Introduction

The Central Government 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, constituted a ten Member, High Level Committee under the Chairmanship of Justice B.N.Srikrishna, Retired Judge, Supreme Court of India. The Committee was given the mandate to review the institutionalization of arbitration mechanism and suggest reforms thereto. Subsequently, after several deliberations and sittings, the Committee submitted its report on August 03, 2017, to Shri Ravi Shankar Prasad, Hon'ble Minister of Law & Justice and Electronics and Information Technology.15

Based upon the recommendations submitted by the Justice Saikrishna Committee, the New Delhi International Arbitration Centre Bill, 201816, was introduced in Lok Sabha by the Minister of State for Law and Justice, Mr. P.P. Chaudhary, on January 5, 2018, to establish an autonomous and independent institution for better management of arbitration in India.

Objective: To provide for the establishment and incorporation of the New Delhi International Arbitration Centre (NDIAC), for the purpose of creating an independent and autonomous regime for institutionalized arbitration and for acquisition and transfer of undertakings of the International Centre for Alternative Dispute Resolution, and to vest such undertakings in the NDIAC for the better management of arbitration so as to make it a hub for institutional arbitration, and to declare the NDIAC to be an institution of national importance and for matters connected therewith or incidental thereto.

Features of the Bill

Establishment

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 (Clause 4 of the Bill). It 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 (Clause 29 of the Bill). Apart from this, the NDIAC may also constitute other committees to administer its functions.

Status of NDIAC

As per Clause 3 of the Bill, the NDIAC is proposed to be a body corporate [as defined under Section 2(11) of Companies Act, 2013] with perpetual succession, common, seal, power to hold and dispose property and to enter into contracts and initiate legal proceedings by itself or defend against itself.

Composition

(Clause 5 of the Bill) Under the Bill, the NDIAC will consist of seven members including:

  1. 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;

    1. The said chairperson will be appointed by the Centre in consultation with the Chief Justice of India.
    2. 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.
  2. two eminent persons having substantial knowledge and experience in institutional arbitration;
  3. 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); and
  4. a representative from a recognized body of commerce and industry, appointed as a part-time member, on a rotational basis.

Objectives of the NDIAC

  1. Promoting research, providing training and organizing conferences and seminars in alternative dispute resolution matters;
  2. Providing facilities and administrative assistance for the conduct of arbitration, mediation and conciliation proceedings;
  3. Maintaining a panel of accredited professionals to conduct arbitration, mediation and conciliation proceedings.

The key functions of the NDIAC will include facilitating conduct of arbitration and conciliation in a professional, timely and cost-effective manner; and (ii) promoting studies in the field of alternative dispute resolution.

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 establish an Arbitration Academy for training arbitrators and conduct research in the area of ADR. It may also constitute other committees to administer its functions.

Thoughts

The said bill aims to overcome the roadblocks in the development of institutional arbitration in India and create a robust ecosystem which if not better, but is at par with the International Arbitration institutions such as Singapore International Arbitrational Centre (SIAC), London Court of International Arbitration (LCIA) and others. The creation of NDIAC promises a future of strong institutional arbitration in India.

Footnotes

15. PIB Press Release dated 03.08.2017

16. http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/2_2018_LS_Eng.pdf

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