THE ARBITRATION TIME TRAP – WHY SECTION 23(4) DEMANDS URGENT REFORM
The insertion of Section 23(4) into the Arbitration and Conciliation Act, 1996, was intended to streamline proceedings but has in reality created a procedural paradox. Courts are divided on whether the six-month timeline includes rejoinders and surrejoinders, leading inter alia to conflicting judgments and uncertainty. While some High Courts interpret the provision as mandatory, others treat it as directory, highlighting a lack of statutory clarity. Despite expert committee recommendations, the Draft Arbitration Bill, 2024, remains silent. This note argues for urgent legislative reform to define “completion of pleadings,” make timelines binding, and introduce penalties for non-compliance, lest arbitration devolves into litigation under another name.