Consultative process on proposed amendment underway: Centre to SC

The Centre told the Supreme Court on Wednesday that the consultative process on the proposed amendment in the Arbitration and Conciliation Act, 1996 is going on, prompting the apex court to defer the hearing on the issue involving the appointment of arbitrators.

Attorney General R Venkataramani, appearing for the Centre, told the top court that the term of the expert committee set up by the Centre to go into the functioning of the arbitration law in the country has been extended and that their report is now expected by early November.

Taking note of the submission, a five-judge constitution bench headed by Chief Justice D Y Chandrachud adjourned the hearing on the legal question of whether a person who is ineligible to be an arbitrator can nominate another person as an arbitrator till mid-November.

“The Attorney General states that a consultative process on the proposed amendment in the Arbitration and Conciliation Act, 1996 is being carried out. Hence, it is submitted that reference to the constitution bench may be taken up by the middle of November by which time there would be clarity on the law,” the bench, also comprising Justices Hrishikesh Roy, P S Narasimha, Pankaj Mithal, and Justice Manoj Misra, said.

Two references were made by three-judge apex court benches in 2021 for the constitution of a larger bench to consider the issue.

The apex court had in 2017 and 2020 held that a person not eligible to become an arbitrator cannot nominate another person as arbitrator.