Supreme Court Flags Lack of Statutory Appeal Against Tribunal Termination Orders in Arbitration Bill 2024

The Supreme Court urged the Law Ministry to revisit gaps in India’s arbitration regime while the Arbitration and Conciliation Bill, 2024 is under consideration.

The Court said the legislation should clarify the arbitral tribunal’s power to terminate proceedings and entertain recall requests, and define the effect of such termination with precision.

The observation came in an appeal involving refusal to appoint an arbitrator under Sections 11(5) and 11(6) of the Arbitration and Conciliation Act, where the Bench noted that uncertainties dating back to the Model Law persist even today.

The Court suggested consolidation of provisions and a statutory appeal mechanism, and remanded the case for appointment of a substitute arbitrator.

[Harshbir Singh Pannu and Anr. v. Jaswinder Singh]