The India International Arbitration Centre Act, 2019
📘 The India International Arbitration Centre Act, 2019
(Act No. 17 of 2019)
🟦 Background & Purpose
India, being a major global economy, needed a robust institutional arbitration framework to handle international and domestic commercial disputes.
The India International Arbitration Centre Act, 2019 was enacted to:
Establish an independent institution of national importance.
Promote institutional arbitration (especially international commercial arbitration).
Create a world-class arbitration system in India to reduce reliance on foreign arbitration hubs like Singapore, London, and Paris.
It replaces the New Delhi International Arbitration Centre Ordinance, and formally establishes the India International Arbitration Centre (IIAC).
🟩 Key Objectives of the Act
To create an autonomous and independent arbitration institution.
To promote the culture of institutional arbitration.
To make India a preferred seat for international arbitration.
To bring transparency, professionalism, and credibility to arbitration processes.
To promote mediation and conciliation as alternative dispute resolution (ADR) methods.
🟨 Salient Features & Provisions
🔹 1. Establishment of IIAC (Section 3)
The Act sets up the India International Arbitration Centre (IIAC) headquartered in New Delhi.
Declared as an institution of national importance.
🔹 2. Objectives of the Centre (Section 14)
IIAC shall:
Conduct international and domestic arbitration.
Provide facilities for conciliation and mediation.
Maintain a panel of reputed arbitrators and conciliators.
Promote research and training in ADR.
Collaborate with international institutions and bodies.
🔹 3. Composition of the Centre (Sections 5–7)
The Centre is governed by a Governing Council consisting of:
| Member | Appointed By |
|---|---|
| Chairperson | Appointed by Central Govt (a judge of SC or Chief Justice of HC or eminent person) |
| Two eminent persons | With knowledge in arbitration/ADR |
| One representative from commerce ministry | Central Govt nominee |
| CEO of the Centre | Ex-officio |
| One Financial Adviser | Ex-officio |
👉 A Chief Executive Officer (CEO) manages day-to-day operations.
🔹 4. Functions and Powers (Section 15)
Conduct arbitration/conciliation proceedings.
Provide administrative and support services.
Hold training programs and seminars.
Maintain a permanent institutional arbitration framework.
🔹 5. Transition from NDIAC to IIAC (Sections 16–19)
The New Delhi International Arbitration Centre (NDIAC) is replaced by IIAC.
Assets and liabilities of NDIAC are transferred to IIAC.
All contracts, proceedings, and employees continue under IIAC.
🔹 6. Finance, Audit, and Accountability (Sections 22–25)
Funded by:
Grants from Central Government
Fees and income from services
Donations and other sources
Accounts are audited by CAG of India.
Annual report to be laid before Parliament.
🔹 7. Autonomy and Independence
The Centre enjoys full functional autonomy.
The Governing Council is empowered to frame its own rules, regulations, and procedures for effective operation.
🟥 Significance of the Act
Strengthens India’s credibility as an arbitration-friendly jurisdiction.
Promotes ease of doing business by offering efficient dispute resolution.
Supports the Make in India and Atmanirbhar Bharat initiatives by creating reliable legal infrastructure.
Reduces backlog in courts through alternate dispute resolution mechanisms.
⚖️ Case Law and Legal Developments
As the Act is relatively recent (enacted in 2019) and primarily administrative in nature, no landmark judgments have interpreted it directly yet. However, some related legal principles and cases provide important context.
1. Bharat Aluminium Co. v. Kaiser Aluminium Technical Services Inc. (BALCO case)
Citation: (2012) 9 SCC 552
Significance: Supreme Court ruled that Part I of the Arbitration and Conciliation Act, 1996 does not apply to international commercial arbitration seated outside India.
Encouraged establishment of Indian arbitration institutions like IIAC so that parties need not go abroad.
Laid groundwork for India to develop international arbitration infrastructure.
2. Centrotrade Minerals & Metals Inc. v. Hindustan Copper Ltd. (2017)
Citation: (2017) 2 SCC 228
Significance: Upheld the concept of two-tier arbitration, encouraging flexible arbitration frameworks.
Shows how India has gradually moved towards recognizing global arbitration practices—which IIAC aims to adopt.
3. Union of India v. Hardy Exploration and Production (India) Inc. (2018)
Citation: (2019) 13 SCC 472
Dealt with seat of arbitration—a critical issue in international arbitration.
Emphasized the need for clarity and structure, which IIAC seeks to provide.
4. Recent High Court Cases (Institutional Arbitration Preference)
High Courts (e.g., Delhi HC) have increasingly encouraged parties to choose institutional arbitration over ad hoc arbitration. Courts have highlighted the advantages of institutions like IIAC, including procedural consistency, administrative support, and enforceability.
🧾 Summary Table
| Aspect | Details |
|---|---|
| Name of Act | The India International Arbitration Centre Act, 2019 |
| Came into Force | July 26, 2019 |
| Headquarters | New Delhi |
| Legal Status | Institution of National Importance |
| Governance | Governing Council + CEO |
| Functions | Arbitration, Mediation, Conciliation, Training |
| Funding | Government grants, service fees, donations |
| Judicial Support | Encouraged by SC/HC in arbitration-related jurisprudence |
✅ Conclusion
The India International Arbitration Centre Act, 2019 is a landmark step in India’s legal and economic landscape. It strengthens India's position as a global hub for commercial arbitration, aligned with international standards.
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