COURT ANNEXED ARBITRATION CENTRE

The Court-annexed Arbitration centres are initiatives of respective High Courts to institutionalise arbitration by establishing such Arbitration Centres, annexed to the High Court premises. The aim is to provide an institutionalized framework for speedy and expeditious resolution of disputes. The idea behind court-annexed arbitration in India is to give effect to section 89 of the Civil Procedure Code which provides jurisdiction to the court to refer the dispute to ADR process. Section 89 aims to lower costs, ease the burden on the court system, and make it easier for parties to resolve disputes with one another.

Court Annexed Arbitration Centres

The attempt to institutionalise arbitration in the country has resulted in the establishment of a number of court annexed arbitration centres across the country since 2009, particularly in cities such as New Delhi, Bangalore, Cuttack, Chennai, Jabalpur, Chandigarh, and Lucknow. In 2020, the Jammu & Kashmir High Court approved the establishment of a court-annexed international arbitration centre. On February 17, 2024, CJI Dr. Chandrachud inaugurated the arbitration centre of Allahabad High Court in Prayagraj.

If the parties are unable to agree on the selection of the arbitrator in ad hoc arbitration, Section 11(6) of the Arbitration and Conciliation Act, 1996 must be invoked. According to this section, an application for domestic arbitration is made to the respective High Court, whereas an application for an international commercial arbitration located in India is made to the Supreme Court. Once the arbitrator has been appointed, such courts typically direct their affiliated centres to conduct the hearings (at the request or cooperation of both parties). To give a few examples, the Delhi International Arbitration Centre [“DIAC”] handles proceedings in Delhi; the Chandigarh Arbitration Centre handles proceedings in Punjab and Haryana; the Orissa Arbitration Centre handles proceedings in Orissa; the Arbitration Centre- Karnataka handles proceedings in Karnataka, and so on.

Legal provisions relating to Court annexed Arbitration Centre

The court-annexed arbitration centres function under their respective rules. Some of its salient features are-

Cost-effective and transparent fee structure

Administrative Costs and Arbitrators' Fees Rules of the respective centre lay down the administrative and arbitrators fee structure. The administrative charges of the centres have been consciously kept low to keep these centres accessible.

Provisions for Mediation-Arbitration

The parties are free to opt for either mediation or conciliation before or even during the pendency of the proceedings before the arbitral tribunal, in which event, the matter may be referred to mediation and the arbitration proceedings may be relegated. The mediation is carried out as per the prescribed mediation rules, such as the mediation rules of the Delhi High Court Mediation Centre for DIAC or Civil Procedure Mediation Rules, 2007 in the case of Orissa Arbitration Centre.

Emergency Arbitration

Provisions for emergency arbitration have been incorporated into the Arbitration Proceedings Rules of the respective centre to accommodate the disputant's demands in an emergency. For example- It is provided in Delhi, Chandigarh, Jammu & Kashmir, Orissa, and Gujarat. In accordance with the rules of respective centres, a party in need of immediate relief or intermediate measure and unable to wait for the arbitral tribunal to be formed may apply to the coordinator for the appointment of an emergency arbitrator.

State-specific variations in court-annexed arbitration centre

Management Structure

The management structure of each of these court-annexed arbitration centres includes a governance framework as specified in the respective internal management rules.

Delhi International Arbitration Centre (DIAC)

The Delhi International Arbitration Centre (Internal Management) Rules, 2012 provide for an Arbitration Committee, an Arbitration Secretariat and an Advisory Council, with the following compositions and functions

Arbitration Committee

The Arbitration Committee, which is made up of judges, senior advocates, Advocate General, President of the State Bar Associations and other advocates, is responsible for overseeing the respective Center's operations. The Chief Patron of the Centre is the Hon. Chief Justice of the respective High Court who acts as the Chairperson of the Centre (or his representative). The Committee oversees all policy concerns, including the Center's adherence to regulations and procedures. The Committee Chairperson is responsible for regularly monitoring the Center's operations and general administration, which includes ensuring the quality of Arbitrations through careful consideration of the empanelment of Arbitrators. The primary mandate of the Arbitration Committee is to ensure a smooth and effective functioning of the centre as a whole and devise rules for internal working of the Centre. Other duties of the Arbitration Committee include fixing/revising the arbitrator’s fee, nominating the arbitral tribunal in case of mutually agreed arbitrations, bringing out publications related to the Centre and organising events and seminars to promote alternative dispute resolution.

