Fast track arbitration, emergency arbitrators and more: IIAC (Conduct of Arbitration) Regulations 2023 notified

Regulations to govern the manner in which arbitrations would be conducted by the India International Arbitration Centre (IIAC) titled the India International Arbitration Centre (Conduct of Arbitration) Regulations, 2023 (Regulations) have been notified. .The IIAC is India’s first statutory international arbitration centre, which has been conferred the status of an institution of ‘national importance’ and is funded by the Central government. Former Supreme Court judge, Justice Hemant Gupta presently heads it as its Chairperson..The Regulations notified on September 1 have outlined the finer details on how arbitral proceedings can be initiated with the IIAC’s involvement, how arbitrators would be appointed and how matters would be decided on.It also contains provisions for fast track arbitrations, the appointment of emergency arbitrators, time-bound disposals of arbitral proceedings, the functions of the advisory panel and more..Highlights.As per Regulation 4, arbitration proceedings can be initiated by a party by making a request, preferably made online by uploading it on the IIAC’s website. The request can also be emailed or sent physically. Further, these proceedings can also be initiated on a direction by a competent court.A request by one party would be followed by a response by the respondent to the dispute, which has to be made within 14 days, as per Regulation 5.The acknowledgment of transactions now increasingly being digital can also be inferred from Regulation 6, which clarifies that written communications of any notice or proposal or other communication can be also by way of electronic communication.Taking into consideration that the dispute may be transnational, the same regulation adds that while calculating how long it has been since a communication has been sent or received, the time zone to be factored in would be the time zone of the place of arbitration or, if such place has not been chosen yet, Indian Standard Time.The ensuing regulations deal with such aspects as how additional parties may be joined to an arbitral dispute, the circumstances in which two or more arbitrations may be consolidated and decided together and the composition and functioning of the IIAC advisory panel.This panel, as per Regulation 9, would include 3-10 IIAC members, apart from ex officio members, as well as eminent individuals who have wide experience in alternate dispute resolution methods, including arbitration.“Not less than two advisors of the advisory panel shall advise the Chairperson in respect of appointment of an arbitrator either from the panel of arbitrators maintained by the Centre (IIAC), or any other arbitrator in exceptional circumstances,” Regulation 9 adds.Arbitrators, meanwhile, are expected to disclose in writing whenever there is anything in existence that would affect their independence or impartiality in deciding on disputes, whether it is financial, business, professional or any other matter. This aspect is dealt with in Regulation 10.The manner in which arbitrators are appointed, confirmed, how sole arbitrators may be appointed and how arbitrators may be appointed where there are more than two parties to a dispute (multi-party appointment of arbitrator) are dealt with in Regulations 11-14. Parties can opt to nominate the Arbitrator from the Panel of Arbitrators maintained by the IIAC or any other arbitrator in exceptional circumstances, as per Regulation 11. Nominations are subject to the appointment of the arbitrator by the IIAC Chairperson. The Chairperson is empowered to appoint arbitrators in all cases, including from the panel of arbitrators maintained by the IIAC, after considering the advice of the advisory panel.A party can also challenge the appointment of arbitrators. Regulation 15 (2), however, adds that, “A party may challenge the arbitrator nominated by him only for reasons of which he becomes aware after such nomination has been made.”Whereas Regulation 25 outlines how arbitral proceedings should generally be conducted, Regulation 17 deals with a fast track procedure that may be opted for by parties for a quicker resolution of disputes. For this, the parties have to mutually agree in writing to have their dispute resolved by a fast track procedure. This request can be made at any stage, before or at the time of appointment of the arbitral tribunal. Fast track arbitral proceedings have to be finished within 6 months from the constitution of the arbitral tribunal.Meanwhile, Regulation 18 allows the appointment of emergency arbitrators who may be appointed in cases where emergency interim relief cannot wait till an arbitral tribunal may be constituted. Orders by the emergency arbitrator have to be completed within 15 days. This timeline can be extended only in exceptional circumstances by the Registrar or on a written agreement by the parties.On the other hand, the timeline to be followed in ordinary cases has been laid down in Regulation 25. Notably, Regulation 25 (2) says that the arbitral tribunal should first hold a preliminary meeting with the parties (physically or virtually) to discuss how the proceedings may be conducted in the most efficient manner. Following or during this meeting, the tribunal is expected to frame a timetable, including the period within which the parties should finish their submissions on a day-to-day basis. This timetable, which will serve as the basis for the arbitral proceedings thereafter, should be communicated to the IIAC as well as the parties. The regulations leave it open for the tribunal to modify these procedures or the time table after consulting the parties and through orders communicated to the parties and the IIAC. This is intended to ensure that there is continued effective case management.Apart from this, Regulation 25 also lays down time lines within which statement of claims, defence etc. shall be completed, that is, 6 months from the date on which the arbitrator (s) appointment is communicated to the arbitrator (s).Regulation 26 clarifies that the default language of arbitrations would be English, unless the parities have agreed otherwise.At all times, all matters relating to the arbitration and the award, including the proceedings, would have to be treated as confidential by the parties as well as the arbitrators, says Regulation 42.Regulation 44 of the regulations adds:“In all matters not expressly provided for in these regulations, the Chairperson, Members, Chief Executive Officer, Registrar and the Arbitral Tribunal shall act in the spirit of these regulations and shall make every reasonable effort to ensure the fair, expeditious and economical conclusion of the arbitration. The Centre (IIAC) may from time to time issue practice directions for implementation of these regulations, for the purpose of facilitating the administration of arbitration.”A schedule to the regulations also provides for the fees to be paid, depending on the amount in dispute in the arbitration case, in both domestic and international arbitrations..[Read Regulations]