Parliament Question: Reforms in Arbitration Law

GOVERNMENT OF INDIA MINISTRY OF LAW AND JUSTICE DEPARTMENT OF LEGAL AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 3271 TO BE ANSWERED ON FRIDAY, THE 07th AUGUST, 2026 REFORMS IN ARBITRATION LAW

3271. SMT. ROOPKUMARI CHOUDHARY:

Will the Minister of LAW AND JUSTICE be pleased to state:

(a) whether the Government has undertaken any review of the implementation of the Arbitration and Conciliation Act, 1996, with regard to achieving its objective of promoting speedy and efficient dispute resolution and reducing the burden on courts;

(b) if so, the details thereof, including the major challenges identified in the implementation of the Act, particularly with regard to frequent judicial intervention and delays in arbitral proceedings;

(c) whether the Government is considering any amendments to the Arbitration and Conciliation Act, 1996, to simplify procedures, minimise avoidable litigation arising out of arbitral proceedings and strengthen institutional arbitration in the country;

(d) the steps taken to promote institutional arbitration, the capacity building of arbitrators, the adoption of technology and development of India as a preferred international arbitration hub; and

(e) the measures proposed to ensure the time-bound enforcement of arbitral awards while maintaining minimal judicial intervention, in line with international best practices? ANSWER MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF LAW AND JUSTICE; AND MINISTER OF STATE INTHE MINISTRY OF PARLIAMENTARY AFFAIRS (SHRI ARJUN RAM MEGHWAL)

(a) and (b): During the past more than a decade, the Government, inter-alia based on the recommendations of the 246th Report of the Law Commission of India and the report of the High Level Committee (HLC) chaired by Justice (Retd.) B. N. Srikrishna, Former Judge, Supreme Court of India, has progressively amended the Arbitration and Conciliation Act, 1996 in the years 2015, 2019 and 2020, inter-alia to keep pace with developments in the arbitration landscape and to enable arbitration as a viable dispute resolution mechanism. The amendments 1are aimed at ensuring timely conclusion of arbitration proceedings, neutrality of arbitrators, minimizing judicial intervention in the arbitral process, efficacious enforcement of arbitral awards and promotion of institutional arbitration.

(c): Legislative and policy interventions including through amendments along with related reforms in the field of alternative dispute resolution including arbitration, is a continuous process, keeping in view the changing requirements of the stakeholders. Further, the interventions taken from time to time have contributed towards improving and strengthening the institutional arbitration landscape, making arbitration more efficacious and enabling the country being seen as an arbitration conducive jurisdiction.

(d) and (e): The amendments made to the Arbitration and Conciliation Act, in the year 2019 have enabled the statutory framework for institutional arbitration in India inter-alia through inclusion of Part IA in the Act. Further, the India International Arbitration Centre Act, 2019, was enacted to provide for the establishment of the India International Arbitration Centre for the purpose of creating an independent, autonomous and world class body for facilitating institutional arbitration and to declare the Centre to be an institution of national importance.

The Centre has since been established and aims to inspire confidence amongst parties, both domestic and international, by providing a neutral dispute resolution platform for resolution of commercial disputes through arbitration. The Centre is envisaged to become a model arbitral institution in the country, thereby paving the way for enhancing the quality of institutional framework for arbitration. The Centre has also notified the India International Arbitration Centre (Conduct of Arbitration) Regulations, 2023 to facilitate conduct of domestic and international arbitrations, including through use of technology, with a focus on efficient and time-bound arbitration process. Section 15 of the India International Arbitration Centre Act, 2019 also provides for the functions of the Centre and inter-alia states that the Centre shall impart training in alternative dispute resolution and related matters to those who are handling arbitration, conciliation and mediation. The Centre since its establishment, has conducted workshops, conferences and seminars relating to domestic and international arbitrations, for awareness and training where officials from Central Public Sector Enterprises and other stakeholders have participated.

These legislative and policy interventions taken from time to time, inter-alia including amendments made to Section 34 and 36 of the Arbitration and Conciliation Act, 1996 in the year 2015 have contributed towards improving the arbitration ecosystem, minimizing judicial intervention in arbitration and better enforcement of arbitral awards thereby supporting the ease of doing business and enhancing investor confidence.

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