 the new delhi  international  arbitration centre bill, 2019—————— arrangement of clauses—————— chapter i preliminary clauses1 short title and commencement 2 definitions chapter iiestablishment and incorporation of new delhi international arbitration centre3 establishment and incorporation of new delhi international arbitration centre4 declaration of new delhi international arbitration centre as an institution of nationalimportance5 composition of centre6 terms and conditions, etc, of chairperson and members chapter iii acquisition and transfer of undertakings of society7 transfer and vesting 8 general effect of vesting 9 liability prior to specified date10 power of central government to direct vesting of undertaking in centre 11 management, etc, of undertakings 12 duties of persons in charge of management of undertakings to deliver all assets 13 certain powers of central government or centre 14 objects of centre 15 functions of centre 16 vacancies, etc, not to invalidate proceedings of centre 17 resignation of members 18 removal of members 19 committees of centre 20 meetings of centre 21 chief executive officer 22 delegation of powers 23 secretariat chapter iv finance, accounts and audit clauses24 grants by central government 25 fund of centre 26 accounts and audit 27 assessment of assets and liabilities of undertaking chapter v chamber of arbitration and arbitration academy28 chamber of arbitration 29 arbitration academy chapter vi miscellaneous30 power to make rules 31 power to make regulations 32 laying of rules and regulations 33 protection of action taken in good faith 34 power to remove difficulty 35 repeal and savings bill no 127 of 2019 the new delhi international arbitration centre bill, 2019 a billto provide for the establishment and incorporation of the new delhi internationalarbitration centre for the purpose of creating an independent and autonomous regime for institutionalised arbitration and for acquisition and transfer of the undertakings of the international centre for alternative dispute resolution and to vest such undertakings in the new delhi international arbitration centre for the better management of arbitration so as to make it a hub for institutional arbitration and to declare the new delhi international arbitration centre to be an institution of national importance and for matters connected therewith or incidental theretowhereas  dispute resolution process has a huge impact on the indian economy and global perception on doing business in our country and it has become necessary to inspire confidence and credibility among the litigants of commercial disputes;and whereas rapidly changing economic activity demands expeditious settlement of disputes and creation and establishment of institutional arbitration;and whereas the international centre for alternative dispute resolution was set up in the year 1995, under the aegis of the central government and registered under the societies21 of 1860registration act, 1860, with the objective of promoting alternative dispute resolution mechanism and providing facilities for the same;and whereas  the international centre for alternative dispute resolution has received land and substantial funding by way of grants and other benefits from the central government for constructing infrastructure and making other facilities;and whereas  the international centre for alternative dispute resolution has not been able to actively engage and embrace developments in the arbitration ecosystem and to create a reputation par excellence keeping pace with the dynamic nature of arbitration over more than two decades;and whereas  studies conducted by the high level committee appointed by the central government indicate that the international centre for alternative dispute resolution has failed to address the growing needs of the institutional arbitration and also to bear optimum caseload and to become better choice to the parties for arbitration;and whereas  it has become expedient to take over the undertakings of the international centre for alternative dispute resolution including its regional offices without interfering with its activities and without adversely affecting its character as a society but to utilise its existing infrastructure and other facilities which have been set up by using the public funds provided by the government and to incorporate a robust institution for domestic and international arbitration to be known as the new delhi international arbitration centre;and whereas  it is considered necessary to declare the new delhi international arbitration centre as an institution of national importance for its overall development as a major arbitration hub by promoting quick and efficient dispute resolution mechanismbe it enacted by parliament in the seventieth year of the republic of india as follows:— chapter i preliminary1 (1) this act may be called the new delhi international arbitration centre act, 2019short title and commencement5(2) it shall be deemed to have come into force on the 2nd march, 2019definitions2 (1) in this act, unless the context otherwise requires,—(a) "centre" means the new delhi international arbitration centre establishedand incorporated under section 3;10(b) "chairperson" means the chairperson of the centre referred to in clause (a)of section 5;(c) "chief executive officer" means the chief executive officer appointed undersection 21;(d) "committee" means the relevant committee of the centre referred to insection 19;15(e) "custodian" means the person who is appointed as custodian undersub-section (2) of section 11 in respect of the undertakings;(f) "fund" means the fund of the centre to be maintained under section 25; (g) "member" means full-time or part-time member of the centre and includes the chairperson;20(h) "notification" means a notification published in the official gazette; (i) "prescribed" means prescribed by rules made by the central government under this act;(j) "regulations" means the regulations made by the centre under this act;21 of 1860(k) "society" means the international centre for alternative dispute resolution,registered as such under the societies registration act, 1860, and having its registered office at new delhi;5(l) "specified date" means the date as may be specified by the central governmentby notification;(m) "undertakings" means the undertakings of the society which vests with the central government under section 726 of 199610(2) all other words and expressions used herein but not defined and defined in the arbitration and conciliation act, 1996, shall have the same meanings as assigned to them in that act chapter ii establishment and incorporation of new delhi international arbitration centre153 (1) the central government shall, by notification, establish a body to be called the new delhi international arbitration centre for the purposes of exercising the powers and discharging the functions under this actestablishment and incorporation of new delhi international arbitration centre(2) the centre shall be a body corporate by the name aforesaid, having perpetual succession and a common seal with power, subject to the provisions of this act, to acquire, hold and dispose of property, both movable and immovable, and to enter into contract, and shall, by the said name, sue or be sued204 (1)whereas, the objects of the new delhi international arbitration centre are such as to make it as an institution of national importance, it is hereby declared that the new delhi international arbitration centre is an institution of national importance(2) the head office of the centre shall be at new delhi and it may with the previous approval of the central government, establish branches at other places in india and abroaddeclaration of new delhi international arbitration centre as an institution of national importance255 the centre shall consist of the following members, namely:––composition of centre(a) a person, who has been a judge of the supreme court or a judge of a highcourt or an eminent person, having special knowledge and experience in the conduct or administration of arbitration, law or management, appointed by the central government in consultation with the chief justice of india––chairperson;30(b) two eminent persons having substantial knowledge and experience ininstitutional arbitration, both domestic and international, appointed by the central government––full-time members or part-time members;(c) one representative of a recognised body of commerce and industry, chosenon rotational basis by the central government––part-time