LS passes arbitration bill
    New Delhi, Aug 10 (PTI) The Lok Sabha today passed a bill
which will help India become a hub for domestic and global
arbitration for settling commercial disputes.
    Replying to the debate on the Arbitration and
Conciliation (Amendment) Bill 2018, Law Minister Ravi Shankar
Prasad said the legislation provides for time-bound settlement
of disputes as well as accountability of the arbitrator.
    "It is a momentous and important legislation. We want
India to become a hub of domestic and international
arbitration. So there is a need for robust mechanism to deal
with institutional disputes," Prasad said.
    The amendments will facilitate achieving the goal of
improving institutional arbitration by establishing an
independent body to lay down standards, make arbitration
process more friendly, cost-effective and ensure timely
disposal of arbitration cases.
    It provides for setting up of an independent body --
Arbitration Council of India (ACI) which will frade arbitral
institution and accredit arbitrators by laying down norms.
    "The ACI shall frame proper rules as to how instutitions
would be graded, norms to be followed, monitoring of quality
and performance, and encourage training of arbitrators,"
Prasad said.
    He said the norms and accountability for the arbitrators
framed by ACI would have to be "strictly followed".
    "Unless we have a strong regulatory mechanism, judges,
lawyers, arbitrators... then the process will not gain speed,"
Prasad added.
    The bill, which amends the 1996 Act, is part of the
government's efforts to encourage institutional arbitration
for settlement of disputes and make India a centre of robust
Alternative Dispute Resolution Mechanism.
    Earlier, while moving the bill, Minister of State for Law
P P Chaudhary said a large number of arbitration cases are
conducted outside India in countries like Singapore, London
and Paris and around 30 million cases are pending before the
courts here.
"Due to globalisation, industralisation and
liberalisation, the disputes have increased manifold...We want
to create India as a hub of arbritation," Chaudhary said,
adding that even bilateral investment trade related issues are
also referred to the Hague, London and Paris.
    "India should also have a seat of arbritation," he said.
    Participating in the debate, Anwar Raja (AIADMK) said the
state governments should be consulted before appointing
members of the ACI.
    Saugata Roy (TMC) said arbitration has becoming biggest
scams in India and many arbitatration lawyers are corrupt. PTI