LS passes bill for stays on arbitral awards ‘tainted by fraud’

New Delhi, Feb 12 : The Lok Sabha on Friday passed a Bill that aims to empower courts to grant unconditional stays on the enforcement of arbitration awards tainted by fraud or corruption.
The Arbitration and Conciliation (Amendment) Bill, 2021 was passed unanimously despite objections raised by the Congress, the Trinamool Congress, the Biju Janata Dal, the Nationalist Congress Party, the Revolutionary Socialist Party (RSP) and other opposition parties, who raised doubts on its intent.
The Bill aims to ensure that all stakeholders get opportunities to seek unconditional stays on the enforcement of arbitral awards where the arbitration agreement or contract is induced by fraud or corruption.
It also seeks to remove provisions that prescribe qualifications and accreditation of arbitrators, which had effectively excluded foreign nationals from acting in Indian arbitrations.
The qualifications are now to be specified by regulations, which are yet to be notified.
Union Law Minister Ravi Shankar Prasad, while pushing for the passage of the Bill, said “it is pure public policy” and mentioned that “there will be a chance to challenge the award”.