member;35(d) secretary, department of legal affairs, ministry of law and justice or hisrepresentative, not below the rank of the joint secretary––member, ex officio;(e) one financial adviser nominated by the department of expenditure, ministryof finance––member, ex officio; and(f) chief executive officer––member, ex officio406 (1) the chairperson and members shall hold office for a term of three years from thedate on which they enter upon their office and shall be eligible for re-appointment:terms and conditions, etc, of chairperson and membersprovided that no chairperson or member shall hold office as such after he has attained the age of seventy years in the case of chairperson and sixty-seven years in the case of a member45(2) the terms and conditions, salary and allowances payable to the chairperson andfull-time member shall be such as may be prescribed(3) the term of office of a member appointed to fill a casual vacancy shall be for the remainder of the term of the member in whose place he has been appointed(4) the part-time member shall be entitled to such travelling and other allowances as may be prescribed chapter iii 5 acquisition and transfer of undertakings of societytransfer and vesting107 on and from the specified date, so much of the undertakings of the society as formpart of, or are relatable to the society, and the right, title and interest of the society in relation to such undertakings, shall, by virtue of this act, stand transferred to, and vest in, the central governmentgeneral effect of vesting15ord 10 of 20198 (1) the undertakings vested under section 7 shall be deemed to include all assets,rights, leaseholds, powers, authorities and privileges, and all property (movable and immovable), including lands, buildings, works, projects, instruments, automobiles and other vehicles, cash balances, funds, including reserve funds, investments and book debts of the society as form part of, or are relatable to, the society and all other rights and interest arising out of such properties as were immediately before the commencement of the new delhi international arbitration centre ordinance, 2019 in the ownership, possession, power or control of the society, and all books of account, registers and all other documents of whatever nature relating thereto20 25(2) all properties and assets as aforesaid which have vested in the central government under section 7 shall, by force of such vesting, be freed and discharged from any trust, obligation, mortgage, charge, lien and all other encumbrances affecting them or of any attachment, injunction, decree or order of any court or other authority restricting the use of such properties or assets in any manner or appointing any receiver in respect of the whole or any part of such properties or assets shall be deemed to have been withdrawn30(3) any licence or other instrument granted to the society in relation to any undertaking which has vested in the central government under section 7 at any time before the specified date and in force immediately before the specified date, shall continue to be in force on and after such day in accordance with its tenor in relation to and for the purpose of such undertaking or where the undertaking is directed under section 10, to vest in the centre, the centre shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to the centre and the centre shall hold it for the remainder of the period which the society would have held it under the terms thereof35 40(4) if, on the specified date, any suit, appeal or other proceeding, of whatever nature, in relation to any property or asset which has vested in the central government under section 7, instituted or preferred by or against the society is pending, the same shall not abate, be discontinued or be, in any way, prejudicially affected by reason of the transfer of the undertaking of the society of anything contained in this act, but the suit, appeal or other proceeding may be continued, prosecuted or enforced by or against the central government or where the undertakings of the society are directed under section 10, to vest in the centre, by or against the centreliability prior to specified date9 every liability in relation to any undertaking in respect of any period prior to thespecified date, shall be enforceable against the society and not against the central government45power of central government to direct vesting of undertaking in centre5010 (1) notwithstanding anything contained in sections 7 and 8, the central governmentshall, as soon as may be after the specified date, direct by notification, that the undertakings and the right, title and interest of the society in relation to such undertakings which had vested in the central government under section 7, shall, vest in the centre either on the date of publication of the notification or on such earlier or later date as may be specified in the notification5(2) where the right, title and interest of the society in relation to the undertakings vest, under sub-section (1), in the centre, the centre shall, on and from the date of such vesting, be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the central government in relation to such undertakings shall, on and from the date of such vesting, be deemed to have become, the rights and liabilities, respectively, of the centremanagement, etc, of undertakings11 (1) the general superintendence, direction, control and management of affairs of the undertakings, the right, the interest in relation to which have vested in the central government under section 7, shall––10(a) where a direction has been made by the central government under sub-section (1) of section 10, vest in the centre; or(b) where no such direction has been made by the central government, vest in the custodian appointed by the central government under sub-section (2),15and, thereupon, the centre or the custodian so appointed, as the case may be, shall be entitled to exercise all such powers and do all such things as the society, is authorised to exercise and do in relation to its undertakings(2) the central government may appoint any person as the custodian of the undertakings in relation to which no direction has been made by it under sub-section (1) of section 1020(3) the custodian so appointed shall receive such remuneration as the central government may fix and shall hold office during the pleasure of the central government25 12 (1) on the vesting of the management of the undertakings in the centre or on the appointment of a custodian under sub-section (2) of section 11, all persons in charge of management of the undertakings immediately before such vesting or appointment shall be bound to deliver to the centre or custodian, as the case may be, all assets, books of account, registers and other documents in their custody relating to the undertakingsduties of persons in charge of management of undertakings to deliver all assets30(2) the central government may issue such directions as it may deem desirable in the circumstances of the case to the custodian as to the powers and duties of the custodian and such custodian may also, if it is considered necessary so to do, apply to the central government at any time for instructions as to the manner in which the management of the undertaking shall be conducted or in relation to any other matter arising in the course of such management35(3) any person who on the specified date, has in his possession or under his control, any books, documents or other papers relating to the undertakings shall be liable to account for the said books, documents or other papers to the central government or the custodian or the centre, as the case may be, and shall deliver them to the central government or the custodian or the centre or to such person or body of persons as the central government or the centre may specify in this behalf40(4) the central government or the centre may take or cause to be taken, all necessary steps for securing possession of all undertakings which have vested in the central government or the centre under this actord 10 of 201945(5) the society shall, within such period as the central government may allow in this behalf, furnish to that government a complete inventory of all its properties and assets, as on the commencement of the new delhi international arbitration centre ordinance, 2019 pertaining to the undertaking and for this purpose, the central government or custodian or the centre shall afford to the society, or body all reasonable facilities13 the central government or the custodian or the centre shall be entitled to