This Amendment is intended to facilitate to improving institutional arbitration by establishing an independent body to lay down standards, make arbitration process more party friendly, cost-effective and ensure timely disposal of arbitration cases. The amendment provides for creation of an independent body namely the Arbitration Council of India (ACI).
Arbitration and conciliation is one of the way where the parties can resolve the matter amicable and with a short period of time. People must be aware that Conciliation and mediation is also the way to resolve their matter. Under the head of arbitration those matter which are not a heinous crime and award settlement can be done without a legal litigation can be resolve. There after government had made amendment in the arbitration and conciliation act with regards to its salient feature.
The HLC submitted its Report on 30th July 2017 and has recommended for amendments in the Arbitration and Conciliation Act, 1996. The proposed amendments are as per the recommendations of the High-Level Committee.
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. It is envisaged that parties may directly approach arbitral institutions designated by the Supreme Court for International Commercial arbitration and in other cases the concerned High Courts. The amendment provides for creation of an independent body namely the Arbitration Council of India (ACI) 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 Council shall also maintain an electronic depository of all arbitration. he ACI shall be a body corporate.
The Chairperson of ACI shall be a person who has been a Judge of the Supreme Court or Chief Justice or Judge of any High Court or any eminent person. Further, the other Members would include an eminent academician etc. besides other Government nominees, It is proposed 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. new section 42A is proposed to be inserted 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. A new section 87 is proposed to be inserted to clarify that unless parties agree otherwise the Amendment Act 2015 shall not apply to (a) Arbitral proceedings .which have commenced before the commencement of the Amendment Act of 2015 (b) Court proceedings arising out of or in relation to such arbitral proceedings irrespective of whether such court proceedings are commenced prior to or after the commencement of the Amendment Act of 2015 and shall apply only to Arbitral proceedings commenced on or after the commencement of the Amendment Act of 2015 and to court proceedings arising out of or in relation to such Arbitral proceeding. Since the body is independent body namely (ACI) it is good to speedy trial also.
Salient features: -
Within this perspective it is viewed that the burden put forth for civil litigation will be distributed. the matter under the head of arbitration can be resolved with the speedy trial and with this it is an amicable settlement between both the parties and mediation is one of the best way. Since moreover the point of view both the parties are kept in the mind will passing and order or a decree and that is binding on both the parties because the body is a constitutional body. It is a good approach towards the benefits of society.