Arbitration Secretariat

An Arbitration Secretariat is constituted to supervise and manage the functioning of the Centre. This consists of a member of the state judicial services who acts as the Coordinator and in-charge of the Centre and works under the supervision of the Chairperson. Additional Coordinator or other deputed staff may be appointed by the Chairperson. The duties of the Coordinator include managing the day to day functioning of the Centre, maintain and update the profile of the arbitrators, maintain a fact sheet of the cases dealt with by the Centre, organise workshops, conferences and other events to foster alternative dispute resolution and carry out the directions of the Arbitration Committee from time to time.

Advisory Council

The Advisory Council is a body adjunct to the above two management bodies consisting of advocates with sufficient experience and expertise in the field of arbitration. The duties of the advisory council include processing records pertaining to each arbitration and recommending the Coordinator to initiate action, to call upon parties to file their statement of claims, defences and replies through the Coordinator and render assistance to the arbitral tribunal as and when requested.

High Court of Orissa Arbitration Centre, Cuttack

The High Court of Orissa Arbitration Centre (Internal Management) Rules, 2014 provide for provides for an Arbitration Committee, an Arbitration Secretariat and an Advisory Council, with the following compositions and functions.

Arbitration Committee

The Arbitration Committee is made up of the Chief Justice of the Orissa High Court or his designate, two judges nominated by him, Advocate General of the State of Odisha, Asst. Solicitor General of India attached to the High Court of Orissa and President of the Orissa High Court Bar Association. Along with these, the Coordinator is an ex-officio member of the Arbitration Committee, without any voting rights. The function of the Coordinator is to convene the meetings from time to time as desired by the Chairperson. The Chief Justice or his designate is the Chairperson of the Arbitration Committee. The Arbitration Committee holds several powers and functions aimed at facilitating the smooth and effective operation of the Centre. It is responsible for making decisions to ensure the Centre's optimal functioning and formulating internal rules. Additionally, the Committee manages the Panel of Arbitrators, including preparation, updates, and any necessary decisions regarding its composition. Moreover, the Committee is tasked with setting and revising arbitrators' fees and has the authority to remove individuals from the Panel under specific circumstances, such as misconduct or incapacity. Furthermore, the Committee organizes events and seminars on arbitration law to promote dispute resolution. Lastly, it nominates the Arbitral Tribunal for arbitration cases brought to the Centre through mutual agreement, adhering to the terms and conditions outlined in the agreement.

Arbitration Secretariat

The Arbitration Secretariat is composed to supervise and manage the respective Arbitration Centre. It is composed of a Coordinator who is a member of the Orissa Superior Judicial Service to be appointed by the Chief Justice. An Additional Coordinator who is a member of Orissa Judicial Service to be appointed by the Chief Justice. The Additional Coordinator shall be under the supervision of the Coordinator. There can be additional appointments by the Chief Justice if he deems it fit for functioning of the Arbitration Secretariat. The Coordinator is responsible for overseeing its day-to-day operations. Additionally, the Coordinator is tasked with various duties, including presenting records of arbitration requests to the Advisory Council, ensuring compliance with the Centre's rules, notifying parties of their obligations within specified timeframes, maintaining and updating profiles of Arbitrators, documenting arbitration cases, and executing directions from the Arbitration Committee. Furthermore, the Coordinator organizes events to promote alternative dispute resolution and performs other duties as assigned. All correspondence to the Centre is directed to the Coordinator, who handles communication on behalf of the Centre.

Advisory Council

The Advisory Council is tasked with several duties and responsibilities to ensure the smooth operation of the Centre. These include processing records related to arbitration requests, recommending appropriate actions to the Coordinator in line with the Centre's rules, and facilitating communication between parties to file necessary statements and replies. The Council also organizes and compiles documents for arbitration proceedings, assists with legal research upon request, and helps rectify clerical errors in awards. Additionally, it assesses costs to be awarded by the Arbitral Tribunal and takes necessary steps to ensure timely completion of arbitration proceedings.

