New Delhi, Dec 3: A bill aimed at amending a law on arbitration for speedy settlement of high value business disputes was introduced in the Lok Sabha today amid questions raised by Trinamool Congress members over some of its clauses.
The Arbitration and Reconciliation Bill, 2015 seeks to replace an ordinance promulgated in October.
As soon as Law Minister D V Sadananda Gowda introduced the Bill, Saugata Roy (TMC) opposed its introduction saying certain clauses relating to jurisdiction of courts in helping settle commercial disputes will create “two classes” in the country.
His party colleague Kalyan Banerjee also pointed out that original jurisdiction lies only with the High Courts of Calcutta, Madras and Bombay which were created before India became independent.
Gowda said though the amendment bill is clear and there is “no confusion” about settling international and other arbitrations (alternative dispute resolution mechanism), the issues raised by the members can be discussed when bill comes up for consideration and passage.
For speedy settlement of commercial disputes, the Cabinet had in August cleared the bill to amend the Arbitration Act to fix a timeline for arbitrators to resolve cases. The bill was not introduced in Parliament.
Under the proposed amendments to the Arbitration and Conciliation Act, 1996, an arbitrator will have to settle a case within 18 months.
However, after the completion of 12 months, certain restrictions will be put in place to ensure that the arbitration case does not linger on.
The Cabinet had in December last year given a nod to an ordinance to amend the Arbitration Act but it was never sent to the President for approval.
The amendments to the law come amid keenness of the government to attract the greater foreign investment. Certain foreign companies were said to be hesitant to do business in India because of the long-drawn litigation.
