Arbitration Council of India

Statutory basis: Part IA (Sections 43A‑43M) of the Arbitration and Conciliation Act, 1996, inserted by the Arbitration and Conciliation (Amendment) Act, 2019.
Purpose: Central regulator for institutional arbitration – grading institutions, accrediting arbitrators, maintaining award repository, promoting ADR.
Composition:
Chairperson: Appointed by the Union Government in consultation with the Chief Justice of India; eligible persons include a former Supreme Court judge, a former High Court chief justice/judge, or an eminent arbitration practitioner.
Other Members: Eminent arbitration practitioners, academicians, and ex‑officio government representatives.
Mandate & Functions:
Grade arbitral institutions.
Accredit arbitrators.
Maintain a depository of arbitral awards.
Frame policies for uniform professional standards.
Promote mediation, conciliation and other ADR mechanisms.
Draft Arbitration and Conciliation (Amendment) Bill, 2024:
Redefines “arbitral institution”.
Empowers institutions to extend deadlines, reduce arbitrator fees for tribunal‑caused delays, and appoint substitute arbitrators.
Introduces Section 9‑A allowing parties to seek interim measures from an emergency arbitrator after arbitration commences but before the tribunal is formed.

2017 Justice B.N. Srikrishna Committee recommended a dedicated regulatory body to address quality and credibility concerns in Indian arbitration.
2019 Amendment incorporated the ACI but it remains unconstituted after nearly six years, leading the Supreme Court to direct the Union to respond to a petition for its formation.
Existing landscape features multiple private arbitral institutions (e.g., ICA, NIA) with limited oversight; government‑appointed bodies are perceived as lacking independence, especially when the State is a litigant.

Enhancing India’s arbitration seat: Uniform standards and accreditation can boost confidence of domestic and foreign investors, positioning India as a preferred venue for international commercial arbitration.
Reducing judicial interference: Clear procedural rules and the emergency arbitrator mechanism aim to limit court‑initiated delays, ensuring faster dispute resolution.
Balancing independence: Addressing concerns over government dominance is essential to maintain impartiality and credibility of the arbitration ecosystem.

Article 141, Constitution of India: Supreme Court’s power to interpret statutes; the Court’s direction to the Union reflects this authority.
Section 9, Arbitration and Conciliation Act, 1996: Court’s power to grant interim measures; modified by the 2024 Bill to shift certain powers to emergency arbitrators.
Sections 43A‑43M (Part IA): New provisions establishing the Arbitration Council of India.

Arbitration Council of India (ACI): Proposed statutory regulator.
Indian Council of Arbitration (ICA): Non‑governmental institution established in 1965, not a regulatory body.