Centre's decision to establish New Delhi International Arbitration Centre challenged in High court

March08,2019:

ICADR moves HC challenging ordinance on setting up new International Arbitration Centre.

The International Centre For Alternative Dispute Resolution on Thursday moved the Delhi High Court challenging Centre's decision to establish New Delhi International Arbitration Centre.

A bench of Chief Justice Rajendra Menon & Justice V. Kameswar Rao indicated that it can pass interim order for staying the ordinance.

However, the bench said it will pass a detailed order later, & directed the the Central Government to file its response on the plea within two weeks.

The court was hearing ICADR plea challenging the New Delhi International Arbitration Centre Ordinance, 2019 promulgated by the President of India.

ICADR's counsel & Senior Advocate Dushyant Dave told the court that there was no urgency to create NDIAC by way of an Ordinance.

The plea said though the situation did not require immediate action on the "object & purpose to be achieved by way of the said Ordinance, the same has been promulgated thereby adversely effecting the working of the Petitioner society (ICADR) which has been working since 1995 for achieving Alternate Dispute Resolution".

"By way of promulgating the said ordinance & taking over the assets & properties of the Petitioner Society, the government is virtually acting against public interest," said the plea.

He said that the ordinance is unconstitutional. However, ICADR's counsel said that he has no objections with NDIAC being a parallel institution.

Additional Solicitor General Maninder Acharya opposed the plea.

The Centre on March 2 promulgated an ordinance for setting up the NDIAC for the purpose of creating an independent & autonomous regime for institutionalised arbitration.

ICADR was established in 1995 to facilitate early resolution of disputes & to reduce the increasing burden of arrears on Courts.

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