receive up to the specified date, to the exclusion of all other persons, any money due to the society in relation to its undertakings which have vested in the central government or custodian or the centre, as the case may be, and realised after the commencement of the new delhicertain powers of central government or centreord 10 of 2019international arbitration centre ordinance, 2019, notwithstanding that the realisation pertains to a period prior to the commencement of the new delhi international arbitration centre ordinance, 201914 the objects of the centre shall be,––objects of centre5(a) to bring targeted reforms to develop itself as a flagship institution forconducting international and domestic arbitration;(b) to promote research and study, providing teaching and training, andorganising conferences and seminars in arbitration, conciliation, mediation and other alternative dispute resolution matters;10(c) to provide facilities and administrative assistance for conciliation, mediationand arbitral proceedings;(d) to maintain panels of accredited arbitrators, conciliators and mediators bothat national and international level or specialists such as surveyors and investigators;15(e) to collaborate with other national and international institutions andorganisations for ensuring credibility of the centre as a specialised institution in arbitration and conciliation;(f) to set up facilities in india and abroad to promote the activities of the centre; (g) to lay down parameters for different modes of alternative dispute resolutionmechanisms being adopted by the centre; and20(h) such other objectives as it may deem fit with the approval of the centralgovernmentfunctions of centre15 without prejudice to the provisions contained in section 14, the centre shall strive,––25(a) to facilitate for conducting international and domestic arbitration andconciliation in the most professional manner;(b) to provide cost effective and timely services for the conduct of arbitrationand conciliation at national and international level;(c) to promote studies in the field of alternative dispute resolution and relatedmatters, and to promote reforms in the system of settlement of disputes;30(d) to undertake teaching and to provide for diffusion of knowledge of law andprocedures on alternative dispute resolution and related matters and to award certificates and other academic or professional distinction;(e) to impart training in alternative dispute resolution and related matters tothose who are handling arbitration, conciliation and mediation;35(f) to co-operate with other societies, institutions and organisations, national orinternational for promoting alternative dispute resolution; and(g) to perform such other functions as may be entrusted to it by the centralgovernment for promoting alternative dispute resolution 16 no act or proceedings of the centre shall be invalid merely by reason of,––40(a) any vacancy or any defect in the constitution of the centre; orvacancies, etc, not to invalidate proceedings of centre(b) any defect in the appointment of a person acting as a member of the centre; or (c) any irregularity in the procedure of the centre not affecting the merits of thecaseresignation of members17 the chairperson or the full-time member or part-time member may, by notice in writing, under his hand addressed to the central government, resign his office:5provided that the chairperson or the full-time member shall, unless he is permitted by the central government to relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is the earlier 18 (1) the central government may, remove a member from his office if he,––removal ofmembers(a) is an undischarged insolvent; or10(b) has engaged at any time (except part-time member), during his term of office,in any paid employment; or(c) has been convicted of an offence which, in the opinion of the central government, involves moral turpitude; or15(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or(e) has so abused his position as to render his continuance in office prejudicial to the public interest; or(f) has become physically or mentally incapable of acting as a member20(2) notwithstanding anything contained in sub-section (1), no member shall be removed from his office on the grounds specified in clauses (d) and (e) of that sub-section unless the supreme court, on a reference being made to it in this behalf by the central government, has, on an inquiry, held by it in accordance with such procedure as may be prescribed in this behalf by the supreme court, reported that the member, ought on such ground or grounds to be removed25committees of centre19 (1) the centre may constitute such committees as may be considered necessaryto administer various aspects of its functions(2) the composition and functions of the committees referred to in sub-section (1)shall be such as may be prescribed30(3) the committee shall meet at such time and at such places and shall observe such rules of procedure in regard to the transaction of business at its meetings including the quorum as may be specified by the regulations20 (1) the chairperson shall ordinarily preside at the meetings of the centre:meetings of centreprovided that, in his absence, the member chosen by the other members present amongst themselves shall preside at the meetings35(2) it shall be the duty of the chairperson to ensure that the decisions taken by the centre are implemented(3) the chairperson shall exercise such other powers and perform such other duties as are assigned to him under this act40(4) the centre shall meet at least four times a year and follow such procedure in its meetings including quorum at such meetings in such manner as may be specified by the regulations(5) all questions which come up before any meeting of the centre shall be––(a) decided by a majority of votes by the members present and voting, and in the event of an equality of votes, the chairperson or in his absence, the person presiding, shall have a casting vote;45(b) dealt with as expeditiously as possible and the centre shall dispose of the same within a period of sixty days from the date of receipt of the application:5provided that where any such application could not be disposed of within thesaid period of sixty days, the centre shall record its reasons in writing for not disposing of the application within that period(6) the chairperson may invite any expert, not being a member, to attend the meetings of the centre, but such invitee shall not be entitled to vote at the meetingchief executive officer21 (1) there shall be a chief executive officer of the centre who shall be responsiblefor day-to-day administration of the centre and for this purpose, he shall maintain liaison with the centre and the secretariat10(2) the appointment, qualifications and the terms and conditions of services of the chief executive officer shall be such as may be specified by the regulations(3) the chief executive officer shall exercise such powers and discharge such functions as may be specified by regulations or as may be delegated to him by the centre15delegation of powers2022 the centre may, for the purpose of discharging of its powers, functions andduties, by general or special order in writing, specify the powers and duties conferred or imposed upon the centre by or under this act (except the power to make regulation) which may also be exercised or performed by the chief executive officer or any officer or officers of the centre and the conditions and restrictions, if any, subject to which the powers and duties may be exercised and performedsecretariat23 (1) there shall be a secretariat to the centre consisting of––(a) registrar, who shall supervise the activities of the centre; (b) counsel, dealing with the matters relating to domestic and internationalarbitration; and25(c) such number of other officers and employees as may be prescribed(2) the qualifications, experience, method of selection and the functions of the registrar, counsel and other officers and employees shall be such as may be prescribed chapter iv finance, accounts and audit30grants by central government24 the central government may, after due appropriation made by parliament by law inthis behalf, pay to the centre in each financial year such sums of money and in such manner as it may think fit for being utilised for the purposes of this act25 (1) the centre shall maintain a fund to which shall be credited,—fund of centre(a) all monies provided by the central government;35(b) all fees and other charges received during or in connection with the