{"id":83063,"date":"2026-01-18T11:09:48","date_gmt":"2026-01-18T05:39:48","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=83063"},"modified":"2026-01-19T11:36:44","modified_gmt":"2026-01-19T06:06:44","slug":"arbitration-council-of-india-why-it-still-doesnt-exist","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/arbitration-council-of-india-why-it-still-doesnt-exist\/","title":{"rendered":"Arbitration Council of India: Why It Still Doesn\u2019t Exist"},"content":{"rendered":"<h2><b>Arbitration Council Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Nearly six years after the Arbitration and Conciliation Act, 1996 was amended in 2019, the Union government has still not constituted the <\/span><b>Arbitration Council of India (ACI).<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The ACI was envisaged as a central body to regulate, grade, and promote institutional arbitration in India, but its absence has delayed reforms aimed at strengthening India\u2019s arbitration ecosystem.<\/span><\/li>\n<\/ul>\n<h2><b>Mandate of the Arbitration Council of India<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 2019 amendments to the Arbitration and Conciliation Act, 1996 proposed the creation of the Arbitration Council of India as a central body to promote, reform, and strengthen arbitration in India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The framework was based on recommendations of the <\/span><b>High-Level Committee on Arbitration<\/b><span style=\"font-weight: 400;\"> chaired by <\/span><b>B. N. Srikrishna<\/b><span style=\"font-weight: 400;\">, which submitted its report in July 2017.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The proposed ACI was entrusted with <\/span><b>key functions<\/b><span style=\"font-weight: 400;\"> such as grading arbitral institutions, recognising professional bodies that accredit arbitrators, and maintaining a repository of arbitral awards made in India.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It was to be <\/span><b>headed<\/b><span style=\"font-weight: 400;\"> by a <\/span><b>Chairperson<\/b><span style=\"font-weight: 400;\"> appointed by the Union government in <\/span><b>consultation<\/b><span style=\"font-weight: 400;\"> with the Chief Justice of India, with eligibility extending to former Supreme Court judges, former High Court Chief Justices or judges, or eminent experts in arbitration.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Council was also envisaged to include ex officio members from the executive, giving it a broad institutional and regulatory role.<\/span><\/li>\n<\/ul>\n<h2><b>Concerns Over Institutional Independence<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A key criticism of the Arbitration Council of India is its perceived lack of independence.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Since most members are appointed or nominated by the Union government\u2014India\u2019s largest litigant\u2014experts fear undue executive influence over arbitration, undermining neutrality.<\/span><\/li>\n<\/ul>\n<h3><b>Government Dominance and Conflict Risks<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Critics argue that a government-heavy regulator empowered to grade arbitral institutions, accredit arbitrators, and advise on policy poses conflicts of interest.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Such a model has limited precedent in arbitration-friendly jurisdictions that prioritise institutional autonomy.<\/span><\/li>\n<\/ul>\n<h3><b>Accreditation Model: Quality and Capacity Issues<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">While inspired by Singapore and Hong Kong, India\u2019s approach differs significantly.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Those jurisdictions rely on a single, centralised arbitral institution, not a regulator overseeing many.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 2019 amendments allow the ACI to accredit an unlimited number of institutions, risking diluted standards, heavy administrative burdens, and higher public costs.<\/span><\/li>\n<\/ul>\n<h3><b>Impact on Global Attractiveness<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Another concern is the exclusion of foreign legal professionals from the arbitrator pool.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This could reduce India\u2019s appeal as an international arbitration seat, especially for foreign parties seeking globally familiar expertise.<\/span><\/li>\n<\/ul>\n<h2><b>Draft Arbitration Law Reform: Key Proposals<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In October 2024, the Union government released the draft Arbitration and Conciliation (Amendment) Bill, 2024, inviting public comments.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Bill aims to revitalise institutional arbitration through structural reforms.<\/span><\/li>\n<\/ul>\n<h3><b>Redefining Arbitral Institutions<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The draft Bill introduces a revised definition of an \u201carbitral institution\u201d as any body or organisation that conducts arbitration under its own procedural rules or as agreed by parties.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This departs from the 2019 framework, which required formal designation by the Supreme Court or High Courts.<\/span><\/li>\n<\/ul>\n<h3><b>Shifting Powers from Courts to Institutions<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">To reduce judicial intervention, the Bill proposes granting arbitral institutions powers currently exercised by courts.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">These include extending timelines for awards, reducing arbitrators\u2019 fees where delays are attributable to tribunals, and substituting arbitrators.<\/span><\/li>\n<\/ul>\n<h3><b>Status of the Bill<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite these proposals, the Bill remains under consideration.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In March 2025, Arjun Ram Meghwal informed Parliament that the draft had not yet been finalised or introduced.<\/span><\/li>\n<\/ul>\n<h2><b>Recalibrating Courts\u2019 Role in Arbitration<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Under the Arbitration and Conciliation Act, 1996, courts currently have wide powers to grant interim measures before, during, and even after arbitral proceedings (until enforcement).\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The 2024 draft Bill seeks to narrow this role to reduce delays and judicial overreach.<\/span><\/li>\n<\/ul>\n<h3><b>Limiting Interim Relief by Courts<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The draft Bill proposes restricting courts\u2019 power to grant interim measures to two stages only: before arbitration commences and after an arbitral award is rendered.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This change aims to minimise prolonged court involvement during ongoing arbitration.<\/span><\/li>\n<\/ul>\n<h3><b>Tweaking the 90-Day Rule<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A key amendment targets <\/span><b>Section 9(2).<\/b><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Presently, arbitration must commence within 90 days of a court granting pre-arbitral interim relief.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The draft Bill shifts this clock to start from the date the interim application is filed, discouraging parties from stalling arbitration through extended court proceedings.<\/span><\/li>\n<\/ul>\n<h3><b>Introducing Emergency Arbitration<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Bill also proposes a new Section 9-A, allowing parties to seek interim relief from an emergency arbitrator once arbitration has begun but before the arbitral tribunal is constituted.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This move is designed to provide swift, arbitration-led remedies while keeping courts at arm\u2019s length.<\/span><\/li>\n<\/ul>\n<h3><b>Objective: Fewer Delays, Less Intervention<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Collectively, these changes aim to curb pre-arbitral delays, strengthen institutional arbitration, and ensure courts play a supportive\u2014not supervisory\u2014role in the arbitral process.<\/span><\/li>\n<\/ul>\n<h2><b>The Way Forward for Institutional Arbitration in India<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report of the B. N. Srikrishna\u2013headed committee notes that ad hoc arbitration continues to dominate in India due to parties\u2019 strong preference for procedural autonomy and lingering scepticism toward domestic arbitral institutions.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Concerns about institutional independence and administrative competence have eroded confidence.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Addressing this trust deficit\u2014by strengthening autonomy, credibility, and governance of arbitral institutions\u2014is essential if Indian centres are to compete with established global arbitration bodies.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/has-an-arbitration-council-been-constituted-explained\/article70519620.ece#:~:text=The%20story%20so%20far%3A%20Nearly,promotional%20body%20for%20institutional%20arbitration.\" target=\"_blank\" rel=\"nofollow noopener\">TH<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite 2019 amendments, the Arbitration Council of India remains unconstituted, raising concerns over arbitration reforms and global ambitions.<\/p>\n","protected":false},"author":18,"featured_media":83155,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[4800,60,22,59],"class_list":{"0":"post-83063","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-arbitration-council","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/83063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=83063"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/83063\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/83155"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=83063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=83063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=83063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}