Section 43D explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 43D has two sub-sections. Sub-section (1) makes it the Council's duty to take the measures needed to promote and encourage arbitration and other dispute resolution mechanisms, and to frame policy and guidelines for uniform professional standards. Sub-section (2) then lists twelve things the Council "may" do, from framing policies for grading arbitral institutions to establishing a depository of awards. This article reads the section as per the India Code consolidated text consulted. If you are choosing an institution for a contract, our arbitration support page is the place to start.
Under sub-section (1), the Council has a duty to take all measures needed to promote and encourage arbitration, mediation, conciliation or other alternative dispute resolution mechanism, and to frame policy and guidelines for uniform professional standards in all matters relating to arbitration. Sub-section (2) says the Council may do the twelve things in clauses (a) to (l). The list is enabling: it uses "may", not "shall". The Mediation Act, 2023 provides for some of the words in this section to be omitted; commencement is by notification and the date is not in the sources consulted.
Where the section sits
Section 43D is the central operating provision of Part IA. Section 43B provides for the Council to be established; section 43C fixes its composition. See our articles on sections 43A and 43B and on section 43C. Part IA is shown as inserted by Act 33 of 2019, section 10, with effect from 12-10-2023. Section 43D itself carries no separate footnote. The text consulted does not say whether the Council has been established, and nothing in this article suggests it has or has not.
Sub-section (1): the duty
"It shall be the duty of the Council to take all such measures as may be necessary to promote and encourage arbitration, mediation, conciliation or other alternative dispute resolution mechanism and for that purpose to frame policy and guidelines for the establishment, operation and maintenance of uniform professional standards in respect of all matters relating to arbitration."
Three components appear:
- Promotion: "all such measures as may be necessary" to promote and encourage arbitration, mediation, conciliation or other alternative dispute resolution mechanism.
- Policy and guidelines: for the establishment, operation and maintenance of uniform professional standards.
- Scope of standards: "in respect of all matters relating to arbitration". The standards are about arbitration, even though the promotion duty names mediation and conciliation as well.
Sub-section (1) uses "shall": this is the one place where the section speaks of a duty rather than a permission.
Sub-section (2): what the Council may do
"For the purposes of performing the duties and discharging the functions under this Act, the Council may" do the following. The words are "may"; the Council is enabled, not commanded, to take each step.
| Clause | What the Council may do (as printed) | Group |
|---|---|---|
| (a) | Frame policies governing the grading of arbitral institutions | Grading |
| (b) | Recognise professional institutes providing accreditation of arbitrators | Accreditation |
| (c) | Review the grading of arbitral institutions and arbitrators | Grading |
| (d) | Hold training, workshops and courses in the area of arbitration in collaboration of law firms, law universities and arbitral institutes | Training |
| (e) | Frame, review and update norms to ensure satisfactory level of arbitration and conciliation | Norms |
| (f) | Act as a forum for exchange of views and techniques to be adopted for creating a platform to make India a robust centre for domestic and international arbitration and conciliation | Forum |
| (g) | Make recommendations to the Central Government on various measures to be adopted to make provision for easy resolution of commercial disputes | Recommendations |
| (h) | Promote institutional arbitration by strengthening arbitral institutions | Institutions |
| (i) | Conduct examination and training on various subjects relating to arbitration and conciliation and award certificates thereof | Training |
| (j) | Establish and maintain depository of arbitral awards made in India | Awards depository |
| (k) | Make recommendations regarding personnel, training and infrastructure of arbitral institutions | Recommendations |
| (l) | Such other functions as may be decided by the Central Government | Residual |
Several clauses are developed in later sections of Part IA. Section 43-I deals with the general norms for grading of arbitral institutions, section 43J with norms for accreditation of arbitrators and section 43K with the depository of awards; see our article on sections 43-I, 43J and 43K. Those sections speak of what "the regulations" are to specify, and no regulations are in the source. The Council's power to make regulations is in section 43L; see the article on sections 43H, 43L and 43M.
The word "arbitral institution" is used in the Act's own terms. Section 2 as printed in the text consulted contains no definition of it, so this article gives none.
What the section does not do
The text consulted does not give the Council power to decide an individual dispute, to appoint an arbitrator in a particular case or to hear appeals. Section 43D lists duties and functions and nothing in it creates an adjudicating role. Whether the Council has issued any policy, guidelines or grading is not in the source, and this article makes no statement on it. A general overview of the 2019 Act is in our post on the 2019 amendment.
The Mediation Act, 2023 and section 43D
The India Code text consulted prints section 43D with the words "mediation, conciliation" in sub-section (1) and the words "and conciliation" in clauses (e), (f) and (i) of sub-section (2). The Mediation Act, 2023 provides, through its Sixth Schedule, for those words to be omitted. Its commencement is by notification, and the date is not in the sources consulted, so check whether that change is in force before relying on the printed words. The change is described in our article on sections 58–61 of the Mediation Act, 2023. The Mediation Act also sets up a separate Mediation Council of India with its own duties; see sections 38–39 of the Mediation Act, 2023, which is a parallel body under another Act and is not the body in this section.
An example
An arbitral institution in Mumbai, the Western Arbitration Centre, wants its rules reviewed against national standards. Section 43D(2)(a) and (c) say the Council may frame policies governing the grading of arbitral institutions and may review the grading. Section 43D(2)(h) says the Council may promote institutional arbitration by strengthening arbitral institutions, and (k) lets it make recommendations about personnel, training and infrastructure. All of those are enabling powers. The institution should look to the Council's published policies and the regulations, neither of which is in the source for this article.
A young lawyer who wants an arbitration certificate reads clause (i): the Council may conduct examination and training on various subjects relating to arbitration and conciliation and award certificates. The text does not say whether such examinations exist.
Need help with institutional arbitration?
If you are choosing an arbitral institution, drafting a clause that names one, or an institution wondering how Part IA affects you, our arbitration support team can walk you through the section and the notifications and regulations that sit behind it.
Key takeaways
- Section 43D(1) imposes a duty on the Council to take measures to promote and encourage arbitration, mediation, conciliation or other alternative dispute resolution mechanism and to frame policy and guidelines for uniform professional standards.
- Section 43D(2) lists twelve things the Council "may" do, in clauses (a) to (l).
- They include grading policies, recognising accreditation institutes, training, recommendations to the Central Government, and a depository of arbitral awards made in India.
- Clause (l) allows the Central Government to decide further functions.
- The Mediation Act, 2023 provides for some words in section 43D to be omitted; commencement is by notification and the date is not in the sources consulted.
Read next
- Sections 43E, 43F and 43G: vacancies, resignation and removal of Members
- Sections 43-I, 43J and 43K: grading, accreditation and depository of awards
- Section 43C: composition of the Council
- Sections 31–32 of the Mediation Act, 2023: Mediation Council of India
Disclaimer: Based on the India Code consolidated text of the Arbitration and Conciliation Act, 1996, whose footnotes show amendments up to Act 3 of 2021 and a latest date of 12 October 2023, as consulted on 2 October 2026. Rules, regulations and notifications under the Act, later amendments and the commencement of the Mediation Act, 2023 should be checked. This article is general information, not legal advice; check the official text before acting.