Due to the reason of ensuring the faster settlement of commercial disputes , the cabinet had cleared the amendments to the Arbitration Act which sets a drop dead timeline for the settlement of cases by the arbitrators.
Under the amendments to the Arbitration and Conciliation Act, 1996 cleared by the Union Cabinet, an arbitrator will have to settle the case within 18 months which was earlier fixed at 8 months but it got changed due to the inter-ministerial discussions.
But after the completion of 12 months, certain restrictions have been put in place to ensure that the arbitration case does not linger on. The same has been put in place to draw up huge foreign investments in India as the Foreign companies does not show interest because of lengthy legal process in India.
The move to amend the law comes amid the government™s move to promote ˜ease of doing business™ in India, which is being highlighted by Modi Government.