SC Defers Arbitrator Appointment Issue, Awaits Expert Committee’s Recommendations

New Delhi, July 13, 2023: The Union government has requested the Supreme Court to await the report of an expert committee formed last month to propose changes to the Arbitration and Conciliation Act, 1996. In response, a Supreme Court constitution bench, led by Chief Justice of India Dhananjaya Y Chandrachud, has deferred consideration of a legal issue related to the appointment of arbitrators until September 13.

During the hearing, the bench, consisting of Chief Justice Chandrachud and justices Hrishikesh Roy, PS Narasimha, Pankaj Mithal, and Manoj Misra, instructed the government to provide an update on the progress made by the next date of hearing. The matter under consideration pertains to the question of whether an ineligible person can nominate an arbitrator and the validity of such a decision.

The Attorney General, R Venkatramani, representing the government, informed the court about the appointment of a committee on June 14 to examine the 1996 law. Chaired by former law secretary TK Vishwanathan, the committee has been given a month to propose amendments that would enhance the party-driven and cost-effective nature of the arbitration process.

Venkatramani stated that once the committee submits its recommendations, the government will review whether changes to the law are necessary. He requested the court to defer the matter until the government has considered the committee’s report, emphasizing that the committee’s deliberations should not exceed two months.

Senior advocate Fali S Nariman, representing one of the related cases, supported Venkatramani’s proposal, emphasizing that the government’s reference pertains to a potential new law. The bench agreed to the request, deferring the two references before it by two months and instructing that progress following the committee’s recommendations be reported on the next hearing date.

By awaiting the expert committee’s report, the Supreme Court aims to consider the proposed changes to the Arbitration and Conciliation Act,1996.