The Arbitration Council of India was proposed to streamline and encourage institutional arbitration

and promote India’s Alternative Dispute Resolution (ADR) mechanism.

The central government can designate the Arbitration Council of India as per section 43B of the
Arbitration and Conciliation Act, 1996, for executing the tasks and roles specified under the Act.
Arbitration Council of India is a body constituted with an unchanging sequence, a standard
monogram, and the same capacity to obtain, bear and dispose of both transferable and unmovable
property as specified in the Arbitration and Conciliation Act, 1996.

Composition of Arbitration Council of India

As per Section 43C of the Act,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, having special knowledge and experience in the conduct or
administration of arbitration, to be appointed by the Central Government in consultation with the
Chief Justice of India–Chairperson;
(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;
(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;
(d) Secretary to the Government of India in the Department of Legal Affairs, Ministry of Law and
 Justice or his representative not below the rank of Joint Secretary–Member, ex officio;
Functions and Duties:
• The duties and functions of the Council shall be as under:

• (a) frame policies governing the grading of arbitral institutions;

• (b) recognise professional institutes providing accreditation of arbitrators;

• (c) review the grading of arbitral institutions and arbitrators;

• (d) hold training, workshops and courses in the area of arbitration in collaboration of law firms, law universities and
arbitral institutes;

• (e) frame, review and update norms to ensure satisfactory level of arbitration and conciliation;

• (f) act as a forum for exchange of views and techniques to be adopted for creating a platform to make India a robust
centre for domestic and international arbitration and conciliation;

• (g) make recommendations to the Central Government on various measures to be adopted to make provision for easy
resolution of commercial disputes;

• (h) promote institutional arbitration by strengthening arbitral institutions;

• (i) conduct examination and training on various subjects relating to arbitration and conciliation and award certificates
thereof;

• (j) establish and maintain depository of arbitral awards made in India;

• (k) make recommendations regarding personnel, training and infrastructure of arbitral institutions; and

• (l) such other functions as may be decided by the Central Government.

• Arbitration Council of India – Term of the Members

• According to the Arbitration and Conciliation (Amendment) Act 2019, the Chairperson of Arbitration Council of India
and all Members must stay in office for three years from the date of joining office.
• Also, no Member, Ex-Officio Member, or Chairperson will be allowed to hold office after attaining the age of seventy
(70) years (for Chairperson) and sixty-seven (67) years (for Members).
• The Arbitration Council of India has been formed to simplify the court procedures regarding arbitration and strengthen
the Alternative Dispute Resolution mechanism.
• The Council’s headquarters are located in Delhi and are opening offices in major Indian cities.
• The central government appoints the Chairperson of the Arbitration Council of India after consultation with the chief
justice of India.

• Member Removal of Arbitration Council of India

• The removal of the Arbitration Council of India 2019 member occurs under the listed circumstances:
• If he is unable to pay debts owed, or
• If he has pledged in any paid occupation during his tenure of office (excluding part-time Member), or
• If he has been sentenced for a crime involving ethical corruption as per Central Government opinion, or
• If he has obtained some economic or other interest that is likely to impact the discrimination of his roles as a member,
or • If he has maltreated his position
• If he has become unfit to maintain his functions physically or mentally.
• No member shall be terminated on grounds (4) and (5) unless the Supreme Court, on the suggestions of the Central
Government, has objected that the Member should be removed on such grounds.
Arbitration in India is governed by The Arbitration and Conciliation Act, 1996 and section 2(1)
(f) defines international commercial arbitration. In summary, it can be understood as any
arbitration between two parties where at least one of the parties is a foreign national company or
government, it will be known as international commercial arbitration.

Arbitration has the concept of ‘seat’, which means, the palace of Jurisdiction whose law applies
to the arbitration proceeding. For example, if the arbitration is between a foreign company and an
Indian company, but the seat is Indian, then it is international commercial arbitration, but if the
Seat is outside India, i.e. Foreign Laws of Arbitration, then it will be a foreign arbitration.

