From UPSC perspective, the following things are important :
Prelims level : Arbitration
Mains level : NDIAC
- The Union Cabinet has approved the Bill New Delhi International Arbitration Centre (NDIAC) Bill, 2019 for introduction in the ensuing session of Parliament.
About the Bill
- In view of the provisions of the Article 107 (5) and 123 (2) of the Constitution, the New Delhi International Arbitration Centre Bill, 2019 is proposed to be introduced in the Parliament.
- The Bill provides for setting up of an independent an autonomous body for institutional arbitration.
- It aims to acquire and transfer the undertakings of International Centre For Alternative Dispute Resolution (ICADR) to New Delhi International Arbitration Centre (NDIAC).
New Delhi International Arbitration Centre (NDIAC)
- The NDIAC will be headed by a Chairperson, who has been a Judge of the Supreme Court or a Judge of a High Court or an eminent person, having special knowledge and experience in the conduct or administration of arbitration, law or management,
- He is to be appointed by the Central Government in consultation with the Chief Justice of India.
- Besides, it will also have two Full-time or Part-time Members from amongst eminent persons having substantial knowledge and experience in institutional arbitration in both domestic and international.
- In addition, one representative of a recognized body of commerce and industry shall be nominated on rotational basis as a Part-time Member.
- The Secretary, Department of Legal Affairs, Ministry of Law & Justice, Financial Adviser nominated by Department of Expenditure, Ministry of Finance and Chief Executive Officer, NDIAC will be ex-officio Members.
Aims and objectives of NDIAC
- bring targeted reforms to develop itself as a flagship institution for conducting international and domestic arbitration
- provide facilities and administrative assistance for conciliation, mediation and arbitral proceedings;
- maintain panels of accredited arbitrators, conciliators and mediators both at national and international level or specialists such as surveyors and investigators;
- facilitate conducting of international and domestic arbitrations and conciliation in the most professional manner;
- provide cost effective and timely services for the conduct of arbitrations and conciliations at Domestic and International level;
- promote studies in the field of alternative dispute resolution and related matters, and to promote reforms in the system of settlement of disputes; and
- co-operate with other societies, institutions and organisations, national or international for promoting alternative dispute resolution.
- The benefits of institutionalized arbitration will be manifold for the Government and its agency and to the parties to a dispute.
- This will result in quality experts being available in India and also an advantage in terms of cost incurred.
- It will facilitate India becoming a hub for institutional arbitration.
International Arbitration in India
- It has been the endeavor of the Government of India to establish an independent and autonomous institution for resolving International and domestic commercial disputes expeditiously by Alternative Dispute Resolution (ADR) mechanism.
- In this regard, a HL Committee headed by Mr. Justice B.N. Srikrishna, former Judge of the Supreme Court of India, was constituted in the year 2017.
- The HLC recommended that the Government may take over the International Centre For Alternative Dispute Resolution (ICADR), an existing institution which has been established in the year 1995 using the public funds and develop it as an Institution of National Importance.
- Taking into consideration the HLC’s recommendations, a Bill, namely the New Delhi International Arbitration Centre (NDIAC) Bill 2018 was approved.