SC: Sec 36 of Arbitration Amendment Act,2015 will apply to the pending Sec 34 Applications as on date of commencement of Amendment Act

March 15,2018:

On Thursday, Supreme Court expounded that Section 36, of Arbitration & Conciliation (Amendment) Act,2015 as substituted, would apply even to the pending Section 34 applications on date of commencement of the Amendment Act.

Apex Court Bench comprising of Justice R.F. Nariman and Justice Navin Sinha was dealing with the question that, Whether Section 36 of the Amended Arbitration Act would apply even when Section 34 was filed.

SC Bench expounded that since execution of a decree pertains to realm of procedure, and that there is no substantive vested right in a judgment debtor to resist the execution, Section 36, as substituted, would apply even to the pending Section 34 applications on date of commencement of the Amendment Act.

Bench further stated that on a reading of Section 26 of Arbitration Act it becomes clear that the provision is indeed in two parts. The first part refers to the Amendment Act not applying to certain proceedings, whereas the second part affirmatively applies the Amendment Act to certain proceedings.

Apex Court stated that,"The scheme of Section 26 is thus clear: that the Amendment Act is prospective in nature, and will apply to those arbitral proceedings that are commenced, as understood by Section 21 of the principal Act, on or after the Amendment Act, and to Court proceedings which have commenced on or after the Amendment Act came into force.”

SC Bench while taking into consideration Arbitration Amendment Bill, 2018 stated that," If such bill is passed it would be contrary to the objective of the Arbitration Act and thus directed a copy of the judgment to be sent to Ministry of Law and Justice and the Learned Attorney General for India".

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