With the motto to create a litigation free society National Arbitral Tribunal have started awareness program -

Kanooni Suchna Abhiyan 

 NAT - Panch Faisla

one law to solve all your civil legal disputes is being empowered by new amendments

Proposed amendments

Significant changes contained in the Ordinance are:

1. Amendment to § 2 (2) extending the applicability of § 9, § 27 and § (37) (1) (a) & (3) contained in Part 1 of the A&C Act to international commercial arbitrations. § 9 deals with interim relief granted by the courts and § 27 deals with court assistance to a tribunal for taking evidence. The Ordinance by clarifying what provisions in Part 1 of the A&C Act, apply to international commercial arbitrations, in effect makes it clear that other provisions of Part 1 of the A&C are not applicable to international commercial arbitration, thereby codifying the Supreme Court decision in Balco v Kaiser Aluminium (2012) 9 SCC 552.
2. Amendment to § 8 which allows even non-signatories to an arbitration agreement to be joined as parties in a domestic arbitration. The amendment effectively negates the decision of the Supreme Court inSukanya Holdings v Jayesh H Panda 2003 (5) SCC 531, where it had ruled that joinder of non-signatories to an arbitration agreement was not permissible.
3. Further amendment to § 8 requires that the judicial authority compulsorily refer parties to arbitration irrespective of any decision by the Supreme Court or any other court, if the judicial authority finds that a valid arbitration clause exists. The amendment essentially nullifies the judgment of the Supreme Court inN. Radhakrishnan v Maestro Engineers 2010 1 SCC 72, where it had ruled that serious allegations of fraud are not arbitrable. The amendment will also have implications for the Supreme Court's decision inBooz Allen Hamilton v SBI Home finance (2011) 5 SCC 53 wherein it had listed disputes that were not arbitrable.
4. § 9 of the Act is amended to restrain the courts from entertaining an Application for interim relief once arbitration has commenced. The Court is empowered to entertain such an application only if it is convinced that the arbitration tribunal will be unable to provide effective relief.  
5. The Ordinance requires the appointment of an arbitrator by the courts to be completed expeditiously, preferably within a period of sixty (60) days. Further the scope of the Courts power under § 11 has been restricted to examining the validity of the arbitration clause alone and no further. This is irrespective of any decision of the Supreme Court or any other court.
6. The Ordinance amends § 12 to include an obligation requiring a potential arbitrator to make an express disclosure on conflicts. The courts at the time of appointing an arbitrator are also empowered to demand a full disclosure on conflicts.  Schedule 5 & 7 to the Ordinance contains an exhaustive list of grounds which will assist in determining all issues of conflict. Parties however are empowered to waive any objections of conflict by consent.
7. The Ordinance introduces a comprehensive fee structure for arbitrators. The High Courts are empowered to frame necessary rules in this regard keeping in mind Schedule 4 to the Ordinance, which contains a model fee structure. Fees range from Rs 45,000 to Rs 19,87,500 depending upon the quantum of the dispute. This does not apply to international commercial arbitrations and institutional arbitrations.
8. § 17 of the A&C Act has been amended to ensure that interim relief including that of injunction granted by an arbitrator will be effective and enforceable as an order of the court.
9. The Ordinance provides for time bound arbitrations. A tribunal is obligated to deliver the final award within a period of twelve (12) months. This period can be extended by the consent of parties for an additional six (6) months. Any further extensions will require court consent. The courts on being approached for an extension are empowered to reduce the fee payable to an arbitrator by up to 5% for each month of delay and can also substitute one or all the arbitrators.
10. A provision for fast track settlement of disputes is also provided, which requires the tribunal to make its award within a period of six (6) months. To incentivize quick adjudication, in cases where the tribunal decides a matter within a period of 6 months the Ordinance provides for an additional fee payable to the tribunal by the consent of the parties.
11. The Ordinance through § 31 A also introduces an expansive cost regime. Costs are not compulsory and are at the discretion of the tribunal. The new provision lays down various factors to be considered by the tribunal at the time of determining the quantum of costs these include the result of the case and the conduct of parties.
12. To ensure court restraint in setting aside domestic awards, the Ordinance restricts the meaning of public policy under the A&C Act.  The scope of public policy is to be limited to instances where:

1. making of an award was induced by fraud or corruption or;
2. where an award is in conflict with the fundamental policy of Indian Law or;
3. an award is in conflict with the most basic notions of morality or justice.

