New Delhi, May 2 (PTI) The Supreme Court on Friday observed procedural issues have continued to plaque the arbitration regime in the country and asked the Centre for necessary changes in the existing law.

A bench of Justices J B Pardiwala and R Mahadevan said unfortunately, the Arbitration and Conciliation Bill, 2024, took no steps whatsoever for ameliorating the position of law over the power of impleadment or joinder of an arbitral tribunal.

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The bench underlined the various amendments to the Arbitration and Conciliation Act, 1996 made over the years to ensure the arbitration proceedings were carried out and concluded expeditiously.

"It is indeed very sad to note that even after these many years, procedural issues such as the one involved in the case at hand, have continued to plaque the arbitration regime of India," the bench in a 191-page verdict said.

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The Department of Legal Affairs has now, the bench pointed out, yet again proposed to replace the existing legislation on arbitration with the Arbitration and Conciliation Bill, 2024.

However, the court opined, "What is expressly missing in the Act, 1996 is still missing in the Arbitration and Conciliation Bill, 2024, despite a catena of decisions of this court as well as the various high courts, highlighting the need for statutory recognition of such power in order to obviate all possibilities of confusion."

The top court's verdict came on an appeal against the Delhi High Court's July 2024 order in an arbitration case.

The high court had affirmed the arbitral tribunal's order rejecting the challenge made by the appellant firm over its jurisdiction on the ground that the appellant being a non-signatory to the arbitration agreement could not have been impleaded in the case as a party to join the arbitration proceedings.

The apex court said the Arbitration Act, 1940 was the first legislative enactment that dealt with arbitration and the legislation was replaced by the 1996 Act.

Referring to a recent verdict by a five-judge bench of the top court, the bench said any uncertainty in the law of arbitration would be an anathema to business and commerce.

"We urge, the Department of Legal Affairs, Ministry of Law and Justice to take a serious look at the arbitration regime that is prevailing in India and bring about necessary changes while the Arbitration and Conciliation Bill, 2024 is still being considered," it said.

Dealing with the high court's verdict, the bench said no error could be said to have been committed by the high court in passing the order.

All other legal contentions available to the parties in the matter, the bench noted, were kept open to be canvassed before the arbitral tribunal.

While dismissing the appeal challenging the high court order, the bench said the apex court registry should forward a copy of its judgment to all the high courts and the principal secretary of the Ministry of Law and Justice.

(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)