Introduction
With the increasing number of cases, there have to be different ways to litigate any lawsuit. Arbitration is one such a way of Alternate Dispute Resolution. Other forms of Alternate Dispute Resolution are Negotiation, Conciliation, and Mediation. In simple terms, Arbitration is the way of deciding the dispute between parties with the help of an arbitrator which is neutral to both the parties. Either by the Court or by the parties themselves can appoint arbitrators. Moreover, The methods of Alternative Dispute Resolution (ADR) are more advantageous than the judicial system. This is because it helps in saving time and cost, quick and effective disposal of the case and strict confidentiality.
International Centre for Alternative Dispute Resolution (ICADR)
The government established the International Centre for Alternative Dispute Resolution (ICADR) in the year 1995. The government registered as a society under the Societies Registration Act, 1860 for the promotion of ADR services. However, It is an organization who has the power to govern its own affairs and regulations. Moreover, It helps in providing ADR facilities, techniques and procedures. However, It is a sovereign establishment working under the Ministry of Law and Justice, Government of India. It has its Headquarters in New Delhi. Moreover, The Chief Justice of India is the Patron of ICADR. We can apply ADR techniques in different areas such as commercial, civil, labour, family disputes. The parties can use them in a business environment such as disputes involving a joint venture, construction project, intellectual property rights, etc.
Need for ‘New Delhi International Arbitration Centre’
The president promulgated New Delhi International Arbitration Centre Ordinance, 2019 (NDIAC) on 2 March 2019. It is incorporation set up for the institutionalized arbitration, for acquisition and transfer of undertakings of the ICADR for the better management of the arbitration. An institutionalized arbitration is one where a specialized institution is set up for administering the role of arbitration. The ICADR was not able to undertake the dynamic nature of the arbitration; therefore the government setup NDIAC to bear the caseload and to be the better choice for the arbitration cases. The NDIAC will not combat and not interfere with the rules and regulations of ICADR as a society but to initiate a working system for domestic and international arbitration.
Also Read: Mediation as an Alternative Dispute Resolution
Composition of NDIAC
New Delhi International Arbitration Centre Ordinance, 2019 is a body corporate having perpetual succession and a common seal with power to hold and dispose of property, enter into the contract and shall sue or be sued. NDIAC will consist of:
1. The chairperson who has a Judge of the Supreme Court or a Judge of a High Court or an eminent person, having special knowledge and experience in the conduct or administration of arbitration, appointed by the Central Government in consultation with the Chief Justice of India.
2. Moreover, Two eminent persons having substantial knowledge and experience in institutional arbitration, both domestic and international, appointed by the Central Government.
3. Also, One representative of a recognized body of commerce and industry, chosen on a rotational basis by the Central Government.
4. Furthermore, Secretary, Department of Legal Affairs, Financial Adviser nominated by the Department of Expenditure and Chief Executive Officer, shall be ex-officio Members.
The Chairperson and the members will hold the office for three years from the date upon which they enter upon the office.
Objectives of NDIAC
(a) To conduct international and domestic arbitration;
(b) To promote research and study, providing teaching and training, and organize conferences and seminars in arbitration, conciliation, mediation, and other alternative dispute resolution matters;
(c) To provide facilities and administrative assistance for conciliation, mediation, and arbitral proceedings;
(d) To maintain panels of accredited arbitrators, conciliators, and mediators both at national and international level or specialists such as surveyors and investigators;
(e) To collaborate with other national and international institutions and organizations for ensuring the credibility of the Centre as a specialized institution in arbitration and conciliation;
(f) To set-up facilities in India and abroad to promote the activities of the Centre;
(g) To lay down parameters for different modes of alternative dispute resolution mechanisms being adopted by the Centre;
(h) Such other objectives as it may deem fit with the approval of the Central Government.
Impact of NDIAC
The changing time has evolved the economic activities and now it demands expeditious settlement of disputes. The creation and establishment of institutional arbitration are one of the important steps towards it. The huge pendency of cases underlines the need reinforcing the Alternative Dispute Resolution mechanism. This is necessary to inspire confidence and credibility among the litigants of commercial disputes. Moreover, This was enacted to promote the ease of business and to make an India a hub for institutionalized arbitration. Further, For an institutionalized arbitration, each institution has its own set of rules which provide a framework for the arbitration. It is an institute of national importance that is established for the overall development of the arbitration. Furthermore, It is established for promoting quick and efficient dispute resolution mechanism.
Also Read: Institutional Arbitration in India: Upcoming need of the Hour
Furthermore, As per the Ordinance, there will be a Chamber of Arbitration which would have a permanent panel of professionals at the national and international levels. Moreover, The NDIAC will also provide training to the upcoming arbitrators so as to make them competent in the same manner as that of the other arbitrators. Due to delay in the cases dealt by the judicial system, the businesses suffer a lot. Therefore, it is hoped that NDIAC will change the perception of doing business in our country. Also, will expedite the dispute settlement mechanism.