arbitration,conciliation, mediation or other proceedings;(c) all monies received by the centre for the facilities provided by it to theparties;40(d) all monies received by the centre in the form of donations, grants,contributions and income from other sources; and(e) the amount received from the investment income(2) all monies credited to the fund shall be deposited in such banks or invested in such manner as may be decided by the centre(3) the fund shall be applied towards meeting the salary and other allowances of members and the expenses of the centre including expenses incurred in the exercise of its powers and discharge of its duties under this actaccounts and audit526 (1) the centre shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form and manner as may be prescribed in consultation with the comptroller and auditor-general of india(2) the accounts of the centre shall be audited by the comptroller and auditor-general of india and any expenditure incurred by him in connection with such audit shall be payable by the centre to the comptroller and auditor-general of india10 15(3) the comptroller and auditor-general of india and any person appointed by him in connection with the audit of the accounts of the centre shall have the same rights, privileges and authority in connection with such audit as the comptroller and auditor-general of india has in connection with the audit of the government accounts, and, in particular, shall have the right to demand the production of books, accounts, connected vouchers and other documents and papers and to inspect the offices of the centre20(4) the accounts of the centre as certified by the comptroller and auditor-general of india or any other person appointed by him in this behalf together with the audit report thereon shall be forwarded annually to the central government and the central government shall cause the same to be laid before each house of parliamentassessment of assets and liabilities of undertaking2527 the assets and liabilities in relation to any undertaking under this act shall be caused to be assessed by any agency authorised by the comptroller and auditor-general of india in such manner as may be specified by him and any payment on a claim to be made in relation thereto shall be settled by him between the society and the central government and shall be paid by the society or the central government, as the case may be, in the manner as may be specified by the comptroller and auditor-general of india chapter v chamber of arbitration and arbitration academychamber of arbitration3028 (1) the centre shall, establish a chamber of arbitration which shall empanel the arbitrators and also scrutinise the applications for admission in the panel of reputed arbitrators to maintain a permanent panel of arbitrators(2) the chamber of arbitration shall consist of experienced arbitration practitioners of repute, at national and international level and persons having wide experience in the area of alternative dispute resolution and conciliation35(3) the centre shall by regulations lay down the criteria for admission to the panel ofthe cadre so as to maintain a pool of reputed arbitrators having expertise in international commercial arbitration and arbitration other than international commercial arbitration(4) the registrar to the secretariat of the centre shall act as the member-secretary to the chamber of arbitration4029 (1) the centre may establish an arbitration academy––arbitration academy (a) to train the arbitrators, particularly in the area of international commercialarbitration to compete on par with the reputed international arbitral institutions;(b) to conduct research in the area of alternative dispute resolution and alliedareas; and45(c) to give suggestions for achieving the objectives of the act(2) for the purposes of sub-section (1), there may be constituted a permanent three member committee in order to suggest and to submit a report to the centre with respect to the amendments, if any, necessary to the rules and regulations made under this act chapter vi miscellaneouspower to make rules30 (1) the central government may, by notification, make rules to carry out the provisions of this act5(2) in particular, and without prejudice to the generality of the foregoing power, such rules may make provision for—(a) the terms and conditions and the salary and allowances payable to the chairperson and full-time members under sub-section (2) of section 6;10(b) the travelling and other allowances payable to the part-time members under sub-section (4) of section 6;(c) the composition and functions of the committees referred to in sub-section (2)of section 19;(d) the number of officers and employees of the secretariat of the centre under clause (c) of sub-section (1) of section 23;15(e) the qualifications, experience, method of selection and the functions of the registrar, counsel and other officers and employees of the centre under sub-section (2) of section 23;(f) annual statement of accounts, including the balance sheet under sub-section (1) of section 26; and20(g) any other matter in respect of which provision is to be made or may be made under this actpower to make regulations2531 (1) the centre may, with the previous approval of the central government, by notification, make regulations consistent with this act and the rules made thereunder to provide for all matters for which provision is necessary or expedient for the purposes of giving effect to the purposes of this act(2) in particular, and without prejudice to the generality of the foregoing power, such regulations may make provision for––30(a) the time and place and the rules of procedure to be observed in regard to the transaction of business of the committee at the meetings including the quorum under sub-section (3) of section 19;(b) the time and place and rules of procedure in regard to the transaction of business of the centre or any committee including the quorum at the meeting under sub-section (4) of section 20;35(c) the appointment, qualifications and the terms and conditions of service of the chief executive officer under sub-section (2) of section 21;(d) the powers and functions of the chief executive officer under sub-section (3) of section 21;(e) the criteria for admission to the panel of reputed arbitrators under sub-section (3) of section 28; and40(f) any other matter in respect of which provision, in the opinion of the centre, is necessary for the performance of its functions under this actlaying of rules and regulations4532 every rule and regulation made under this act shall be laid, as soon as may be after it is made, before each house of parliament, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both houses agree in making any modification in the rule or regulation or both houses agree that the rule or regulation should not be made, the rule or regulation shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation5protection of action taken in good faith33 no suit, prosecution or other legal proceedings shall lie against the centre, thechairperson or members or its employees and arbitrators for anything which is in good faith done or intended to be done under this act or the rules or regulations made thereunderpower to remove difficulty10| 34                                                                                            ||------------------------------------------------------------------------------------------------|| government may, by order published in the official gazette, make such provisions, not          || inconsistent with the provisions of this act, as may appear to it to be necessary for removing || the difficulty:                                                                                |provided that no such order shall be made under this section after the expiry of a period of two years from the date of commencement of this act15(2) every order made under this section shall be laid, as soon as may be after it is made,before each house of parliamentrepeal and savingsord 10 of 201935 (1) the new delhi international arbitration centre ordinance, 2019 is herebyrepealedord 10 of 201920(2) notwithstanding such repeal, anything done or any action taken under the new delhi international arbitration centre ordinance, 2019, shall be deemed to have been done or taken under the provisions of this act statement of objects and reasonsthe dispute resolution process has a huge impact on the economy and doing business in our country the rapidly changing economic activity demands expeditious settlement of disputes, creation