Has an Arbitration Council been constituted?, Pg11

Key Highlights:

• The Arbitration Council of India (ACI), proposed in the 2019 amendments to the Arbitration and Conciliation Act, 1996, has not yet been constituted.
• The ACI was envisioned as the central body for promoting and regulating institutional arbitration in India.
• A major concern is the perceived lack of institutional impartiality due to government influence in appointments.
• The Arbitration and Conciliation (Amendment) Bill, 2024 seeks to revitalize institutional arbitration through structural reforms.

Detailed Insights:

• The 2019 amendments aimed to establish the ACI based on recommendations from the Justice B.N. Srikrishna Committee Report (2017).
• The ACI was intended to grade arbitral institutions, recognize professional arbitrator bodies, and maintain a repository of arbitral awards.
• The draft 2024 Bill redefines "arbitral institution" and expands their powers, potentially reducing judicial intervention.
• The Bill aims to limit court powers to grant interim measures, shifting some authority to emergency arbitrators.
• A key challenge is building trust in domestic arbitral institutions to compete with established global bodies.
• Exclusion of foreign legal professionals from the pool of qualified arbitrators could undermine India’s attractiveness as a seat of arbitration.

Key Concepts Involved:

• Arbitration: A method of alternative dispute resolution where a neutral third party resolves a dispute.
• Institutional Arbitration: Arbitration administered by an established organization with its own rules and procedures.
• Ad hoc Arbitration: Arbitration where parties agree on the procedures without the involvement of an institution.