The amendment will neutralize judgments such as ONGC v Saw Pipes (2003) 5 SCC 705 and DDA v R.S. Sharma (2008) 3 SCC 80, which had expanded the scope of Indian public policy under the A&C Act. Similar amendments have also been introduced in § 48 and § 57 making the test of public policy a uniform one for domestic and international awards.

13. § 34 of the A&C Act has been further amended to ensure that a challenge to the award is disposed of by the courts within a period of one (1) year.
14. In National Aluminium Co. Ltd v Pressteel & Fabrications, (2004) 1 SCC 540 the Supreme Court had ruled that pending a § 34 challenge, there is an automatic stay on the operation of an arbitration award. The Ordinance amends § 36 to permit operation of an award pending challenge. The court under § 36(3) is empowered to stay the operation of the award on such terms and conditions as it deems fit. This could include taking a money deposit from the losing party.

SCOPE FOR CA’s IN ARBITRATION PROCEEDINGS 

Chartered accountants refer to skilled persons who can easily resolve company’s financial issues. Proficient chartered accountants aid in building a long lasting relationship with the clients of the company. Chartered accountancy is a profession that requires its members to continuously do better. To achieve this, CA's need to learn more, do more and adapt to changes around them. Regarding this we are providing a new edge to this profession to provide their services to a New Era of Legal Services i.e. Arbitration.

Professional accountants are crucial business advisors, helping protect the interests of stakeholders in every industry. Mainly these are the following function where chartered accountant can exercise their expertise:-

(1) Guidance in the process of undertaking settlement of Disputes at arbitral tribunal.

(2) To act as an expert/arbitrator for commercial disputes.

(3) Guidance to draft commercial trade agreements in consonance with the rules of arbitration.

(4) Guidance to draft a proper arbitration agreement considering the arbitration rules promulgated by arbitral tribunal

National Arbitral Tribunal offers a legally recognized form for settling disputes within 120 days and its awards(decision) are enforceable under Code of Civil Procedure Act,1908 in the same manner as if it were a decree of the Court. For that we have a panel of renowned arbitrators which includes the Former Judges Of Supreme Court, High Court and District Court.

NAT is arbitration centre to be established in Jodhpur to resort all commercial disputes. In order to release true and fair services, we will take help of knowledge and expertise of the professional like you as you are exposed to various commercial organisations.

Hence NAT is inviting you to join the Panel of Arbitrator of this institution & explore your knowledge.

We will be very thankful if you visit to know more about us. Please browse our website www.natindia.in for more information and email us at querry.nat@gmail.com  with your questions.

Knowledge makes difference- know more about arbitration

MYTHS & FACTS ABOUT ARBITRATION

“Pictures get blurred when we view from far they get clear only whn we go near.”

There are total 1075 {approx} acts in India out of these around 800 acts cases can be solved here, leaving cases of criminal acts and defence. Apart from this the parties approaching the tribunal even have the right to choose their arbitrator for case, the dates of proceeding and get their dispute resolved within 3 months. Even the party themselves can represent their case. The parties can maintain privacy of their cases.

Myths About Arbitration

Arbitration is assumed to be expensive law, with less relevance, as the parties approaching have freedom and meant only for certain class people.

Clearing The Myths

The reality is picture are blurred , knowledge makes difference, people are not aware about the act

• It’s not expensive law, actually  its less expensive than other proceedings in terms of cost, and time involved.
• Its not meant only for particular class people any one can use the tribunals to get their disputes resolved.
• It is not less effective, the judgement passed by the tribunal have same decree as those passed by other courts.
• The award are passed by former judges, so one cannot doubt on effectiveness of the judgement given.
• Disputes are resolved in less time as the act narrow down the scope for appealing which saves time and parties don’t have to wait for years for getting their dispute resolved.

Its act in which proceedings are flexible as per parties wish but have same strength, we can only take benefits from the act only when we have knowledge about it. Clear your doubts, take a step, save your time and enjoy the freedom of getting your dispute resolved in less time.

To know more contact Kanooni Suchna Kendra you can even mails us your queries.

