Arbitration and Conciliation Act, 1996
Recently, the Ministry of Law and Justice has constituted an expert committee to reform the Arbitration and Conciliation Act.
- Amidst intensified efforts to make India a hub for international arbitration, an expert committee has been constituted under the chairmanship of TK Vishwanathan, former Secretary, Department of Law.
- The committee will recommend reforms in the Arbitration and Conciliation Act, 1996 to reduce the judicial burden on the courts.
- The committee will recommend a framework for an ideal arbitration system. The system will be efficient, effective and affordable as well as meet the needs of the users.
Arbitration and Conciliation Act, 1996
- The law seeks to include rules relating to domestic arbitration, international commercial arbitration, foreign arbitration arbitration and conciliation.
- The law draws its authority from the United Nations Commission on International Trade Law (UNCITRAL) Model Law on International Commercial Arbitration, 1985 and the UNCITRAL Rules on Conciliation, 1980. It was revised in 2015, 2019 and 2021.
Five Types of Alternative Dispute Resolution (ADR) Negotiation
It is traditionally concluded on a face-to-face basis between the parties concerned and their solicitors. It does not involve a neutral third party.
- Mediation: It is a very flexible process. This can be used effectively at any point during a dispute.
- Collaborative law: Under this both the parties are represented by a collaborative lawyer and both the parties agree not to litigate.
- Arbitration: Under this, a decision is made by a neutral arbitrator after the presentation of evidence, which is also called arbitration.
- Conciliation: Under this, a neutral third party, on the basis of information received from the concerned parties, provides options for a negotiated settlement.
Source – Business Standard
