Centre pushes reforms in arbitration and mediation for faster dispute resolution

The North News

New Delhi, March 20

The Centre government is advancing alternative dispute resolution (ADR) mechanisms, including arbitration and mediation, as part of broader reforms aimed at reducing the burden on courts and ensuring faster settlements. In a series of legislative and policy measures, the government has amended key laws to strengthen institutional arbitration and streamline dispute resolution.The Arbitration and Conciliation Act, 1996, has been amended in 2015, 2019, and 2020 to improve efficiency, reduce judicial intervention, and enhance institutional arbitration. The Commercial Courts Act, 2015, was revised in 2018 to introduce Pre-Institution Mediation and Settlement (PIMS), which requires parties in commercial disputes to attempt mediation before moving to court. Minister of State (Independent Charge) for Law and Justice and Parliamentary Affairs, Arjun Ram Meghwal, provided this information in a written response to a question in the Rajya Sabha today.

The India International Arbitration Centre (IIAC) was established under the India International Arbitration Centre Act, 2019, positioning itself as a world-class institution for resolving commercial disputes through arbitration. The IIAC has also introduced the India International Arbitration Centre (Conduct of Arbitration) Regulations, 2023, aimed at streamlining the arbitration process.

Further reinforcing ADR mechanisms, the Mediation Act, 2023, has been enacted to institutionalize mediation as a formal dispute resolution process and promote out-of-court settlements. The IIAC continues to train professionals and organize conferences, building capacity in arbitration and mediation.

These reforms are part of the government’s broader strategy to promote an effective and globally competitive dispute resolution framework in India.