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2016 (3) TMI 1323 - HC - Indian LawsStay of operation of the arbitral award dated 25th July, 2014 - stay sought until disposal of his application filed under section 34 of the Arbitration and Conciliation Act, 1996 - Held that - Perusing the substituted section 36 of the Arbitration and Conciliation Act, 1996, which has been introduced by the Arbitration and Conciliation (Amendment) Ordinance, 2015, it appears that this provision has no manner of application at all in view of the specific provision as contained under section 26 of the Arbitration and Conciliation (Amendment) Act, 2015. Considering the fact that the arbitral proceedings, in the facts and circumstances of the instant case, commenced before the Amendment Act of 2015 came into operation i.e. on 23rd October, 2015, it was, perhaps, not necessary for the applicant to take out the instant application - no order is required to be passed in the instant application - application disposed off.
Issues:
- Application for stay of operation of arbitral award under section 34 of the Arbitration and Conciliation Act, 1996. - Interpretation of the new section 36 introduced by the Arbitration and Conciliation (Amendment) Ordinance, 2015. - Analysis of the impact of section 26 of the Arbitration and Conciliation (Amendment) Act, 2015 on pending arbitral proceedings. Issue 1: Application for stay of operation of arbitral award under section 34 The petitioner sought a stay of the arbitral award dated 25th July, 2014 until the disposal of the application filed under section 34 of the Arbitration and Conciliation Act, 1996. The reason for filing this application was the introduction of a new section 36 by the Arbitration and Conciliation (Amendment) Ordinance, 2015, replacing the earlier section 36. Issue 2: Interpretation of the new section 36 The respondent argued that it might be unnecessary for the petitioner to seek a stay under the new section 36 of the Act due to the provision introduced as section 26 by the Arbitration and Conciliation (Amendment) Act, 2015. The court analyzed the substituted section 36 and noted that it had no application in this case because of the specific provision under section 26 of the Amendment Act, which states that the Act does not apply to pending arbitral proceedings commenced before the Amendment Act came into operation. Issue 3: Impact of section 26 on pending arbitral proceedings Since the arbitral proceedings in this case began before the Amendment Act of 2015 came into effect on 23rd October, 2015, the court found that it was unnecessary for the petitioner to file the application for a stay. The court agreed with the respondent's advocate that no order was required in this case due to the operation of section 26 of the Amendment Act, which exempts pending arbitral proceedings from the application of the new provisions. In conclusion, the court disposed of the application, stating that no order was necessary based on the specific provisions of the Arbitration and Conciliation (Amendment) Act, 2015.
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