Alternative Dispute Resolution Mechanism – NCA, Lok Adalats, etc.

Cabinet nod for 2 bills to improve dispute resolution process


Mains Paper 2: Polity | Separation of powers between various organs dispute redressal mechanisms & institutions

From UPSC perspective, the following things are important:

Prelims level: Arbitration and Conciliation (Amendment) Bill 2018, The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill 2018

Mains level: Alternative Dispute Resolution mechanism in India

Strengthening the dispute resolution process

  1. The Cabinet has approved two Bills to be introduced in Parliament aimed at speeding up and strengthening the dispute resolution process in the country

Arbitration and Conciliation (Amendment) Bill 2018

  1. It is a part of the efforts of the Government to encourage institutional arbitration for the settlement of disputes
  2. It aims to make India a center of robust Alternative Dispute Resolution (ADR) mechanism
  3. Bill will establish an independent body—the Arbitration Council of India (ACI)
  4. It will lay down standards, make arbitration process more party friendly, cost-effective, and ensure timely disposal of arbitration cases
  5. The Chairperson of ACI shall be a person who has been a Judge of the Supreme Court or Chief Justice or Judge of any High Court or any eminent person

The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill 2018

  1. It seeks to bring down the specified value of a commercial dispute to ₹3 lakh from the present ₹1 crore
  2. Now commercial disputes of a “reasonable value” can be decided by commercial courts
  3. This would bring down the time taken (presently 1,445 days) in the resolution of commercial disputes of lesser value and thus further improve India’s ranking in the Ease of Doing Business
  4. Bill provides for the establishment of commercial courts at the district judge level for the territories over which the respective High Courts have ordinary original civil jurisdiction—Chennai, Delhi, Kolkata, Mumbai and the state of Himachal Pradesh
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