- Why in news
- On 6 February 2026, the Law Minister told the Lok Sabha that the Arbitration Council of India, provided for in 2019, has still not been constituted. He listed steps taken to promote institutional arbitration.
- What it is
- The Arbitration Council of India (ACI) is a statutory body provided for by Part IA of the Arbitration and Conciliation Act, 1996, inserted by the 2019 Amendment. It is meant to grade arbitral institutions and recognise bodies that accredit arbitrators. Its aim is to build a stronger institutional arbitration system in India.
- Legal basis
- Section 10 of the 2019 Amendment Act inserted Part IA into the 1996 Act to provide for the Council.
- Strength
- The Council is a seven-member body.
- Status
- The Council has not been constituted so far.
- Amendment years
- The 1996 Act was amended in 2015, 2019 and 2021 to promote India as an arbitration hub.
- India International Arbitration Centre
- It was set up under the India International Arbitration Centre Act, 2019, as an independent and autonomous body for institutional arbitration, including international commercial arbitration.
- PSU adoption
- In 2024-25, ONGC, GAIL and BPCL adopted the IIAC as the designated arbitral institution in their dispute clauses.
Don’t confuse with Arbitration Council of India vs India International Arbitration Centre: The ACI is a regulator-like body to grade institutions and accredit arbitrators, and is not yet constituted. The IIAC is an arbitral institution that already works and offers arbitration services.
Laws, judgments and statutory bodies: 30 Prelims questions since 2013 (what the law says, who chairs, legal basis). In Mains, 44 news-triggered questions, most in GS2, asking for provisions and challenges.
Why it matters
- A functioning Council would set quality standards for arbitral institutions and arbitrators, which can build trust in institutional arbitration and ease the court backlog.
Problems
- The Council has not been constituted years after the law provided for it, so the grading and accreditation framework is missing.
- Parties still prefer ad hoc arbitration, and public sector bodies have been slow to adopt institutional arbitration.
Way forward
- Constitute the Council promptly, or revisit its design if the current provisions are unworkable.
- Keep encouraging public sector enterprises to name institutions like the IIAC in contract clauses.
Put in your answer
Arbitration law reforms: The 1996 Act was amended in 2015, 2019 and 2021 to speed up proceedings, reduce court intervention and promote institutional arbitration.
IIAC adoption by PSUs: ONGC, GAIL and BPCL adopted the IIAC in their dispute clauses in 2024-25, showing early uptake.
- 2015Mains GS2 · Q6Major changes in Arbitration and Conciliation Act via 2015 Ordinance, and their impact
- 2024Mains GS2 · Q2Explain and distinguish Lok Adalats and Arbitration Tribunals; whether they handle civil and criminal cases
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
No practice question for this one; the card may still help an answer. Why: Statutory body under the 2019 amendment, still not constituted. Lasting topic; few news-linked questions on statutory bodies (7 in Prelims).
Worth revising until Prelims 2027: most news questions come within two years of the event.