March 08, 2018
The Union Cabinet on March 07 approved the Arbitration and Conciliation (Amendment) Bill, 2018 for introduction in the Parliament.
According to the official statement, the proposed Amendments in the Act of 1996 would facilitate the goal of improving institutional arbitration by establishing an independent body to Benefits:
The Amendments in the Act of 1996 will facilitate achieving the goal of improving institutional arbitration by establishing an independent body i.e. Arbitration Council of India (ACI).
Salient features of the Bill inter alia include:
- To facilitate speedy appointment of arbitrators through designated arbitral institutions by the Supreme Court or the High Court, without having any requirement to approach the court in this regard.
- The amendment provides for creation of ACI that which will grade arbitral institution and accredit arbitrators by laying down norms and take all such steps as may be necessary to promote and encourage arbitration, conciliation, mediation and other ADR Mechanism and for that purpose evolve policy and guidelines for the establishment, operation and maintenance of uniform professional standards in respect of all matters relating to arbitration and ADR mechanism.
- The Bill proposes to amend sub section (1) of section 29A by excluding International Arbitration from the bounds of timeline and further to provide that the time limit for arbitral award in other arbitrations shall be within 12 months from the completion of the pleadings of the parties.
- The Bill proposes to incorporate a new section 42A to provide that the arbitrator and the arbitral institutions shall keep confidentiality of all arbitral proceedings except award. Further, a new section 42B protects an Arbitrator from suit or other legal proceedings for any action or omission done in good faith in the course of arbitration proceedings.