10-Aug-2018: Lok Sabha passes Arbitration and Conciliation (Amendment) Bill, 2018.

The Arbitration and Conciliation (Amendment) Bill, 2018 was introduced in Lok Sabha by the Minister for Law and Justice, Mr. PP Chaudhary, on July 18, 2018. It seeks to amend the Arbitration and Conciliation Act, 1996.  The Act contains provisions to deal with domestic and international arbitration, and defines the law for conducting conciliation proceedings.

Key features of the Bill:

Arbitration Council of India: The Bill seeks to establish an independent body called the Arbitration Council of India (ACI) for the promotion of arbitration, mediation, conciliation and other alternative dispute redressal mechanisms.  Its functions include: (i) framing policies for grading arbitral institutions and accrediting arbitrators, (ii) making policies for the establishment, operation and maintenance of uniform professional standards for all alternate dispute redressal matters, and (iii) maintaining a depository of arbitral awards (judgments) made in India and abroad.

Composition of the ACI: The ACI will consist of a Chairperson who is either: (i) a Judge of the Supreme Court; or (ii) a Judge of a High Court; or (iii) Chief Justice of a High Court; or (iv) an eminent person with expert knowledge in conduct of arbitration.  Other members will include an eminent arbitration practitioner, an academician with experience in arbitration, and government appointees.

Appointment of arbitrators: Under the 1996 Act, parties were free to appoint arbitrators.  In case of disagreement on an appointment, the parties could request the Supreme Court, or the concerned High Court, or any person or institution designated by such Court, to appoint an arbitrator.

Under the Bill, the Supreme Court and High Courts may now designate arbitral institutions, which parties can approach for the appointment of arbitrators. For international commercial arbitration, appointments will be made by the institution designated by the Supreme Court.  For domestic arbitration, appointments will be made by the institution designated by the concerned High Court.  In case there are no arbitral institutions available, the Chief Justice of the concerned High Court may maintain a panel of arbitrators to perform the functions of the arbitral institutions.  An application for appointment of an arbitrator is required to be disposed of within 30 days.

Relaxation of time limits: Under the 1996 Act, arbitral tribunals are required to make their award within a period of 12 months for all arbitration proceedings.  The Bill proposed to remove this time restriction for international commercial arbitrations.

Completion of written submissions: Currently, there is no time limit to file written submissions before an arbitral tribunal.  The Bill requires that the written claim and the defence to the claim in an arbitration proceeding, should be completed within six months of the appointment of the arbitrators.

Confidentiality of proceedings: The Bill provides that all details of arbitration proceedings will be kept confidential except for the details of the arbitral award in certain circumstances.  Disclosure of the arbitral award will only be made where it is necessary for implementing or enforcing the award.

Applicability of Arbitration and Conciliation Act, 2015: The Bill clarifies that the 2015 Act shall only apply to arbitral proceedings which started on or after October 23, 2015.

7-Mar-2018: Cabinet approves the Arbitration and Conciliation (Amendment) Bill, 2018

The Union Cabinet has approved the Arbitration and Conciliation (Amendment) Bill, 2018 for introduction in the Parliament. It is a part of the efforts of the Government to encourage institutional arbitration for settlement of disputes and make India a centre of robust Alternative Dispute Resolution (ADR) mechanism.

Benefits: The Amendments in the Act of 1996 will facilitate achieving the goal of improving institutional arbitration by establishing an independent body to lay down standards, make arbitration process more party friendly, cost effective and ensure timely disposal of arbitration cases.

Salient features:

1. To facilitate speedy appointment of arbitrators through designated arbitral institutions by the Supreme Court or the High Court, without having any requirement to approach the court in this regard. It is envisaged that parties may directly approach arbitral institutions designated by the Supreme Court for International Commercial arbitration and in other cases the concerned High Courts.
2. The amendment provides for creation of an independent body namely the Arbitration Council of India (ACI) which will grade arbitral institution and accredit arbitrators by laying down norms and take all such steps as may be necessary to promote and encourage arbitration, conciliation, mediation and other ADR Mechanism and for that purpose evolve policy and guidelines for the establishment., operation and maintenance of uniform professional standards in respect of all matters relating to arbitration and ADR mechanism. The Council shall also maintain an electronic depository of all arbitral awards,
3. The ACI shall be a body corporate. The Chairperson of ACI shall be a person who has been a Judge of the Supreme Court or Chief Justice or Judge of any High Court or any eminent person. Further, the other Members would include an eminent academician etc. besides other Government nominees,
4. It is  proposed to amend  sub section (1) of section  29A by excluding International Arbitration from the bounds of timeline and further to provide that the time limit for arbitral award in other arbitrations shall be within 12 months from the completion of the pleadings of the parties.
5. A new section 42A is proposed to be inserted to provide that the arbitrator and the arbitral institutions shall keep confidentiality of all arbitral proceedings except award. Further, a new section 42B protects an Arbitrator from suit or other legal proceedings for any action or omission done in good faith in the course of arbitration proceedings.
6. A new section 87 is proposed to be inserted to clarify that unless parties agree otherwise the Amendment Act 2015 shall not apply to (a) Arbitral proceedings .which have commenced before the commencement of the Amendment Act of 2015 (b) Court proceedings arising out of or in relation to such arbitral proceedings irrespective of whether such court proceedings are commenced prior to or after the commencement of the Amendment Act of 2015 and shall apply only to Arbitral proceedings commenced on or after the commencement of the Amendment Act of 2015 and to court proceedings arising out of or in relation to such Arbitral proceedings.

