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The ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2019
The ARBITRATION AND CONCILIATION
(AMENDMENT) ACT, 2019
The recently passed Arbitration and Conciliation (Amendment) Act, 2019 [1]aims to remove practical shortcomings of the act and entails a vision to establish India as an eminent arbitration hub, by giving a boost to arbitral institutions. The act seeks to amend the 1996 statute and on the lines of the recommendations given by the Justice BH Srikrishna Committee and instills several changes in the act, so as to promote international and domestic arbitration in the country. The concomitant effect, this legislation wants to ensue, is the reduction of the burden of cases on the judiciary. [2]
Arbitration and Conciliation are alternative dispute resolution (ADR) processes that are somehow similar to the mainstream court process with additional advantages of confidentiality, privacy and being a cheaper alternative.
The salient features of the Act are
Establishment of Arbitration Council of India to promote ADR. And to frame policies regarding the grading of arbitral institutions, accreditation of arbitrators as well as for operation, establishment and maintenance of uniform professional standards for alternative dispute redressal of matters. The body will be responsible for the depository of arbitral awards, so as to avail lawyers and arbitrators reference to these cases.
- This body comprises of a chairperson and other members. The qualifications of the chairperson are that; he has to be a Supreme Court judge or Chief Justice or judge of a High Court or an eminent person who is an expert in the field of arbitration.
- Other members will include eminent arbitration practitioners, academicians and government appointees.
Apart from new provisions, the amending provisions are
- An earlier provision allowed courts to appoint an arbitrator in case of a disagreement between the parties under section 11(6) of the act, but now courts will appoint arbitral institutions. The Chief Justice of India will appoint in case of international arbitration and Chief Justice of the concerned High Court for domestic arbitration, provided, the seat of arbitration is in India.
- In case of international arbitration, a provision of the act stated that the arbitral award has to be awarded within 12 months. But now the amendment has relaxed the limit. However, no amending provision is made for domestic arbitration.
- There was no prescribed time limit for the written submission by the respondent, but the new provision mandates the written submission to be provided within 6 months of appointment of the arbitrator. A written submission is the reply or answer to the Statement of Claim made by the appellant.
- Confidentiality of proceedings will be maintained, apart from in exceptional circumstances, if it demands public disclosure of the arbitral award for its implementation.
[1] Arbitration and Conciliation (Amendment) Act, 2019, available athttp://egazette.nic.in/WriteReadData/2019/210414.pdf
[2] Subhiksh Vasudev, MIDS Geneva, Kluwer Arbitration blog, “The 2019 amendment to the Indian Arbitration Act: A classic case of one step forward two steps backward?”, available at http://arbitrationblog.kluwerarbitration.com/2019/08/25/the-2019-amendment-to-the-indian-arbitration-act-a-classic-case-of-one-step-forward-two-steps-backward/?doing_wp_cron=1586685754.0248410701751708984375
- Arbitration
- Conciliation
- ADR
