Notably, Lord Goldsmith also addressed the role of the Arbitration Council after the 2019 amendment to the Arbitration and Conciliation Act, calling its mandate “broad” and potentially negatively impactful to India’s goal.
The Arbitration Council is an independent body appointed by the Central government which is responsible for framing policy, guidelines, creating arbitral institutions and accrediting arbitrators.
“I can’t think of an example in an arbitration-friendly jurisdiction where such a body is also charged with regulating it. It seems to me that this is because the business community puts considerable weight on the autonomy of the arbitral process, which is significantly eroded when a government regulator becomes involved,” he stated.
As a result, there exists a real risk of the Council’s mandate cutting into party autonomy and controlling the arbitral process, leading to businesses removing India from their lists as a potential arbitration seat, Lord Goldsmith added.
He said that while this initiative was not arbitration-friendly, it was understandable in the context of the Indian landscape, and that careful consideration will be required to determine how the Council could help in supporting India’s pro-arbitration ambitions.
He stressed on the need for the Arbitration Council’s regulations to take into account the views of potential stakeholders to encourage the international community to consider India as a seat for arbitration.
Source: Barandbench
