Section 29A of Arbitration and Conciliation Act, 1996

Section 29A of Arbitration and Conciliation Act, 1996

Section 29A.   Time limit for arbitral award. 1[29A.Time limit for arbitral award.

2[(1) The award in matters other than international commercial arbitration shall be made by the arbitral tribunal within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23:
Provided that the award in the matter of international commercial arbitration may be made as expeditiously as possible and endeavor may be made to dispose of the matter within a period of twelve months from the date of completion of pleadings under sub-section (4) of section 23.]
(2) If the award is made within a period of six months from the date the arbitral tribunal enters upon the reference, the arbitral tribunal shall be entitled to receive such amount of additional fees as the parties may agree.
(3) The parties may, by consent, extend the period specified in sub-section (1) for making award for a further period not exceeding six months.
(4) If the award is not made within the period specified in sub-section (1) or the extended period specified under sub-section (3), the mandate of the arbitrator(s) shall terminate unless the Court has, either prior to or after the expiry of the period so specified, extended the period:
Provided that while extending the period under this sub-section, if the Court finds that the proceedings have been delayed for the reasons attributable to the arbitral tribunal, then, it may order reduction of fees of arbitrator(s) by not exceeding five per cent. for each month of such delay.
3[Provided further that where an application under sub-section (5) is pending, the mandate of the arbitrator shall continue till the disposal of the said application:
Provided also that the arbitrator shall be given an opportunity of being heard before the fees is reduced.]
(5) The extension of period referred to in sub-section (4) may be on the application of any of the parties and may be granted only for sufficient cause and on such terms and conditions as may be imposed by the Court.
(6) While extending the period referred to in sub-section (4), it shall be open to the Court to substitute one or all of the arbitrators and if one or all of the arbitrators are substituted, the arbitral proceedings shall continue from the stage already reached and on the basis of the evidence and material already on record, and the arbitrator(s) appointed under this section shall be deemed to have received the said evidence and material.
(7) In the event of arbitrator(s) being appointed under this section, the arbitral tribunal thus reconstituted shall be deemed to be in continuation of the previously appointed arbitral tribunal.
(8) It shall be open to the Court to impose actual or exemplary costs upon any of the parties under this section.
(9) An application filed under sub-section (5) shall be disposed of by the Court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party.
STATE AMENDMENTS
Jammu and Kashmir and Ladakh (UTs).–
Amendment of sections 29A.– (a) for sub-section (1), the following sub-section shall be substituted, namely:–
“(1) The award shall be made within a period of twelve months from the date the arbitral tribunal enters upon the reference.
Explanation.–For the purposes of this sub-section, an arbitral tribunal shall be deemed to have entered upon the reference on the date on which the arbitrator or all the arbitrators, as the case may be, have received notice, in writing, of their appointment.”;
(b) in sub-section (4), omit second and third provisos.
[Vide the Jammu and Kashmir Reorganization (Adaptation of Central Laws) Order, 2020, notification No. S.O. 1123(E) dated (18-3-2020) and Vide Union Territory of Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated (23-10-2020).]
1. Ins. by Act 3 of 2016, s. 15 (w.e.f. 23-10-2015).
2. Subs. by Act 33 of 2019, s. 6, for sub-section (1) (w.e.f. 30-8-2019).
3. Ins. by s. 6, ibid. (w.e.f. 30-8-2019).

Section 29A of Arbitration and Conciliation Act, 1996 Explained

Section 29A of the Arbitration and Conciliation Act, 1996, introduced in 2015, deals with the time limit for arbitral awards. Here’s a summary of its key points:

1. Time Limit:

  • The default time limit for the arbitral tribunal to make an award is 12 months from the date it starts considering the case.

2. Extension:

  • Parties involved in the arbitration can agree to extend the time limit before the initial 12 months are up.
  • After the initial 12 months, the court can extend the time limit upon application from either party, provided sufficient reasons are given.

3. Additional Fees:

  • If the award is made within the initial 12 months, the tribunal is entitled to receive an additional fee if the parties agree to it.

4. Costs:

  • The court has the power to impose actual or exemplary costs on any party involved in the arbitration proceedings under this section.

5. Expedited Application:

  • Applications to the court for extending the time limit or challenging the award should be disposed of expeditiously, aiming for a decision within 60 days of serving notice to the opposing party.

Overall, Section 29A aims to expedite arbitration proceedings by setting a time limit for the award while allowing flexibility for justified extensions.

It’s important to note that this is a simplified explanation of a complex legal provision. If you’re involved in an arbitration, consulting with a legal professional for specific guidance on Section 29A and its implications in your situation is highly recommended.

Section 29 of Arbitration and Conciliation Act, 1996

Section 29. Decision making by panel of arbitrators.

(1) Unless otherwise agreed by the parties, in arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal shall be made by a majority of all its members.

(2) Notwithstanding sub-section (1), if authorised by the parties or all the members of the arbitral tribunal, questions of procedure may be decided by the presiding arbitrator.

Section 29 of Arbitration and Conciliation Act, 1996 Explained

Section 29 of the Arbitration and Conciliation Act, 1996 deals with decision-making by a panel of arbitrators in an arbitration proceeding. Here’s a breakdown of the key points:

  • Default Rule: Unless the parties involved in the arbitration have a different agreement, this section applies.
  • Decision Making: It states that in arbitrations with more than one arbitrator, any decision made by the arbitral tribunal (the panel of arbitrators) must be by a majority of all its members.

In simpler terms, for a group of arbitrators to reach a decision, more than half of them need to agree on the same outcome. This ensures that no single arbitrator can unilaterally decide the case.

It’s important to remember that Section 29 is just one aspect of the broader legal framework governing arbitration in India. If you’re involved in an arbitration, it’s crucial to consult with a legal professional for comprehensive guidance and understanding of your specific situation.

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