𝐓𝐡𝐞 𝐃𝐫𝐚𝐟𝐭 𝐁𝐢𝐥𝐥 𝐨𝐧 𝐀𝐫𝐛𝐢𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐀𝐜𝐭, 𝟐𝟎𝟐𝟒
Recently, a committee under the supervision of Honorable Justice Syed Mansoor Ali Shah of the Supreme Court has prepared a draft brill on arbitration law, which is not only up-to-date but comprehensive as well. The court intervention in arbitration has been minimised to the greatest possible extent in the new law. Parties no longer need to approach the courts as a first instance to initiate arbitration proceeding, as was the case with the previous Act of 1940. The Act introduces an Arbitral Tribunal comprising of arbitrator/s who are responsible to initiate the proceeding.
Additionally the Act also sets a mandatory time frame of one and a half year for deciding the disputes by the Tribunal. There is no provision in the new law empowering a party to stay the arbitration proceeding. However, on the contrary, there is a provision which provides for staying proceeding in the court by the court if the opposite party has filed a case in the court.
Another salient feature of the new law is that it leaves most matters to the parties to decide with mutual understanding that how to proceed with the case; which procedure is to be adopted; how evidence is to be led; and whether oral arguments are to be made or if written submissions suffice. These, along with most other issues, are to be decided by the parties with mutual consent. The new law caters to both domestic and international need, requirement and standard overall.
The Bill has been handed over to the Ministry of Law and it may soon become a new law in the form of an Act.
Revised Draft Bill on Arbitration Act 2024
