o grant unconditional stay of enforcement of arbitral awards, where the underlying arbitration agreement,

contracts or arbitral award is induced by fraud or corruption;

o omit 8th Schedule of the Act which laid down the qualifications, experience and norms for accreditation
of arbitrators; and
Alternative Dispute Resolution (ADR) mechanism
o specify by regulations the • Arbitration and Conciliation are modes of the Alternative
qualifications, experience and norms Dispute Resolution (ADR) mechanism, in which disputes
for accreditation of arbitrators and the are settled without litigation.
said amendment is consequential in • ADR mechanism facilitate parties to deal with the
nature. underlying issues in dispute in a more cost-effective
• Key features of the bill: manner and with increased efficacy.
o Automatic stay on awards: Bill clarifies
that a stay on the arbitral award may be
granted by the Court, even during the
pendency of the setting aside
application, if it is prima facie satisfied
that the relevant arbitration agreement
was induced by fraud or corruption.
✓ Presently, 1996 Act allowed a party
to file an application to set aside an
arbitral award. However, according
to 2015 Act, an automatic stay
would not be granted on operation
of the award by mere filing an
application for setting it aside..
o Qualifications of arbitrators: Bill
removes 8th Schedule for arbitrators and
states that the qualifications,
experience, and norms for accreditation
of arbitrations will be specified under the regulations by Arbitration Council of India (ACI).
✓ 1996 Act specified certain qualifications, experience, and accreditation norms for arbitrators in a
separate 8th schedule. Further, the general norms applicable to arbitrators include that they must be
conversant with the Constitution of India.
✓ According to 8th Schedule, arbitrator must be:
 an advocate under the Advocates Act, 1961 with 10 years of experience, or
 an officer of the Indian Legal Service, among others.
Impact of amendment bill over dispute resolution mechanism
• Check fraud and corruption:
Amendment will help to ensure About Arbitration Council of India (ACI)
• Arbitration and Conciliation (Amendment) Act 2019 seeks for the
that all the stakeholder parties
establishment and incorporation of an independent body namely,
get an opportunity to seek Arbitration Council of India (ACI).
unconditional stay of • ACI is set for grading of arbitral institutions and accreditation of
enforcement of arbitral arbitrators.
awards, where the arbitral • ACI will be headed by a Chairperson, who has been a Judge of the
award is induced by fraud or Supreme Court or a Chief Justice or Judge of a High Court or an eminent
corruption. person appointed by central government in consultation with the Chief
• Promote India as Hub of Justice of India.
commercial arbitration: By o It will also have two Full-time Members from amongst eminent
omitting 8th Schedule, it will arbitration practitioners and academicians and one representative
of a recognized body of commerce and industry shall be nominated
give greater flexibility and
on rotational basis as a Part-time Member.
promote India as a hub of o Secretary, Department of Legal Affairs, Ministry of Law & Justice;
international commercial Secretary, Department of Expenditure, Ministry of Finance and Chief
arbitration by attracting Executive Officer, ACI will be ex-officio Members.
eminent arbitrators to the
country.
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