Parliament passes Arbitration Amendment Bill to protect taxpayer money

Section 36 of the (Arbitration) Act says the arbitration award be set aside if it is against public policy, said Law Minister Ravi Shankar Prasad in Rajya Sabha

Parliament on Wednesday approved a Bill to amend the arbitration law that would ensure all stakeholders get a chance to seek an unconditional stay on enforcement of arbitral awards where an agreement is “induced by fraud or corruption”.

The Arbitration and Conciliation (Amendment) Bill, 2021, was passed by voice vote in the Rajya Sabha. The Bill was passed in the Lok Sabha on February 12.

It will replace an Ordinance issued on November 4, 2020.

Replying to a discussion on the Bill in the Upper House, Law Minister Ravi Shankar Prasad said the changes in the Bill would avoid payment of tax payers’