The New Delhi International Arbitration Centre Act, 2019

The New Delhi International Arbitration Centre Act received presidential assent on 29th July 2019. It seeks to establish an autonomous and independent institution for better management of arbitration in India.

Key Features of the Act

NDIAC & ICADR

  • New Delhi International Arbitration Centre (NDIAC): The Act provides for the establishment of the NDIAC to conduct arbitration, mediation, and conciliation proceedings.
  • International Centre for Alternative Dispute Resolution (ICADR):The ICADR is a registered society to promote the resolution of disputes through alternative dispute resolution methods (such as arbitration and mediation). The Act transfers the existing ICADR to the central government.

Composition

  • The NDIAC will consist of seven members including one chairperson (former judge of SC/HC), two eminent persons with knowledge of arbitration, three ex-officio members and one representative from recognized body of trade and commerce.

Term and Superannuation

  • The members of NDIAC will hold office for three years and will be eligible for re-appointment.The retirement age for the Chairperson is 70 years and other member is 67 years.

Objectives and Functions of the NDIAC

  1. Promoting research, providing training and organizing conferences and seminars in alternative dispute resolution matters,
  2. Providing facilities and administrative assistance for the conduct of arbitration, mediation and conciliation proceedings, and
  3. Maintaining a panel of accredited arbitrators, mediators and conciliators.

Finance and Audit

  • The NDIAC will be required to maintain a fund which will be credited with grants received from the central government, fees collected for its activities, and other sources. The accounts of the NDIAC will be audited and certified by the Comptroller and Auditor-General of India.

Significance of the Act

  • Ease of Doing Business report by World Bank ranked India at 108th spot amongst 190 countries in terms of “resolving insolvency in 2018 rankings” but in the latest ranking (2020) after the passage of The New Delhi International Arbitration Centre Ordinance, the rank improved to 52nd.
  • The committee headed by former Supreme Court judge B N Srikrishna had lamented that the International Centre for Alternative Dispute Resolution (ICDAR) in Delhi had only conducted 22 arbitrations in 23 years, so it is a great move to resolve the issue.
  • Overall it’s a great initiative that will encourage not just investors but would help cleaning the tainted image of India in global business forums.

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