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Changes brought in by the Arbitration and Conciliation (Amendment) Act,2019.


The Arbitration and Conciliation (Amendment) Act,2019 brought in many major changes to the Arbitration and Conciliation Act. The changes brought in include Arbitral Institutions, Fees for Arbitrators, Arbitration Council of India, Timelines for the conclusion of Arbitration Proceedings, Disqualification of Foreign Arbitrators in India seated Arbitrations, etc.

Arbitral Institutions: The Act of 2019 has defined the Arbitral Institutions. Arbitral Institutions are defined as, "an arbitral institution designated by the Supreme Court or a High Court.

Fees for Arbitrators: The 2019 Act directs parties to follow Schedule IV of this Act. This is for Adhoc arbitrations if in case the parties do not have a decided arbitration schedule for a fee. The Act recognizes party autonomy regarding the fixing of fees of arbitrators together by both parties.

ACI or Arbitration Council of India: The act of 2019 establishes a body that is independent and is called the Arbitration Council of India (ACI) for the conciliation, promotion of arbitration, mediation, and also other alternative dispute redressal mechanisms. The ACI will contain a Chairperson who is either: a Judge of a High Court; or judge of a High Court; or an eminent person with expert knowledge in the conduct of arbitration; or a Judge of a High Court; or a Judge of the Supreme Court. Other members will include government appointees, an academician with experience in arbitration, and an eminent arbitration practitioner. ACI can make different regulations under the Act.

Timelines for the conclusion of Arbitration Proceedings: This new Act, provided a period of twelve months for the conclusion of the proceedings of arbitration from the date of formation of the Arbitral Tribunal. The parties also have the power to jointly extend the period of arbitration proceedings by a period of six months and if more time is required only Courts has the power to increase the time in such cases. The 2019 Act of the arbitration and conciliation act gives an exemption to the international arbitrations seated in India from the said timelines.
Disqualification of Foreign Arbitrators in India seated Arbitrations: The Arbitration and Conciliation (Amendment) Act,2019 discusses qualification for Arbitrators, Moreover, the said Schedule VIII excludes Foreign lawyers, Foreign Charted Accountants and Cost accounts of Foreign from the categories which are eligible of persons who are eligible to be appointed as Arbitrators for India seated as Arbitrations.

Appointment of arbitrators by Institutions for Adhoc Arbitrations: According to the un-amended 1996 Act, parties were free to appoint arbitrators, and in case of disagreement on an appointment, the parties had to approach High Court for Domestic arbitrations and Supreme Court in case of International Arbitrations under Section11 of the Act. This procedure burdened the Courts and courts took three to 6sixmonths to complete the appointments. But the 2019 amendment empowers the Arbitral institutions to appoint the Arbitrators for Adhoc arbitrations on an application from the parties concerned. While appointing such arbitrators, Institutions will fix the fee of the Arbitrators as laid out in Schedule IV of the Act. The Institutions should complete appointment within thirty days from the date of receipt of the request for appointment of Arbitrator.



This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. 

  • Amendment 2019
  • Arbitration Council of India
  • Arbitral Institutions

BY : Anupama. P

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