Table of Contents
- The provisions of the Bill will be effective from March 2, 2019.
WHY THIS BILL?
- For speedy resolution of commercial disputes and to make India an international hub of Arbitration and a Centre of robust ADR mechanism catering to international and domestic arbitration, at par with international standards available.
- To review the institutionalization of arbitration mechanism and suggest reforms, the Department of Legal Affairs, Ministry of Law and Justice, on 13 January, 2017 constituted a ten Member, High Level Committee under the Chairmanship of Justice B.N.Srikrishna, Retired Judge, Supreme Court of India. It submitted its report on 3 August, 2017.
RECOMMENDATION
- The Report reviewed the working of ICADR working under the aegis of the Ministry of Law and Justice, Department of Legal Affairs. The Institution was set up with the objective of promoting ADR methods and providing requisite facilities for the same. The Committee has preferred for declaring the ICADR as an Institution of national importance and takeover of the Institution by a statute.
PROVISIONS OF THE BILL
New Delhi International Arbitration Centre (NDIAC):-
- The Bill seeks to provide for the establishment of the NDIAC to conduct arbitration, mediation, and conciliation proceedings.
- The Bill declares the NDIAC as an institution of national importance.
International Centre for Alternative Dispute Resolution (ICADR):-
- The ICADR is a registered society to promote the resolution of disputes through alternative dispute resolution methods (such as arbitration and mediation).
- The Bill seeks to transfer all the rights, title, and interest in the existing ICADR to the central government.
Composition:-
- The NDIAC will consist of seven members.
- (i) a Chairperson who may be a Judge of the Supreme Court or a High Court, or an eminent person with special knowledge and experience in the conduct or administration of arbitration.
- (ii) two eminent persons having substantial knowledge and experience in institutional arbitration.
- (iii) Three ex-officio members, including a nominee from the Ministry of Finance and a Chief Executive Officer (responsible for the day-to-day administration of the NDIAC)
- (iv) A representative from a recognised body of commerce and industry, appointed as a part-time member, on a rotational basis.
Term and superannuation:-
- The members of NDIAC will hold office for three years and will be eligible for re-appointment.
- The retirement age for the Chairperson is 70 years and other members is 67 years.
Objectives of NDIAC:-
- (i) promoting research, providing training and organising conferences and seminars in alternative dispute resolution matters
- (ii) providing facilities and administrative assistance for the conduct of arbitration, mediation and conciliation proceedings
- (iii) maintaining a panel of accredited professionals to conduct arbitration, mediation and conciliation proceedings.
Functions of the NDIAC:-
- (i) facilitating conduct of arbitration and conciliation in a professional, timely and cost-effective manner.
- (ii) promoting studies in the field of alternative dispute resolution.
Finance and audit:-
- The NDIAC will be required to maintain a fund which will be credited with grants received from the central government, fees collected for its activities, and other sources.
- The accounts of the NDIAC will be audited and certified by the Comptroller and Auditor-General of India.
Institutional support:-
- The Bill specifies that the NDIAC will establish a Chamber of Arbitration which will maintain a permanent panel of arbitrators.
- Further, the NDIAC may also establish an Arbitration Academy for training arbitrators and conducting research in the area of alternative dispute resolution.
BENEFITS OF NDIAC
- It can result in a paradigm shift from the current perception of delay in resolution of commercial disputes in India to it being viewed as an investor friendly destination.
- It will not only lessen the burden of the judiciary, but give a fillip to the development agenda of the Government.
- Also aid the financial strength of the country and serve the goal of welfare of the citizens.
CRITICISM OF THE BILL
- Opposing the introduction of the Bill, Congress member Shashi Tharoor said the arbitration body should be autonomous and independent of government as several public sector undertaking will be a party to it.
- Trinamool Congress MPs staged a walkout in protest against the “draconian” proposed changes in arbitration laws. The government has brought the bill without scrutiny by the Standing Committee.
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