Recent Changes in the ADR Practices And Introduction to the ADR Act

These days the trends and the practices of the Alternative Dispute Resolution are changing and they are more focused on reducing the burden of the courts and the Judiciary. The trends of having tribunals have been commenced long back with the cases such as L. Chandra Kumar v. Union of India and others, but the point to be considered is that what are the kinds of problems that one faces when it comes to the Arbitration and mediation of the cases in the real world. The most important of them are as follows:

Insertion of Section(s) 29A and 29B to the ADR Act 2015

Theoretically, there have been new insertions of Sections 29A and 29B to the act which addresses the criticism of the arbitration regime. In these sections, the amendments basically focus on the arbitration tribunal giving the award or the compensation within 12 months from the date it enters upon reference plus the 6 months time with reference to the extension of time by the consent of the parties. Also while extending the court period the court might just reduce the fees of the arbitration as well as the court may deem fit. Also, the application for the extension of the time shall be disposed off by the court within 60 days from the date of notice to the opposite party. The parties can also opt for a fast-track procedure for the settlement of the dispute so that the time and the money are saved. However, that depends on the decision of the court.

Introduction of NDIAC courts through the 2018 Amendment Bill

Recently, there has been a proposal in the Lok Sabha for the establishment of the New Delhi International Arbitration Centre. The Bill has been introduced by the Minister of Law and Justice Mr. P.P. Chaudhary on January 5, 2018. It has been introduced in the Lok Sabha in the persuasion of the needs of the people and society at large. The pendency of the cases in the courts have set a new benchmark for itself and this is a sign of escalating grievances between people. There are many root causes of the people being in conflict but the parliament this year has thought to solve the problem of the Judiciary by introducing the new Arbitration Bill 2018, which seeks to resolve the disputes between the people as well as the grave problem of pendency of cases in the Indian Judiciary. Let us look into what this Bill has to offer us:-

Key Features of the New Delhi International Arbitration Centre Bill

New Delhi International Arbitration Centre (NDIAC)

One of the major key features of the New Delhi Arbitration Centre Bill is the creation of such arbitration center which focuses on the growth of arbitration rather than indulging in the court cases itself. It promotes and fosters the development of arbitration, mediation, conciliation proceedings as against the lawsuits and court proceedings. By providing an acceleration to such development, it declares the arbitration centers to be of national importance.

International Centre for Alternative Dispute Resolution System

Another feature to be looked at while talking about this act is that the incessant focus to create mechanisms that focus towards the alternative dispute resolution. When considering the creation of International Centre for Alternative Dispute Resolution System, the focus of the parliamentarians is to promote the use of alternative dispute mechanisms. This in a way serves the purpose of the creation of the Bill. The point to be noted is that the current cases of the center will be transferred to the central government so that it comes up as a fresh body of dispute mechanism.

Composition

Another important feature of the bill is its composition. Under the Bill, the New Delhi Arbitration Centre will consist of seven members who will constitute of the following:-

1. The chairperson who may be a Judge of the Supreme court or the High Court or an eminent person with special knowledge and experience in arbitration.
2. Two eminent persons having substantial knowledge and experience in the institutional arbitration
3. Three ex-officio members, including a nominee from the Finance ministry
4. A Chief Executive officer
5. A Representative of the local background of the commerce industry who will be appointed on a part-time member on a rotational basis.

Term

Another important feature to note is the term for which the members of the Arbitration Centres are appointed. The members hold the office for a period of three years and will be eligible for re-appointment. The retirement age of the members of the center will be 70 years for the Chairperson and 67 years for other members.

Need, Objectives and Functions of the NDIAC

When we look at the Bill, we all must get a question into our minds that Arbitration act exists previously as well, but when it comes to the creation of a new act, why has it been created? What is the purpose of creation of a new center in New Delhi when the old act is applicable to most of the parts of the country including the National Capital? The answer to this is that though we have arbitration centers, the pendency of the cases in the courts is not getting reduced. The number of the pendency of cases escalates to another record every year, thus creating boundaries between people and Justice. Therefore, we must look into the objectives and functions of this Act and try to understand the purpose for which it has been incorporated.

1. Promoting Research, Training and Organizing Conferences and Seminars in Alternative Dispute Resolution Matters.
2. Providing Facilities and Administrative Assistance for the Conduct of Arbitration, Mediation and Conciliation Proceedings.
3. Facilitating the conduct of Arbitration and Conciliation in a professional, timely and cost-effective manner
4. Promoting Studies in the field of Alternative Dispute Resolution
5. Maintaining a Panel of Accredited Professionals to Conduct Arbitration

Benefits of the Bill 2018

Some of the most important benefits of the bill include the following:-

• Save Time - this means that the bill aims to dispense speedy justice to all through the ADR methods especially focusing on the institutionalized areas.
• Save Money - This means that the bill aims to not only save time but also aims to save money of the people by providing speedy justice at reasonable rates.
• Save Efforts - the Bill aims to provide justice easily and not through going to the courts again and again. Thereby focusing on saving efforts of the public.
• Save Energy - When a person saves efforts, he also saves his energy along.
• Get Quality Justice - the panel of discussion and deciding is a qualified one as the chairperson must be a Judge of either the Supreme Court or the High Court and other members are experts in the field.
• Research more - the bill aims to foster research culture in the legal practitioners and the students so that the center can function more effectively and judiciously.
• Institutional Support - The bill aims to provide an institutional support to the Judiciary. The bill also specifies that the NDIAC will establish a chamber of Arbitration which will maintain a permanent panel of arbitrators. Further, the NDIAC may also establish an Arbitration academy for training the arbitrators and fostering research. The NDIAC may also constitute committees to administer its functions.

  Now that we have looked at the benefits, objectives, needs and the key features of the Bill, we know where to go because Arbitration, mediation, and conciliation will serve us better than the court proceedings.    

References

1. PRS Website http://www.prsindia.org/billtrack/the-new-delhi-international-arbitration-centre-bill-2018-5036/
2. NDIAC Bill http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/2_2018_LS_Eng.pdf