{"id":64259,"date":"2026-01-14T18:28:52","date_gmt":"2026-01-14T12:58:52","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=64259"},"modified":"2026-01-15T12:23:44","modified_gmt":"2026-01-15T06:53:44","slug":"arbitration-council-delay","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/14-01-2026\/arbitration-council-delay","title":{"rendered":"Delay in Constituting Arbitration Council of India"},"content":{"rendered":"\n<p><strong>Syllabus: GS2\/ Governance<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Government has not yet constituted the Arbitration Council of India (ACI) despite amendments to the Arbitration and Conciliation Act in 2019.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is the Arbitration Council of India (ACI)?<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The ACI was proposed under the <strong>Arbitration and Conciliation (Amendment) Act, 2019. <\/strong>It is mandated to regulate and promote institutional arbitration in India.<\/li>\n\n\n\n<li><strong>Its key functions include:<\/strong>\n<ul class=\"wp-block-list\">\n<li>Grading arbitration institutions.<\/li>\n\n\n\n<li>Framing norms for arbitral institutions and arbitrators.<\/li>\n\n\n\n<li>Promoting professionalism, transparency, and efficiency in arbitration.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arbitration Mechanism in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Arbitration is a <strong>quasi-judicial process of settlement of disputes <\/strong>between Trading Member, Investor, Clearing Member, Authorised Person, Listed Company etc.&nbsp;<\/li>\n\n\n\n<li>Arbitration aims at <strong>quicker legal resolution for the disputes.&nbsp;<\/strong><\/li>\n\n\n\n<li><strong>The Arbitration and Conciliation Act 1996<\/strong> has been modelled on lines of the UNCITRAL (United Nations Commission on International Trade Law) framework of laws.<\/li>\n\n\n\n<li><strong>Arbitration Agreement:<\/strong> Parties can agree to resolve their disputes through arbitration either before or after a dispute arises.<\/li>\n\n\n\n<li><strong>Arbitral Tribunal:<\/strong> The arbitral tribunal, comprised of one or more arbitrators, is appointed by the parties or as per the procedure agreed upon by them.\n<ul class=\"wp-block-list\">\n<li>The decision on the dispute is mostly <strong>binding on the parties.<\/strong><\/li>\n\n\n\n<li>Generally, there is no right to appeal an arbitrator\u2019s decision.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Arbitration Proceedings:<\/strong> The Arbitration Act provides a framework for conducting arbitration proceedings, including the appointment of arbitrators, the conduct of hearings, submission of evidence, and issuance of the final arbitral award.<\/li>\n\n\n\n<li><strong>Enforcement:<\/strong> The Act empowers arbitral tribunals to grant interim measures to preserve the rights of parties, pending the final resolution of the dispute.\n<ul class=\"wp-block-list\">\n<li>Arbitral awards, once granted, are enforceable in the same manner as court judgments.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Institutional and Ad Hoc Arbitration:<\/strong> Arbitration in India can be conducted through institutional arbitration bodies like the<strong> Indian Council of Arbitration (ICA), International Chamber of Commerce (ICC), <\/strong>or through <strong>ad hoc arbitration where parties directly appoint arbitrators<\/strong>.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Implications of the Delay<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>It weakens investor confidence<\/strong> in India\u2019s dispute resolution framework.<\/li>\n\n\n\n<li><strong>It hampers ease of doing business<\/strong> and contract enforcement.<\/li>\n\n\n\n<li><strong>The delay reduces India\u2019s competitiveness<\/strong> vis-\u00e0-vis established arbitration hubs.<\/li>\n\n\n\n<li><strong>It encourages forum shopping<\/strong> and preference for foreign arbitration centres.<\/li>\n\n\n\n<li><strong>Problems with Ad-hoc Arbitration:&nbsp;<\/strong>\n<ul class=\"wp-block-list\">\n<li>The dominance of ad-hoc arbitration has led to <strong>procedural delays and rising costs.<\/strong><\/li>\n\n\n\n<li>Ad-hoc arbitration has increasingly<strong> mirrored court litigation<\/strong> rather than offering speedy resolution.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-background has-fixed-layout\" style=\"background-color:#ebecf0\"><tbody><tr><td><strong>Indian Council of Arbitration<\/strong><br><br>&#8211; The Indian Council of Arbitration, India\u2019s premier arbitral institution, is a <strong>registered society under the Societies Registration Act, 1860,<\/strong> operating on a not-for-profit basis.<br>&#8211; The ICA was established in <strong>1965 <\/strong>as a specialized arbitral body at the <strong>national level<\/strong>.<br>&#8211; The main objective of ICA is to promote<strong>amicable, quick and inexpensive settlement of commercial disputes<\/strong> by means of arbitration, conciliation, regardless of location.<br>&#8211; ICA has a distinguished <strong>panel of arbitrators<\/strong> that comprise of Former Chief Justices of India, Former Judges of Supreme Court, High Courts, District Judges, Chairman of Tribunals, Senior Advocates, Advocates, Former Bureaucrats, Chartered Accountants and other experts.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/six-years-after-law-amended-centre-yet-to-constitute-arbitration-council-of-india\/article70497804.ece#:~:text=%E2%80%9CThe%20\" target=\"_blank\" rel=\"noopener\"><strong>TH<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong>Context<\/strong><\/p>\n<li class=\"ms-5\">The Union Government has not yet constituted the Arbitration Council of India (ACI) despite amendments to the Arbitration and Conciliation Act in 2019.<\/li>\n<p><\/p>\n<p><strong> What is the Arbitration Council of India (ACI)? <\/strong><\/p>\n<li class=\"ms-5\">The ACI was proposed under the Arbitration and Conciliation (Amendment) Act, 2019. It is mandated to regulate and promote institutional arbitration in India. <\/li>\n<li class=\"ms-5\">Its key functions include: <\/li>\n<li class=\"ms-5\">Grading arbitration institutions. <\/li>\n<p><a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/14-01-2026\/arbitration-council-delay\" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-64259","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/64259","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=64259"}],"version-history":[{"count":3,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/64259\/revisions"}],"predecessor-version":[{"id":64285,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/64259\/revisions\/64285"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=64259"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=64259"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=64259"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}