Has an Arbitration Council been constituted?

Has an Arbitration Council Been Constituted?

UPSC Prelims + Mains Study Note

1. At a Glance

• Arbitration Council of India (ACI) was proposed under the Arbitration and Conciliation (Amendment) Act, 2019 (inserting Part IA into the parent Arbitration and Conciliation Act, 1996) as the central regulatory and promotional body for institutional arbitration in India. [S1][S2]
• As of January 2026, ACI has NOT been constituted — nearly six years after the 2019 amendments — making it a live constitutional/governance lacuna attracting judicial notice. [S1][S3]
• Directly relevant for GS-II (governance, statutory bodies) and GS-III (Indian economy — dispute resolution, ease of doing business).
• The draft Arbitration and Conciliation (Amendment) Bill, 2024 was floated by the government for public consultation, proposing further structural changes to the arbitration ecosystem. [S4]

2. Why in the News

• January 2026: The Hindu reported on the continued non-constitution of ACI despite the Notification dated 12.10.2023 bringing Section 10 of the 2019 Act (dealing with the Council) into force. [S1][S3]
• October–December 2024: Ministry of Law & Justice floated the draft Arbitration and Conciliation (Amendment) Bill, 2024 for public comments, proposing emergency arbitration provisions and further reforms. [S4][S5]
• May 2025: A Supreme Court bench flagged gaps in India's arbitration law, urging changes to the 2024 Amendment Bill and noting a "long-standing legislative vacuum." [S6]

3. Background & Evolution

4. Core Static Facts

Parent Statute - Arbitration and Conciliation Act, 1996 — amended by Acts of 2015, 2019, and proposed 2024 Bill. - Section 10, Amendment Act 2019 — inserts Part IA (Sections 43A–43M) establishing ACI. [S2]

ACI: Proposed Mandate - Grade arbitral institutions - Recognise professional bodies that accredit arbitrators - Maintain a repository of arbitral awards made in India and abroad - Frame policies for uniform professional standards in ADR

Composition (as proposed) - Chairperson: Former SC judge / former CJ or judge of HC / eminent expert in arbitration — appointed by Union Government in consultation with Chief Justice of India [S3] - Ex officio members: Government nominees from the executive - Other members: Eminent arbitration practitioner, academician with arbitration experience

Implementing Body - Ministry of Law and Justice (Department of Legal Affairs)

Basis / Genesis - Recommendations of Justice B.N. Srikrishna Committee Report, July 2017 [S3]

Numbers - ACI proposed as a 7-member body [S1] - Act No. 33 of 2019 [S2]

5. Multi-Dimensional Analysis

Legal / Constitutional

• Non-constitution of ACI creates a statutory vacuum: the law mandates the body but it remains a dead letter.
• Concerns about institutional impartiality: ACI's Chairperson is appointed by the Union Government (even if in consultation with CJI), raising questions about executive dominance over what should be a quasi-judicial regulatory body. [S3]
• The 2024 draft bill proposes further amendments including emergency arbitration provisions and reduced court intervention — but critics note structural governance issues with ACI remain unaddressed. [S4][S6]
• Supreme Court (May 2025) noted procedural lacunae that the 2024 Bill fails to fix. [S6]

Economic

• India's poor record in institutional arbitration — most Indian parties still opt for ad hoc arbitration or foreign seats (Singapore, London) — costs India foreign investment confidence.
• A functional ACI was envisaged to make India an international arbitration hub, directly supporting Ease of Doing Business rankings.
• Grading of arbitral institutions by ACI would bring transparency and standardisation to dispute resolution costs/timelines.

Governance / Administrative

• Six-year gap between enactment (2019) and operationalisation signals implementation deficit — a recurring UPSC-relevant governance failure pattern.
• Draft ACI Rules were issued for public consultation as early as 2020 [S8] — yet no final rules notified and body not constituted.
• The 2024 draft bill was open for public consultation, suggesting the government is revisiting the framework rather than simply notifying the existing structure.

Historical

• Mirrors the trajectory of other recommended statutory bodies that took years to constitute (e.g., GST Appellate Tribunal delays).
• India's arbitration law itself follows UNCITRAL Model Law (1985, revised 2006) — a key international benchmark.

6. Recent Developments (last 12–18 months)

• October 2024: Ministry of Law & Justice invited public comments on the draft Arbitration and Conciliation (Amendment) Bill, 2024, which proposed emergency arbitration provisions and reduced court interference. [S4]
• December 2024: Analysis of 2024 Bill's implications for BFSI sector financial dispute resolution published. [S5]
• May 2025: Supreme Court bench publicly flagged that the 2024 draft Bill fails to address the "long-standing legislative vacuum" in India's arbitration regime. [S6]
• January 2026: Confirmed by media reporting that ACI remains unconstituted even after Section 10 of the 2019 Act was notified into force in October 2023. [S3]

