How the New Delhi International Arbitration Centre Act came into force
In India there is a need of promoting arbitration on a wider scale and thus keeping this view in mind over a past few years the government has taken various measures to bring the arbitration hub into limelight.
A committee was set up under the chairmanship of hon’ble justice B.N. Srikrishna , the former supreme court judge of India (“high level committee”). There were various recommendations put forward under this committee and one among these recommendations was revamping of international centre for alternative dispute resolutions (ICADR), which was instituted in the year 1995 with the purpose of promoting ADR mechanism in India.
On the basis of their recommendation the new Delhi international arbitration centre bill (NDIAC Bill 2018) was made and was introduced in the lower house of the Indian parliament and was passed in January 2019, but due the election process the was pending in the upper house for consideration, this could have resulted in the lapsation of the bill. Therefore keeping in mind the promotion of alternative dispute resolution (ADR), the president of India passed this bill as an ordinance on March 2nd of 2019 and the NDIAC was promulgated till the new government comes into force. But this bill was challenged in the Delhi high court by international centre for alternative dispute resolutions and as a result the Delhi high court granted a “stay of operation” on this ordinance bill. However the stay was released on March 16th, 2019.
Finally, with the arrival of new government this NDIAC ordinance bill was passed by both the houses of parliament and the president signed it on 26th of July, 2019 and thus this bill became an act.
This centre is now considered as an institution of national importance and deals with the cases of national and international arbitration and thus promotes Alternative Dispute Resolution