Case Note & Summary
The Supreme Court addressed appeals concerning arbitration matters involving multiple construction firms and the State of Goa. The appeals arose from a judgment of the High Court of Bombay, Goa Bench, which had rejected the contention that the Arbitration and Conciliation Act, 1996 should apply to appeals filed under the Arbitration Act, 1940. The appellants argued that since the arbitration agreement referenced the Old Act, the appeals should be governed by the New Act. The court examined Section 85 of the New Act, which repealed the Old Act but allowed its provisions to apply to proceedings commenced before the New Act's enforcement. The court noted that all relevant arbitral proceedings had commenced prior to January 25, 1996, and thus the Old Act was applicable. The court emphasized that the arbitration clause did not stipulate a transition to the New Act once it came into force. The court also referenced the Thyssen Stahlunion case, affirming that rights accrued under the Old Act must be respected. The court dismissed the appeals, ruling that the statutory provisions of the Old Act governed the pending appeals, and ordered the appellants to pay costs to the respondents.
Headnote
A) Arbitration Law - Applicability of Old Act - Old Act governs proceedings commenced before New Act - Arbitration Act, 1940, Section 85 - The court held that the provisions of the Old Act apply to arbitral proceedings commenced before the New Act came into force, and thus appeals pending under the Old Act must be decided according to its provisions. This interpretation prevents confusion and ensures that parties retain their accrued rights under the Old Act (Paras 22-23).
Issue of Consideration
Whether the appeals filed under the Arbitration Act, 1940 should be decided under the provisions of the Arbitration and Conciliation Act, 1996.
Final Decision
The Supreme Court dismissed the appeals, ruling that the provisions of the Old Act apply to the pending appeals, and ordered the appellants to pay costs of Rs.10,000 to the respondents within three months.
Law Points
- Arbitration Act
- 1940
- Arbitration and Conciliation Act
- 1996
- Section 85
- accrued rights
- enforcement of awards
- statutory provisions
