The story so far: Nearly six years after the 2019 amendments to the Arbitration and Conciliation Act, 1996 (1996 Act), the Union government is yet to constitute the Arbitration Council of India (ACI), envisaged as the central regulatory and promotional body for institutional arbitration. On January 23, 2025, the Supreme Court sought the Union government’s response on a plea seeking the constitution of the Council, along with directions for framing uniform guidelines governing the conduct, regulation, and accreditation of arbitral institutions and arbitrators.
What was the proposed mandate?
The 2019 amendments proposed the establishment of the ACI as a premier regulatory body tasked with promoting, reforming, and advancing the practice of arbitration in the country. This institutional framework drew from the recommendations of the High-Level Committee on Arbitration, chaired by Justice B.N. Srikrishna, which submitted its report in July 2017. The amendments vested the Council with a wide range of functions, including grading arbitral institutions, recognising professional bodies that accredit arbitrators, and maintaining a repository of arbitral awards made in India. The ACI was proposed to be headed by a Chairperson appointed by the Union government in consultation with the Chief Justice of India. The Chairperson could be a former judge of the Supreme Court, a former Chief Justice or judge of a High Court, or an eminent person with expertise in arbitration. In addition, the Council was to comprise ex officio members from the executive.