Chandigarh Arbitration Centre

The Chandigarh Arbitration Centre (CAC) Rules, 2018 provides for an Arbitration Committee, an Arbitration Secretariat and an Advisory Council, with the following compositions and functions.

Arbitration Committee

The Arbitration Committee is composed of several members, including the Chief Justice who serves as the Chairperson, two Judges of the High Court nominated by the Chief Justice, the Advocates General for the States of Punjab and Haryana, the Assistant Solicitor General of India attached to the Punjab and Haryana High Court, the Senior Standing Counsel for the Chandigarh Administration, and four members nominated by the Chief Justice, including at least two senior advocates and two arbitration experts or specialized advocates in arbitration laws. Additionally, the Coordinator serves as an ex-officio member of the Arbitration Committee, without voting rights, and is responsible for convening meetings at the request of the Chairperson or their nominee. The Committee meets as necessary to ensure the smooth and efficient operation of the Centre. The Arbitration Committee is vested with several powers and functions to ensure the effective operation of the Centre. These include making decisions to facilitate the Centre's smooth functioning, formulating internal rules for the Committee and providing guidelines for the Secretariat and Advisory Council. Additionally, the Committee is responsible for maintaining and updating the Panel of Arbitrators, removing arbitrators from the Panel under specified circumstances, and overseeing the administration of the Centre. Furthermore, it appoints members to the Panel, promotes arbitration, and convenes biannual meetings to assess and review the activities of the Chandigarh Arbitration Centre (CAC).

Arbitration Secretariat

The Secretariat of the Chandigarh Arbitration Centre is responsible for its supervision and management and is composed of various members. These include a Coordinator, appointed from the Punjab/Haryana Higher Judicial Service by the Chief Justice, who oversees the Centre's operations under the Chairperson and Arbitration Committee's supervision. Additionally, two members from the Punjab/Haryana Judicial Service serve as Additional Coordinators to support the Coordinator. The Chief Justice also has the discretion to appoint individuals considered qualified and suitable to serve as Coordinator or Additional Coordinator. Furthermore, the Chief Justice may appoint or assign staff to the Secretariat as necessary for the Centre's efficient functioning. The Coordinator holds several duties and responsibilities to ensure its efficient operation. As the Principal Officer, the Coordinator is responsible for the day-to-day functioning of the Centre and serves as the custodian of all its assets, accounts, records, and funds. Specific responsibilities include making decisions and issuing orders regarding arbitration requests, initiating actions in accordance with the Centre's rules, maintaining and updating profiles of arbitrators on the Panel, and recording data of arbitration cases handled by the Centre. Additionally, the Coordinator organizes events and seminars on arbitration law to promote the Centre's use for dispute resolution, as directed by the Arbitration Committee, and executes directions given by the Committee. All correspondence to and from the Centre is directed through the Coordinator, who manages communications on behalf of the Centre.

Advisory Council

The Advisory Council of the Chandigarh Arbitration Centre (CAC) has several functions aimed at supporting its operations and promoting arbitration. These functions include providing legal research assistance when requested by the Arbitration Committee or Arbitral Tribunal. Additionally, the Council suggests strategies to enhance arbitration practices and offers recommendations for improving the Centre's overall functionality.

Madras Arbitration Centre

The Madras High Court Arbitration Centre (MHCAC) (Internal Management) Rules, 2017 provides for an Arbitration Committee and an Arbitration Secretariat with the following compositions and functions.

Arbitration Committee

The Arbitration Committee is composed of various members, including the Chief Justice or their nominee serving as the Chairperson. Additionally, three Judges of the High Court, nominated by the Chief Justice, play significant roles, with the most senior among them presiding over Committee meetings in the Chief Justice's absence. The Advocate General for the State of Tamil Nadu, or an Additional Advocate General nominated by them, is also a member. Furthermore, the Chief Justice nominates at least four members, including two Senior Advocates and two individuals with expertise in arbitration. The Registrar serves as an ex-officio member without voting rights and facilitates Committee meetings as directed by the Chairperson. Meetings are held as needed for the effective functioning of the MHCAC, requiring the presence of the Chairperson, at least one other Judge, and another member specified in the rules. The Arbitration Committee holds significant powers and functions to ensure its smooth operation. Its powers include decision-making for effective functioning, formulating internal rules, recommending amendments to relevant rules, updating the Panel of Arbitrators, and fixing or revising arbitrator fees. The Committee also has the authority to remove arbitrators for various reasons and recommend the establishment of arbitration centers in other locations. Furthermore, its functions involve monitoring and overseeing the MHCAC's administration, managing the Panel of Arbitrators, organizing events to promote arbitration, advocating for arbitration, and publishing relevant materials. These powers and functions collectively contribute to the efficient operation and promotion of arbitration within the jurisdiction of the Madras High Court.