Background: The Arbitration and Conciliation Act, 1996, was amended by the Arbitration and Conciliation (Amendment) Act, 2015 in order to make arbitration process user friendly, cost effective and ensure speedy disposal and neutrality of arbitrators. However, to give a boost to institutional, arbitration vis-a-vis ad hoc arbitration and to remove some practical difficulties in applicability of the Arbitration and Conciliation (Amendment) Act, 2015, a High Level Committee (HLC) under the Chairmanship of Justice B. H. Srikrishna, Retired Judge, Supreme Court of India, was constituted by the Central Government, The HLC was given the mandate

• to examine the effectiveness of existing arbitration mechanism by studying the functioning and performance of Arbitral Institutions in India;
• to devise a road map to promote institutionalized arbitration mechanisms in India;
• to evolve an effective and efficient arbitration eco-system for commercial dispute resolution and submit a Report on suggested reforms in the statute.

The HLC submitted its Report on 30th July, 2017 and has recommended for amendments in the Arbitration and Conciliation Act, 1996. The proposed amendments are as per the recommendations of the High Level Committee.

3-Aug-2018: Lok Sabha passes National Sports University Bill, 2018.

The National Sports University Bill, 2018 was introduced in Lok Sabha by Mr. Rajyavardhan Singh Rathore, Minister of Youth Affairs and Sports on July 23, 2018.  It replaces the National Sports University Ordinance, 2018 that was promulgated on May 31, 2018.  The Bill seeks to establish a National Sports University in Manipur. 

Establishment of the University:  The National Sports University will be headquartered in Manipur.  It may establish outlying campuses (within or outside India), colleges, or regional centres.  The University will: (i) undertake research on physical education, (ii) strengthen sports training programmes, and (iii) collaborate internationally in the field of physical education, among others.

Functions of the University:  Key powers and functions of the University include: (i) prescribing courses of study and conducting training programmes, (ii) granting degrees, diplomas, and certificates, (iii) providing facilities through a distance education system, and (iv) conferring autonomous status on a college or an institution.

Authorities:  The University will have the following authorities: (i) a Court, which will review the policies of the University and suggest measures for its development, (ii) an Executive Council, which will be the principal executive body, (iii) an Academic and Activity Council, which will supervise academic policies, (iv) a Board of Sports Studies, which will approve the subjects for research and recommend measures to improve standards of teaching, and (v) a Finance Committee, which will examine proposals related to creation of posts and recommend limits on the expenditure of the University. Further, additional authorities may be declared through statutes.

Executive Council:  The Executive Council will be responsible for all administrative affairs of the University.  Members of the Council will be nominated by the central government and will hold office for two years.  The members will include: (i) the Vice-Chancellor (appointed by the central government), (ii) the Joint Secretary, Ministry of Youth Affairs and Sports, and (iii) four persons from among eminent sports persons and distinguished coaches.

Key functions of the Council include: (i) creating academic posts and their appointment, (ii) managing the revenue and property of the University, (iii) managing and regulating the finances of the University, and (iv) partnering with industry and non-government agencies to advance knowledge.

Statutes:  The Schedule to the Bill contains statutes.  These statutes specify the establishment, composition, and powers of various authorities such as the Chancellor, Vice Chancellor, and Dean of Schools.  The Executive Council may make additional statutes, amend specified statutes, or repeal these statutes.  Any such action will require the approval of the central government.

Role of central government:  The central government will review and inspect the functioning of the University.  The Executive Council may take action based on the findings of the inspection.  If no action is taken within a reasonable time period, the central government may issue binding directions to the Council.  In addition, the central government may annul any proceeding of the University which do not conform with the Bill.

Fund:  The University will maintain a Fund.  The following amounts will be credited to the Fund: (i) contributions by the central government, state governments, or the University Grants Commission, (ii) loans, gifts, and donations, (iii) income from fees, and (iv) amounts received from any other source.  Funds will be invested based on the recommendations of the Finance Committee.

Dispute and appeals:  Any student or candidate whose name has been removed from the rolls of the University and who has been barred from appearing for examinations may appeal to the Executive Council for review of the decision.  Any dispute arising out the disciplinary action taken by the University against a student may be referred to a Tribunal of Arbitration (at the request of the student).  Disputes arising out of the contract between an employee and the University may also be referred to a Tribunal of Arbitration.

1-Jun-2018: National Sports University Ordinance, 2018

National Sports University Ordinance, 2018 has come into force as the President of India has given his assent to the Union Cabinet’s decision to promulgate the said Ordinance. Earlier, the Union Cabinet, in its meeting held on 23rd May, 2018, had decided to approve the proposal of the Ministry of Youth Affairs and Sports to promulgate the National Sports University Ordinance, 2018, by which the National Sports University will be established with headquarters at Manipur.

National Sports University Ordinance, 2018 (“the Ordinance”) will be on the lines of the National Sports University Bill, 2017, introduced in Lok Sabha on 10.08.2017. This will be a specialized University, first of its kind, to promote sports education in the areas of sports sciences, sports technology, sports management and sports coaching besides functioning as the national training centre for select sports disciplines by adopting the best international practices.

The proposal was formally announced by the Finance Minister in his Budget speech of 2014-15 on 10.07.2014. For setting up the University, 325.90 acres of land has been made available by the Government of Manipur in Koutruk, West Imphal district of Manipur. The University would provide a boost to sports activities in the country, and also improve the country’s sports performance at the national and international levels. The proposed University has also considerable employment generation potential.