb 2015 as in terms of Section 26 of the 2015 Amendment Act, the amendment came in to force on 23rd October 2015. Analysis by the Court The Court held that in terms of Section 21 of the A&C Act the arbitration between the parties commenced on 3rd February 2015 when the notice of arbitration was issued by the petitioner, however, Section 29A of the A&C Act which was incorporated by the 2015 Amendment Act would only apply to arbitration proceedings that commenced on or after 23rd October 2015, therefore, the petitioner cannot rely on the provisions of this section to challenge the award. The Court further observed that petitioner cannot place reliance on provisions of Income Tax Act, Bombay Shops and Establishment Act and Payment of Wages Act as no such plea was taken by the petitioner in its statement of claim before the arbitrator.