Arbitration Secretariat

The Secretariat of the Madras High Court Arbitration Centre (MHCAC) is tasked with supervising and managing its affairs. It comprises several members, including a Registrar, who is a member of the Tamil Nadu State Judicial Service and acts as the head of the MHCAC under the supervision of the Chairperson and the Arbitration Committee. Additionally, there are two Additional Registrars from the Tamil Nadu Judicial Service appointed to assist the Registrar. The Chairperson has the authority to appoint suitable individuals as Registrars, and the Secretariat may also include staff appointed or deputed by the Chairperson. The Secretariat of the MHCAC is tasked with several responsibilities to ensure the smooth functioning of arbitration proceedings. These include processing records related to arbitration requests, compiling documents, and facilitating communication between parties. Additionally, the Secretariat is responsible for maintaining accurate financial records and providing legal research assistance to the Arbitral Tribunal. The Registrar, who heads the Secretariat, is responsible for overseeing the day-to-day operations of the MHCAC. Duties of the Registrar include managing records, initiating actions in accordance with MHCAC rules, and ensuring compliance with filing requirements and fee payments. The Registrar also maintains profiles of Arbitrators, updates case records, and implements directions from the Arbitration Committee. Moreover, the Registrar is responsible for managing communication with stakeholders and ensuring financial transparency by submitting accurate accounts for approval.

Madhya Pradesh (International And Domestic) Arbitration Centre

The Madhya Pradesh (International And Domestic) Arbitration Centre Rules, 2019 provide for the Board of Governors comprising of one High Court Judge nominated by the Chief Justice as President, Four High Court Judges nominated by the Chief Justice as Members and one Director as a Member Secretary. There is also a Directorate to supervise and manage the Arbitration Centre.

Board of Governors

The Board of Governors holds extensive powers aimed at ensuring the efficient operation of the Centre. These powers include making decisions necessary for its functioning, formulating internal management rules and guidelines, and recommending amendments to existing rules. Additionally, the Board is responsible for constituting the Panel of Arbitrators and fixing or revising their fees, administrative expenses, and related costs. It also has the authority to remove Arbitrators from the Panel for various reasons and appoint Research Assistants to support the Directorate and Arbitrators. Furthermore, the Board considers requests from other Arbitration Centers or Institutions to hold proceedings at the Centre on reciprocal terms and appoints Arbitrators to handle specific matters as required by the Act.

The Directorate

The Directorate of the Arbitration Centre is responsible for supervising and managing its day-to-day affairs. It consists of several members, including a serving or retired District Judge of the Madhya Pradesh Judicial Service appointed by the Chief Justice to oversee the Centre and act under the supervision of the Board of Governors. Additionally, not more than two serving Judicial Officers of the Madhya Pradesh Judicial Service in the cadre of Senior Civil Judge or Civil Judge are appointed as Deputy Directors by the Chief Justice, working under the Director's supervision. The Directorate is further supported by staff appointed or deputed by the Chief Justice, as well as Research Assistants appointed by the Board of Governors to assist both the Directorate and the Arbitrators. The Director of the Centre plays a pivotal role in its day-to-day operations and is entrusted with various duties and responsibilities. Firstly, the Director is responsible for overseeing the Centre's functioning and acts as its custodian. Specific tasks include initiating action on arbitration requests, notifying parties of filing requirements and deadlines, and maintaining updated profiles of Arbitrators. The Director also keeps a record of each arbitration case and ensures the timely deposit of Arbitrator's fees and other expenses. Additionally, the Director assesses the costs to be awarded by the Tribunal and takes necessary steps to ensure the timely completion of arbitration proceedings. Furthermore, the Director organizes workshops, conferences, and seminars on alternative dispute resolution mechanisms as directed by the Board of Governors and performs any other functions assigned by them. Importantly, the Director is authorized to represent the Centre in legal matters and serves as the designated point of contact for all correspondence and communications.

