SC defers consideration of legal issue involving appointment of arbitrators

The Union government asked the court to await the report of an expert committee formed last month to recommend changes to the Arbitration and Conciliation Act, 1996

A Supreme Court constitution bench has until September 13 deferred consideration of a legal issue involving the appointment of arbitrators after the Union government asked it to await the report of an expert committee formed last month to recommend changes to the Arbitration and Conciliation Act, 1996.

The Supreme Court will hear the matter on September 13. (ANI)

The bench comprising Chief Justice of India Dhananjaya Y Chandrachud and justices Hrishikesh Roy, PS Narasimha, Pankaj Mithal, and Manoj Misra on Wednesday told the government to apprise it of the progress made in this regard by the next date of hearing while agreeing to postpone the matter. It was hearing the reference on the question whether a person ineligible to nominate an arbitrator can do so and the validity of such a decision.

Attorney General R Venkatramani, who appeared for the government, apprised the court of the decision on June 14 to appoint the committee to examine the 1996 law. Former law secretary TK Vishwanathan-led committee was given a month to suggest changes in the law to make the process party-driven and cost-effective.

Venkatramani said that once the recommendations are made, the government will deliberate whether changes in the law were warranted. He requested the court to take up the matter after the government considers the committee’s report. “The committee should not take more than two months. We will report back to the court as soon as deliberations are over,” he said when the bench inquired about the time required for getting back with the recommendations.

Senior advocate Fali S Nariman, who appeared in one of the related matters, agreed with the Venkatramani’s proposal. “The reference by the government is really on a new law to be enacted. We do not know if the new law will be enacted or not,” Nariman said.

The bench directed that the two references before it be deferred by two months. “The court shall be apprised on the next date about the progress made following the recommendations made by the committee.”