Arbitration Council of India established as statutory body with legal, academic, government members

It also introduces time limits for completing pleadings and making awards, and mandates confidentiality of arbitral proceedings.

Who it concerns: The law affects parties to arbitration agreements, arbitrators, arbitral institutions, the Supreme Court, High Courts, and the Central Government. It specifically applies to both international commercial arbitrations and other arbitrations in India.

What the bill does

• Establishment of the Arbitration Council of India (ACI) as a body corporate with powers to grade arbitral institutions and recognize professional institutes for arbitrator accreditation.
• Supreme Court and High Courts are empowered to designate arbitral institutions for the appointment of arbitrators.
• In jurisdictions without graded institutions, the Chief Justice of the High Court may maintain a panel of arbitrators.
• Arbitral institutions must dispose of applications for arbitrator appointment within 30 days.
• Statements of claim and defence must be completed within 6 months of the arbitrator's appointment.
• Awards in non-international commercial arbitrations must be made within 12 months of completing pleadings; international awards should be made expeditiously with an endeavour to finish within 12 months.
• Mandatory confidentiality of all arbitral proceedings, except for the award necessary for enforcement.
• Protection for arbitrators from legal proceedings for actions taken in good faith under the Act.
• Arbitral institutions determine tribunal fees subject to rates specified in the Fourth Schedule.

Also in the document

• The Bill creates a new statutory body, the Arbitration Council of India, with a defined composition including a Chairperson and members from legal, academic, and government backgrounds.
• It introduces a grading system for arbitral institutions and a recognition system for arbitrator accreditation bodies.
• It modifies the power of courts to appoint arbitrators by shifting the primary role to designated arbitral institutions.
• It adds a specific provision for the protection of arbitrators acting in good faith.