The Indian arbitration landscape has undergone significant transformations in recent years, primarily driven by amendments to the Arbitration and Conciliation Act, 1996.

Amendments to the Act:

·         Arbitration and Conciliation (Amendment) Act, 2015:: Department of Legal Affairs

o    This amendment aimed to address issues that were hindering the growth of arbitration in India, such as delays and excessive court intervention.  

o    Key changes included:

§  Reducing the scope of judicial intervention under Section 34 (setting aside arbitral awards).

§  Setting a timeline for the completion of arbitration proceedings.

§  Clarifying the definition of "public policy" as a ground for challenging awards.  

§  Introducing provisions for fast-track arbitration.  

o    It sought to make India a more arbitration-friendly jurisdiction.  

·         Arbitration and Conciliation (Amendment) Act, 2019:: Department of Legal Affairs

o    This amendment further strengthened the arbitration framework by:

§  Establishing the Arbitration Council of India (ACI) to promote and develop arbitration in the country.  

§  Providing for the appointment of arbitrators by arbitral institutions designated by the Supreme Court or High Courts.  

§  Introducing provisions for confidentiality of arbitration proceedings.  

§  Addressing concerns related to the neutrality of arbitrators.

§  it aimed to reduce judicial interference.  

 

·         Recent Developments:Department of Legal Affairs ​

·         In February 2025, the Government of India's Ministry of Law and Justice released a Draft Arbitration and Conciliation (Amendment) Bill, 2024.This draft proposes substantial changes to the existing Act to further boost institutional arbitration, reduce court intervention, and ensure the timely conclusion of proceedings in India. ​

·         These legislative measures underscore India's commitment to strengthening its alternative dispute resolution mechanisms, making arbitration a viable and effective option for resolving disputes outside the traditional court system.

·         Emphasis on Institutional Arbitration:

o    There's a growing push to promote institutional arbitration over ad hoc arbitration.  

o    Arbitration institutions are seen as providing greater efficiency, transparency, and professionalism.

o    The Draft Arbitration and Conciliation (Amendment) Bill, 2024's focus on arbitral institutions reflects this trend.

·         Increased Use of Technology:

o    The COVID-19 pandemic accelerated the adoption of technology in arbitration proceedings.  

o    Online hearings, electronic document submissions, and virtual arbitration platforms are becoming increasingly common.

o    This has led to greater efficiancy in many cases.

·         Focus on Timely Resolution:

o    The amendments and judicial pronouncements have emphasized the need for timely resolution of arbitration disputes.  

o    Courts are increasingly reluctant to entertain frivolous challenges to arbitral awards.

·         Judicial Pronouncements:

o    Indian courts have played a crucial role in shaping the arbitration landscape through their judgments.  

o    Recent rulings have reinforced the principle of minimal judicial interference and upheld the sanctity of arbitral awards.  

o    There is a large push to make India a hub for international arbitration.  

·         Growth of Specialized Arbitration:

o    There has been an increase in specialized arbitration centres, dealing with specific sectors of the economy.

Impact:

These amendments and developments have significantly improved the arbitration landscape in India, making it a more attractive destination for both domestic and international arbitration. The focus on efficiency, minimal judicial intervention, and institutional arbitration is contributing to a more robust and reliable dispute resolution mechanism.