New Delhi: An Act that renames the New Delhi International Arbitration Center as the India International Arbitration Center has now come into force.
The new law titled ‘The New Delhi International Arbitration Center (Amendment) Act, 2022’ came into force after it was announced by the Ministry of Law and Justice in a notification issued late on January 27.
“In exercise of the powers conferred by sub-section (2) of section 1 of the New Delhi International Arbitration Centre (Amendment) Act, 2022 (23 of 2022), the Central Government hereby appoints the 27th day of January 2023 as the date on which the said Act shall come into force,” reads the notification.
The move comes almost one-and-half months after the Parliament passed the New Delhi International Arbitration Center (Amendment) Bill, 2022, during the winter session proceedings in December last year. The bill was passed by the Lok Sabha on August 8, 2022, and by the Rajya Sabha on December 14, 2022. After becoming law, the Act amended the New Delhi International Arbitration Center Act, 2019. The Act also provides for the establishment of the New Delhi International Arbitration Center and designates it as an institution of national importance.
The New Delhi International Arbitration Centre replaced the International Centre for Alternative Dispute Resolution. It amends Section 15(a) of the principal Act and facilitates the conduct of arbitration and other forms of alternative dispute resolution mechanism, both international and domestic, in the manner as may be specified by the regulations.
The Act renames the New Delhi International Arbitration Centre as the India International Arbitration Centre.
The Act also corrects several drafting errors in the Arbitration Centre Act, 2019. The Act requires the Arbitration Centre to strive to facilitate the conduct of international and domestic arbitration and conciliation. The Act expands to include the conduct of other forms of alternative dispute resolution. The manner of conduct of arbitration and other forms of alternative dispute resolution will be specified by the central government through regulations.
The Act allows the Central Government to remove any difficulty in implementing the Act for two years from the date of enactment of the Act. The Act extends this period to five years.
The law minister had assured Parliament in December that the institution would have a pre-determined arbitration process, determined by the arbitration centre itself, and that there would be no government interference in the institution.
He further assured that the institution will have an efficient panel of intermediaries, professional support, and world-class well-built infrastructure, which in turn will enhance the ease of doing business in India.