Govt floats draft bill to amend arbitration law; adds proviso for emergency arbitration

New Delhi: Seeking to provide "further boost" to institutional arbitration and reduce court intervention in such cases, the government has come out with a draft bill seeking views on the proposed amendments.

The Department of Legal Affairs in the law ministry has invited comments on the draft Arbitration and Conciliation (Amendment) Bill, 2024, saying "the aim and purpose is to provide further boost to institutional arbitration, reduce court intervention in arbitrations and ensuring timely conclusion of arbitration proceedings".

The draft bill comes months after an expert committee headed by former law secretary and former Lok Sabha secretary general T K Vishwanathan submitted its report on proposed reforms in the arbitration sector to the law ministry.

The draft bill proposes the concept of 'emergency arbitration'.

The proposed amendment says arbitral institutions may, for the purpose of grant of interim measures, provide for appointment of "emergency arbitrator" prior to the constitution of an arbitral tribunal.

The emergency arbitrator appointed will conduct proceedings in the manner as may be specified by the (arbitration) council.

At the same time, the draft bill also omits some of the clauses of the present law.

One of the clauses omitted relates to laying of notifications proposed issued, in both Houses of Parliament when it is in session.

The omitted clause read: "A copy of every notification proposed to be issued ... shall be laid in draft before each House of Parliament, while it is in session, for a total period of 30 days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in disapproving the issue of the notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by the both Houses of Parliament".

Addressing an event here last year, Vice President Jagdeep Dhankhar had lamented that retired judges have kept the arbitral system of the country in a tight fist grip, denying chance to other qualified minds.

He said India is known for its rich human resources, but they are not picked up to adjudicate arbitral process.

Successive government have been pushing to make India a hub of international arbitration on the lines of London and Singapore, with limited success.