The India International Arbitration Centre Act, 2019

The India International Arbitration Centre Act, 2019
Overview
• Act Name: India International Arbitration Centre Act, 2019
• Enactment & Commencement: Enacted on 26th July 2019, deemed effective from 2nd March 2019
• Purpose: Establish the India International Arbitration Centre (IAIC), transfer undertakings from the International Centre for Alternative Dispute Resolution (ICADR), and declare IAIC an institution of national importance.
Key Provisions
1. Establishment & Structure
• IAIC: Established as a body corporate with its head office in New Delhi.
• Branches: Potential for branches in India and abroad.
2. Governance
• Chairperson: Appointed by the Central Government in consultation with the Chief Justice of India.
• Members:
• 2 Eminent persons in institutional arbitration.
• 1 Representative from a recognized commerce and industry body.
• Ex Officio:
• Secretary, Department of Legal Affairs.
• Financial Adviser, Ministry of Finance.
• Chief Executive Officer (IAIC).
3. Tenure and Eligibility
• Term: 3 years for both Chairperson and Members, with potential for re-appointment.
• Age Limit: 70 years for the Chairperson, 67 years for Members.
4. Remuneration and Benefits
• Salaries, Allowances, and Traveling Allowances: As prescribed by the Central Government for respective positions.
5. Functions and Powers
• Primary Objectives: Promote arbitration, manage transferred undertakings, and ensure operational standards.
• Detailed Functions: (Not fully elaborated in the provided context, refers to promoting arbitration, managing undertakings, and other objectives as per the Act’s unreferenced sections).
6. Acquisition and Transfer
• Transfer of Undertakings: From ICADR to the Central Government, then to IAIC.
• Management of Transfer: Oversight and duties regarding the transfer process.
7. Regulatory and Protective Measures
• Rule Making Power: Granted to IAIC.
• Protection for Actions Taken in Good Faith.
8. Dissolution and Savings
• Repeal of Previous Ordinance: New Delhi International Arbitration Centre Ordinance, 2019.
• Savings Clause: For actions taken under the repealed ordinance.
Limitations and Recommendations
• Incomplete Context: Detailed functions (e.g., Section 15) and some administrative aspects are not covered.
• Recommendation: Consult the full Act for comprehensive understanding, especially for Sections not provided in the context.

Legislative History:

The India International Arbitration Centre Act, 2019

Short Title - The India International Arbitration Centre Act, 2019

Act Number / Year - Act No. 17 of 2019

Act ID (India Code) - 201917

Presidential Assent / Enactment Date - July 26, 2019

Enforcement Date - March 2, 2019

Nodal Ministry - Ministry of Law and Justice

Precedent & Statutory Rationale

1. Promoting Institutionalized Arbitration and Global Hub Status:

o To establish an independent and autonomous regime for institutionalized arbitration, positioning India as a premier global hub for commercial dispute resolution and minimizing judicial intervention.

o Grounded in the necessity to provide transparent, cost-effective, and timely arbitration, conciliation, and mediation services at both domestic and international levels.

2. Acquisition of Undertakings and National Importance:

o Provides for the acquisition and better management of the undertakings of the International Centre for Alternative Dispute Resolution (ICADR).

o Statutorily declares the Centre as an institution of national importance to bolster confidence in Indian legal and arbitration mechanisms.

Parliamentary Trajectory & Enactment

Formulation: Evolved from policy measures to revamp India's alternative dispute resolution ecosystem and structurally absorb existing private dispute resolution infrastructure into an autonomous public institution.

Parliamentary Passage: Introduced, debated, and passed by both houses of Parliament, receiving formal presidential assent on July 26, 2019.

Enforcement: Enforced with core provisions deemed effective from March 2, 2019.

Source: India Code and Ministry of Law and Justice Official Records