and establishment of mechanism such as institutional arbitration this is necessary to inspire confidence and credibility among the litigants of commercial disputes the huge pendency of cases in courts further underlines the need for strengthening the alternative dispute resolution mechanism2 with a view to promote institutional arbitration and to make india a hub of international arbitration, a high level committee headed by mr justice b n srikrishna former judge, supreme court of india was constituted, inter alia, to identify the roadblocks in the development of institutional arbitration, examine specific issues affecting the indian arbitration landscape and prepare a roadmap for making india a robust centre for international and domestic arbitration3 the committee, inter alia, recommended that the international centre for alternative dispute resolution, which was set up in the year, 1995, with the government funds to promote alternative dispute resolution mechanism has however not been able to achieve the objectives for which it had been set up the committee further recommended that international centre for alternative dispute resolution should be taken over with complete revamp of its governance structure to include only experts of repute who can lend credibility and respectability to the institution and be re-branded as a centre of national importance to highlight its character as a flagship arbitral institution4 in view of the above, it has been decided to establish a new institution to be called the new delhi international arbitration centre for better management of arbitration in the country and to declare it as an institution of national importance further, the undertakings of the international centre for alternative dispute resolution needs to be taken over without interfering with its activities and without adversely affecting the character of it as a society, so that the existing infrastructure and other facilities which have been set up by the public funds provided by the government may be appropriately utilised by the ndiac (new delhi international arbitration centre) for the overall development of institutional arbitration5 in view of the above, a bill, namely, the new delhi international arbitration centre bill, 2018  introduced in lok sabha on the 5th january, 2018 was passed by that house on the 4th january, 2019 and was pending in rajya sabha6 the bill envisaged appointment of persons of repute and having knowledge and expertise in institutional arbitration as chairperson and members of the new delhi international arbitration centre the objects of the new delhi international arbitration centre was to bring targeted reforms to develop it as a flagship institution for domestic and international arbitration and to conduct arbitration in a professional manner in the cost-effective way the bill also proposed to set up an arbitration chamber, which would empanel reputed arbitrators at national and international level an arbitration academy was also proposed to be set up by new delhi international arbitration centre to train arbitrators in india, so as to empower them to compete on par with reputed arbitral institutions7 as the bill was pending for consideration in rajya sabha, in the interest of promotion of institutional arbitration, it had become expedient to take over the undertakings of the international centre for alternative dispute resolution including its regional offices and vest the same in the central government before it is finally vested in the new delhi international arbitration centre and also to declare the new delhi international arbitration centre as an institution of national importance for its overall development as an arbitration hub for promoting quick and efficient dispute resolution8 in view of the above and since both houses of parliament were not in session and circumstances existed which render it necessary for the president to take immediate action in the matter, the new delhi international arbitration centre ordinance, 2019, was promulgated on the 2nd march, 2019, inter alia, for taking over the undertakings of the international centre for alternative disputes resolution thereafter, the sixteenth lok sabha was dissolved on the 25th may, 2019 and the new delhi international arbitration centre bill, 2019 pending in rajya sabha lapsed9 the new delhi international arbitration centre bill, 2019 seeks to replace the said ordinancenew delhi;ravi shankar prasadthe 19th  june, 2019—————— president's  recommendation  under  article  117  of  the constitution  of  india—————— [letter no a-60011(5)/4/2016-admn-iii(la) dated 2562019 from shri ravi shankar prasad, minister of law and justice to the secretary general, lok sabha]the president, having been informed of the subject matter of the proposed new delhi international arbitration centre bill, 2019, recommends introduction of the bill in the house under article 117(1) of the constitution notes on clausesclause 1 seeks to provide for short title and commencement of the act clause 2 seeks to provide definition of various expressions used in the bill clause 3 seeks to provide for the establishment of a body corporate by the name the new delhi international arbitration centre, with perpetual succession, a common seal, power to acquire, hold and dispose of property, power to enter into contract and the power to sue or be sued in its own nameclause 4 seeks to provide for the declaration of new delhi international arbitration centre as an institution of national importance with head office at new delhi and branches at other places in india and abroadclause 5 seeks to provide for the composition of the centre the centre shall consist of one chairperson who is a person, who has been a judge of the supreme court or a judge of a high court or an eminent person having special knowledge and experience in the conduct or administration of arbitration, law or management, two eminent persons having substantial knowledge and experience in institutional arbitration, both domestic and international as full-time members or part-time members, one representative of a recognised body of commerce and industry as part-time member and one member each from the ministry of law and justice and ministry of finance and the chief executive officer of the centre as members ex-officioclause 6 seeks to provide for the term of office of chairperson and members of the new delhi international arbitration centre, their terms and conditions, salary and allowances of the chairperson and full-time members and travelling and other allowances payable to the part-time membersclause 7 provides for the transfer and vesting of the undertakings of the international centre for alternative dispute resolution with right, title and interest in the central government on and from the specified dateclause 8 seeks to provide that the vesting in the central government shall be deemed to include all assets, rights, leaseholds, powers, authorities and privileges, and all property (movable and immovable), including lands, buildings, works, projects, instruments, automobiles and other vehicles, cash balances, funds, including reserve funds, investments and book debts of the society it also provides that properties vested in the central government shall be freed and discharged from any trust, obligation, mortgage, charge, lien and other encumbrances and also any attachment, injunction, decree or order of the court or authority restricting the use of such properties or assets in any manner or appointing any receiver in respect of the whole or any part of such properties or assets shall be deemed to have been withdrawn it further provides that any licence or other instrument granted to the international centre for alternative dispute resolution in relation to any undertaking which has vested in the central government shall continue to be in force on and after the specified date and the new delhi international arbitration centre shall be deemed to be substituted in such licence or other instrument as if such licence or other instrument had been granted to the new delhi international arbitration centre and the new delhi international arbitration centre shall hold it for the remainder of the period it further provides that any suit, appeal or other proceeding, of whatever nature instituted or preferred by or against the international centre for alternative dispute resolution in relation to any property or asset which has vested in the central government or new delhi international arbitration centre, shall not abate and the