ARBITRATION IN INDIA

• Arbitration is not new to India; it has existed both before and after the Arbitration and Conciliation Act, 1996.
• Some private arbitration organisations exist in various states.
• Despite the growing need due to court backlogs, institutionalised ADR is still lacking.

JUSTICE B.N. SRIKRISHNA COMMITTEE REPORT (2017)

• Formed to review and suggest reforms in India’s arbitration ecosystem.
• Emphasised making India an international arbitration hub.
• Report submitted in August 2017 after eight months and seven meetings.

LEGISLATIVE DEVELOPMENTS

• Amendments to the Arbitration Act in 2019 and 2021.
• Enactment of the Mediation Act, 2023 after over three years of deliberations.
• Creation of:
  • Arbitration Council of India (ACI)
  • Mediation Council of India (MCI)

STATUS OF ADR COUNCILS

• Despite legal provisions, ACI and MCI are still not operational.
• Law Ministers and Finance Ministers have repeatedly assured support.
• Funds allocated in two consecutive budgets, but no tangible progress.

GOVERNMENT’S CURRENT POSITION

• On March 20, 2025, Law Minister Arjun Ram Meghwal reiterated support for ADR.
• His response in the Rajya Sabha was vague and non-committal.
• MP’s specific query about operationalisation of ACI and MCI remained unanswered.

GROUND REALITY

• Over 5 crore pending cases in Indian courts.
• Courts suffer from:
  • Poor infrastructure
  • Vacant judicial positions
  • Gender disparities
• No real support from state governments for independent ADR centres.
• Applications to designate Arbitration Institutions are pending in High Courts.

OBSERVATIONS BY KEY FIGURES

• Vice President Jagdeep Dhankhar noted India lags behind Dubai and Singapore in ADR.
• Criticised the lack of action despite growing seminars and public discussions.

CONCLUSION & WAY FORWARD

• ADR institutions remain only on paper.
• Urgent need for:
  • High Courts and Centre to identify and designate ADR bodies in each state.
  • Operationalising ACI and MCI to ease court burden.
  • Practical implementation over policy rhetoric.

MAINS QUESTIONS

1. Discuss the need for institutionalized Alternative Dispute Resolution (ADR) mechanisms in India, highlighting the challenges and potential solutions.
2. Analyze the role of the Arbitration Council of India (ACI) and Mediation Council of India (MCI) in promoting ADR in India. What are the reasons for their delayed operationalization?