The Arbitration and Conciliation Act, 1996, was a significant step towards promoting arbitration as an alternative dispute resolution mechanism in India. However, over time, certain ambiguities and procedural delays emerged, necessitating reforms. The Arbitration and Conciliation (Amendment) Act, 2015, introduced crucial changes aimed at making arbitration a more efficient, time-bound, and cost-effective process, aligning it with international best practices.

Key amendments introduced by the 2015 Act include:

1. Definition of 'Court' (Section 2(1)(e)): The amendment clarified the definition of 'Court' for the purpose of interim measures and enforcement of awards, limiting it to the High Court in the case of international commercial arbitrations and the principal Civil Court of original jurisdiction in other cases. This aimed to reduce jurisdictional confusion and delays.

2. Interim Measures (Sections 9 and 17): While Section 9 allowed courts to grant interim measures, the amendment strengthened Section 17, empowering the arbitral tribunal to grant interim measures during the arbitral proceedings. It also made such orders enforceable in the same manner as orders of a court, thereby reducing reliance on courts for interim relief and enhancing the tribunal's authority.

3. Appointment of Arbitrators (Section 11): A major reform was introduced regarding the appointment of arbitrators. The amendment mandated that a person whose relationship with the parties or counsel falls under certain categories specified in the Seventh Schedule shall be ineligible for appointment as an arbitrator. This aimed to ensure neutrality and impartiality. It also introduced a time limit of 30 days for the High Court or Supreme Court to dispose of an application for appointment of an arbitrator.

4. Grounds for Challenging an Arbitral Award (Section 34): The scope of 'public policy' as a ground for setting aside an arbitral award was significantly narrowed. The amendment clarified that an award could be set aside on grounds of public policy only if it was induced by fraud or corruption, or was in contravention of the fundamental policy of Indian law, or was in conflict with the most basic notions of morality or justice. The concept of 'patent illegality' was introduced for domestic awards, meaning an award could be set aside if it was patently illegal on the face of the award, but not merely on the ground of an erroneous application of law or re-appreciation of evidence.

5. Time Limits for Making an Arbitral Award (Section 29A): To ensure expeditious disposal, the amendment introduced a strict time limit of 12 months from the date of completion of pleadings for the arbitral tribunal to make its award. This period could be extended by six months with the consent of the parties, and further extensions would require a court order, which could also entail a reduction in the arbitrator's fees.

6. Fast Track Procedure (Section 29B): A new provision for fast-track arbitration was introduced, allowing parties to agree to a procedure where the award must be made within six months. This procedure typically involves relying on written submissions and minimal oral hearings.

7. Costs (Section 31A): The amendment introduced detailed provisions regarding the award of costs in arbitration, empowering the arbitral tribunal to determine the costs, including legal fees, and specifying factors to be considered for such determination. This aimed to discourage frivolous litigation and ensure a fair allocation of costs.

8. Enforcement of Foreign Awards: The amendment clarified that an application for setting aside an arbitral award would not automatically stay the enforcement of the award, unless a specific application for stay was made and granted by the court, subject to conditions.

In essence, the 2015 amendments were a concerted effort to address the shortcomings of the 1996 Act, promoting institutional arbitration, ensuring judicial non-interference, and making India a more attractive destination for arbitration. While some aspects have been further refined by subsequent amendments (e.g., 2019 and 2021), the 2015 Act remains a pivotal reform in India's arbitration landscape.