New Delhi International Arbitration Centre (Amendment) Bill 2022 Passed

Indian Parliament has recently passed New Delhi International Arbitration Centre (Amendment) Bill 2022 which aims to amend the New Delhi International Arbitration Act 2019. The Act provides for setting up New Delhi International Arbitration Centre and designates it as an Institute of National Importance. And this New Delhi International Arbitration Centre replaces the International Centre for Alternative Dispute Resolution.

• Renaming of New Delhi International Arbitration Centre : The bill renames the New Delhi International Arbitration Centre as the India International Arbitration Centre.
• Alternative Dispute Resolution (ADR) : The act requires the Arbitration Centre to strive to facilitate the conduct of domestic and international arbitration and conciliation. The bill expands this to include 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.
• Removal of Difficulties : The act allows the central government to provide for removing any difficulties in implementing the Act up to two years from the date of announcement of the act. The bill expands the time period to five years.
• Drafting errors : The bill also corrects several drafting errors in the act.

• International Arbitration is a dispute resolution mechanism, carried out by private adjudicator called “arbitrator” and it expands beyonds a country boundary.
• It is a consensual, neutral binding, and enforceable means of dispute resolution that is more efficient and faster than regular court proceeding.
• It can be optional, but it could be made compulsory by inserting a “mandatory arbitration clause”.
• 1958 United Nations Convention on the Recognition and Enforcement of Foreign Arbitral Award, also known as “New York Convention”. It provided a universal framework for the recognition and enforcement of international arbitration award.
• Multiple forums for International Arbitration
  • International Court of Arbitration (ICA) 1923
  • Permanent Court of Arbitration (PCA) 1899

• It provides a neutral platform for the parties to come together and present their arguments in front of arbitrators out the formal court.
• Procedure are easy and flexible.
• It is often less expensive than civil litigation.
• Privacy and confidentiality of parties are ensured.