Features of Arbitration and Conciliation (Amendment) Act, 2019

♤ It seeks to establish an independent body called the Arbitration Council of India (ACI) which would exercise powers such as grading arbitral institutions, recognising professional institutes that provide accreditation to arbitrators, issuing recommendations and guidelines for arbitral institutions, and taking steps to make India a centre of domestic and international arbitrations.

Past developments

♤ The Arbitration and Conciliation Act, 1996 was enacted to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards, and to define the law relating to conciliation and for matters connected therewith or incidental thereto.

♤ The Arbitration and Conciliation Act, 1996, was amended by the Arbitration and Conciliation (Amendment) Act, 2015 in order to make arbitration process user friendly, cost effective and ensure speedy disposal and neutrality of arbitrators. It envisages various ways to encourage foreign investment by projecting India as an investor friendly country having a sound legal framework and ease of doing business in India.

♤ However, to give a boost to institutional arbitration vis- a-vis ad hoc arbitration and to remove some practical difficulties in applicability of the Arbitration and Conciliation (Amendment) Act, 2015, a High Level Committee (HLC) under the Chairmanship of Justice

B.N. Srikrishna, was constituted by the Government.

♤ The recent amendment Act is as per the recommendations of the High Level Committee.

♤ Appointment of arbitrators will now be done by the Supreme Court and High Court designated arbitral institutions, which was earlier used to be done by parties themselves.

♤ It has removed time restriction for international commercial arbitrations and incase the arbitration award goes for an appeal to the tribunal, it shall dispose the appeal within 12 months.

♤ It introduces express provisions on confidentiality of arbitration proceedings and immunity of arbitrators.

♤ It prescribes minimum qualifications for a person to be accredited/act as an arbitrator

♤ The statement of claim and

defence to be completed within six months from the date the arbitrator receives the notice of appointment.

♤ The Court while extending the period may also order reduction of fees of arbitrator(s) not exceeding five percent for each month of delay and it also provides for additional fees if arbitration procedure is completed within six months if both parties agree.