The Arbitration Council of India (ACI) is a key regulatory body established to promote and strengthen the arbitration ecosystem in India. It was created with the aim of improving the quality, efficiency, and competitiveness of arbitration in India, making the country a preferred destination for both domestic and international arbitration. The establishment of the ACI reflects India's commitment to making its legal and dispute resolution systems more globally competitive and efficient, addressing the growing need for alternative dispute resolution (ADR) mechanisms in the country.
The Arbitration Council of India was established under the Arbitration and Conciliation (Amendment) Act, 2019, which sought to make India a hub for arbitration. ACI's mandate is to promote and develop alternative dispute resolution mechanisms, specifically arbitration, in the country. It aims to bring in best practices, global standards, and ensure that arbitration proceedings in India are transparent, efficient, and expeditious.
The ACI serves as a national body to oversee the functioning of arbitration in India, creating a more structured and systematic arbitration system.
The primary role of the ACI is to regulate and promote institutional arbitration in India. Some of the major functions of the ACI include:
One of the key goals of the Arbitration Council of India is to position India as a preferred destination for international arbitration. The ACI works towards creating a framework that attracts both domestic and international investors to resolve their disputes in India. The Council aims to provide a reliable and efficient arbitration process to both Indian and foreign parties, thereby enhancing India’s position as a competitive jurisdiction for arbitration.
The ACI is also tasked with overseeing the establishment of a National Centre for Mediation and facilitating the growth of alternative dispute resolution (ADR) methods such as mediation. The National Centre for Mediation (NCM) will be an important part of India's arbitration ecosystem, ensuring a holistic approach to dispute resolution that goes beyond arbitration.
The Centre is expected to facilitate settlements through mediation, conciliation, and other methods, complementing the traditional arbitration process.
The ACI is responsible for ensuring that arbitration proceedings in India are transparent and efficient. This includes setting rules for accountability, governance, and the conduct of arbitrators, and introducing technology-driven solutions such as online dispute resolution (ODR) platforms to streamline the arbitration process and reduce costs.
The ACI aims to create a comprehensive database of arbitration awards and case details to track trends and patterns in arbitration decisions. This repository will serve as a valuable resource for arbitrators, lawyers, and businesses, offering transparency and insight into the outcomes of arbitration proceedings.
The ACI is designed to be an independent body, ensuring that it can function without external interference. This is critical for maintaining the integrity and credibility of the arbitration process.
The ACI’s framework extends beyond arbitration to include mediation and conciliation, reflecting a broader approach to resolving disputes outside traditional court systems.
The Council has an important role in developing a talented pool of qualified arbitrators through training programs, workshops, and certification processes. This ensures that arbitration in India is handled by professionals who are equipped with the necessary expertise.
The ACI’s reforms aim to attract international clients and make India an attractive jurisdiction for resolving cross-border disputes. By aligning India's arbitration rules with global best practices, the Council enhances the country’s appeal as an arbitration hub.
Let’s say a multinational company based in the US enters into a contract with an Indian manufacturing company. The contract includes an arbitration clause to resolve disputes.
In the event of a dispute, the parties decide to refer the matter to institutional arbitration in India.
Thanks to the reforms brought about by the Arbitration Council of India:
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