Cabinet approves Ordinance to set up a New Delhi International Arbitration Centre - (28 Feb 2019)
Arbitration
In order to make India a hub of institutionalised arbitration, Union Government has approved promulgation of an Ordinance for establishing New Delhi International Arbitration Centre (NDIAC). The New Delhi International Arbitration Centre Bill, 2019, could not be taken up for consideration and passing by the Rajya Sabha in the recently concluded Session. However, the bill was passed in Lok Sabha. The Parliament has been adjourned sine die. As per the provisions of Article 107(5) of the Constitution of India, a Bill, which has been passed by the Lok Sabha but is still pending in the Rajya Sabha, shall lapse on dissolution of the Lok Sabha. Therefore, in view of urgency to establish institutionalised arbitration, the Government has decided to promulgate an Ordinance termed as “The New Delhi International Arbitration Centre Ordinance, 2019”.
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. Appointment will be made by the Central Government in consultation with the Chief Justice of India. Further, it would consist of two Full time or Part time Members from amongst eminent persons having substantial knowledge and experience in institutional arbitration, both domestic and international. One representative of a recognised body of commerce and industry shall be chosen on rotational basis as Part time Member. Secretary, Department of Legal Affairs, Financial Adviser nominated by the Department of Expenditure and Chief Executive Officer, NDIAC shall be ex-officio Members.
In order to facilitate the setting up of NDIAC, the Ordinance envisages the transfer and vesting of the undertakings of the International Centre for Alternative Dispute Resolution (ICADR) in the Central Government. The Central Government will subsequently vest the undertakings in NDIAC. The benefits of institutionalized arbitration will accrue to Government and its agency and to the parties to a dispute and to public as well as public institutions in terms of quality of expertise and costs incurred. The NDAIC shall be established to bring targeted reforms to develop itself as a flagship institution for conducting international and domestic arbitration and facilitate administrative assistance for conciliation mediation and arbitral proceedings. Cost effective and timely services for the conduct of arbitrations and conciliations at Domestic and International level would be provided.
Tags : ARBITRATION CENTRE ORDINANCE APPROVAL
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