'Don't know why this amendment has been made?': Justice R F Nariman states 8th Schedule of Arbitration Act contrary to ethos of International Arbitration

16 Sep 2019

Categories: Latest News Arbitration

On Saturday, while expressing his views on the Arbitration and Conciliation (Amendment) Act, 2019, Justice Rohinton Nariman pointed out that the newly inserted 8th Schedule is contrary to the ethos of International Arbitration and Section 11(9) of the Arbitration Act.

He said after a detailed study of the schedule it was clear to him that the person appointed had to be an Indian national.

“This is one very major lacuna if you are going to attract persons to this country so that we then be an international hub, it is very difficult then to have an arbitration council, which then accredits institutions and arbitrators, and then picks up people who are only Indian Nationals.” “The problem is that you have many loopholes like this in the amendment. This is one of the glaring ones.," he said.

The insight came out when Justice Nariman was speaking at the 3rd ICC India Arbitration Day on last Saturday in New Delhi.

Proceeding to comment on the constitution of the Arbitral Council under the Act, Justice Nariman said,

“I don’t know why two secretaries from the Government are interposed in the Council. Wholly unnecessary but it has been done.”

Speaking on the new timeline for arbitration in India, that grants an additional 06 months to the parties to complete the proceedings, he said:

“Somehow an additional six months have been gratuitously given in this amendment Act..I don’t know why.. For a statement of claim and defence to be filed ..you don’t require six months for that. This again, somehow or the other, is retrogressive. Old law was correct. Somehow or the other you have added six months to the period of one year unnecessarily.”

He did praise the Arbitral Council for placing importance domestic and international arbitration and termed it as "a step in the right direction".

“What will really give flesh to this step is a recommendation of the Srikrishna Committee..this is an extremely important recommendation which can only come into existence after this Council is set up and this Council will take some time.. Justice Srikrishna Committee said that a Standing Committee may be constituted under the aegis of APCI to review development in arbitration law and practice..”, he said.

Along with him, Abhinav Bhushan, Director, South Asia, ICC Arbitration & ADR also voiced his opinion and said,

"Indian arbitration is, at crossroads; and it is important now that we think about how we frame the conversations and questions about arbitration in India. The ICC International Court of Arbitration is committed to see the growth of arbitration in India and welcome, ICC Arbitrations seated in India, with Indian laws governing the contract and disputes adjudicated with Indian arbitrators."

Tags : Arbitration International Arbitration Arbitration and Conciliation Act Justice R F Nariman

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