The Arbitration And Conciliation (Amendment) Ordinance 2020: An Analysis

The President of India, on November 04, 2020, promulgated the Arbitration and Conciliation (Amendment) Ordinance 2020, through which changes have been proposed to Section 36 and 43J of the Arbitration and Conciliation Act.

Section 36 deals with the enforcement of arbitral awards. The ordinance seeks to amend Section 36 of the Arbitration and Conciliation Act, 1996, to introduce a new second proviso to sub-section (3) of Section 36 of the Arbitration Act.

The proviso states, "Provided further that where the court is satisfied that a prima facie case is made out, (a) that the arbitration agreement or contract which is the basis of the award; or (b) the making of the award, was induced or effected by fraud or corruption, it shall stay the award unconditionally pending disposal of the challenge under section 34 to the award.