B.

M LAW COLLEGE

B.A. LL.B 9TH SEMESTER

SUBJECT- Arbitration, Conciliation And Alternative

Mechanism/ Competition Act
TOPIC – Indian Council of Arbitration

SUBMITTED BY- SUBMITTED TO-

Vasundhara Gopa Dr. Neha Goyal

Acknowledgement

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I have taken efforts in this project. However, it would not have been
possible without the kind support and help of many individuals and
organizations. I would like to extend my sincere thanks to all of them.

I am highly indebted to Dr. Neha Goyal for their guidance and

constant supervision as well as for providing necessary information
regarding the project and also for their support in completing this
project. I would like to express my gratitude towards my parents and
members of BM Law College for their kind cooperation and
encouragement which help me in completion of this project. My thanks
and appreciations also go to my fellow mates in developing the project
and people who have willingly helped me out with their abilities.

Vasundhara Gopa
B.A.LL.B (9th semester )

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 Certificate

This is to certify that this project has been made by Vasundhara Gopa of
B.A LL.B [9th Semester].
Under my guidance and have been completed successfully.

Dr. Neha Goyal

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 Index

S.N Heading P.N

1. Introduction 5
2. History and Background of Arbitration Council of 5
India
3. Establishment and Incorporation of Arbitration 6
Council of India

4. Composition of Arbitration Council of India 6-7

5. Duties and Functions of Arbitration Council of India 8
6. Resignation of members of Arbitration Council of 8
India
7. Removal of members of Arbitration Council of India 9
8. Conclusion 10
9. References 11

 Introduction

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The Amendment Act of 2019 introduced Part 1A in the Arbitration and
Conciliation Act, 1996. It talks about the Arbitration Council of India (ACI). Part 1A
gives power to the central government to create an independent body known as
Arbitration Council.

 History and Background of the Institution

The Indian Council of Arbitration is a premier arbitral intuition. It was set up under
the recommendation of the Indian Ministry of Commerce in 1965. It was
established and registered under the Societies Registration Act, 1860. It was
found and sponsored by the Government of India and Chambers of Commerce
and Industry. The Indian Council of Arbitration (ICA) was registered in the year
1965 as an arbitral body at the national level under the initiative of the
Government of India. However, over a period of a few years, ICA attained an
autonomous status and was recognized as an independent body. The main goal of
ICA is to promulgate amicable, quick decisions, and inexpensive settlement of
commercial disputes between the disputants utilizing Arbitration, Mediation,
Conciliation, and Lok Adalat.
In comparison to the present scenario, ICA is not only leading arbitration in India,
but it is also playing a significant role in arbitration centers in the Asia Pacific,
handling more than 200 domestic and international cases every year. It also
renders the business world with unrivaled and maritime services and also
manages education and training in alternative dispute resolutions. Various
training programs are held in different parts of the country to train the arbitrators
to render unbiased and appropriate decisions to the aggrieved party and also to
deliver justice. It is also a part of the administration and panel of arbitrators. ICA
has stood as a result of all dispute resolution needs.

 Establishment and Incorporation of Arbitration Council of India

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As per section 43B of the Arbitration and Conciliation Act, 1996, the central
government has the power to establish the Arbitration Council of India for
performing the duties and functions as prescribed under the Arbitration and
Conciliation Act. The Arbitration Council of India, is a body incorporated with
perpetual succession, a common seal, and with the same ability to acquire, hold,
and dispose of both movable and immovable property as specified in the
Arbitration and Conciliation Act, 1996.
The council can also enter into contracts by its own name and can also sue and be
sued. The head office of the council is in Delhi. If required, the council can also
establish offices at other places in India with the prior approval of the central
government.

 Composition of Arbitration Council of India

The Arbitration Council shall be composed of the following members1 :
1. Chairperson of the council shall be a person who has been the judge of
Supreme Court or chief justice of any High Court or a judge of High Court or
any other eminent person having special knowledge and experience in the
working and administration of arbitration. The central government
appoints the chairperson after consultation with the chief justice of India.

2. An esteemed practitioner of arbitration having excellent knowledge and

experience in both domestic and international institutional arbitration shall
be nominated by the central government as a member of the council.

