Arbitration Council of India yet to be constituted, Pg10

Key Highlights:

• The Arbitration Council of India (ACI), intended to regulate and promote institutional arbitration, remains unconstituted six years after the law was amended.
• The Union Law Ministry anticipates the council's formation within the year, citing the recent growth of institutional arbitration in India.
• Former Union Law Secretary P.K. Malhotra asserts that the delay in establishing the ACI hinders India's progress as a hub for international arbitration.

Detailed Insights:

• The Arbitration and Conciliation Act was amended in 2019 to include provisions for the ACI, aiming to shift away from ad-hoc arbitration.
• Institutional arbitration is now gaining traction among corporates and public sector undertakings for resolving commercial disputes.
• The absence of the ACI is seen as a setback to India's aspirations of becoming a prominent center for international commercial arbitration.

Key Concepts Involved:

• Arbitration: A method of dispute resolution outside the courts, where a neutral third party renders a decision.
• Institutional Arbitration: Arbitration managed by an established arbitral institution with its own rules and procedures.
• Ad-hoc Arbitration: Arbitration where the parties themselves agree on the arbitrator and the rules of procedure.