Arbitration and Conciliation (Amendment) Act, 2021: Why the Eighth Schedule is a Good Riddance?

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Ms. Charu Shahi, Dr. Sachin Rastogi

Abstract

The Indian arbitration regime has had a long journey since the Arbitration Act of 1899 under the British crown rule. At present, the Arbitration and Conciliation Act, 1996 is the primary legislation regulating the rules and procedures of arbitration in the country. Arbitration and Conciliation (Amendment) Act, 2021 was the third attempt in less than five years to simplify and correct the loopholes in the arbitration rules and procedures in the county. The 2021 amendment made two significant changes to the existing arbitration law: (a) it ruled out the provision for automatic stay on awards; and (b) it substituted s43J and omitted the Eighth Schedule both of which were added in previous amendment in 2019. Section 43J stated qualifications, eligibility and norms for accreditation of arbitrators, and referred to the Eighth Schedule which provided an exhaustive list of qualifications for accreditation. This article argues that the schedule is a good riddance since it had created two problems. Firstly, the qualification norms were too focused on seniority of candidates rather their experience and understanding of the arbitration law, rules and procedures. Secondly, it also barred foreign national arbitrators from arbitrating international commercial arbitrations seated in India.

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