Written byAnjana Raghav
Seeking to improve India's ranking on the ease of doing business index, the government is mulling an ordinance which provides for time-bound settlement of commercial disputes, making arbitrators accountable.
The government plans to bring the ordinance based on a bill cleared by Lok Sabha during the monsoon session.
The bill, pending in Rajya Sabha, may get cleared during the winter session.
The bill seeks to help India become a hub for domestic and global arbitration for settling commercial disputes.
The amendments to the Arbitration Act will facilitate achieving the goal of improving institutional arbitration by establishing an independent body called Arbitration Council of India (ACI) to lay down standards, make arbitration process more friendly, cost-effective, and ensure timely disposal of arbitration cases.
The ACI will frame proper rules as to how institutions would be graded, norms to be followed, monitoring of quality and performance, and encourage training of arbitrators.
The bill, which amends the 1996 Act, is part of the government's efforts to encourage institutional arbitration for the settlement of disputes and make India a center of robust Alternative Dispute Resolution Mechanism.
A large number of arbitration cases are conducted outside India in locations such as Singapore, London, and Paris. Due to globalization, industrialization, and liberalization, the disputes have increased manifold and even bilateral investment trade-related issues are referred to the Hague, London, and Paris.
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