Lok Sabha Question No. 1119 (UNSTARRED), answered on 2017-02-08
Subject: Committee to Study Arbitration Mechanism
Ministry: LAW AND JUSTICE
Asked by: ASHOK SHANKARRAO CHAVAN, T. RADHAKRISHNAN, VIJAY KUMAR S.R., SUDHEER GUPTA, GAJANAN CHANDRAKANT KIRTIKAR

## GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS ****

## LOK SABHA

UNSTARRED QUESTION NO. 1119 TO BE ANSWERED ON WEDNESDAY, THE 8 th  FEBRUARY 2017

## COMMITTEE TO STUDY ARBITRATION MECHANISM

1119. SHRI ASHOK SHANKARRAO CHAVAN:

SHRI T. RADHAKRISHNAN:

SHRI S.R. VIJAYAKUMAR:

SHRI SUDHEER GUPTA:

SHRI GAJANAN KIRTIKAR:

Will the Minister of LAW AND JUSTICE be pleased to state:

- (a) whether the Government has constituted a High Level Committee to study Arbitration Mechanism to Settle commercial disputes;
- (b) if so, the details of the terms of reference of the Committee;
- (c) whether the Committee is also mandated to review the working of the institutions funded by the Government for arbitration and if so, the details thereof;
- (d) the time by which the Committee is likely to submit its report; and
- (e) the other steps taken/being taken by the Government for expeditious disposal of commercial disputes?

## ANSWER

## MINISTER OF STATE FOR LAW AND JUSTICE  & ELECTRONICS AND INFORMATION TECHNOLOGY (SHRI P. P. CHAUDHARY)

****

(a): Yes Madam. A High Level Committee to review Institutionalization of Arbitration  Mechanism in India  has been setup  under  the Chairmanship of Mr. Justice B. N. Srikrishna, Retired Judge, Supreme Court, vide order dated 13 th January, 2017.

(b) & (c): The terms of reference of the High Level  Committee to  review Institutionalization of Arbitration Mechanism in India is at Annexure.

(d): The committee is supposed to submit its report in three months.

(e): The Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, has been enacted. The said Act, inter-alia, provides for constitution of the Commercial Court at district level and  Commercial  Division  and  Commercial  Appellate  Division  in  the  High Courts for adjudicating commercial disputes of specified value and matters connected  therewith  or  incidental  thereto.    Apart  from  enactment  of  the Commercial Courts, Commercial Division and Commercial Appellate Division of High Courts Act, 2015, the Arbitration and Conciliation Act, 1996 also has been amended by the Arbitration and Conciliation (Amendment) Act, 2015. The amended Act, inter-alia, provides time-limit for arbitral award, fast-track procedure,  neutrality  of  arbitrator,  timely  execution  of  arbitral  award, minimum court interference and fee of the arbitrator.

****

The terms of reference for the High Level Committee to review Institutionalization of Arbitration Mechanism in India are as under:

- (i) to analyze & review effectiveness of present arbitration mechanism.
- (ii) to  review  the  facilities,  resources,  funding  and  manpower  of  existing  ADR institutions.
- (iii) to  review  working  of  the  institutions  funded  by  the  Government  of  India  for arbitration purposes.
- (iv) to  assess  skill  gaps  in  ADR  and  allied  institutions  for  both  national  and international arbitration.
- (v) to evaluate information outreach and efficacy of existing legal framework for arbitration.
- (vi) based on the foregoing, to
- (a) Suggest  measures  for  institutionalization  of  arbitration  mechanism,  national and  international,  in  India  so  as  to  make  the  country  a  hub  of  international commercial arbitration.
- (b) Identify amendments in other laws that are needed to encourage International Commercial Arbitration (ICA).
- (c) Devise  an  action  plan  for  implementation  of  the  law  to  ensure  speedier arbitrations.
- (d) Recommend  revision  in  institutional  rules  &  regulations  and  funding  support thereof.
- (e) Advise empanelment of national and international arbitrators  for  time bound arbitral proceedings.
- (f) Suggest  road  map  for  further  strengthening  of  research  and  development impacting the domain.
- (g) Enlist  requisite  steps  for  augmenting  skill  sets  and  professional  manpower buildup for the sector.
- (h) Recommend measures to make arbitration more widely available in curricula and study materials.
- (i) Focus  on  the  role  of  arbitrations  in  matters  involving  the  Union  of  India, including bilateral investment treaties (BIT) arbitrations and make recommendations where necessary.
- (j) Evolving  an efficient arbitration ecosystem  for  expeditious resolution of International and Domestic Commercial disputes.
- ****