President promulgates Arbitration and Conciliation Ordinance, 2020

Context

• The President of India promulgated the Arbitration and Conciliation (Amendment) Ordinance, 2020.

Key-takeaways

• The Ordinance provides that where arbitral awards are found to have been prima facie induced by fraud or corruption.
• The enforcement of the award shall have to be unconditionally stayed pending the disposal of a challenge against the award under Section 34 of the Arbitration Act.
• The Ordinance has been introduced "to ensure that all the stakeholder parties get an opportunity to seek unconditional stay of enforcement of arbitral awards where the underlying arbitration agreement or contract or making of the arbitral award are induced by fraud or corruption."