International Arbitration Centre

  • IASbaba
  • December 29, 2022
  • 0
Indian Polity & Constitution
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In News: The New Delhi International Arbitration Centre (Amendment) Bill was passed by the Rajya Sabha on 14th December 2022.

  • The Bill renames the New Delhi International Arbitration Centre as the India International Arbitration Centre.
  • The original Act requires the NDIAC to strive to facilitate the conduct of international and domestic arbitration and conciliation. The Amendment Bill expands this to include conduct of other forms of alternative dispute resolution.


  • Setup in 2019 under the provisions of New Delhi International Arbitration Centre (NDIAC) Act, 2019
  • Objectve: For better management of arbitration in India.
  • The Act declared NDIAC as an institution of national importance.
  • Replaced the International Centre for Alternative Dispute Resolution (ICADR), an existing institution established in the year 1995.


  • Promoting research, providing training and organizing conferences and seminars in alternative dispute resolution matters.
  • Providing facilities and administrative assistance for the conduct of arbitration, mediation and conciliation proceedings.
  • Maintaining a panel of accredited professionals to conduct arbitration, mediation and conciliation proceedings.

Key Functions

  • Facilitating conduct of arbitration and conciliation in a professional, timely and cost-effective manner; and
  • Promoting studies in the field of alternative dispute resolution.

Composition: The NDIAC will consist of seven members including:

  • A Chairperson who may be a Judge of the Supreme Court or a High Court, or an eminent person with special knowledge and experience in the conduct or administration of arbitration;
  • Two eminent persons having substantial knowledge and experience in institutional arbitration;
  • Three ex-officio members, including a nominee from the Ministry of Finance and a Chief Executive Officer (responsible for the day-to-day administration of the NDIAC);
  • A representative from a recognized body of commerce and industry, appointed as a part-time member, on a rotational basis.

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 members is 67 years.

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.

Institutional Support

  • The NDIAC will establish a Chamber of Arbitration which will maintain a permanent panel of arbitrators.
  • Further, the NDIAC may also establish an Arbitration Academy for training arbitrators and conducting research in the area of alternative dispute resolution.
  • The NDIAC may also constitute other committees to administer its functions.

India as an International hub of Arbitration

  • India is the fifth biggest economy in the world, yet we are not the international hub of arbitration, while small countries and cities have emerged as major centres for arbitration.
  • Presently, places such as Singapore, London and Hong Kong are the preferred centres for arbitration.
  • NDIAC can provide arbitration awards at more affordable charges in comparative to those centres.

Alternative Dispute Resolution (ADR) Mechanisms

  • ADR is a mechanism of dispute resolution that is non adversarial, i.e. working together co-operatively to reach the best resolution for everyone.
  • ADR can be instrumental in reducing the burden of litigation on courts, while delivering a well-rounded and satisfying experience for the parties involved
  • Arbitration: The dispute is submitted to an arbitral tribunal which makes a decision (an “award”) on the dispute that is mostly binding on the parties.
  • Mediation: In mediation, an impartial person called a “mediator” helps the parties try to reach a mutually acceptable resolution of the dispute.
  • Arbitration and mediation have a long history in India.
    • Recently they have acquired prominence across the world as methods of dispute resolution.
  • Alternative dispute resolution methods are beneficial to the parties due to various reasons
    • low-cost speed
    • more control over timelines and process
    • autonomy of parties
    • a more comfortable environment
    • a non-adversarial nature

Source: The Indian Express


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