February 6: The government has introduced the Bill in Lok Sabha to amend the arbitration law, saying it will ensure that all stakeholders get an opportunity to seek unconditional stay on enforcement of arbitral awards where the agreement or contract is “induced by fraud or corruption”. The bill intends to replace an ordinance
issued on November 4, 2020.
Among other things, the bill, which amends the Arbitration and Conciliation Act, 1996, seeks to do away with the 8th Schedule of the Act which contained the necessary qualifications for accreditation of arbitrators. The qualifications for accreditation of arbitrators are proposed to be prescribed by regulations to be framed by an arbitration council that is to be set up.
Till recently, an arbitration award was enforceable even if an appeal was filed against it in the court under Section 36 of the law. But the court could grant a stay on the award on conditions as it deemed fit.
As per the proposed amendment, if the award is being given on the basis of an agreement based on fraud or corruption, then the court will not impose a condition to stay the award and grant an unconditional stay during the pendency of the appeal if it has been challenged under Section 34 of the arbitration law.

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