Lok Sabha on Wednesday passed the New Delhi International Arbitration Centre Bill, 2019 that seeks to provide for the establishment and incorporation of New Delhi International Arbitration Centre (NDIAC) for the purpose of creating an independent and autonomous regime for institutionalized arbitration. The Bill was, however, passed by a voice vote.
The bill replaces an Ordinance which was promulgated in March this year.
Replying to the debate on the bill, Minister of Law and Justice Ravi Shankar Prasad said, the government is keen to make the country a hub of international and domestic arbitration.
"New Delhi will become the global icon of arbitration and India must have good lawyers, teachers and a robust set of good arbitrators who are honest and transparent. We must understand the changing profile of India," he said.
The Minister said the proposed 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 the arbitration.
Congress's Shashi Tharoor said that the highest standards need to be maintained if the government wants international institutions to come to India for arbitration.
"This is where the bill disappoints. We have to overcome inefficiencies of the past and existing inefficiencies of the court process. Independence of arbitration is key to why institutions choose an arbitration centre," he said.
He said efforts will be wasted if the institution does not attract international parties.
Participating in the debate BJD's Pinaki Misra said the continuous lapses in the passing of Bills because of the dissolution of the Lok Sabha must be avoided as it is a criminal waste public money.
"Unless the Indian law and the arbitration process is amended, the endless litigation cycle will continue. Strict amendments to the Arbitration Act has to be made for arbitration to be made easier," he said.
TDP's Jayadev Galla said that a neutral decision-making body is necessary to establish the country as an arbitration destination.
"If the Centre takes up the appointment of authorities and the allocation of funds, the independence and the credibility of the arbitration institution will be compromised. Moreover, the procedural framework should be established within the Bill itself and not rely on the bureaucracy," he said.
( With inputs from ANI )