Lok Sabha Question No. 495 (STARRED), answered on 2025-04-04
Subject: Reform in Arbitration and Mediation
Ministry: LAW AND JUSTICE
Asked by: Shri Biplab Kumar Deb, Shri Balabhadra Majhi

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

## LOK SABHA STARRED QUESTION NO. 495

## TO BE ANSWERED ON FRIDAY, THE 04 TH  APRIL, 2025

## Reform in Arbitration and Mediation

- *495. Shri Biplab Kumar Deb:

Shri Balabhadra Majhi:

Will the Minister of Law and Justice be pleased to state:

- (a) the manner in which the Government is ensuring efficiency and speed in arbitration and mediation proceedings;
- (b) the steps being taken by the Government to enhance the enforcement of arbitral awards, both domestic and international; and
- (c) whether  the  Government  is  conducting  funded  programs  to  train  and certify mediators and arbitrators, if so, the details thereof?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) OF THE

## MINISTRY OF LAW AND JUSTICE; AND MINISTER OF STATE IN THE MINISTRY OF PARLIAMENTARY AFFAIRS

(SHRI ARJUN RAM MEGHWAL)

- (a) to (c) : A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF LOK SABHA STARRED QUESTION NO. *495 FOR ANSWER ON 04.04.2025 REGARDING 'REFORM IN ARBITRATION AND MEDIATION'

(a) and (b) The Government is promoting alternate dispute resolution (ADR) mechanisms including arbitration and mediation, as these mechanisms are less adversarial and are capable of providing a better substitute to the conventional methods  of  resolving  disputes.  The  Government is  further  taking  policy  and legislative interventions, to strengthen these mechanisms and make them more efficacious and expeditious. The major initiatives, steps and measures taken by the Central Government over the years in this regard include;

- (i) The  Arbitration  and  Conciliation  Act,  1996  has  been  progressively amended in the years 2015, 2019 and 2020 to keep pace with current developments in the arbitration landscape and to enable arbitration as a viable  dispute  resolution  mechanism.  The  amendments  are  aimed  at ensuring  timely  conclusion  of  arbitration  proceedings,  neutrality  of arbitrators,  minimizing  judicial  intervention  in  the  arbitral  process  and efficacious enforcement of arbitral awards. The amendments are further aimed  at  promoting  institutional  arbitration  and  updating  the  law  to reflect best global practices, thereby establishing an arbitration ecosystem, where arbitral institutions can be established and developed.
- (ii) The  Commercial  Courts Act,  2015  was  amended  in  the  year  2018  to provide inter-alia for  Pre-Institution  Mediation and Settlement (PIMS) mechanism.  Under  this  mechanism,  where  a  commercial  dispute  of specified  value  does  not  contemplate  any  urgent  interim  relief,  the parties  have  to  first  exhaust  the  mandatory  remedy  of  PIMS  before approaching the Court. This is aimed at providing an opportunity to the parties to resolve the commercial disputes through mediation.
- (iii) The  India  International  Arbitration  Centre  Act,  2019,  was  enacted  to provide  for  the  establishment  of  the  India  International  Arbitration Centre (Centre) for the purpose of creating an independent, autonomous and  world  class  body  for  facilitating  institutional  arbitration  and  to declare  the  Centre  to  be  an  institution  of  national  importance.  The Centre  has  since  been  established  and  aims  to  inspire  confidence amongst parties, both domestic and international, by providing a neutral dispute resolution platform for resolution of commercial  disputes

through arbitration. The Centre has also notified the India International Arbitration Centre (Conduct of Arbitration) Regulations, 2023 to facilitate conduct of domestic and international arbitrations with a focus on  efficient and  time-bound  arbitration  process.  The  Chamber  of Arbitration  established  under  Section  28  of  the  India  International Arbitration  Centre Act,  2019  continues  to  empanel  reputed  arbitrators, both for domestic and international arbitrations. The Centre is envisaged to become a model arbitral institution in the country, thereby paving the way for enhancing the quality of institutional framework for arbitration.

- (iv) The  Mediation  Act,  2023,  lays  down  the  legislative  framework  for mediation to be adopted by disputing parties, especially under the aegis of institutional mediation. The Mediation Act, 2023 is also expected to be a pivotal legislative intervention towards providing standalone law on mediation and enabling the growth of a culture of amicable settlement of disputes out of court .

(c) Section 15 of the India International Arbitration Centre Act, 2019 provides for the functions of the Centre and inter-alia states that the Centre shall strive to impart training in alternative dispute resolution and related matters to those handling arbitration, conciliation and mediation. Facilitating training and capacity building for professionals in the field of ADR, including arbitration and mediation,  is  presently,  continuously  being  done  by  the  India  International Arbitration  Centre,  by  organizing  conferences,  seminars  and  trainings  for stakeholders including professionals as well as public and private entities.

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