Chapter II - Establishment and Incorporation of India International Arbitration Centre
Sections 3, 4, 5 and 6 of the India International Arbitration Centre Act, 2019
Sections 3 to 6 establish the India International Arbitration Centre, declare it an institution of national importance, prescribe its composition, and regulate the tenure and service conditions of its Chairperson and Members.
Section 3 - Establishment and incorporation of India International Arbitration Centre
(1) The Central Government shall, by notification, establish a body to be called the India International Arbitration Centre for the purposes of exercising the powers and discharging the functions under this Act.
(2) The Centre shall be a body corporate by the aforesaid name, having perpetual succession and a common seal, with power, subject to the provisions of the Act, to acquire, hold and dispose of movable and immovable property, to enter into contracts, and to sue or be sued in its name.
Meaning of Section 3
Section 3 creates the Centre as a statutory body corporate. This gives the Centre a separate legal identity, perpetual succession and the legal capacity necessary to hold property, contract and participate in legal proceedings.
Section 4 - Declaration of India International Arbitration Centre as an institution of national importance
(1) The objects of the India International Arbitration Centre are such as to make it an institution of national importance and, accordingly, the Centre is declared to be an institution of national importance.
(2) The head office of the Centre shall be at New Delhi. With the previous approval of the Central Government, it may establish branches at other places in India and abroad.
Meaning of Section 4
Section 4 recognises the statutory significance of the Centre at the national level. It fixes New Delhi as the location of its head office while permitting expansion through branches in India or abroad with prior Central Government approval.
Section 5 - Composition of Centre
Section 5 specifies the categories of persons who constitute the Centre. The composition combines judicial or arbitration expertise, institutional arbitration experience, representation of commerce and industry, and ex officio governmental participation.
- A person who has been a Judge of the Supreme Court or a Judge of a High Court, or an eminent person having special knowledge and experience in the conduct or administration of arbitration, law or management, appointed by the Central Government in consultation with the Chief Justice of India - Chairperson.
- Two eminent persons having substantial knowledge and experience in institutional arbitration, both domestic and international, appointed by the Central Government - Full-time Members or Part-time Members.
- One representative of a recognised body of commerce and industry, chosen on a rotational basis by the Central Government - Part-time Member.
- Secretary, Department of Legal Affairs, Ministry of Law and Justice, or his representative not below the rank of Joint Secretary - Member, ex officio.
- One Financial Adviser nominated by the Department of Expenditure, Ministry of Finance - Member, ex officio.
- Chief Executive Officer - Member, ex officio.
Why Section 5 matters
The provision is designed to give the Centre a mixed institutional structure, combining adjudicatory and arbitration experience with administrative, commercial and financial representation.
Section 6 - Terms and conditions, etc., of Chairperson and Members
(1) The Chairperson and Members hold office for a term of three years from the date on which they enter upon office and are eligible for re-appointment.
Age limit: No Chairperson may continue after attaining seventy years of age and no Member may continue after attaining sixty-seven years of age.
(2) The terms and conditions, salaries and allowances payable to the Chairperson and Full-time Members shall be such as may be prescribed.
(3) A Member appointed to fill a casual vacancy holds office only for the remainder of the term of the Member in whose place the appointment is made.
(4) A Part-time Member is entitled to such travelling and other allowances as may be prescribed.
Meaning of Section 6
Section 6 governs tenure, re-appointment, age limits and remuneration-related matters. It also prevents a casual-vacancy appointment from starting a fresh full term and leaves prescribed salary and allowance details to subordinate legislation.
The IIAC official statutes page currently lists the IIAC (Terms and Conditions and the Salary and Allowances Payable to Chairperson and Full-time Members) Rules, 2022 and the IIAC (Travelling and Other Allowances Payable to Part-time Members) Rules, 2023.
Official legal sources
For the updated legislation 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.