Topic : NEW DELHI INTERNATIONAL ARBITRATION CENTRE BILL
Topic in Syllabus :
The Union Cabinet has approved the Bill New Delhi International Arbitration Centre (NDIAC) Bill, 2019 for introduction in the ensuing session of Parliament.
It has been the endeavor of the Government of India to establish an independent and autonomous institution for resolving International and domestic commercial disputes expeditiously by Alternative Dispute Resolution (ADR) mechanism.
The High Level Committee recommended that the Government may take over the International Centre For Alternative Dispute Resolution (ICADR), an existing institution which has been established in the year 1995 using the public funds and develop it as an Institution of National Importance.
What is Arbitration?
Arbitration is a settlement of dispute between two parties to a contract by a neutral third party i.e. the arbitrator without resorting to court action. The process can be tailored to suit parties’ particular needs.
Arbitrators can be chosen for their expertise. It is confidential and can be speedier and cheaper than court. There are limited grounds of appeal. Arbitral awards are binding and enforceable through courts.
Key highlights of this bill
- In view of the provisions of the Article 107 (5) and 123 (2) of the Constitution, the New Delhi International Arbitration Centre Bill, 2019 is proposed to be introduced in the Parliament.
The Bill provides for setting up of an independent an autonomous body for institutional arbitration and to acquire and transfer the undertakings of the International Centre For Alternative Dispute Resolution (ICADR) to the New Delhi International Arbitration Centre (NDIAC)
- The proposed New Delhi International Arbitration Centre will be headed by a chairperson, who has been a judge of the Supreme Court or a judge of a high court or an eminent person, having special knowledge and experience in the conduct or administration of arbitration.
New Delhi International Arbitration Centre (NDIAC)
- The NDIAC will be headed by a Chairperson, who has been a Judge of the Supreme Court or a Judge of a High Court or an eminent person, having special knowledge and experience in the conduct or administration of arbitration, law or management,
- He is to be appointed by the Central Government in consultation with the Chief Justice of India.
- Besides, it will also have two Full-time or Part-time Members from amongst eminent persons having substantial knowledge and experience in institutional arbitration in both domestic and international.
- In addition, one representative of a recognized body of commerce and industry shall be nominated on rotational basis as a Part-time Member.
- The Secretary, Department of Legal Affairs, Ministry of Law & Justice, Financial Adviser nominated by Department of Expenditure, Ministry of Finance and Chief Executive Officer, NDIAC will be ex-officio Members.
Objectives of ADR:
- It is felt that a reliable and responsive alternative dispute resolution system is essential for rapidly developing countries like India.
- While business disputes need speedy resolution, litigation is the least favoured method for that. The Indian judicial system is marred by delays because of which businesses suffer as disputes are not resolved in a reasonable time period.
- Therefore, need for alternative dispute resolution processes like negotiation, mediation conciliation and arbitration is felt from time to time.
- Facilitate conducting of international and domestic arbitrations and conciliation in the most professional manner;
- Provide cost effective and timely services for the conduct of arbitrations and conciliations at Domestic and International level;
- Co-operate with other societies, institutions and organisations, national or international for promoting alternative dispute resolution.
- The benefits of institutionalized arbitration will be manifold for the Government and its agency and to the parties to a dispute.
- This will result in quality experts being available in India and also an advantage in terms of cost incurred.
- It will facilitate India becoming a hub for institutional arbitration.
Critically Examine the need for Arbitration. Also discuss the significance of arbitration bill 2019.