Chapter IV - Finance, Accounts and Audit
Sections 24, 25, 26 and 27 of the India International Arbitration Centre Act, 2019
Sections 24 to 27 form the financial and audit framework of the India International Arbitration Centre. They deal with Central Government grants, the Centre's Fund, maintenance and audit of accounts, and assessment of assets and liabilities connected with transferred undertakings.
Section 24 - Grants by Central Government
The Central Government may, after due appropriation made by Parliament by law in this behalf, pay to the Centre in each financial year such sums of money and in such manner as it considers appropriate for being utilised for the purposes of the Act.
Meaning of Section 24
Section 24 authorises financial support from the Central Government to the Centre. Such grants are subject to Parliamentary appropriation and are intended to be used for carrying out the statutory purposes of the Act.
Section 25 - Fund of Centre
(1) The Centre shall maintain a Fund to which shall be credited:
- all monies provided by the Central Government;
- all fees and other charges received during or in connection with arbitration, conciliation, mediation or other proceedings;
- all monies received by the Centre for facilities provided by it to the parties;
- all monies received by the Centre in the form of donations, grants, contributions and income from other sources; and
- the amount received from investment income.
(2) All monies credited to the Fund shall be deposited in such banks or invested in such manner as may be decided by the Centre.
(3) The Fund shall be applied towards salaries and other allowances of Members and the expenses of the Centre, including expenses incurred in exercising its powers and discharging its duties under the Act.
Meaning of Section 25
Section 25 creates the statutory Fund through which the Centre receives and applies its financial resources. The provision identifies the principal sources of receipts, permits banking or investment of Fund monies, and specifies that the Fund may be used for Member remuneration and institutional expenditure.
Section 26 - Accounts and audit
(1) The Centre shall maintain proper accounts and other relevant records and prepare an annual statement of accounts, including the balance sheet, in such form and manner as may be prescribed in consultation with the Comptroller and Auditor-General of India.
(2) The accounts of the Centre shall be audited by the Comptroller and Auditor-General of India. Expenditure incurred in connection with the audit is payable by the Centre to the Comptroller and Auditor-General of India.
(3) The Comptroller and Auditor-General of India and any person appointed in connection with the audit have the same rights, privileges and authority as in the audit of Government accounts, including the right to require production of books, accounts, vouchers, documents and papers and to inspect the offices of the Centre.
(4) The accounts of the Centre, as certified by the Comptroller and Auditor-General of India or a person appointed by him, together with the audit report, shall be forwarded annually to the Central Government, which shall cause them to be laid before each House of Parliament.
Meaning of Section 26
Section 26 subjects the Centre to a formal public audit regime. It requires proper accounting records, annual financial statements, audit by the Comptroller and Auditor-General of India, audit access to records and offices, and Parliamentary laying of the certified accounts and audit report.
Section 27 - Assessment of assets and liabilities of undertaking
The assets and liabilities relating to any undertaking under the Act shall be assessed by an agency authorised by the Comptroller and Auditor-General of India in the manner specified by him.
Any payment on a claim relating to such assets or liabilities shall be settled by the Comptroller and Auditor-General of India between the Society and the Central Government and paid by the Society or the Central Government, as the case may be, in the manner specified by the Comptroller and Auditor-General of India.
Meaning of Section 27
Section 27 provides an independent mechanism for valuing and settling financial consequences arising from the transferred undertakings. The Comptroller and Auditor-General of India controls the assessment process and the manner in which claims are allocated between the Society and the Central Government.
Sections 24 to 27 should be read together as the Act's core financial accountability provisions: Government grants and institutional receipts flow into the Fund, the Fund finances statutory operations, accounts are subject to CAG audit, and transferred assets and liabilities are separately assessed and settled.
Official legal sources
For the current Act and subordinate legal materials, refer to the India International Arbitration Centre statutes page and the Department of Legal Affairs page on the Act and amendment materials.