Arbitration Council of India

By : Neha Dhyani

Updated : May 16, 2022, 9:07

Arbitration in law refers to the process of settling disputes between two parties through an 'Arbitrator' who delivers a binding award (decision) after carefully evaluating such disputes. Since the settlement is done outside the court, it saves time and money for the litigants.

The Arbitration and Conciliation Act 1996 prescribes the rules to be followed during the arbitration. It was amended with the Arbitration and Conciliation (Amendment) Act, 2019, which came into effect on 9th August 2019. Part 1A of this Act contains detailed domestic and international arbitration guidelines and proposes setting the Arbitration Council of India to oversee conciliation proceedings in India.

What is the Arbitration Council of India?

The Arbitration Council of India was proposed to streamline and encourage institutional arbitration and promote the Alternative Dispute Resolution (ADR) mechanism in India. Among the three ADR processes, neutral evaluation, mediation, and arbitration, arbitration is the most popular way of dispute resolution outside the court of law.

The Arbitration Council of India's functions includes framing policies for grading and rating the performances of arbitral institutions. It also accredits arbitrators according to the norms and qualifications mentioned in the Eighth Schedule of the 2019 Act.

The Council determines the policy for the operations of the establishment. Its primary objective is to maintain uniform professional standards for everything related to arbitration and the ADR mechanism. Furthermore, the Council also conducts workshops and training to encourage the ADR mechanism.

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Members of Arbitration Council of India

Any Supreme Court Judge, High Court Chief Justice, High Court Judge, or any eminent person with special knowledge of the administration of arbitration can be appointed as the Chairperson. However, the appointment must be made by the Central Government after consulting the Chief Justice of India.

A reputed arbitration specialist with ample knowledge of domestic and international institutional arbitration can be appointed as a Member. An experienced academician with teaching and research exposure in arbitration and ADR laws can be appointed as the Member.

An officer of the rank of Joint Secretary to the Government of India or above must be appointed as an Ex-Officio Member. Any representative of a recognised commerce and industry body must be appointed as a part-time Member. The Chief Executive Officer-Member-Secretary must be appointed as an Ex-Officio Member.

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Arbitration Council of India - Term of the Members

According to the Arbitration and Conciliation (Amendment) Act 2019, the Chairperson and all Members must stay in office for three years from the date of joining office. Also, no Member, Ex-Officio Member, or Chairperson will be allowed to hold office after attaining the age of seventy (70) years (for Chairperson) and sixty-seven (67) years (for Members).

The Arbitration Council of India has been formed to simplify the court procedures regarding arbitration and strengthen the Alternative Dispute Resolution mechanism. The Council's headquarters are located in Delhi and are opening offices in major Indian cities.

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FAQs on Arbitration Council of India

Q1) Which Act prescribes the formation of the Arbitration Council of India?

The Arbitration and Conciliation (Amendment) Act, 2019, which came into effect on 9th August 2019, prescribes the formation of the Arbitration Council of India.

Q2) What is the Arbitration Council of India?

The Arbitration Council of India was proposed to streamline and encourage institutional arbitration and promote the Alternative Dispute Resolution (ADR) mechanism in India.

Q3) What are the functions of the Arbitration Council of India?

The Arbitration Council of India's functions includes framing policies for grading and rating the performances of arbitral institutions. It also accredits arbitrators according to the norms and qualifications mentioned in the Eighth Schedule of the 2019 Act.

Q4) What is the Term of the Members of the Arbitration Council of India?

According to the Arbitration and Conciliation (Amendment) Act 2019, the Chairperson and all members of the Arbitration Council of India must stay in office for three years from the date of joining the office.

Q5) Who can be appointed as the Chairperson of the Arbitration Council of India?

Any Supreme Court Judge, High Court Chief Justice, High Court Judge, or any eminent person with special knowledge of the administration of arbitration can be appointed as the Chairperson of the Arbitration Council of India.