ARBITRATION COUNCIL OF INDIA

1. At a Glance

• Arbitration Council of India (ACI) is a proposed seven-member statutory body under Part IA (Sections 43A–43M) of the Arbitration and Conciliation Act, 1996, inserted via the 2019 Amendment Act [S1][S2].
• Mandated to grade arbitral institutions, accredit arbitrators, and promote India as a global arbitration hub [S1].
• Not yet constituted despite enactment in 2019 — a key static-meets-current-affairs hook [S1].

2. Why in the News

• PIB Press Release dated 6 February 2026 by the Ministry of Law and Justice confirmed that the ACI has not been constituted as yet, while reiterating government initiatives (2015, 2019, 2021 amendments) to develop India as an arbitration hub [S1].

3. Background & Evolution

• 1940: Arbitration Act, 1940 (now repealed) governed domestic arbitration [S6].
• 1996: Arbitration and Conciliation Act, 1996 enacted on UNCITRAL Model Law (1985) lines [S4].
• 2015 Amendment: Time-bound awards (12 months), interim relief provisions [S1].
• 2019 Amendment Act (No. 33 of 2019): Section 10 inserted Part IA, creating ACI [S1][S2].
• 2021 Amendment: Provided for automatic stay on awards obtained by fraud/corruption; omitted the Eighth Schedule on arbitrator qualifications [S3].
• ACI still un-notified as of Feb 2026 [S1].

4. Core Static Facts

• Parent Act: Arbitration and Conciliation Act, 1996 [S4].
• Enabling Provision: Part IA, Sections 43A–43M (Sec. 43B – establishment; 43C – composition; 43D – duties; 43I – grading norms; 43J – accreditation; 43K – depository of awards; 43M – CEO) [S2].
• Ministry: Ministry of Law and Justice — Department of Legal Affairs [S1].
• Composition (Section 43C): Seven members including [S1][S2]:
• Chairperson — retired SC Judge / Chief Justice or Judge of HC / eminent person, appointed by Central Govt in consultation with CJI.
• One eminent arbitration practitioner (nominated by Centre).
• One eminent academician (appointed by Centre in consultation with Chairperson).
• Secretary, Dept. of Legal Affairs (ex-officio).
• Secretary, Dept. of Expenditure, MoF (ex-officio).
• One representative of recognised body of commerce/industry (part-time, rotational).
• Chief Executive Officer (ex-officio).
• Term: 3 years; age caps — Chairperson 70, Member 67 [S2].
• HQ: Delhi (with offices elsewhere as decided) [S2].
• Status: Body corporate with perpetual succession [S2].

5. Multi-Dimensional Analysis

Legal / Constitutional - Statutory body under Part IA of a Central Act in the Concurrent List subject (Entry 13, List III — arbitration) [S4]. - Complements the India International Arbitration Centre (IIAC) Act, 2019 which set up an institutional arbitration centre [S1].

Economic - Aims to reduce Ease of Doing Business friction by curbing court-centric, time-consuming dispute resolution [S1]. - Supports India's pitch as a regional arbitration seat versus Singapore (SIAC) and Hong Kong (HKIAC) [S1].

Administrative / Governance - ACI's non-constitution six years after enactment signals an implementation deficit [S1]. - Government instead operationalised IIAC and amended timelines (12+6 months for awards) [S1].

Geopolitical / Strategic - Aligns with India's commitments under the New York Convention, 1958 (recognition of foreign awards) and UNCITRAL Model Law [S4].

6. Recent Developments (last 12-18 months)

• 6 Feb 2026 — Government affirms ACI not yet constituted; cites 2015/2019/2021 reforms instead [S1].
• 2021 Amendment Act: Removed Eighth Schedule on arbitrator qualifications (restricted foreign arbitrators) and inserted unconditional stay provision for fraud-tainted awards under Section 36 [S3].

7. Prelims Hooks

• ACI established under Part IA, inserted by Section 10 of the 2019 Amendment Act [S1].
• ACI is a seven-member body [S1].
• Chairperson appointed by Central Government in consultation with CJI [S2].
• Parent Ministry: Ministry of Law and Justice (NOT Ministry of Commerce) [S1].
• ACI headquartered in Delhi [S2].
• Member term: 3 years; Chairperson age cap 70 years, Members 67 [S2].
• ACI is a body corporate with perpetual succession [S2].
• Functions include grading of arbitral institutions and accreditation of arbitrators [S1].
• Depository of arbitral awards maintained under Section 43K [S2].
• The 2021 Amendment omitted the Eighth Schedule [S3].
• Amendments to the 1996 Act in 2015, 2019, and 2021 [S1].
• ACI has NOT been constituted as of February 2026 [S1].
• Distinct from India International Arbitration Centre (IIAC) under a separate 2019 Act [S1].
• Arbitration is on the Concurrent List (Entry 13, List III) [S4].

8. Mains Relevance

• GS-II: Statutory bodies; Government policies and interventions; Judiciary-related reforms.
• GS-III: Ease of Doing Business; Investment climate.
• Probable stems:
• "Critically examine the role of the Arbitration Council of India in making India a global arbitration hub. Why has it remained un-constituted?" (GS-II)
• "Discuss successive amendments (2015, 2019, 2021) to the Arbitration and Conciliation Act, 1996 in the context of institutional arbitration." (GS-II)
• "Institutional arbitration is preferable to ad-hoc arbitration. Examine in the Indian context." (GS-III)

9. Related Topics to Study Next

• India International Arbitration Centre (IIAC) Act, 2019 — sister institution.
• Mediation Act, 2023 — parallel ADR statute.
• UNCITRAL Model Law & New York Convention, 1958 — international framework.
• B.N. Srikrishna Committee (2017) — blueprint for ACI.
• Lok Adalats & Gram Nyayalayas — alternative dispute fora.
• Commercial Courts Act, 2015 — speedy commercial dispute resolution.
• Vodafone & Cairn arbitration cases — investor-state disputes.
• Article 323B / Tribunals jurisprudence — quasi-judicial bodies.

10. Common Errors / Trap Areas

• Wrong ministry: ACI is under Law & Justice, not Commerce/Finance.
• Confusing ACI with IIAC — IIAC is operational; ACI is not.
• Believing ACI is constitutional — it is statutory.
• Assuming Chairperson must be ex-SC Judge — an eminent person can also be appointed [S2].
• Crediting the 2015 Amendment for ACI — ACI was created by the 2019 Amendment [S1].
• Wrong Schedule: The 2021 Amendment omitted the Eighth Schedule, not the Seventh [S3].

11. Sources

• [S1] Arbitration Council of India — PIB, Ministry of Law and Justice, 6 Feb 2026 — 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] The Arbitration and Conciliation (Amendment) Bill, 2021 — PRS India — https://prsindia.org/files/bills_acts/bills_parliament/2021/Arbitration%20and%20Conciliation%20(Amendment)%20Bill,%202021.pdf — (tier: 1)
• [S4] The Arbitration and Conciliation Act, 1996 — India Code — https://www.indiacode.nic.in/handle/123456789/1978?view_type=browse — (tier: 1)
• [S5] Draft Arbitration Council of India (ACI) Rules issued for public consultation — PIB — https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=199268 — (tier: 1)
• [S6] The Arbitration Act, 1940 (repealed) — India Code — https://www.indiacode.nic.in/repealedfileopen?rfilename=A1940-10.pdf — (tier: 1)