Module 6

MODULE 6
KEY HIGHLIGHTS OF ARBITRATION AND CONCILIATION

(AMENDMENT) ACT, 2019

6.1. Establishment of Arbitral Institution

‘Arbitral institution'1 has been defined as an arbitral institution designated by the
Supreme Court or a High Court under the Act.

In the absence of a procedure to appoint an arbitrator or failure of such procedure
under the agreement, the appointment shall be made by Arbitral Institutions designed
by the Supreme Court (in the case of an international commercial arbitration) and the
High Court (in cases other than international commercial arbitration).2 Such arbitral
institutions are to be graded by the Arbitration Council of India under section 43-I.

The application for appointment of an arbitrator has to be disposed of by the arbitral
institution within a period of thirty days from the date of service of notice on the
opposite party.

6.2. Arbitration Council of India3

The Arbitration Council of India (ACI) is to be established by the Central
Government.

6.2.1. Members

It will include a Chairperson who is a Judge of the Supreme Court/ Chief Justice of a
High Court/Judge of a High Court or an eminent person, having special knowledge



1 Arbitration and Conciliation (Amendment) Act, 2019, Section 1(ca).
2 Arbitration and Conciliation (Amendment) Act, 2019, Section 11(3A).
3 Arbitration and Conciliation (Amendment) Act, 2019, Section 43 A

and experience in the conduct or administration of arbitration, who will be appointed
by the Central Government in consultation with the Chief Justice of India.4

The other Members of the Council will include-
i. An eminent arbitration practitioner
ii. An eminent academician

iii. The ex-officio Members of the Council will include-
§ The Secretary to the Government of India in the Department of Legal
Affairs
§ The Secretary to the Government of India in the Department Ministry
of Law and Justice and
§ Secretary to the Government of India in the Department of
Expenditure, Ministry of Finance

iv. One representative of a recognised body of commerce and industry as part
time member

6.2.2. Purpose of ACI

The Council has the duty to promote and encourage arbitration, mediation,
conciliation or other alternative dispute resolution mechanisms.5

6.2.3. Power of ACI

The Council has the power to frame policy and guidelines for the establishment,
operation and maintenance of uniform professional standards in respect of all matters
relating to arbitration.6

The Council also has the power to frame policies governing the grading of arbitral
institutions and arbitrators and recognise professional institutes providing
accreditation of arbitrators.7



4 Arbitration and Conciliation (Amendment) Act, 2019, Section 43 C (1)(a).
5 Arbitration and Conciliation (Amendment) Act, 2019, Section 43 D.
6 Arbitration and Conciliation (Amendment) Act, 2019, Section 43 D (1).
7 Arbitration and Conciliation (Amendment) Act, 2019, Section 43 D (2).

6.2.4. Grading of Arbitral Institutions and Arbitrators by ACI

The Council will grade the arbitral institutions based on infrastructure, quality and
calibre of arbitrators, performance and compliance of time limits for disposal of
domestic or international commercial arbitrations.8

The qualifications, experience and norms for accreditation of arbitrators has been
mentioned under the Eighth Schedule to the Act.9

6.3. Time Limits

6.3.1. For completion of statement of claim and defense

The time period provided to complete the statement of claim and defence is six
months from the date the arbitrator/s received notice, in writing, of his/their
appointment.10

6.3.2. For Arbitral award

In cases other than international commercial arbitration, the arbitral tribunal has to
give an award within a period of twelve months from the date of completion of
pleadings.11

In the case of international commercial arbitrations, the award may be made as
expeditiously as possible and attempts should be made to dispose of the matter within
a period of twelve months from the date of completion of pleadings.12

6.4. Amendment to Section 34



8 Arbitration and Conciliation (Amendment) Act, 2019, Section 43-I.
9 Arbitration and Conciliation (Amendment) Act, 2019, Section 43-J.
10 Arbitration and Conciliation (Amendment) Act, 2019, Section 23(4).
11 Arbitration and Conciliation (Amendment) Act, 2019, Section 29 A (1).
12 ibid.

Under section 34 of the Act, the words "furnishes proof that" is replaced with
"establishes on the basis of the record of the arbitral tribunal that". This implies that
the parties must rely on the record before the arbitral tribunal only at the time of
challenge of an award.

6.5. The Eighth Schedule13

The eighth schedule provides a list of qualifications for becoming an arbitrator under
the Act. A person will not be qualified to be an arbitrator unless he is/ has been-

(i) an advocate within the meaning of the Advocates Act, 1961 having ten
years of practice experience as an advocate;

(ii) a chartered accountant within the meaning of the Chartered Accountants
Act, 1949 having ten years of experience;

(iii) a cost accountant within the meaning of the Cost and Works Accountants
Act, 1959 having ten years of experience;

(iv) a company secretary within the meaning of the Company Secretaries
Act,1980 having ten years of experience;

(v) an officer of the Indian Legal Service;
(vi) an officer with law degree having ten years of experience in the legal

matters in the Government, autonomous body, public sector undertaking or
at a senior level managerial position in private sector;
(vii) an officer with engineering degree having ten years of experience as an
engineer in the Government, autonomous body, public sector undertaking
or at a senior level managerial position in the private sector or self-
employed;
(viii) an officer having senior level experience of administration in the Central
Government or State Government or having experience of senior level
management of a public sector undertaking or a Government company or a
private company of repute; or
(ix) a person having educational qualification at degree level with ten years of
experience in a scientific or technical stream in the fields of telecom,
information technology, intellectual property rights or other specialized



13 Arbitration and Conciliation (Amendment) Act, 2019, the Eighth Schedule.

areas in the Government, autonomous body, public sector undertaking or a
senior level managerial position in a private sector, as the case may be.