Aarohi Girish Dhumale
The Ministry of Law and Justice is considering amending the Arbitration and Conciliation Act to enhance the arbitration framework of India.
The Arbitration and Conciliation Act was enacted in 1996 to regulate the arbitration processes of India. This act has been subjected to numerous amendments, the latest one being in 2021. The 2021 amendment had introduced new grounds for ‘unconditional stay’ of the enforcement of the arbitral award.
The amendments are being contemplated to enhance the arbitration process with various objectives. It includes speeding up the arbitration process, clarifying existing rules and procedures, addressing government interests, collecting data to find areas where reforms are required, and enhancing the transparency in the arbitration process.
These changes will have a positive impact on the arbitration scenario in India. Disputes, especially those involving the government, will be solved within less time, reducing the backlog in Courts. Justice will be delivered swiftly, foreign investors will gain confidence to make dealings with the government, new legal precedents will be established, and most importantly, people will develop faith in arbitration and opt for it, which will reduce the long-pending litigation cases.