India Arbitration Council Remains Unconstituted, Delaying Institutional Arbitration

• The Arbitration Council of India remains unconstituted, despite being a key component of India's transition towards institutional arbitration.
• The delay has significant implications for trade-association arbitrations, which are affected by the regulatory vacuum.
• A pending Supreme Court petition may serve as a catalyst for change, but a more comprehensive solution is needed to address the issues plaguing India's arbitration landscape.

The continued non-constitution of the Arbitration Council of India has been a persistent issue in India's arbitration landscape, with Chief Justice of India Surya Kant recently describing it as part of the country's 'credibility deficit' in becoming a preferred arbitral seat.

The continued non-constitution of the Arbitration Council of India (ACI) has been a persistent issue in India's arbitration landscape, with Chief Justice of India Surya Kant recently describing it as part of the country's 'credibility deficit' in becoming a preferred arbitral seat. This criticism is not new, but rather a culmination of 6 years of legislative inaction following the passage of the Arbitration and Conciliation (Amendment) Act, 2019. The Act aimed to establish the ACI as the institutional anchor for India's transition towards institutional arbitration, but its implementation has been delayed. The consequences of this delay are far-reaching, with trade-association arbitrations being particularly affected by the regulatory vacuum.

In 2017, the High-Level Committee chaired by Justice BN Srikrishna diagnosed India's arbitration landscape as plagued by a lack of institutional framework. The Committee's report led to the passage of the Arbitration and Conciliation (Amendment) Act, 2019, which aimed to address these issues. However, the ACI has yet to be constituted, leaving the country's arbitration landscape in limbo. The delay raises questions about the effectiveness of parliament's response to the Committee's diagnosis and whether the institutional design enacted in 2019 is adequate.

A pending Supreme Court petition in Anil Kalyandas Thanvi v. Union of India has brought attention to the issue once again, with the Court issuing notice on a plea alleging a continued regulatory vacuum in trade-association arbitrations. This development may serve as a catalyst for change, but it also highlights the need for a more comprehensive solution to address the issues plaguing India's arbitration landscape. The prolonged delay in constituting the ACI has significant implications for trade-association arbitrations and underscores the importance of institutional arbitration in India.

Lawyers should watch for the potential implications of a prolonged regulatory vacuum on trade-association arbitrations, and be prepared to advise clients accordingly.

Source: Original reporting via [Source]