Arbitration Centre- High Court of Gujarat

The Arbitration Centre (Domestic and International), High Court of Gujarat Rules, 2021 provide for a Board of Governors and a Directorate with the following composition and functions.

Board of Governors

The Board of Governors is composed of several members, including three Judges of the High Court, with one serving as the President nominated by the Chief Justice. Additionally, the Director, appointed by the Chief Justice from among the District Judges, serves as the Member Secretary of the Board without voting rights. The Director is responsible for convening meetings of the Board as directed by the President or the senior-most member in the President's absence. The Board meets ideally at least once every two months. The Board of Governors possesses several powers to ensure the efficient operation of the Centre. These include formulating internal management rules, recommending amendments to existing rules, constituting the panel of Arbitrators, and setting or revising Arbitrators' fees. The Board also has the authority to remove Arbitrators from the Panel for various reasons, engage Research Assistants to support operations, and consider requests from other arbitration institutions to hold proceedings at the Centre. Additionally, it is empowered to make decisions necessary for the smooth functioning of the Centre.

The Directorate

The Director of the Centre is a serving District Judge appointed by the Chief Justice to oversee its day-to-day affairs. Under the supervision of the Governing Council, the Director is responsible for managing the Centre and ensuring its smooth operation. Additionally, a serving Judicial Officer appointed by the Chief Justice serves as Deputy Director, working under the Director's supervision. The Director is supported by Research Assistants appointed by the Board of Governors to assist with tasks, and additional staff may be appointed or deputed by the Chief Justice as needed. The Director holds significant duties and responsibilities to ensure its efficient operation. Primarily, the Director is tasked with managing the day-to-day functioning of the Centre and serving as its custodian. Specific responsibilities include initiating action on arbitration requests in accordance with Centre rules, notifying parties of filing requirements and deadlines, maintaining and updating profiles of Arbitrators, and documenting arbitration case details. Additionally, the Director oversees the collection of Arbitrator's fees and other expenses, assesses costs to be awarded by the Arbitral Tribunal, and facilitates arbitration proceedings for parties not utilizing Centre facilities upon request. Furthermore, the Director implements directives from the Board of Governors and organizes workshops, conferences, and seminars on alternative dispute resolution mechanisms as directed by the Board. The Director is authorized to represent the Centre in legal matters and serves as the designated recipient of all correspondence and communications, managing all outgoing correspondence on behalf of the Centre.

The Arbitration Centre – Karnataka (Domestic and International)

The Arbitration Centre - Karnataka (Domestic and International) Rules, 2012 provide for a Board of Governors and a Directorate with the following composition and functions.

Board of Governors

The Board of Governors comprises several members, including five Judges of the Karnataka High Court, with one serving as the President nominated by the Chief Justice of the High Court of Karnataka. Additionally, the Director serves as the Member Secretary of the Board without voting rights, responsible for convening meetings as requested by the President or the senior-most Governor in the President's absence. The President presides over the meetings of the Board. The Board meets as necessary, but at least once every two months. The Board of Governors holds several powers to ensure the smooth and effective functioning of the Centre. These powers include making decisions necessary for the Centre's operation, formulating internal management rules and guidelines, and overseeing administration. Additionally, the Board recommends amendments to the Arbitration Centre – Karnataka (Domestic and International) Rules, 2012, and constitutes the Panel of Arbitrators. It also sets or revises arbitrators' fees and has the authority to remove arbitrators from the Panel under specific circumstances. Furthermore, the Board appoints Research Assistants to support the Directorate and Arbitrators, determines their tenure, and decides on their honorarium. Lastly, the Board considers requests from other arbitration centers or institutions to hold arbitration proceedings at the Centre, provided there are no prior commitments.

