Government of India invites comments on draft Arbitration and Conciliation (Amendment) Bill, 2024 | Current Affairs | Vision IAS
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Government of India invites comments on draft Arbitration and Conciliation (Amendment) Bill, 2024

Posted 28 Oct 2024

2 min read

Government has drafted Arbitration and Conciliation (Amendment) Bill, 2024 to amend Arbitration and Conciliation Act, 1996

  • Amendment aims to provide boost to institutional arbitration, reduce court intervention in arbitrations and ensuring timely conclusion of arbitration proceedings.
    • Arbitration refers to an alternative dispute resolution method where the parties in dispute agree to have their case heard by a qualified arbitrator.

Arbitration Mechanism in India

  • Arbitration and Conciliation Act, 1996 governs the arbitral proceedings in India.
    • It was based on UNCITRAL (United Nations Commission on International Trade Law) Model Law on International Commercial Arbitration 1985 and UNCITRAL Conciliation Rules, 1980.
    • Act has been amended in years 2015, 2019, and 2021.

Key Features of draft Arbitration and Conciliation (Amendment) Bill, 2024

  • Omission of Conciliation: Amended Act will be called Arbitration Act, 1996 as provisions related to conciliation have been incorporated in Mediation Act 2023.
  • Appointing an Emergency Arbitrator: To grant interim measures prior to the constitution of an arbitral tribunal.
  • Institutional Focus: Promoting institutional arbitration as a preferred method over ad-hoc arrangements, thereby enhancing efficiency.
  • Arbitration Council of India (ACI): Provides powers to create model rules of procedure for arbitral proceedings and recognize arbitral institutions.
  • Video Conferencing: Allow arbitrations conducted via video conferencing.
  • Establishing an Appellate Arbitral Tribunal: To handle applications against an arbitral award.

Issues in Arbitration System

  • Lack of diversity in appointing arbitrators, as retired judges dominate the field. 
  • Lack of Trust as there is always scepticism about the independence and impartiality of the third party.
  • Judicial intervention in arbitration proceedings leads to delays in awards.
  • Tags :
  • Alternate Dispute Resolution
  • Arbitration
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