PART IA: ARBITRATION COUNCIL OF INDIA (ACI)
This part, inserted by a 2019 amendment, establishes a statutory body to promote arbitration, mediation, and conciliation in India.
Section 43A: Definitions
This section defines the key terms used specifically within Part IA.
(a) “Chairperson” means the Chairperson of the Arbitration Council of India appointed under clause (a) of sub-section (1) of section 43C;
- Simple Translation: The Chairperson is the head of the new Arbitration Council.
(b) “Council” means the Arbitration Council of India established under section 43B;
- Simple Translation: The Council is the official name of the body created to govern arbitration standards.
(c) “Member” means a Member of the Council and includes the Chairperson.
- Simple Translation: A Member refers to anyone serving on the Council, including the head (the Chairperson).
Section 43B: Establishment and incorporation of Arbitration Council of India
This section details the creation and legal status of the Council.
(1) The Central Government shall, by notification in the Official Gazette, establish, for the purposes of this Act, a Council to be known as the Arbitration Council of India to perform the duties and discharge the functions under this Act.
- Simple Translation: The Central Government is required to formally create the ACI by official notice to carry out the specified duties under this law.
(2) The Council shall be a body corporate by the name aforesaid, having perpetual succession and a common seal, with power, subject to the provisions of this Act, to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued.
- Simple Translation: The ACI is a separate legal entity (like a company). It can exist indefinitely, has its own official stamp, can legally buy, own, and sell property, can sign contracts, and can sue or be sued in its own name.
- Practical Example: The ACI can sign a 10-year lease agreement for a head office and, if necessary, can file a lawsuit against a contractor who failed to build a new training facility properly.
(3) The head office of the Council shall be at Delhi.
- Simple Translation: The main office of the ACI is legally fixed in Delhi.
(4) The Council may, with the prior approval of the Central Government, establish offices at other places in India.
- Practical Example: If the Council sees a need for a branch office in Mumbai or Chennai, it must first get permission from the Central Government before opening it.
Section 43C: Composition of Council
This section defines who sits on the Council and the process for their appointment.
(1) The Council shall consist of the following Members, namely:—
(a) a person, who has been, a Judge of the Supreme Court or, Chief Justice of a High Court or, a Judge of a High Court or an eminent person… to be appointed by the Central Government in consultation with the Chief Justice of India—Chairperson;
- Simple Translation: The head of the Council must be a high-ranking judge or a highly respected person with special knowledge of arbitration. This person is chosen by the Central Government only after consulting with the Chief Justice of India.
(b) an eminent arbitration practitioner having substantial knowledge and experience in institutional arbitration, both domestic and international, to be nominated by the Central Government—Member;
- Simple Translation: A highly recognized and experienced lawyer or professional who specializes in both Indian and international institutional arbitration is appointed by the Central Government.
(c) an eminent academician having experience in research and teaching in the field of arbitration and alternative dispute resolution laws, to be appointed by the Central Government in consultation with the Chairperson—Member;
- Simple Translation: A distinguished professor or legal scholar specializing in dispute resolution is appointed by the Central Government after consulting with the Chairperson of the Council.
(d) Secretary to the Government of India in the Department of Legal Affairs… or his representative not below the rank of Joint Secretary—Member, ex officio;
- Simple Translation: The top civil servant (Secretary) from the Ministry of Law and Justice (or their senior representative) is an automatic member due to their government position.
(e) Secretary to the Government of India in the Department of Expenditure… or his representative not below the rank of Joint Secretary—Member, ex officio;
- Simple Translation: The top civil servant from the Ministry of Finance (or their senior representative) is an automatic member to oversee financial aspects.
(f) one representative of a recognised body of commerce and industry, chosen on rotational basis by the Central Government—Part-time Member; and
- Simple Translation: A representative from a major business or trade organization (like a Chamber of Commerce) is appointed on a part-time, rotating basis.
(g) Chief Executive Officer—Member-Secretary, ex officio.
- Simple Translation: The Chief Executive Officer (CEO), who manages the day-to-day operations, is automatically a member and serves as the secretary for the Council.
(2) The Chairperson and Members of the Council, other than ex officio Members, shall hold office as such, for a term of three years from the date on which they enter upon their office:
- Proviso: Provided that no Chairperson or Member, other than ex officio Member, shall hold office as such after he has attained the age of seventy years in the case of Chairperson and sixty-seven years in the case of Member.
- Simple Translation: Appointed members serve for a fixed term of three years. However, the Chairperson must retire at 70, and other appointed members must retire at 67, regardless of whether their three-year term is finished.
(3) The salaries, allowances and other terms and conditions of the Chairperson and Members referred to in clauses (b) and (c) of sub-section (1) shall be such as may be prescribed by the Central Government.
- Simple Translation: The rules for the pay, benefits, and service conditions of the appointed Chairperson and the Practitioner/Academic members will be officially set by the Central Government.
(4) The Part-time Member shall be entitled to such travelling and other allowances as may be prescribed by the Central Government.
- Simple Translation: The Part-time member will not receive a full salary but will be reimbursed for travel and other expenses as set by the Central Government.
