The government issued an ordinance to amend the arbitration law to ensure that all stakeholder parties get an opportunity to seek an unconditional stay on enforcement of arbitral awards where the arbitration agreement or contract is “induced by fraud or corruption”.
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Key-Points
The Ordinance aims to ensure that all the stakeholders get an opportunity to seek unconditional stay of enforcement of arbitral awards where the underlying arbitration agreement or contract or making of the arbitral award are induced by fraud or corruption.
An addition has been made to Section 36 whereby if the Court is satisfied that a prima facie case is made out that the arbitration agreement or contract which is the basis of the award was induced or effected by fraud or corruption, it will stay the award unconditionally pending disposal of the challenge made to the award under Section 34.
The ordinance also does away with the 8th Schedule of the Arbitration and Conciliation Act, 1996 which contained the necessary qualifications for accreditation of arbitrators.
