IIAC handled just 17 cases in three years, committee finds

The Standing Committee on Personnel, Public Grievances, Law and Justice examined the institutional mechanisms supporting the Alternative Dispute Resolution (ADR) ecosystem to identify gaps in mediation, arbitration, and legal services infrastructure.

Who it concerns: Ministry of Law and Justice, Mediation Council of India (MCI), India International Arbitration Centre (IIAC), Delhi International Arbitration Centre (DIAC), National Legal Services Authority (NALSA), and the general public involved in legal disputes.

What the committee found

• The Committee recommended expediting the operationalisation of the Mediation Council of India (MCI) and defining clear timelines for implementing its regulations.
• The Committee recommended expanding the panel of arbitrators at the IIAC with international experts and enhancing outreach to increase caseload and global competitiveness.
• The Committee recommended expanding physical infrastructure, hiring additional administrative personnel, and refining financial planning for the DIAC.
• The Committee recommended timely filling of 16 vacant staff positions at NALSA and addressing the budgetary gap where allocated funds (Rs 550 crore) were lower than the projected requirement (Rs 1,059 crore).
• The Committee recommended making IIAC the designated dispute resolution forum in commercial contracts and entering formal agreements with industrial bodies to reduce reliance on ad hoc arbitration.
• The Committee recommended formulating clearer guidelines to define and limit the scope of judicial intervention in arbitration matters.
• The Committee recommended establishing accreditation systems, recognised qualifications, and integrating ADR into university legal education to develop ADR as a structured profession.
• The Committee recommended making Pre-Institution Mediation and Settlement (PIMS) mandatory and imposing cost penalties on parties that refuse to participate in good faith.
• The Committee recommended establishing clear guidelines for selecting cases and conducting settlements in Lok Adalats, along with better tracking of settlement data.
• The Committee recommended setting minimum digital standards, creating user-friendly platforms, and providing foundational digital training to improve technology integration in ADR.

Also in the document

• The India International Arbitration Centre (IIAC) has handled only 17 cases in nearly three years since its establishment in 2022, despite significant public spending.
• Funding for NALSA in 2026-27 was allocated at Rs 550 crore, which is significantly lower than the projected requirement of Rs 1,059 crore.
• 16 out of 45 staff positions at NALSA remained vacant.
• The Committee noted that the Pre-Institution Mediation and Settlement (PIMS) mechanism has been underutilised, with many litigants treating it as a procedural formality.