Lawstreet Journal

SC Strikes Down Section 87 Of The Arbitration And Conciliation Act, 1996 [Read Judgment]

Lawstreet Journal 28 Nov 2019 9:41pm

Image courtesy: Lawstreet Journal Judiciary SC Strikes Down Section 87 Of The Arbitration And Conciliation Act, 1996 [Read Judgment]

The Supreme Court on November 27, 2019, in the case of Hindustan Construction Company Limited & Anr. v. Union of India struck down Section 87 of the Arbitration and Conciliation Act, 1996(hereinafter referred to as the “Arbitration Act, 1996”) as inserted by Section 13 of the Arbitration and Conciliation (Amendment) Act, 2019 (hereinafter referred to as the “2019 Amendment Act”) and brought into force with effect from August 30, 2019.

A bench comprising of Justices R.F Nariman, Surya Kant and V. Ramasubrmanian was hearing writ petitions seeking to challenge the constitutional validity of Section 87 of the Arbitration Act, 1996. They were also seeking to challenge the repeal of Section 26 (which came into effect on October 23, 2015 making the amendments of 2015 inapplicable on pending proceedings) of the Arbitration and Conciliation (Amendment) Act, 2015 (hereinafter referred to as the “2015 Amendment Act”) by Section 15 of the 2019 Amendment Act.

Section 36 of the Arbitration Act, 1996 provides that an award shall be enforced in the same manner as if it were a decree of the court, but only on the expiry of the time for making an application to set aside the arbitral award under Section 34, or after the refusal of an application made under this section. 

The Supreme Court in the case of Fiza Developers and Inter-trade Pvt. Ltd. v. AMCI (India) Pvt. Ltd. and Anr. (2009) 17 SCC 796 had held that, “until the disposal of the application under Section 34 of the Act, there is an… Continue Reading...


Tagged: Law of Arbitration  
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