suit, appeal or other proceeding may be continued, prosecuted or enforced against the central government or the new delhi international arbitration centreclause 9 seeks to provide that every liability in relation to any undertaking in respect of any period prior to the specified date shall be enforceable against the society and not against the central governmentclause 10 provides that the central government shall, as soon as may be after the specified date, direct by notification, that the undertakings and the right, title and interest of the society in relation to such undertakings which had vested in the central government shall vest in the new delhi international arbitration centre either on the date of publication of the notification or on such earlier or later date as may be specified in the notification it further provides that the new delhi international arbitration centre shall on and from the date of such vesting shall be deemed to have become the owner in relation to such undertakings and the rights and liabilities of the central government in relation to such undertakings shall be deemed to have become the rights and liabilities of the new delhi international arbitration centreclause 11 seeks to provide for the general superintendence, direction, control and management of affairs of the undertakings, once vested in the new delhi international arbitration centre on issuance of direction by the central government or where no such direction has been made, in the custodian of the undertakings appointed by the central government on such remuneration as may be fixed and who shall hold office during the pleasure of the central governmentclause 12 seeks to provide that on the vesting of the management of the undertakings in the new delhi international arbitration centre or on the appointment of a custodian, all persons in charge of management of the undertakings immediately before such vesting or appointment shall be bound to deliver to the new delhi international arbitration centre or custodian, as the case may be, all assets, books of account, registers and other documents in their custody relating to the undertakings it further provides that the central government may issue such directions regarding the powers and duties of the custodian and the custodian may also seek instructions from the central government as to the manner in which the management of the undertaking shall be conducted or in relation to any other matter arising in the course of such management it also provides that any person who on the specified date, has in his possession or under his control, any books, documents or other papers relating to the undertakings shall be liable to account for such books, documents and other papers and shall deliver such documents to the central government or the custodian or the new delhi international arbitration centre as the case may be it also provides that the central government or the new delhi international arbitration centre may take or cause to be taken all necessary steps for securing possession of all undertakings which have vested in the central government or the new delhi international arbitration centre it also provides that the international centre for alternative dispute resolution shall, within such period as the central government may allow furnish a complete inventory of all its properties and assets, as on the commencement of the new delhi international arbitration centre ordinance, 2019 pertaining to the undertakingsclause 13 seeks to provide that the central government or the custodian or the new delhi international arbitration centre shall be entitled to receive up to the specified date, to the exclusion of all other persons, any money due to the international centre for alternative dispute resolution in relation to its undertakings which have vested in the central government or custodian or the new delhi international arbitration centre, as the case may be, and realised after the commencement of the new delhi international arbitration centre ordinance, 2019, notwithstanding that the realisation pertains to a period prior to the said commencementclause 14 seeks to provide for the objects of the new delhi international arbitration centre ie, to bring targeted reforms to develop itself as a flagship institution for conducting international and domestic arbitration; to promote research and study, providing teaching and training, organising conferences and seminars in arbitration, conciliation, mediation and other alternative dispute resolution matters; to provide facilities and administrative assistance for conciliation, mediation and arbitral proceedings; to maintain panels of accredited arbitrators, conciliators and mediators both at national and international level or specialists such as surveyors and investigators; to collaborate with other national and international institutions and organisations for ensuring credibility of the new delhi international arbitration centre as a specialised institution in arbitration and conciliation; to set up facilities in india and abroad to promote the activities of the new delhi international arbitration centre; to lay down parameters for different modes of alternative dispute resolution mechanisms being adopted by the new delhi international arbitration centre; and such other objectives as it may deem fit with the approval of the central governmentclause 15 seeks to provide the functions of the new delhi international arbitration centre including the function to facilitate for conducting international and domestic arbitrations and conciliation in the most professional manner; to provide cost effective and timely services for the conduct of the arbitrations and conciliations at national and international level; to promote studies in the field of alternative dispute resolution and related matters, and to promote reforms in the system of settlement of disputes; to undertake teaching and to provide for diffusion of knowledge of law and procedures on alternative dispute resolution and related matters and to award certificates and other academic or professional distinction; to impart training in alternative dispute resolution and related matters to those who are handling arbitration, conciliation and mediation; to co-operate with other societies, institutions and organisations, national or international for promoting alternative dispute resolution; and to perform such other functions as may be entrusted to it by the central government for promoting alternative dispute resolutionclause 16 seeks to provide that any vacancy, defect in the appointment or any irregularity in procedure shall not invalidate the proceedings of the new delhi international arbitration centreclause 17 seeks to provide for the procedure for resignation of chairperson or the full-time member and part-time member by notice in writing, addressed to the central government it also provides that the chairperson and full-time member shall be permitted to relinquish their office sooner, or continue to hold office until the expiry of three months from the date of receipt of such notice or until a person duly appointed as his successor enters upon his office or until the expiry of his term of office, whichever is earlierclause 18 seeks to specify the circumstances in which the central government may, remove a member of the new delhi international arbitration centre if  he—(a) is an undischarged insolvent; or (b) has engaged at any time (except part-time member), during his term of office, in any paid employment; or (c) has been convicted of an offence which involves moral turpitude; or (d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or (e) has so abused his position which render the continuation in office prejudicial to the public interest; or (f) has become physically or mentally incapable of acting as a member it also provides that no member shall be removed from his office on the grounds specified in clauses (d) and (e) above unless the supreme court, on a reference being made to it has, on an inquiry, held by it in accordance with such procedure as may be made by rule in this behalf by the supreme court, reported that the member, ought on such ground or grounds to be removedclause 19 seeks to provide for the constitution of various committees by the new delhi international arbitration centre for administering the various aspects of its functioning it further provides that the composition and functions of the committee shall be such as may be made by rules it also provides that the committee shall meet at such time and