Before tribunal will continue the proceedings without

Before the interim orders of the
tribunal were not enforceable but under the new amendment in section 17, the
Tribunal is now empowered to grant all kinds of interim measures which the
Court is empowered to grant under Section 9, and these orders “shall be
enforceable in the same manner as if it is an order of Court.”

Another important amendment made
is in section 24 which requires the arbitral tribunal to hold hearings everyday
and not to adjourn the hearing unless a sufficient cause is there. The tribunal
can also impose exemplary cost where adjournment has been given without sufficient
cause.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

This new amendment in section 25 empowers the tribunal to
treat respondent’s failure to respond to his statement of defence as forfeiture
of his right to file such statement. However, the tribunal will continue the
proceedings without treating such failure as admission of the allegations made
by the claimant.

In amendment to section 28 which requires the tribunal to
take into account the terms of contract and trade usages applicable to the
transaction. Before the arbitral tribunal was mandated to decide disputes in
accordance with the terms of the contract and to take into account the trade
usages applicable to the transaction. This amendment also seeks to relieve the
arbitrators from strictly adhering to the terms of the contract while deciding
the case. However the arbitrator cannot ignore the terms of the contract.

A new section has been inserted i.e. section 29A and 29B, where
section 29A has imposed a time frame of 12 months on the
Tribunal to make its award, with incentives being prescribed if the award is
rendered in 6 months by the Tribunal. The 12 month time-period can be extended
up to a period of 6 months by the consent of the parties, but after that the time-period
can only be extended by the Court, if there is sufficient cause. The Court is
empowered to reduce the fees of the arbitrators upto 5% if it finds that the
delay was attributable to the arbitrator. Section 29B has been inserted in the
Act to make specific rules regarding fast track procedure for dispute
resolution. If the Parties agree to the same, the awards shall be given in 6
months.

Amendment of
section 31 (7) (b), that unless the award otherwise directs, the sum to be paid
under the award shall carry a rate of interest, 2% higher than the current rate
of interest. A new regime for costs has been provided for in Section 31A of the
Act. In addition, the new Act lays down
detailed parameters for deciding cost, besides providing that an agreement between
the parties, that the whole or part of the cost of arbitration is to be paid by
the party shall be effective only if such an agreement is made after the
dispute in question had arisen. Therefore, a generic clause in the agreement
stating that cost shall be shared by the parties equally, will not inhibit the
tribunal from passing the decision as to costs and making one of the parties to
the proceedings to bear whole or as a part of such cost, as may be decided by
the tribunal.

Amendment of section 34 has been made which has now changed
the law that mere filing of an application for challenging the award would not
lead to an automatic stay on proceedings. This has been a major relief for the
lawyers as the proceedings would get stayed as soon as an award was passed.

Additionally section 36 has also been amended that upon
filing of application for setting aside an award, the execution of the award
would not be stayed automatically under section 34. A specific order has to be
passed by the court for staying of an award.

Amendment to section 37 has been made for filing of an
appeal against an order of judicial authority, refusing to refer
parties to arbitration under Section 8 of the Act.