Part II of The Arbitration and Conciliation Act talks about requirement valid foreign arbitrations
awards, to be capable and enforceable. Not every foreign arbitration award has valid jurisdiction
in India. India is significatory to two conventions- the New York Convention and Geneva
Convention.
• Section 47 provides that the party applying for the enforcement of a foreign award shall, at the time of the application, produce before the court
• (a) original award or a duly authenticated copy thereof;
• (b) original arbitration agreement or a duly certified copy thereof; and
• (c) any evidence required to establish that the award is a foreign award.
• As per the new Act, the application for enforcement of a foreign award will now only lie to High Court.
• Once an application for enforcement of a foreign award is made, the other party has the opportunity to file an objection against enforcement on the grounds
recognized under Section 48 of the Act. These grounds include:
a. the parties to the agreement referred to in section 44 were, under the law applicable to them, under some incapacity, or the said agreement is not valid under the law
to which the parties have subjected it or, failing any indication thereon, under the law of the country where the award was made; or
b. the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable
to present his case; or
c. the award deals with a difference not contemplated by or not falling within the terms of the submission to arbitration, or it contains decisions on matters beyond the
scope of the submission to arbitration: Provided that, if the decisions on matters submitted to arbitration can be separated from those not so submitted, that part of
the award which contains decisions on matters submitted to arbitration may be enforced; or
d. the composition of the arbitral authority or the arbitral procedure was not in accordance with the agreement of the parties, or, failing such agreement, was not in
accordance with the law of the country where the arbitration took place; or
e. the award has not yet become binding on the parties, or has been set aside or suspended by a competent authority of the country in which, or under the law of which,
that award was made.
f. the subject-matter of the difference is not capable of settlement by arbitration under the law of India; or
g. the enforcement of the award would be contrary to the public policy of India.
• The Amendment Act has restricted the ambit of violation of public policy for international commercial arbitration to only include those awards that are: (i) affected
by fraud or corruption, (ii) in contravention with the fundamental policy of Indian law, or (iii) conflict with the notions of morality or justice.
• It is further provided that if an application for the setting aside or suspension of the award has been made to a competent authority, the Court may, if it considers it
proper, adjourn the decision on the enforcement of the award and may also, on the application of the party claiming enforcement of the award, order the other party to
give suitable security.
• Section 49 provides that where the Court is satisfied that the foreign award is enforceable under this Chapter, the award shall be deemed to be a decree of that Court.
• This part is dealt with in Chapter II, Part II of the A&C Act and the relevant provisions range
from Sections 53-60.
• Section 53 defines a foreign award as an arbitral award on disputes related to matters considered
commercial under the law in force in India after 28 thJuly 1924. The three pre-requisites for
enforcement here are:
• The award is in pursuance of an agreement for arbitration to which the Geneva Protocol on
Arbitration Clauses, 1923 applies.
• The award is between persons subject to the jurisdiction of reciprocating territories, as designated
by the Central Government and where the Geneva Convention on the Execution of Foreign
Arbitral Awards, 1927 applies.
• The award is made in a territory designated as a reciprocating one by the Central Government.
• Per Section 56, the party applying for the enforcement of the foreign award in India is required to
submit the following at the time of application:
• The original award or authenticated copy
• Evidence showing that the award has become final
• Evidence to prove that the award was made in pursuance of a valid arbitration under the
applicable law
• Section 57(2) lays down certain conditions where the enforcement of the award can be refused.
Finally, per Section 58, when the Court is satisfied with the enforceability of the foreign award
under this Chapter, the award is then considered a decree of that Court.
• Enforcement of Foreign Arbitral Awards in India may be refused on grounds such as:
• The parties to the arbitration agreement are incapacitated.
• The invalidity of the arbitration agreement under the legislation controlling it.
• The party challenging the award did not get appropriate notice of the arbitrator’s appointment or
the arbitration proceedings, or they were otherwise unable to present their case.
• The award addresses a dispute not anticipated by or lying outside the scope of the submission to
arbitration, or it incorporates decisions on subjects outside the scope of the submission.
• The appointment of arbitrators or the arbitral procedure was not in conformity with the parties’
agreement, or in the absence of such agreement, with the legislation of the country in which the
arbitration took place.
• The award has not become binding on the parties, or a competent authority has suspended or set it
aside.
• The subject matter of the dispute cannot be resolved by arbitration under Indian law • The
award’s implementation would be contrary to India’s public policy.