Arbitration Bills: Chidambaram, Singhvi criticise govt role

Congress leaders Abhishek Manu Singhvi and P Chidambaram attacked the government for not doing enough to make India an international hub for arbitration. During a joint discussion on two bill related to amendments in arbitration laws in Rajya Sabha, the opposition party also demanded that the members of the Council be appointed by a collegium since the government is itself a relentless litigant.

New Delhi: The Congress on Thursday alleged that the proposed Arbitration Council would be a "sarkari" Council and accused the government of making a "brazen" attempt to take over the process.

During a joint discussion on two bills related to amendments in arbitration laws in Rajya Sabha, the opposition party also demanded that the members of the Council be appointed by a collegium since the government is itself a relentless litigant.

Congress leaders Abhishek Manu Singhvi and P Chidambaram attacked the government for not doing enough to make India an international hub for arbitration.

"It is one point focal bill. It should have been called take over the bill. It is an invitation to disaster even if you want to take over. You are taking over in a brazen manner," Singhvi said.

The discussion was on Arbitration and Conciliation (Amendment) Bill, 2019 and The New Delhi International Arbitration Centre Bill, 2019.

He was of the view that under the bills, the entire arbitration system has been made "Sarkari" (government-run).

He said, "For domestic and international arbitration the approach is all wrong. A bureaucratic approach will not work. This is nothing but a Sarkari Council, a sinecure, jamboree. Before even the ink is dry on the bill passed by Parliament, the court will strike it down."

He pointed out, "Section 7 to 13 amendment in the bill says I take over everything rights, claims, money, non-money, all thing.

"Another section says all liabilities prior to the take over remain yours. Third says you will not deal with the assets. You will hand over everything to me and you will have no claims of any kind against me. Besides the new entity would have right to take over earlier claims also."

"We have to provide for India as hub not Delhi as a hub. Hubs are not created by taking over a fantastic five star property near the airport in Delhi... the hub is made by decentralising, access and reducing cost of litigation," he said.

Chidambaram said that a "Sarkari Committee" is proposed in the bill, which would inspire no confidence in the litigants.

"In half of the claims, the government is the party. Government is a relentless litigant. Therefore it will be seen a Sarkari Centre and the intention with which it is set up will be lost," he said. He suggested that a collegium should appoint the Arbitration Council.

He also urged the government to implement its own circular which provides for reducing litigations by its ministries and departments through arbitration.

On taking over the Centre, Singhvi said, "This is bound to be struck down as it is a takeover without due process."

He suggested that the government has to address a much larger issue as it is a federal country with complete diversity.

"How a Kerala judge approaches arbitration is different from. How a high court judge in Delhi approaches arbitration, the interference level is different. The biggest problem is uniform ethics, which have to be developed. Less interference, less judicial review."

He was also of the view that there should not be judicial review of arbitration awards and stay on those should be avoided.

He said, "Seat or venue (of the arbitration) is also important and you should have brought clarity on this in the bill."

He also talked about the "ambiguity" in the timeline for settlement of arbitration and said the government should make it clear.

"The new provisions have not tightened the timeframe for arbitration but loosened it. The government has not put the plug on a timeframe for giving an extension to arbitration by the court."

On roping in retired judges as arbitrators, he said, "We should go away from the hypnotic hold of getting retired judges as arbitrator.

"No other country is fond of judges as our country is, to do arbitrations.... Do have the guts to grade them. Please grade them. Don't say there is an exemption for judges," Singhvi said.

Ashok Sidharth (BSP), while supporting the bill, sought transparency in the appointment process of arbitrators. Shiv Pratap Shukla (BJP), Narain Das Gupta (AAP), Sambhaji Chhatrapati (Nominated), Tiruchi Siva (DMK), Veer Singh (BSP) and Ashok Bajpai (BJP) participated in the debate.