Why in News?

The Union Cabinet has approved promulgation of an Ordinance for establishing the New Delhi International Arbitration Centre (NDIAC) for the purpose of creating an independent and autonomous regime for institutionalised arbitration.

Objectives:

• To bring targeted reforms to develop itself as a flagship institution for conducting international and domestic arbitration.
• provide facilities and administrative assistance for conciliation mediation and arbitral proceedings.
• maintain panels of accredited arbitrators, conciliators and mediators both at national and international level or specialists such as surveyors and investigators;
• facilitate conducting of international and domestic arbitrations and conciliation in the most professional manner;
• provide cost effective and timely services for the conduct of arbitrations and conciliations at Domestic and International level;
• promote studies in the field of alternative dispute resolution and related matters, and to promote reforms in the system of settlement of disputes; and
• co-operate with other societies, institutions and organisations, national or international for promoting alternative dispute resolution.

Constitution of NDIAC:

• New Delhi International Arbitration Centre (NDIAC) will be headed by a chairperson who has been 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 law or management, to be appointed by the Central Government in consultation with the Chief Justice of India.
• There will be two Full time or Part time Members from amongst eminent persons having substantial knowledge and experience in institutional arbitration, both domestic and international.
• Also, one representative of a recognised body of commerce and industry shall be chosen on rotational basis as Part time Member.
• Secretary, Department of Legal Affairs, Financial Adviser nominated by the Department of Expenditure and Chief Executive Officer, NDIAC shall be ex-officio Members.

Benefits:

• The benefits of institutionalized arbitration will accrue to Government and its agency and to the parties to a dispute.
• This shall be to the advantage of the public and the public institutions in terms of quality of expertise and costs incurred and will facilitate India becoming a hub for Institutional Arbitration.