This article has been written by Ms. Anchita Niranjan Chavan, a 3^rd year BLS LLB student at Oriental College of Law, Navi Mumbai.

INTRODUCTION-

The United Nations in 1985 adopted the Model Law on International Arbitration and Conciliation and asked all the countries to give due importance to it. This resulted in the enforcement of the Arbitration & Conciliation Act. The various objectives of the Act are cover international and domestic commercial arbitration and conciliation comprehensively, make a procedure which is fair, efficient and capable of meeting the needs of the society for arbitration and conciliation, provides reasons by the tribunal for granting any arbitral award, ensure that the tribunal does not exercise its jurisdiction beyond the limits, minimize the role of courts and reduce the burden on the judiciary. Arbitration are of various types i.e Domestic Arbitration, International and Commercial Arbitration, Institutional Arbitration, Statutory Arbitration, Ad hoc Arbitration, Fast track Arbitration, Look-sniff Arbitration, Flip-flop Arbitration. 

Section 29-A & Section 29-B of the Arbitration & Conciliation Act, 1996 deals with time limit for arbitral award & fast track procedure accordingly. Section 29-A of the Arbitration & Conciliation Act, 1996, was introduced by virtue of the Arbitration and Conciliation (Amendment) Act, 2015 providing for the ‘Time-limit for arbitral award’. This section has been further modified by virtue of the 2019 Amendment Act. Under the 2015 Amendment, Section 29-B was also introduced which provides for conducting an arbitration under ‘fast-track procedure’. Section 29-A is an important section of the act. An arbitration award is the award granted by the arbitrator in their decision. This award can be money one party has to pay to the other party. It can also be a non-financial award, such as stopping a certain business practice or adding an employment incentive. In simpler words, arbitral awards refer to the decision of an arbitral tribunal, whether in a domestic or international arbitration. There are four types of arbitral award which are final award, interim award, settlement award and additional award. 

TIME LIMIT FOR ARBITRAL AWARD (SECTION 29-A)

Section  29A- The award shall be made within a period of twelve months from the date the arbitral tribunal enters upon the reference. The court may extend the mandate of the Arbitrator or substitute him. The court may also appoint a Supreme Court Judge as the substitute arbitrator. 

The Supreme Court held that the time limit of twelve months as prescribed in Section 29A of Arbitration and Conciliation Act is not applicable for int not applicable for international commercial arbitration.”In terms of the amended provisions of Section 29A, arbitral tribunals in international commercial arbitrations are only expected to make an endeavor to complete the proceedings within twelve months from the date arbitral tribunal enters upon the reference.

The extension of period may be on the application of any of the parties and may be granted only for sufficient cause and on such terms and conditions as may be imposed by the court. The court shall open to impose actual or exemplary costs upon the parties in the arbitration. An application filed shall be disposed of by the court as expeditiously as possible and endeavour shall be made to dispose of the matter within a period of sixty days from the date of service of notice on the opposite party.

For an arbitral award to be valid it must cover the essential elements which are:

1. The award shall be in writing.
2. The award shall be signed by all the members of the arbitral tribunal.
3. The award shall state the reasoning on which it is based.
4. Date and place of arbitration should be mentioned on the award.

In Haryana Space Application Centre (HARSAC) & Another v. M/s Pan India Consultants Pvt. Ltd., Civil Appeal No. 131/2021- In this case, an application was filed under Section 29 A(4) of the Act wherein it was stated that the decision of the arbitral tribunal was ready to be pronounced by the authorities. Also, the required cost was paid to the tribunal. On this, the other party argued that the application must be denied on the ground that it lacks reasons for extension under the Section. However, the argument was rejected and an extension of 3-months was granted. HARSAC in a response filed a revision in the High Court. But it again granted a four-month extension. To this, a special writ application was filed to the Supreme Court. It was ruled by the court that the clause given in Section 12 is obligatory when it is dealt together with the Schedule of the Act. It was also held that the Principal Secretary is not qualified to be an arbitrator. If been the one, he would probably influence HARSAC. The court also directed to appoint another arbitrator who will continue the proceedings and help them come to an agreement within 6 months. 

FAST TRACK PROCEDURE (SECTION 29-B)

Fast Track Procedure is one of the type of arbitration.

The Arbitration and Conciliation Amendment Act 2015 introduced Fast Track Arbitration in India to speed up the arbitration process in India and is not regulated by ordinary rules and regulations.  In India, the concept of fast-track arbitration means that the proceedings are to be concluded within 6 months, and there is no provision for oral proceedings, rather than written pleadings.

In India, the idea of fast-track arbitration came up with the recommendations of the Report of the 246th Law Commission on 5 August 2014, which applied to several cases to provide the advantages of a speedy trial. Subsequently, the 2015 Reform Act was passed, in which section 29B of the Arbitration and Conciliation Act, 1996, with the introduction of changes, clarified the process involved in fast-track arbitration. 29B Addresses the process involved and the rules for fast-track arbitration to be followed.

Essential features of fast track procedure are:

1. It is largely governed by strict time-limit policies that both the arbitrators and the parties must comply with.
2. When the time limit is not reached then the arbitrator ‘s order will be revoked unless the court has extended the time limit. 
3. It does not include a fixed collection of elements or procedures to be followed as per ordinary arbitral proceedings.
4.  No oral hearings are necessary and depend only on written submissions.
5. The parties will select a single arbitrator, and the submissions must be written in large part.
6. It protects the expense, speed, and time without violating any law and often it also prevents procedures such as interviewing a witness.

Fundamentals of fast track procedure:

Apart from the two most essential aspects of arbitration, speed and cost effectiveness, there are a number of elements of arbitration, as well as fast-track arbitration, that make it a viable option to state jurisdiction. Those fundamentals include;

1. Independence of the parties
2. Equity of treatment 
3. Impartiality and Independence of an Arbitrator
4. Enforcement of arbitral awards

CONCLUSION-

The main objective of introducing the arbitration system in India was to help the courts and the people. It was supposed to be a way for the masses to acquire justice more speedily. When the process which was supposed to be fast itself became time-consuming, the government had no choice but to introduce further provisions which will help those in need. Even the arbitration process had started to become heavy on the pocket and long, the introduction of provisions under section 29 B was the manna for those in need. The purpose behind the introduction of the aforesaid provisions was to make the arbitrators hear and decide matters expeditiously, and within a reasonable period of time. The scheme of Section 29-A is that the arbitrator is bound to render an award within 12 months, which can be extended by 6 months i.e. up to 18 months with the consent of the parties. However, if the award is not delivered even in the extended time, the mandate of the tribunal stands terminated. However, the courts are empowered to extend the time-limit either prior to or after the expiry of the extended period. But the courts are to be given justification and proof of sufficient cause for such delay. Clearly, fast track procedures must be welcomed by both parties as well as the arbitral tribunal, and must be duly supported by the institution which provides the framework for the proceedings, or else they will not be a success.

REFERENCES-

• https://amlegals.com/fast-track-arbitration-in-india/#
• https://www.brillopedia.net/post/fast-track-arbitration-a-novel-solution-to-international-arbitral-delay
• https://www.perezllorca.com/wp-content/uploads/es/actualidadPublicaciones/ArticuloJuridico/Documents/javier-tarjuelo-article.pdf

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