The COVID-19 pandemic has caused widespread disruption of businesses and daily life. As governments across the world struggle to contain the pandemic, a number of regulatory and policy measures are being implemented by the Government of India to minimize the impact of the disruption caused to several classes of persons and corporate bodies.
A recent measure is the increase in the threshold for default by corporate debtors under Section 4 of the Insolvency & Bankruptcy Code, 2016 (the “Code”) from INR 100,000 to INR 10,000,000 and a potential suspension of certain key provisions of the Code. These measures may have some positive and certain unintended consequences of concern to stakeholders.
The time taken and procedures involved in enforcement proceedings of arbitral awards in India have drawn substantial criticism over the years, paving the way for the amendments in 2015 and 2019 to the Arbitration and Conciliation Act, 1996. This note briefly examines the effect of the recent judgment of the Supreme Court of India in Hindustan Construction Company on the question of whether the operation of a domestic arbitral award is automatically stayed upon the filing of a challenge to the award and traces the development of the automatic stay rule through the amendments to the Arbitration and Conciliation Act, 1996 in 2015 and 2019 prior to the Supreme Court’s judgment.
We are pleased to present the India chapter of the Chambers & Partners global practice guide on International Arbitration 2019 (Second Edition). The India chapter covers issues relating to, among others, enforcement of awards, court intervention in the arbitration process, jurisdiction of arbitral tribunals and recent amendments to the law governing arbitration in India.