Benefits of the Arbitration Act

♤ Putting India on the world map in arbitration proceedings - It aims to make India an international arbitration hub by providing facilities for settlement of commercial disputes. It aims to make the arbitration of excellent quality, bestowing responsibility on the ACI to hold trainings, workshops, courses, frame policies, guidelines and update norms to ensure satisfactory level of arbitrations, arbitral institutions and the arbitrators.

♤ Protect foreign reserves: It would encourage investors in India to resolve their disputes in India instead of the currently preferred arbitration centers in London, Singapore and Hong Kong. This would protect India’s foreign exchange reserves as Indian companies lose significant amount of foreign Exchange on arbitration that usually happen in these foreign countries.

♤ To reduce burden on courts- Presently, in case of any dispute with respect to appointment of Arbitrators, parties have to approach the Supreme Court or the High Court for appointment of Arbitrators or to resolve their dispute. With the huge backlog of cases, the courts are already overburdened. An effective ACI will share this burden of the court and even facilitate speedy appointment of arbitrators. This would further aid quick resolution of disputes outside the court.

♤ To provide exhaustive list to choose an arbitrator- The parties to an arbitration agreement can choose their own arbitrator, this choice is sacrosanct to arbitration process. The essence of choosing an arbitrator of choice is not circumscribed by the nine broad qualification criteria as provided in the provisions of the earlier bill. The list is broadly phrased and includes the choice of arbitrators from advocates, chartered accountant, cost accountant, company secretary, person with technical knowledge and experience etc.

♤ To speed up arbitration process- It provides for statement of claim and defence to be completed within six months from the date the arbitrator receives the notice of appointment. This will fasten the entire process of arbitration. Earlier, parties would take a lot of time to submit their pleas. Now the time can be efficiently used for arbitration proceedings.

♤ Ensures accountability of arbitrators- The reduction of fees of arbitration on delay would act as incentive for the arbiters to dispose the case on time as much as possible.