Lok Sabha Debates Combined Discussion On Statutory Resolution Regarding Disapproval Of The ... on 12 February, 2021 Seventeenth Loksabha > Title: Combined discussion on Statutory Resolution regarding Disapproval of the Arbitration and Conciliation (Amendment) Ordinance, 2020 and Arbitration and Conciliation (Amendment) Bill, 2021 (Statutory resolution negatived and bill passed). SHRI ADHIR RANJAN CHOWDHURY (BAHARAMPUR): Sir, I rise to move the following Resolution: “"That this House disapproves of the Arbitration and Conciliation (Amendment) Ordinance, 2020 (Ordinance No. 14 of 2020) promulgated by the President on 4 November, 2020." THE MINISTER OF LAW AND JUSTICE, MINISTER OF COMMUNICATIONS AND MINISTER OF ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI RAVI SHANKAR PRASAD): I beg to move: “That the Bill further to amend the Arbitration and Conciliation Act, 1996, be taken into consideration.” माननीय अध्यक्ष: प्रस्ताव प्रस्तुत हुआ: “कि यह सभा राष्ट्रपति द्वारा 4 नवम्बर, 2020 को प्रख्यापित माध्यस्थम् और सुलह (संशोधन) अध्यादेश, 2020 (2020 का अध्यादेश संख्यांक 14) का निरनुमोदन करती है।” “कि माध्यस्थम् और सुलह अधिनियम, 1996 का और संशोधन करने वाले विधेयक पर विचार किया जाए। ” श्री रवि शंकर प्रसाद: अध्यक्ष महोदय, मैं आपकी अनुमति से थोड़ा खड़े होकर बोलना चाहता हूँ। अध्यक्ष महोदय, यह बिल हम क्यों लाएं, यह पहले ऑर्डिनेंस था, मैं बहुत सरल भाषा में बता देता हूँ। इस मामले में आपका स्वयं का बहुत अनुभव है। माननीय अधीर रंजन जी, भारत के आर्बिट्रेशन एक्ट में इस बात का प्रावधान है कि अगर कोई आर्बिट्रेशन अवार्ड हो गया तो सेक्शन 34 में उसको हम सेटेसाइड के लिए अप्लीकेशन देते हैं। उसमें एक प्रोविजन है कि if it is in conflict with public policy, which means, the arbitration agreement or the award is induced by fraud or corruption, that is, in substance of public policy. अगर अवार्ड को चैलेंज करना है तो यह ग्राउंड हमारे पास है, लेकिन सेक्शन 36 में स्टे का भी प्रावधान है। For a stay, you do not get automatic stay. You get a stay when you file an application for a stay. But there was no ground. Specifically speaking, even if the arbitration award is vitiated by fraud or by corruption, you could not get a stay because there was no specific provision for that. Adhir Babu, you are a Parliamentarian of long standing, with your experience of governance also. Can we deny that many times arbitration awards agreement are vitiated by fraud? People get a lot of benefits and then they start enforcing the award. When you go a little deeper, you find a lot of layers and layers of corruption. Hon. Chairperson, without naming any party, we know of cases where the CBI is investigating and how the natural resources were awarded in complete violation of law without auction. Now they are filing one claim in America and one in England and everything is vitiated by fraud, by patent illegality, and also inducement by corruption. 17.45 hrs (Shrimati Meenakashi Lekhi in the Chair) We have done a very limited modification in this and that is that, if the court is prima facie satisfied that the agreement and the award is vitiated by fraud or corruption, it will stay it. That is all. This will be stayed till the decision under Section 34 is taken to set aside the award so that taxpayers money is not bartered away by these flybynight operators, who procure awards based upon collusive agreements, get benefits from the Government resources, bring some money, and thereafter start making all the tall claims. That is all very limited that we are doing. We had come with the Ordinance. I think it is a pure public policy. I know some of the hon. Members have experience in the judicial affairs. We are very clear that this will be only limited to a stay till a decision is taken upon the setting of the award under Section 34. If the award is satisfied, it goes; if it is not satisfied, the interim order goes also. That is one thing. The second amendment is, hon. Chairperson, that we had changed the arbitration ecosystem in the light of the Srikrishna Commission Report. We had got a schedule of the qualification of the arbitrators to be appointed by the institutions. A view was taken by an eminent member from the judiciary and other arbitration community that since you are promoting institutional arbitration, let the Arbitration Council of India by regulation decide who the arbitrator will be and what their qualification shall be. I think it is a very fair f