at such places and shall observe such rules of procedure regarding the transaction of business at its meetings including the quorum as may be specified by the regulationsclause 20 seeks to provide that the meetings of the new delhi international arbitration centre shall be presided over by the chairperson and in his absence the member chosen by the other members shall preside over the meeting it further provides that the chairperson shall exercise such other powers and perform such other duties as are assigned to him under the act and also to ensure the implementations of decisions taken by the new delhi international arbitration centre it also provides that the new delhi international arbitration centre shall meet at least four times a year and follow the procedure in its meetings as may be specified by the regulations it also provides that all questions which come up before any meetings of the new delhi international arbitration centre shall be decided by a majority of votes of the members present and voting, and in the event of an equality of votes, the chairperson or in his absence, the person presiding, shall have a casting vote the new delhi international arbitration centre shall deal with all questions that come up before any meeting expeditiously and shall dispose of the same within a period of sixty days from the date of receipt of the application and where such application could not be disposed of within the said period the new delhi international arbitration centre shall record its reasons in writing it also provides that chairperson may invite any expert, not being a member, to attend the meetings of the new delhi international arbitration centre, but such invitee shall not be entitled to vote at the meetingclause 21 seeks to provide for appointment of a chief executive officer to the new delhi international arbitration centre, who shall be responsible for day-to-day administration of the new delhi international arbitration centre and he shall liaison with the new delhi international arbitration centre and the secretariat and shall exercise such powers and discharge such functions as may be specified by the regulations or as may be delegated to him by the new delhi international arbitration centre it further provides that the appointment, qualifications and the terms and conditions of services of the chief executive officer, shall be such as may be specified by the regulationsclause 22 seeks to provide for delegation of powers, functions and duties of the new delhi international arbitration centre, by general or special order, in writing, specifying the powers and duties conferred or imposed upon the new delhi international arbitration centre under this act (except the power to make regulation) and the conditions and restrictions, if any, subject to which the powers and duties may be exercised and performed by the chief executive officer or any officer or officers of the new delhi international arbitration centreclause 23 seeks to provide for a secretariat to the new delhi international arbitration centre consisting of registrar, counsel and such number of other officers and employees and the qualifications, experience, method of selection and functions of them shall be such as may be prescribedclause 24 seeks to provide that the central government may, after due appropriation made by parliament by law, pay to the new delhi international arbitration centre in each financial year such sums of money and in such manner as it may think fit for being utilised for the purposes of this actclause 25 seeks to provide that the new delhi international arbitration centre shall maintain a fund in which all monies provided by the central government; all fees and other charges received during or in connection with the arbitration, conciliation, mediation or other proceedings; all monies received by the new delhi international arbitration centre for the facilities provided by it to the parties; all monies received by the new delhi international arbitration centre in the form of donations, grants, contributions and income from other sources; and the amount received from the investment income, shall be credited it further provides that all monies credited to the fund shall be deposited in such banks or invested in such manner as may be decided by the new delhi international arbitration centre and the fund shall be applied towards meeting the salary and other allowances of members and the expenses of the new delhi international arbitration centre including expenses incurred in the exercise of its powers and discharge of its duties under this actclause 26 seeks to provide that the new delhi international arbitration centre shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form and manner as may be made by rule in consultation with the comptroller and auditor-general of india it further provides that the accounts of the new delhi international arbitration centre shall be audited by the comptroller and auditor-general of india and any expenditure incurred in that connection shall be payable by the new delhi international arbitration centre it also provides that the comptroller and auditor-general of india or any person appointed by him in connection with the audit of the accounts of the new delhi international arbitration centre shall have the same rights, privileges and authority in connection with such audit as the comptroller and auditor-general of india it also provides that accounts of the new delhi international arbitration centre as certified by the comptroller and auditor-general of india or any other person appointed by him together with the audit report thereon shall be forwarded annually to the central government which shall be caused to be laid before each house of parliamentclause 27 seeks to provide that the assets and liabilities in relation to any undertaking under the act shall be caused to be assessed by any agency authorised by the comptroller and auditor-general of india, in such manner as may be specified by him and any payment on a claim to be made in relation thereto, shall be settled by him between the international centre for alternative dispute resolution and the central government and shall be paid by the international centre for alternative dispute resolution or the central government, as the case may be, in the manner as may be specified by the comptroller and auditor-general of indiaclause 28 seeks to provide for establishment of a chamber of arbitration which shall empanel the arbitrators and also scrutinise the applications for admission in the panel of reputed arbitrators it further provides that the chamber of arbitration shall consist of experienced arbitration practitioners of repute, at national and international level and persons having wide experience in the area of alternative dispute resolution and conciliation it also provides that the new delhi international arbitration centre shall lay down the criteria by regulations for admission to the panel of the cadre to maintain a pool of reputed arbitrators having expertise in international commercial arbitration and arbitrations other than international commercial arbitration and the registrar of the new delhi international arbitration centre shall be the member-secretary of the chamber of arbitrationclause 29 seeks to provide that the new delhi international arbitration centre may establish an arbitration academy to train the arbitrators, particularly in the area of international commercial arbitration to compete on par with the reputed international arbitral institutions; to conduct research in the area of alternative dispute resolution and allied areas; and to give suggestions for achieving the objectives of the act it further provides for constitution of a permanent three member committee, which may suggest amendments, if any, necessary to the rules and regulations issued under the actclause 30 seeks to empower the central government to make rules to carry out the provisions of this actclause 31 seeks to empower the new delhi international arbitration centre to make regulations, by notification, with the previous approval of the central governmentit further provides that the regulations shall be consistent with the provisions of the act and the rules made thereunderclause 32 seeks to provide for laying of every rule made by the central government and every regulation made by the new delhi international arbitration centre, as soon as may be, after it is made, before each house of the parliamentclause 33 seeks to provide that, no suit, prosecution or other legal