Competence Of Arbitral Tribunal

We all have a blur image about who will decide on the competency of arbitrator on cases. Generally when cases come to arbitrator or arbitration institute the defense mainly raises the question on the competency of the arbitrator in deciding the matter. Section 16 of the Arbitration & Conciliation Act 1996 gives us answer for these most raised question. Arbitrator themselves have the right to decide on jurisdiction of the case.

Section 16 of Arbitration & Conciliation Act 1996 states that

• If parties even have arbitration clause in any agreement it would be treated as independent agreement and empowers tribunal to decide on it
• Even if any agreement is found to be null and void than also the arbitration clause in the agreement would be treated as valid agreement.
• Party can’t appeal on the jurisdiction of the tribunal after submitting the statement of defense at the same time we can’t Barr the party from raising such appeal as he had participated in the appointment of arbitrator or arbitration institute.
•   It’s only the arbitral tribunal which will decide whether they hold the jurisdiction to dispute or not in the case if any case comes to them for judgment.

 The main aim of arbitration & conciliation act 1996 was to provide hassle free litigation process, less ground for appealing. Section 16 is one of the section which empower it

3 Steps To Get Your Dispute Resolved At National Arbitral Tribunal

National Arbitral Tribunal is the place to get our dispute resolved in fast way. It’s just a 3 step process and parties get their dispute resolved within 4 months. Following process tell us how the case are being entertained in the arbitration tribunal

 1.Agreement – By Arbitration agreement National Arbitral Institute gets authority to commence an arbitration proceeding. There can be two cases:-  

                        

i). Future Dispute-  Parties can mention in the agreement through a clause or made a separate agreement that if they have any dispute they will refer to National Arbitral Tribunal. 

ii). Existing Agreement- Parties can come through mutual consent come to tribunal by making an agreement that they want their dispute to be resolved through National Arbitral Tribunal 

Even when the case is being going in any court, any of the party involved can file a application that they want to resolve their case through arbitration institute than the court will have to refer the case to arbitration institute. 

2. Proceeding- Once the case come to arbitration institute then commences the arbitration proceeding the claimant submits its statement of claim and respondent is given time to submit statement of defence. Each party is being given equal & reasonable opportunity to present their case. It’s a flexible process as the parties can demand time and date according to their preference. Even the parties involved can select the language in which they want to conduct their proceedings. The parties can themselves represent their cases or can appoint a lawyer or someone as arbitration lawyer to represent their case

3.Judgement/ Award- Final step is judgement or award by the arbitrator on the basis of claims and defense by the parties .The award are given in same manner as given by any civil court and are enforceable in the same way. Award is binding upon both parties. The best part of judgement given by arbitration tribunal is there is narrow scope of appealing against judgment/ award passed by arbitrator

       The main motto behind setting arbitration institute is to make proceeding fast, economic, confidential, flexible, the parties are given full opportunity to represent themselves in any language they want and the judgement passed are by the former judges of the court. We can conclude that it’s a law with many benefits. The only drawback with this law is unawareness among the masses, most have blurred picture of arbitration in their mind and we are not able to take advantage of arbitration institute.

CA Can Also Act As Arbitration Lawyer

To speed up the economic activities in India and settle industrial dispute in less time so that it does not affect the business of parties involved have given rise to arbitration & conciliation act 1996.

Prior to it, in solving the commercial cases through arbitration, court intervention was required at all the three stages prior reference of dispute to arbitral tribunal, during the proceeding, after the award passed by tribunal, rather than making judgement quick it used to increase the proceeding.

To overcome all these Arbitration & Conciliation Act 1996 was passed. Essence of the act lies in following:

Ø  It made act more responsive

Ø    Minimize supervisory role of court in arbitral process

Ø   It also provided that every final arbitral tribunal award is enforced in same manner as if it were decree of court.

Ø  Narrow down the scope of appealing/challenging the award.

New act also opened the gate for professional like ca , cs to act as arbitration lawyer and help their companies to get speedy judgement. CA / CS hold key position in the industries all the agreements or contracts the company makes seeks their assistance for drafting, verifying the clauses in these documents.

To avoid long litigation process in case of breach of contract, taking property on lease, recovery of payment, patent, copyright or any other civil matter, parties can mention arbitration clause at the time of agreement, that if any party don’t perform their role than the matter will subject to arbitration institute to resolve the matter.

