What is Section 29B of Arbitration and Conciliation Act

What is Fast Track Procedure in Arbitration?

Legislature has via Arbitration and Conciliation Amendment Act, 2015 introduced the Fast Track Arbitration procedure 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.

Salient features of Fast Track Arbitration in India -

• Single Arbitrator: The parties in a Fast Track Arbitration select a single arbitrator.
• No recording of Oral Evidence:  Prevents stage of interviewing a witness.
• Parties bound by strict time limits: Fast Thasck Arbitration is strict time-limit policies so that the matter is decided in the shortest practicable timeframe.
• Reduction of Arbitration Fees for delay: There is a provision of reduction in the Arbitrator 's fees for each month of the delay in terms of Section 15 of the Act which specifiy this penalty method.
• No oral hearing of Arguments: The Fast Track Arbitration has no oral hearings and solely depend only on written submissions.

What is Section 29B of Arbitration and Conciliation Act, 1996?

CHAPTER VI

Making of Arbitral Award And Termination of Proceedings

Section 29B. Fast track procedure - (1) Notwithstanding anything contained in this Act, the parties to an arbitration agreement, may, at any stage either before or at the time of appointment of the arbitral tribunal, agree in writing to have their dispute resolved by fast track procedure specified in sub-section (3).

(2) The parties to the arbitration agreement, while agreeing for resolution of dispute by fast track procedure, may agree that the arbitral tribunal shall consist of a sole arbitrator who shall be chosen by the parties.

(3) The arbitral tribunal shall follow the following procedure while conducting arbitration proceedings under sub-section (1):

(a) The arbitral tribunal shall decide the dispute on the basis of written pleadings, documents and submissions filed by the parties without any oral hearing;

(b) The arbitral tribunal shall have power to call for any further information or clarification from the parties in addition to the pleadings and documents filed by them;

(c) An oral hearing may be held only, if, all the parties make a request or if the arbitral tribunal considers it necessary to have oral hearing for clarifying certain issues;

(d) The arbitral tribunal may dispense with any technical formalities, if an oral hearing is held, and adopt such procedure as deemed appropriate for expeditious disposal of the case.

(4) The award under this section shall be made within a period of six months from the date the arbitral tribunal enters upon the reference.

(5) If the award is not made within the period specified in sub-section (4), the provisions of sub-sections (3) to (9) of section 29A shall apply to the proceedings.

(6) The fees payable to the arbitrator and the manner of payment of the fees shall be such as may be agreed between the arbitrator and the parties.

Scope of Section 29B of Arbitration and Conciliation Act, 1996

The concept of Fast Track Arbitration came up in India with the 246th Law Commission Report recommendations on 5th August 2014. The Report refers to a number of benefits of a speedy arbitral proceeding. 

This concept of Fast Track Arbitration was originally developed by the ICC, International Chambers of Commerce and has been used in settlement of variety of cases internationally.

Subsequently this was introduced by way of Amendment Act of 2015, where section 29B of the Arbitration and Conciliation Act, 1996 which talked about the procedure involved for fast track arbitration.

Section 29B talks about the procedure involved and the rules to be followed for fast track arbitration.