Centre to make India hub of international arbitration

New Delhi: The Narendra Modi-led NDA government intends to make India a hub of domestic and international arbitration by bringing in changes in law for faster resolution of commercial disputes.

Union law minister Ravi Shankar Prasad, who moved two bills in the Rajya Sabha in this regard - Arbitration and Conciliation (Amendment) Bill Act, 2019 and the New Delhi International Arbitration Centre Bill, 2019 - said the changes in law are for establishing Arbitration Council of India headed by retired judges.

Mr Prasad said after the amendments are approved, one can straight away go for  arbitration and there would be no need to go to courts for initiating the process. He said the amendment bill has been prepared on the basis of recommendations of a high-powered committee, which held consultations with all stakeholders. The Arbitration and Conciliation (Amendment) Bill Act, 2019 was cleared by Lok Sabha in August 2018 but could not be passed by Rajya Sabha.

The bill lapsed following the dissolution of the 16th Lok Sabha. However, the TMC staged a walkout in Rajya Sabha protesting against proposed changes in arbitration laws, terming them "draconian." The TMC alleged that the "government is repeatedly bulldozing" parliamentary proceedings and has brought the bill without scrutiny by the Standing Committee.

Earlier, while initiating the debate on the two Bills together, Mr Prasad said the changes in law are for establishing Arbitration Council of India headed by retired judges.

The minister said after the amendments are approved, one can straight away go for arbitration and there would be no need to go to courts for initiating the process.

Mr Prasad said a provision has been made for timeframe. Six months would be for claim and defence from the date the arbitrator receives the notice of appointment. Arbitration must be completed in 12 months.