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Understanding the Fast Track Procedure under Section 29B of The Arbitration and Conciliation Act
In the vast and complex legal world, understanding certain sections, rules, and regulations can often seem like deciphering a complicated puzzle. It is imperative to unravel these complex legal issues to ensure justice is served promptly and effectively. In this context, we shall delve deep into a crucial section of The Arbitration and Conciliation Act – Section 29B – which lays out the Fast Track Procedure.
What is Section 29B all about?
Introduced by an amendment in 2015, Section 29B of the Arbitration and Conciliation Act talks in detail about the Fast Track Procedure. It allows all parties to opt for this procedural mechanism at any stage before the constitution of the arbitral tribunal to ensure a speedy resolution.
- An application for a fast track procedure can be made by all parties involved in a mutual agreement.
- Once accepted, the arbitral tribunal must make an award within six months from the date it enters reference.
- In this procedure, the tribunal decides disputes based on written pleadings, documents, and submissions filed by the parties without any oral hearing.
- Though oral hearing is done away with, it can be conducted upon request if all parties agree.
Significance and Implication
This fast-track method is a boon for contractual disputes, especially in commercial agreements, where a swift resolution is desired. It not only lessens the burden on courts but also is cost-effective and time-efficient.
Noteworthy Case Laws
- P. R. Shah, Shares & Stock Brokers Pvt Ltd vs B.H.H Securities Pvt Ltd & Ors (2012)
This case highlighted the need to look into arbitration agreements with a pragmatic perspective. It proclaimed that arbitration being an alternative dispute resolution should adopt procedures to aid the cause of speedy resolution.
- M/s Cochin Shipyard Ltd vs M/s Apeejay Shipping Ltd (2015)
Here, the Supreme Court held that an arbitral tribunal has the power to award an interest on the award amount from the date of cause of the action. This is notable in terms of the Fast Track Procedure as it underlines the cost-effectiveness of the mechanism.
- Perkins Eastman Architects DPC AND Ors vs HSCC (India) Ltd (2019)
In this case, the Supreme Court ruled that a person with interest or relation to the dispute cannot appoint an arbitrator under Section 29B. This marked an important precedent in Fast Track Procedure’s context.
Expert Opinion from SimranLaw
At SimranLaw, we strive to ensure that our clients and readers grasp these legal intricacies and nuances. We believe that such knowledge helps in making informed decisions and fostering a just and fair legal environment.
While Section 29B is a step towards swift justice, it also requires careful handling. One must be well-aware of their rights and the implications before opting for this mechanism. It’s also noteworthy that deviation from this pathway might not be possible once opted for. Therefore, we always advise getting legal counsel before making such crucial decisions.
With many years of experience in the field, we understand that each case is unique, and therefore, an in-depth understanding of the legal provisions is the key to success.
The fast track procedure under Section 29B is a milestone in arbitration law, aimed at a swift resolution of disputes. However, like any other legal provision, it requires cautious and intelligent application. At SimranLaw, we stand committed to guiding our clients through this journey with our experience and expertise.