The Department-related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, chaired by Shri Brij Lal, MP, Rajya Sabha, presented its 165th Report on 'Creation and Development of Institutional Mechanism to support the Alternative Dispute Resolution Ecosystem' on August 7, 2026. The report was adopted by the Committee on August 5, 2026, following deliberations with stakeholders including the Secretary of Department of Legal Affairs (December 10, 2024), and officials from Department of Justice, Ministry of Corporate Affairs, and Delhi International Arbitration Centre (April 24, 2026).
India International Arbitration Centre (IIAC)
The Committee expressed concern about the significant public funds spent on IIAC's establishment, infrastructure, and recurring expenses, recommending a comprehensive performance assessment including cases disposed and steps taken to increase caseload. Despite being envisioned to compete with global institutions like Singapore International Arbitration Centre (SIAC), Hong Kong International Arbitration Centre (HKIAC), and London Court of International Arbitration (LCIA), IIAC suffers from limited visibility and usage. The Committee recommended targeted outreach to Central Government Ministries, Public Sector Undertakings (PSUs), and large corporates to route contractual disputes through IIAC, along with institutional MoUs with industry bodies like CII, FICCI, and ASSOCHAM. Specific recommendations include expanding and diversifying the arbitrator panel with international experts, reviewing and updating arbitration rules to align with global best practices, setting clear performance benchmarks, and reducing procedural delays through strict timeline monitoring.
Delhi International Arbitration Centre (DIAC)
The Committee identified constraints in physical facilities, limited administrative capacity, and absence of dedicated purpose-built arbitration centers as impediments to scaling operations. Limitations in financial resources and outreach efforts were also noted. The Department was recommended to take urgent steps to address capacity constraints including expanding infrastructure and administrative workforce, establishing dedicated arbitration centers, and improving financial planning and outreach initiatives.
Mediation and Conciliation
The enactment of the Mediation Act, 2023 was recognized as a comprehensive legislative step formalizing mediation as a mainstream dispute resolution mechanism, providing a uniform framework covering pre-litigation, online, and community mediation while ensuring legal recognition and enforceability of settlement agreements. The Committee recommended examining adequate safeguards to deter bad faith participation in Pre-Institution Mediation (PIM) and suggested making PIM mandatory with statutory provisions for imposing cost penalties on parties that unreasonably refuse to participate. The Committee urged fast-tracking the establishment of the Mediation Council of India (MCI), finalizing necessary regulations within defined timelines, and ensuring early notification of remaining provisions including Section 63.
General ADR Recommendations
The Committee recommended developing clearer guidelines to define the scope and limit of judicial intervention in arbitration matters to reduce unnecessary delays, strengthening institutional rules and internal procedures to manage routine issues without court recourse, and adopting consistent technology use across the ADR ecosystem with clear guidelines and minimum digital standards. The report emphasized integrating ADR concepts into legal education and professional training programs, developing ADR as a structured professional framework with accreditation systems and standardized training, and establishing regular review mechanisms to assess institutional functioning and identify gaps in infrastructure, staffing, and expertise.
Lok Adalats and Institutional Support
For Lok Adalats, the Committee recommended developing clear and simple guidelines for case selection and settlement procedures to ensure consistency across regions, along with better tracking of settlement data to understand case resolution effectiveness. The government was urged to strengthen NALSA by augmenting manpower, ensuring timely filling of vacancies, and providing adequate budgetary support aligned with projected requirements, while addressing institutional gaps including infrastructure and service-related benefits.
The Committee concluded that dispute resolution in India is moving toward a more efficient framework where ADR mechanisms can play a larger role, emphasizing that effectiveness depends on sound laws, well-functioning institutions, skilled professionals, and consistent implementation while maintaining party confidence in fairness, neutrality, and timely outcomes.