The Directorate

The Directorate responsible for overseeing and managing the day-to-day affairs of the Arbitration Centre – Karnataka (Domestic and International) is composed of several members. These include a serving or retired District Judge of the Karnataka Judicial Service appointed by the Chief Justice of the Karnataka High Court, who serves as the head of the Centre under the supervision of the Board of Governors. Additionally, not more than two serving Judicial Officers of the Karnataka Judicial Service, in the rank of Senior Civil Judge or Civil Judge, are appointed by the Chief Justice of the Karnataka High Court as Deputy Directors, working under the Director's supervision. The Directorate is further supported by staff appointed or deputed by the Chief Justice of the Karnataka High Court, as well as Research Assistants appointed by the Board of Governors to assist the Directorate and Arbitrators as needed. The Director of the Centre holds various duties and responsibilities to ensure its effective operation. As the head of the Centre, the Director is responsible for its day-to-day functioning and serves as its custodian. Specific responsibilities include initiating action on arbitration requests in line with Centre rules, notifying parties of filing requirements and fee payments, maintaining and updating profiles of Arbitrators in the public domain, and documenting arbitration case details. Additionally, the Director manages deposits of Arbitrator's fees and other costs, assesses costs to be awarded by the Arbitral Tribunal, and takes necessary steps for timely completion of arbitration proceedings. Furthermore, the Director organizes workshops, conferences, and seminars on alternative dispute resolution mechanisms to promote the Centre's use as directed by the Board of Governors. The Director is authorized to represent the Centre in legal matters and is the designated recipient of all correspondence and communications, managing all outgoing correspondence on behalf of the Centre.

Court annexed Arbitration Centres in Official Database

The following court-annexed arbitration centre publishes statistics relating to their case disposal and pendency-related information.

Delhi International Arbitration Centre

Delhi International Arbitration Centre maintains statistics on pendency and disposal on its website.

Details of Cases Listed vis-a-vis Hearings(DIAC) (annual basis) retrieved from https://dhcdiac.nic.in/statistics-2/

Details of Cases Listed vis-a-vis Hearings(DIAC) (annual basis) retrieved from https://dhcdiac.nic.in/statistics-2/

Details of Cases Listed vis-a-vis Hearings(DIAC) (annual basis) retrieved from https://dhcdiac.nic.in/statistics-2/

High Court of Orissa Arbitration Centre, Cuttack

The Orissa Arbitration Centre publishes annual stats in the form of Arbitration report and Annual Report

Annual stats on Year wise particulars of Arbitration Proceedings as on 14.12.2023 retrieved from https://orissahighcourt.nic.in/orissa-arbitration-centre/report-pdf-view/8/

Annual stats on pending cases, instituted cases, disposed cases, and cases dropped, as published in Annual report. retrieved from https://orissahighcourt.nic.in/orissa-arbitration-centre/report-pdf-view/7/

Annual stats on pending cases, instituted cases, disposed cases, and cases dropped, as published in Annual report. retrieved from https://orissahighcourt.nic.in/orissa-arbitration-centre/report-pdf-view/7/

Arbitration Centre- Karnataka

The disposal statistics of Arbitration centre are published in High court of Karnataka Newsletter

Statistics of institution and disposal of arbitration cases. Retrieved from https://karnatakajudiciary.kar.nic.in/enewsletter/Newsletter-2022.pdf pg. 127

Statistics of institution and disposal of arbitration cases. Retrieved from https://karnatakajudiciary.kar.nic.in/enewsletter/Newsletter-2022.pdf pg. 128

Research that engages with Court annexed Arbitration Centres

• PROMOTING EFFICIENCY OF ARBITRATION IN INDIA BY USING TECHNOLOGY - The article explores the technology initiatives in the field of arbitration. It analyses the rules governing court-annexed arbitration centres and observes that 'no endeavour has been made to update these rules to provide for the use of technology' with a notable exception of DIAC and Orissa Arbitration Centre. Orissa Arbitration Centre, Cuttack provides ICT enabled and State of the Art Arbitration Halls. The CISCO Webex program is used by DIAC to facilitate video conferences during hearings. In contrast to other arbitral institutions, DIAC offers this service free of charge. Deputy Counsels designated by DIAC support VCs to ensure smooth hearings. DIAC also provides the trained stenographers for the VC hearings..... Even when virtual arbitrations are used, the Gujarat Rules nonetheless mandate a physical arbitration setup by substituting terms such as “oral hearing” for “hearing” and “submission of copies” of pleadings for “submission of pleadings” and so on.