Advantages of resolving dispute through arbitration institute are its relatively simple, economic, quick judgement & even privacy can be maintained. These institute work on the rules laid down by them and judgements are given by former judges.

The only drawback of these arbitration institute’s is that people are not aware about it and have doubts in their mind about the cost involved and validity of judgement but the reality is parties have the idea of cost involved in the case the day they approach and the awards given by such institute are enforceable in the same manner as those given by any civil court.

CA and other professionals can use this  alternative dispute resolution method to help their companies in easy going of their business and protect themselves from all disputes and waste of their resources 

Know more about NAT

What is Arbitration?

Arbitration is alternative dispute resolution method which allow all class people easy access to justice and allow to reduce misunderstanding among themselves & explore new areas of resolution

What is NAT & Under which act does NAT work?

National Arbitral Tribunal is established under section 2(1)(A) & 2(1)(D) of Arbitration And Conciliation Act 1996 as a Permanent Arbitration institute to provide easy access to justice to all.

Mission of establishing NAT

To make litigation free society through speedy redressal to the dispute.

Who give judgement at NAT?
Arbitrator Panel consist of former High Court Judges and the Award given by the arbitrators has same effect as those passed by any Civil Court 

Are the award given at NAT are valid?

Awards given by arbitration institute have same value as those passed by any other court and judgement are enforceable under code of civil procedure 1908, (5 of 1908) in the same manner as if it were passed by any other court.

In order to promote ADR in India ALL INDIA JUDGE ASSOCIATION  "All the cases will come before court only when efforts fail to dispose them off by ADR Mechanism.

To know more about Arbitration you can join us or send your queries.

Arbitration- A Way To Sukh, Shanti Or Samridhi

There are many laws prevailing in our country but Arbitration is only one law which give us Sukh Samridhi & Shanti. Arbitration is a act which empower itself in many ways.

When we give our property on rent we have a doubt in our mind that we will get it back or not on agreed date and what to do if the tenant is not following the agreed terms mentioned by us. 

Arbitration is simple solution for these problems we can have our agreement through the national arbitral tribunal, and tribunal will pass the settlement award in presence of landlord and tenant and both are aware of the terms and condition. The award passed by tribunal has the same effect as passed by any other civil court.

Hence ensuring sukh that landlord will get his property back, and tenant that he would not be forced on any grounds before the tenure to vacant the land if he will follow all the condition in the contract.

Shanti – if the tenant didn’t vacant your land on the decided time you don’t have to go through the long litigation process the award passed through tribunal is enforceable as those passed in any other court, and vice versa tenant can also use the same award if he is forced to vacant the house before

Samridhi – sukh shanti will leads to samridhi as the parties have good relationand tension free life. Landlord can give his land again on rent as per market rents and simultaneously keep his land safe.

Hence we can say that it is the best way to get our property secured and give on rent. To know more about arbitration you can join us.

Say Bye To Litigation And Join Hands With Arbitration

Disputes are inevitable, they were also there in the era of Mahabharata & Ramayana. Generally the three dispute resolution method  used are violence, avoidance & litigation. Violence leads to loss of life, property & resources. Avoidance kills relation & in litigation there are formalities, long procedures, cost, external involvement, control. Frustration with all these matters give rise to Alternate Dispute Resolution method.

People are unaware about the fact that their is a system which run in parallel to long litigation process known as Arbitration method. Arbitration was introduced with the aim that people get quick judgement & move the matter of civil nature towards arbitration tribunal so that they can get quick and speedy judgement at low cost and in short process.

Still people have confusion in their mind about arbitration about its judgement & due to busy schedule they didn’t even give time to learn about hat actually it is.

In brief arbitration is

Ø  Among first method of Alternative dispute redressal method.

Ø  Award given under arbitral tribunal have same effect as those passed by any other civil court.

Ø  Award are given on the matters at the time of agreement, even the matters pending in courts can seek redressal from Arbitral Tribunal

Ø  Judgment given here are by former justice who have expertise in the field and served their tenure of services providing such services

Ø  Arbitration is a forum where people from multi discipline can also work.

Pranab Mukherjee, President Of India has truly said- “only if alternative dispute resolution becomes an integral part of the Indian justice system will be able to truly safeguard the welfare of the common man in India.”

So  take initiative to learn know, learn and join us to get awareness about arbitration easy access to justice.