3. An esteemed academician having experience of arbitration and alternative

dispute resolution laws in research and teaching shall be appointed as a
member by the central government after consultation with the
chairperson.
4. A person who has been secretary to the government of India in the legal
affairs department, Ministry of Law and Justice, or his representatives not
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Section 43C of the Arbitration and Conciliation Act, 1996

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 below the rank of the joint secretary shall be appointed as a member or ex-
officio member of the council.

5. Government secretary in expenditure department, ministry of finance or

his representatives not below the rank of joint member can be appointed
as a member or ex-officio member of the council.

6. One representative of a recognised body of commerce and industry can be

selected as a part-time member on a rotational basis by the central
government.

The chairperson of the Arbitration Council of India and council members, except
ex-officio members, shall hold office for a term of three years commencing on the
date from which they hold the office.
The chairperson shall not hold the office after he has attained the age of seventy
years, and a member other than an ex-officio member shall not hold the office
after he has reached the age of sixty-seven years.

 Chief Executive Officer of Arbitration Council of India

The council will have a Chief Executive Officer (CEO) who will be in charge of the
day-to-day operations of the council. His educational qualification, appointment,
and other terms and conditions of employment shall be as defined by the central
government. The CEO of the Arbitration Council of India is responsible for carrying
out the activities and obligations as provided in the regulations. The council shall
have a secretariat consisting of the number of officers and staff determined by
the central government. The qualifications, appointment, and other terms &
conditions of service of the staff of the arbitration council shall be specified by the
central government.

 Duties and Functions of Arbitration Council

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The Arbitration Council of India must take all necessary steps to promote and
encourage arbitration, mediation, conciliation, or other forms of alternative
dispute resolution, as well as make policy and guidelines for the establishment,
operation, and maintenance of uniform professional standards in all aspects of
arbitration2. The council may follow the below-mentioned criteria to carry out the
duties and functions imposed by this Act:
1. Establish policies controlling arbitral institution grading.
2. Recognise professional institutes that provide a mandate to the arbitrator.
3. Hold arbitration training, workshops, and courses in collaboration with law
firms, law universities, and arbitral institutes.
4. Organise workshops, training programs, etc., in collaboration with law
universities and law firms.
5. Make recommendations to the central government.
6. Give recommendations about staff, training, and infrastructure of the
Arbitral Council of India.
7. Such additional functions as the central government may determine.

 Resignation of the Members of ACI

As given in the Arbitration and Conciliation Act, 1996, the chairperson or the full-
time or part-time member of ACI may resign from his office by giving written
notice to the central government provided that until the central government
permits him to do so, the chairperson or the full-time member shall continue to
hold office until the expiration of three months from the date of receipt of such
notice or until a person appointed in his place enters the office, whichever
happens first.3

2
Section 43D of the Arbitration and Conciliation Act, 1996
3
Section 43F ACI ,1996

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  Removal of the Member of Arbitration Council

As per section 43G (1) of the Arbitration and Conciliation Act, 1996, the central
government has the power to remove any member from the office if he:

(a) Is an undischarged insolvent.

(b) Has engaged in any paid employment during his term of office (except part-
time member).

(c) Has been convicted of an offence that is considered a serious offence in the
opinion of the central government.

(d) Has acquired such financial or other interest likely to affect his functions
maliciously as a member.

(e) Has abused his position in the office to the extent that he cannot continue
being in the office for the public interest.

(f) Has become physically or mentally incapable of carrying out the responsibilities
as a member.

According to Section 43G (2) of the Arbitration and Conciliation Act, no member
shall be removed from the office on the grounds given under clauses (d) and (e) of
sub-section (1) as mentioned above, until the Supreme Court conducts an inquiry

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on behalf of the central government on the matter and reports the member to be
guilty on that particular ground.

 Conclusion

The amendment act of 2019 aims to ease some of the issues that the amendment
act of 2015 created in the conduct of arbitration and court procedures by giving
the provision and empowering the government to form an independent body of
the Arbitration Council of India. The ACI has its headquarter in Delhi and can also
have other offices in different cities with the approval of the central government.

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  References

1) Avtar Singh: law of Arbitration and Conciliation Publication of Indian

Arbitration
2) Arbitration and Conciliation Act , 1996
3) https://www.writinglaw.com/arbitration-council-of-india/#incorporation
4) https://viamediationcentre.org/readnews/NjM3/INDIAN-COUNCIL-
OF-ARBITRATION

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