Arbitration is a settlement of dispute between two parties to a contract by a neutral third party i.e. the arbitrator without resorting to court action. The process can be tailored to suit parties’ particular needs. Arbitrators can be chosen for their expertise. It is confidential and can be speedier and cheaper than court. There are limited grounds of appeal. Arbitral awards are binding and enforceable through courts.
The Lok Sabha has passed the New Delhi International Arbitration Centre Bill to set up a revamped International Arbitration Center at New Delhi with an aim to make India the hub of arbitration.
The New Delhi International Arbitration Centre will take over the undertakings of the International Centre for Alternative Dispute Resolution (ICADR). The chief justice of India CJIis the ex-officio chairperson of the ICADR.
The New Delhi International Arbitration Centre is being set up as per the recommendation of the Justice B N Srikrishna committee formed to identify the roadblocks in the development of institutional arbitration in India.