proceedings shall lie against the centre, chairperson or members of the new delhi international arbitration centre or its employees and arbitrators for anything which is in good faith done or intended to be done under the act or the rules or regulations made thereunderclause 34 seeks to provide that, if any difficulty arises in giving effect to the provisions of the act, the central government may, by order published in the official gazette, make such provisions, not inconsistent with the provisions of the act, as may appear to it to be necessary for removing the difficulty it further provides that no such order shall be made after the expiry of a period of two years from the date of commencement of this act it also provides that every order made under this section shall be laid before each house of parliamentclause 35 seeks to provide for repeal and savings of the new delhi international arbitration centre ordinance, 2019 financial memorandumsub-clause (1) of clause 3 of the bill provides for establishment of the new delhi international arbitration centre and sub-clause (2) provides that the centre shall hold, acquire and dispose of property, both movable and immovable2 sub-cluases (2) and (4) of clause 6 of the bill provides for terms and conditions, salary and allowances payable to the chairperson and full-time members and travelling and other allowances payable to part-time members3 clause 7 of the bill provides that on and from the specified date, the undertakings of the international centre for alternative dispute resolution shall stand transferred to  and vest in the central government4 clause 10 of the bill provides that the rights and liabilities of the central government in relation to the undertakings of the centre for alternative dispute resolution shall on and from the specified date shall vest in the new delhi international arbitration centre and the new delhi international arbitration centre shall be deemed to have become owner in respect of such properties, etc5 sub-clauses (2) and (3) of clause 11 empowers the central government to appoint a custodian of the undertakings on such remuneration as may be fixed by the central government6 clause 14 of the bill provides to promote research and study, providing teaching and training and organising conferences and seminars in arbitration, conciliation, mediation and other alternative dispute resolution matters and to set up facilities in india and abroad to promote the activities of the new delhi international arbitration centre7 clause 19 of the bill provides for constitution of various committees by the new delhi international arbitration centre for handling the specific aspects relating to the functions of the new delhi international arbitration centre8 sub-clause (1) of clause 21 of the bill provides for appointment of a chief executive officer, who shall be responsible for day-to-day administration of the affairs of the  new delhi international arbitration centre sub-clause (2) provides for specifying the terms and conditions of service of the chief executive officer9 sub-clause (1) of clause 23 of the bill provides for the establishment of a secretariat of the  new delhi international arbitration centre sub-clause (2) provides for qualifications, etc, of the other officers and employees of the secretariat10 clause 24 of the bill provides for grants by the central government to the new delhi international arbitration centre11 clause 25 of the bill provides for maintenance of a fund for crediting all monies provided by the central government; all fees and other charges received during or in connection with the arbitration, conciliation, mediation or other proceedings; all monies received by the centre for the facilities provided by it to the parties; all monies received by the centre in form of donations, grants, contributions and income from other sources; and the amount received from the investment income and the same shall be deposited in such banks or invested in such manner as may be decided by the  new delhi international arbitration centre the fund shall be applied towards meeting the salary and other allowances of  chairperson and the members and the expenses of the  new delhi international arbitration centre including expenses incurred in the exercise of its powers and discharge of its duties12 clause 28 of the bill provides for establishment of chamber of the arbitration for empanelment of arbitrators and scrutinise the applications for admission in the panel of reputed arbitrators13 clause 29 of the bill provides for establishment of an arbitration academy to train the arbitrators, particularly in the area of international commercial arbitration to compete on par with the reputed international arbitral institutions; to conduct research in the area of alternative dispute resolution and allied areas, etc14 it is estimated that there would be an expenditure of approximately six crore seventy-three lakhs twenty-three thousands and eight hundred and twenty-four rupees in the first year, six crore sixty-four lakhs fifty-one thousand and two hundred and six rupees in second year and seven crore thirty-three lakhs forty-nine thousand and eight hundred and twenty-seven rupees in the third year of establishment of the new delhi international arbitration centre as initial establishment expenses, including salaries and allowances and other remuneration of chairperson and members (other than ex officio members) and of its officers and other employees it is expected that major recurring expenses of the new delhi international arbitration centre would be funded out of the fees and charges as may be received by it15 the bill, if enacted and brought into operation, would not involve any other expenditure of a recurring or non-recurring nature from the consolidated fund of india memorandum  regarding  delegated  legislationsub-clause (3) of clause 11 of the bill empowers the central government to fix the remuneration of the custodian appointed under sub-clause (2) of clause 112 sub-clause (2) of clause 18 of the bill empowers the supreme court to prescribe procedure for removal of a member on a reference being made by the central government3 clause 30 of the bill empowers the central government to make rules with respect to the matter specified under sub-clause (2) which, inter alia, relate to the terms and conditions and the salary payable to chairperson and full-time members; the travelling and other allowances payable to part-time members; composition and functions of the committees; the number of officers and employees of the secretariat of the centre; the qualifications, experience, method of selection and the functions of the registrar, counsel and other officers and employees of the new delhi international arbitration centre; annual statement of accounts including balance sheet of  the new delhi international arbitration centre4 clause 31 of the bill empowers the new delhi international arbitration centre to make regulations with the previous approval of the central government, in respect of the matters specified under sub-clause (2) which, inter alia, relates to the time and place and the rules of procedure to be observed in regard to the transaction of business of the committee at the meeting including the quorum; the time and place and rules of procedure in regard to the transaction of business of the centre or any committee including the quorum of the meeting; the appointment, qualifications and terms and conditions of service of the chief executive officer; the powers and functions of the chief executive officer; and the criteria for admission to the panel of reputed arbitrators5 the matters in respect of which rules or regulations may be made are matters of procedure and administrative details and it is not practical to provide for them in the bill itself the delegation of legislative power is, therefore, of a normal character ———— a billto provide for the establishment and incorporation of the new delhi international arbitrationcentre for the purpose of creating an independent and autonomous regime for institutionalised arbitration and for acquisition and transfer of the undertakings of the international centre for alternative dispute resolution and to vest such undertakings in the new delhi international arbitration centre for the better management of arbitration so as to make it a hub for institutional arbitration and to declare the new delhi international arbitration centre to be an institution of national importance and for matters connected therewith or incidental thereto————