Arbitration and Conciliation (Amendment) Bill 2018

In an effort to make India a global hub for arbitration, the government will grade institutions that offer alternative dispute resolution mechanism for commercial disputes. The Union Cabinet chaired by the Prime Minister Narendra Modi approved the Arbitration and Conciliation (Amendment) Bill 2018 to be put before the Parliament in order to amend the 1996 Act.

A High Level Committee chaired by a retired judge of the Supreme Court Justice B.S. Srikrishna proposed the amendments to the Bill. The report was submitted by the committee after examining the state of arbitration institutes in India, and develops a future roadmap for increase in the same.

Relevance of the Bill:

• The objective of the Bill is to increase institutional arbitration and to bring a reasonable surge in the adoption of Alternative Disputes Resolution
• It will provide for the establishment of an independent body, called theArbitration Council of India (ACI), to accredit and grade arbitrators and arbitral institutions.
• It also proposes to do away with the necessity of approaching either the High Court or the Supreme Court, for the appointment of an arbitrator. It provides for the provisions in which the parties can directly approach arbitral institutions designated by the courts.
• It also provides that although for International Arbitration no time limit shall be proposed, however the Disputes involving Domestic Issues must be resolved within a year following the date on which the suit gets filed.
• The Bill has also proposed that the Arbitrator shall be given legal immunity for any bonafide act or omission committed during the due course of the arbitration proceedings.
• If the bill is signed into a full-fledged law, the ACI will also be responsible for taking steps to encourage all forms of ADR, and formulate policy that will ensure professional standards are maintained. The body will also maintain an online depository of arbitral awards.
• The amendments to the Bill shall not have any retrospective effect, unless the parties so desire and agree upon it.

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