Government Push for Appellate Arbitration Tribunals

In October, 2024, the Union law ministry proposed new amendments to the Arbitration and Conciliation Act, introducing appellate arbitral tribunals to allow disputants to appeal awards without court involvement.

Key Points

Strengthening Institutional Arbitration: The amendments aim to bolster institutional arbitration, where disputes are handled by specialized institutions.
Appellate tribunals will only be available for institutional arbitration, excluding ad-hoc arbitrations.
Focus on India as Arbitration Hub: This effort includes strengthening the India International Arbitration Centre (IIAC), the nation's only government-funded arbitration institution.
ACI's Role: The proposed amendments introduce emergency arbitration for interim relief and enhance the powers of the Arbitration Council of India (ACI). Although created in 2019, the ACI has yet to be constituted.
It will now have greater regulatory authority over arbitration procedures, including fee determination when not set by the parties.
Tech-Driven Arbitration; The amendments also propose incorporating video conferencing and digital signatures in arbitration proceedings, modernizing the process and making it more accessible.
Alignment with Mediation Act: The new provisions tie arbitration with the Mediation Act, 2023, allowing parties to settle disputes during arbitration, with mediated agreements enforceable under the Mediation Act.
Feedback from the Public: The law ministry has sought public feedback on the proposed changes, with submissions accepted within 15 days.