Parliament on Thursday passed a Bill to set up an independent and autonomous regime for institutionalised domestic and international arbitration in India. The New Delhi International Arbitration Centre (NDIAC) Bill, 2019, which seeks to replace an ordinance issued in March this year by the previous Government, was passed by Rajy Sabha. Lok Sabha had passed the Bill on July 10.
The Bill provides for setting up an independent and autonomous regime for institutionalised domestic and international arbitration and to acquire and transfer undertakings of International Centre for Alternative Dispute Resolution to the New Delhi International Arbitration Centre with effect from March 2 this year.
The Upper House also passed the amendment in the Arbitration and Conciliation (Amendment) Bill Act, 2019 that seeks to make changes in the existing law of 1996. It will now go to Lok Sabha. The Bill was earlier cleared by LS in August 2018 but could not be passed by RS. The Bill lapsed following the dissolution of the 16th Lok Sabha.
Law Minister Ravi Shankar Prasad moved both the Bills including one that seeks to make changes in the existing law of 1996. The amendment bill will facilitate in achieving the goal of improving, institutional arbitration by establishing an independent body to lay down standards, make arbitration process more friendly and cost-effective, and ensure timely disposal of cases. It provides for setting up of an independent body — Arbitration Council of India — to frame arbitral institution and accredit arbitrators by laying down norms.
While the TMC stated a walkout to protest the proposed changes in arbitration laws, terming them “draconian”, the Congress alleged that the proposed Arbitration Council would be a “sarkari” Council and accused the Government of making a “brazen” attempt to take over the process.
The Opposition party demanded that the members of the Council be appointed by a collegium since the Government is itself a relentless litigant.