On Wednesday, Union Law Minister Kiren Rijiju told the Rajya Sabha that the Supreme Court should not be hearing “bail applications and frivolous PILs” at a time when the number of cases pending is so great. He was speaking about the New Delhi International Arbitration Centre (Amendment) Bill-2022.
On Wednesday, Rijiju introduced a bill in the Upper House that would have changed the name of the New Delhi International Arbitration Centre to the India International Arbitration Centre. The bill was approved by voice vote.
The Bill, which widens this to encompass the use of other types of ADR than arbitration, was passed by the Lok Sabha in August 2022.
In response to claims made by some members of the opposition that the World Bank was pressuring the government to bring the Bill, Rijiju stated, “…it is not under any international pressure but the situation, the emergent situation, which prompted the government to take a decision. Consequently, the Indian government has made a sovereign decision.
Rijiju stated, “We are the fifth largest economy in the world, however we are not the international hub of arbitration,” adding that the centre had already received Rs 75 lakh. A chairperson and two knowledgeable members from the ministry have also been nominated for appointment by the Center.
The Law Minister stated that he personally agreed with many of the recommendations and criticisms made by MPs regarding the state of arbitration in the nation. We are fully aware that the arbitration centre must be impartial. We are aware that the moment the center’s authority is compromised, it will become untrustworthy,” he stated.
Rijiju argued in favour of an institutionalised arbitration system, stating that it would have a preset arbitration process that would be established by the Center. In response to the most recent developments, new rules will be implemented. There will be an effective panel of arbitrators and qualified assistance. There will be infrastructure of the highest calibre.
According to him, delays brought on by ad hoc arbitration are currently the biggest issue with arbitration in the nation and are frequently challenged in court. “The judiciary makes disparaging remarks if the arbitral awards are of low quality. Because of this, the arbitral awards must withstand legal examination,” he stated.