NEW DELHI INTERNATIONAL ARBITRATION CENTRE (NDIAC)

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The Union Government has appointed Justice Hemant Gupta as the Chairperson of the New Delhi International Arbitration Centre (NDIAC).
- The Appointments Committee of the Cabinet approved his appointment.
- The committee is composed of the Prime Minister of India (ex-officio Chairman) and the Minister of Home Affairs.

New Delhi International Arbitration Centre (NDIAC)

New Delhi International Arbitration Centre Act 2019 established the NDIAC to conduct arbitration, mediation, and conciliation proceedings.
It declared the NDIAC as an institution of national importance.
NDIAC consist of 7 members including:
- A Chairperson who may be a Judge of the Supreme Court or a High Court or an eminent person with special knowledge and experience in the conduct or administration of the arbitration.
- 2 eminent persons having substantial knowledge and experience in institutional arbitration.
- 3 ex-officio members, including a nominee from the Ministry of Finance and a Chief Executive Officer (responsible for the day-to-day administration of the NDIAC).
- A representative from a recognized body of commerce and industry, appointed as a part-time member, on a rotational basis.
The members will hold office for 3 years and will be eligible for re-appointment.
The retirement age for the Chairperson is 70 years and for other members is 67 years.
The key objectives of the NDIAC;
- Promoting studies in the field of alternative dispute resolution.
- Providing training and organizing conferences and seminars in alternative dispute resolution matters.
- Providing facilities and administrative assistance for the conduct of arbitration, mediation and conciliation proceedings.
- Maintaining a panel of accredited professionals to conduct arbitration, mediation and conciliation proceedings.
- To promote arbitration and conciliation in a professional, timely and cost-effective manner.
The NDIAC required maintaining a fund which will be audited and certified by the Comptroller and Auditor-General of India.

New Delhi International Arbitration Centre (Amendment) Act, 2022

It amended the New Delhi International Arbitration Centre Act, 2019.
The amendment act renames the New Delhi International Arbitration Centre as the India International Arbitration Centre.
The original Act requires the Arbitration Centre to strive to facilitate the conduct of international and domestic arbitration and conciliation.
- The amendment act expands this to include the conduct of other forms of alternative dispute resolution.
- The manner of conduct of arbitration and other forms of alternative dispute resolution will be specified by the central government through regulations.
The original Act allows the central government to provide for removing any difficulties in implementing the Act up to 2 years from the date of commencement of the Act.
- The amendment act extends this period to 5 years.

Arbitration

Arbitration is a method of settling disputes without either party having to go to court.
This involves a neutral third party who receives evidence, hears the arguments and then passes an order known as an award. The award is final.
Mandatory arbitration is also becoming popular now where contracts state that jurisdiction over disputes would only be settled by an arbitrator and not by a court.
In India, arbitration is backed by the Arbitration and Conciliation Act of, 1996 which was amended by the Arbitration and Conciliation (Amendment) Act, of 2015.
- The Act provides for a fair chance for both parties to be heard and to settle disputes.
- The award has to be enforced under the Code of Civil Procedure, 1908.
- The Act mandates that arbitration proceedings have to be completed within 12 months, however, if both parties agree, then the period can be extended by 6 months.
Significance of arbitration
- Cost-effective: Litigating a dispute in court is an expensive process. Arbitration is a much more cost-effective way of settling disputes.
- Speed: There are well-defined time limits to pass awards, resulting in quick disposal of the matter.
- Fairness: Arbitrators are usually appointed by both parties to the agreement resulting in a fair selection of the arbitrator.
- Awards passed are final.
- Simple Procedure: They are not bound by any procedural laws of the land. They are free to take on their procedure to hear arguments, receive evidence and pass awards.
- Confidentiality: Arbitration proceedings are confidential, there is no public record preserved of the dispute. This makes whatever trade secrets or confidential details of the business remain between the parties themselves.
- Specialization: Parties can choose an arbitrator skilled in the law they are facing disputes over, for example, patent law.