Impact of New Delhi International Arbitration Centre Bill,2018
Over the past few years, the country is engaged and committed to making India an international hub for arbitration with international principles standards and improving the scope and give comfort to the businesses and investors. The Arbitration and Conciliation (Amendment) Bill was a progressive step taken towards making the nation an International hub for Arbitration. There were various steps taken by the Indian Government. First, one was increasing the ease of doing business in the country without any obstruction or hurdle. Another step was providing the right direction for the newly emerged New Delhi Arbitration Centre Bill, 2018 which was first passed in Lok Sabha. The Bill renders establishment of a New Delhi International Arbitration Centre (NDIAC) as an independent and autonomous body for the promotion of institutional arbitration in India, also recognizing the need and requirement of International Arbitration Centre for Alternative Dispute Resolution (ICADR) for smooth functioning as a center for institutional Arbitration.
In January 2017, the Ministry of Law and Justice formed a 10 member committee which was under the supervision and chairmanship of B.N Krishna to review the functioning of ICADR. Justice Shri Krishna Committee observed a major drawback which was a failure in keeping pace with the new developments in the arbitration scenario to match the dynamic developments in the field of arbitration globally. Also, the ICADR rules, which were revised and amended in the year 2016 was also failed to account for the current developments in the field of arbitration such as the emergency arbitration, consolidation of Arbitration. Another important drawback of ICADR was that a large governing council which made it difficult for the institution to coordinate with its governance. The NDIAC objective is to counter the problems of ICADR faced while serving as an arbitral institution of repute and providing a quick and effective dispute resolution to the parties
Important aspects of the Bill
Institute of National Importance
Clause 4 considers New Delhi International Arbitration Centre (NDIAC) as an Institute of national importance and also provides for the establishment of different branches of NDIAC in different places in India as well as abroad, with its head office in New Delhi.
Composition of the Centre
The ICADR has a large governance structure and Sri Krishna Committee preferred a complete overhaul in its governance structure.
Further, clause 5 of the bill proposes that the NDIAC shall constitute of a chairman who has been a judge of High Court or Supreme Court or any eminent person having special knowledge and is expertise in conducting of the administration in a smooth and effective manner They are appointed by the Central Government in the recommendation of Chief Justice of India. In addition, NDIAC also appoints two members who are eminent persons having a good substantial knowledge and experience in institutional arbitration for both domestic and international.
Creating a two-tier structure
Clause 21 NDIAC, proposes to appoint a Chief Executive officer who will be responsible for the day to day administration of NDIAC. As per clause 23 of the bill, the Secretariat of NDIAC shall be headed by the registrar.