7. Prelims Hooks

1. ACI was established under Part IA (Sections 43A–43M) of the Arbitration and Conciliation Act, 1996, inserted by the Amendment Act of 2019. [S2]
2. The Amendment Act, 2019 bears Act No. 33 of 2019. [S2]
3. ACI's creation was recommended by the Justice B.N. Srikrishna High-Level Committee, which submitted its report in July 2017. [S3]
4. The Chairperson of ACI is appointed by the Union Government in consultation with the Chief Justice of India. [S3]
5. ACI is proposed as a 7-member body. [S1]
6. Functions of ACI include: grading arbitral institutions, recognising arbitrator-accrediting bodies, and maintaining a repository of arbitral awards. [S1][S3]
7. Section 10 of the 2019 Amendment Act (ACI provisions) was notified into force on 12 October 2023 — but ACI itself has not been constituted. [S1]
8. Draft ACI Rules were issued for public consultation by the Ministry of Law & Justice in 2020. [S8]
9. The draft Arbitration and Conciliation (Amendment) Bill, 2024 was released for public consultation in October 2024. [S4]
10. The parent statute — Arbitration and Conciliation Act, 1996 — is modelled on the UNCITRAL Model Law on International Commercial Arbitration.
11. Implementing ministry: Ministry of Law and Justice (Department of Legal Affairs) — NOT the Ministry of Finance or Commerce.
12. The 2024 draft bill proposes provisions for emergency arbitration — a feature absent from the current 1996 Act. [S4]
13. Supreme Court (May 2025) publicly urged amendments to the 2024 Bill, noting gaps in India's arbitration law. [S6]

8. Mains Relevance

GS Paper Mapping - GS-II: Governance — statutory bodies, implementation gaps, rule of law, judicial reforms - GS-III: Indian Economy — dispute resolution mechanisms, ease of doing business, investment climate

Syllabus Headings - GS-II: "Important aspects of governance, transparency and accountability"; "Statutory, regulatory and various quasi-judicial bodies" - GS-III: "Indian Economy and issues relating to planning, mobilisation of resources, growth, development"

Plausible Mains Questions 1. "The Arbitration Council of India, envisaged under the 2019 amendments, remains unconstituted six years later. Critically examine the governance and structural challenges that have stalled its establishment, and suggest a roadmap for operationalising it." (GS-II) 2. "Institutional arbitration is critical for making India an international arbitration hub. Analyse the role the Arbitration Council of India was designed to play and evaluate the concerns regarding its independence." (GS-II/III) 3. "What are the key proposals of the draft Arbitration and Conciliation (Amendment) Bill, 2024? How do they address — or fail to address — the systemic weaknesses in India's arbitration framework?" (GS-II)

9. Related Topics to Study Next

10. Common Errors / Trap Areas

1. "ACI has been constituted" — WRONG. As of January 2026, it has not been constituted despite the 2019 Act and the October 2023 notification of Section 10. [S1][S3]
2. Confusing Ministry: ACI falls under Ministry of Law and Justice — NOT Ministry of Finance, Commerce, or Corporate Affairs.
3. Confusing the Srikrishna Committee: Justice B.N. Srikrishna chaired the High-Level Committee on Arbitration (2017) — do not confuse with his role in the Personal Data Protection Committee (same person, different committee).
4. Act year confusion: The ACI-establishing amendment is the 2019 Act (No. 33 of 2019) — not the earlier 2015 amendment (which focused on timelines and court intervention).
5. ACI vs. Mediation Council: The Mediation Act, 2023 created a separate Mediation Council of India — distinct from ACI, which deals with arbitration. Do not conflate the two bodies.

11. Sources

• [S1] "Arbitration Council of India" — PIB Press Release (PRID 2224369) — https://www.pib.gov.in/PressReleasePage.aspx?PRID=2224369 — (Tier 1)
• [S2] "The Arbitration and Conciliation (Amendment) Act, 2019 No. 33 of 2019" — PRS India — https://prsindia.org/files/bills_acts/bills_parliament/2019/Arbitration%20and%20Conciliation%20(Amendment)%20Act,%202019.pdf — (Tier 1)
• [S3] Article content: "Has an Arbitration Council been constituted?" by Aaratrika Bhaumik — The Hindu, 18 January 2026, Page 10 — https://www.thehindu.com/todays-paper/2026-01-18/th_international/articleGR6FF0HHG-13146545.ece — (Tier 4)
• [S4] "Inviting comments on the draft Arbitration and Conciliation (Amendment) Bill, 2024" — PIB (PRID 2066081) — https://www.pib.gov.in/pressreleaseiframepage.aspx?PRID=2066081 — (Tier 1)
• [S5] "Proposed Arbitration and Conciliation (Amendment) Bill, 2024: A Transformational Shift for Financial Dispute Resolution in BFSI" — Business Standard — https://www.business-standard.com/content/press-releases-ani/proposed-arbitration-and-conciliation-amendment-bill-2024-a-transformational-shift-for-financial-dispute-resolution-in-bfsi-124120400715_1.html — (Tier 4)
• [S6] "SC flags gaps in arbitration law, urges changes to 2024 Amendment Bill" — Business Standard, May 2025 — https://www.business-standard.com/india-news/supreme-court-125050201505_1.html — (Tier 4)
• [S7] "Cabinet approves Arbitration and Conciliation (Amendment) Bill" — Business Standard, 2018 — https://www.business-standard.com/article/news-ani/cabinet-approves-arbitration-and-conciliation-amendment-bill-118030701488_1.html — (Tier 4)
• [S8] "Draft Arbitration Council of India (ACI) Rules issued for public consultation" — PIB (PRID 1602900) — https://pib.gov.in/PressReleasePage.aspx?PRID=1602900 — (Tier 1)
• [S9] "The Arbitration and Conciliation (Amendment) Bill, 2019" — PRS India Bill Track — https://prsindia.org/billtrack/the-arbitration-and-conciliation-amendment-bill-2019 — (Tier 1)