Delays in Constituting the Arbitration Council of India and Proposed 2024 Amendments
Nearly six years after the 2019 amendments to the Arbitration and Conciliation Act, the Union government is yet to constitute the Arbitration Council of India (ACI). The ACI was envisioned as a regulatory body to promote institutional arbitration and grade arbitral institutions. However, concerns regarding its independence persist, as the council would comprise members nominated by the executive. The draft Arbitration and Conciliation (Amendment) Bill, 2024, seeks to address these issues by introducing structural reforms, redefining 'arbitral institutions,' and recalibrating the role of courts in granting interim relief to reduce judicial intervention and curb delays in the arbitration process.
Key Points
- The ACI was proposed by the Justice B.N. Srikrishna Committee to make India a hub for international arbitration.
- Critics argue that government dominance in the ACI's composition could compromise its institutional impartiality.
- The 2024 draft Bill aims to limit court intervention by requiring arbitration to commence within 90 days of interim relief.
- The reforms seek to shift India from ad hoc arbitration toward a more structured institutional arbitration framework.
Exam Facts
- Relevant Act: Arbitration and Conciliation Act, 1996 (and 2019 amendments).
- Committee Name: Justice B.N. Srikrishna Committee.
- Proposed Body: Arbitration Council of India (ACI).
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