Mumbai Centre for International Arbitration Unveils Transformative 2025 Rules

Introduction 

The Mumbai Centre for International Arbitration (MCIA¹) released its 2025 Arbitration Rules on May 1, 2025. This third edition, expanded from 36 to 49 provisions, aims to streamline proceedings, enhance transparency, and align India’s arbitration practices with global standards. The update reflects MCIA’s growth and is expected to further boost the increasing use of institutional arbitration in India.

Key Amendments in the 2025 Rules:

1. Managing Multi-Party and Multi-Contract Arbitration

• Combined Requests for Arbitration (Rule 5): Claimants can now initiate multiple arbitrations with a single request, streamlining the process for disputes arising from multiple agreements.

• Consolidation (Rule 6): Rule 6 on Consolidation has been expanded. It now clearly allows arbitrations to be combined if parties agree, or if the claims stem from the same legal relationship, principal/ancillary contracts, or a series of transactions.

• Concurrent Proceedings (Rule 7): Tribunals can now order multiple arbitrations to proceed concurrently if the same tribunal is appointed and common questions of law or fact exist.

• Joinder (Rule 8): Rule 8, regarding Joinder, now allows non-parties to be included in arbitrations. This can happen with non parties’ consent or if there’s clear initial evidence that they are bound by the arbitration agreement. This change promotes efficiency and aligns with global arbitration standards.

2. Expedited and Interim Procedures

To ensure swift and efficient resolution, the 2025 Rules introduce several new tools:

• Rule 16, known as “Early Dismissal and Summary Procedure,” now permits parties to request the prompt dismissal of claims or defenses. This applies if such claims or defenses are clearly without legal merit, outside the tribunal’s jurisdiction, or unlikely to succeed, reflecting similar provisions found in other leading arbitration rules.

• Expedited Procedure (Rule 17): The maximum monetary threshold for expedited procedures has been increased from INR 10 crores (approximately USD 1.2 million) to INR 13 crores (approximately USD 1.5 million), and tribunals can now cease expedited procedures if circumstances require.

• Emergency Arbitrator: Rule 19, concerning Emergency Arbitrators, has been updated. It now clarifies that interim orders issued by an emergency arbitrator are no longer binding if the main arbitral tribunal is not formed within 90 days, or if a final award is issued, or if the claim is withdrawn.

• Security for Costs (Rule 21): Tribunals are empowered to order claimants to provide security for costs, a measure to discourage frivolous claims.

• Preliminary Issues (Rule 28): Tribunals now have the power to manage cases more effectively by deciding preliminary issues, splitting proceedings, or conducting arbitrations in different stages.

3. Stakeholder Participation and Support

• Tribunal Secretary (Rule 13): The appointment, role, and removal of tribunal secretaries are now regulated, with safeguards to ensure impartiality and prevent delegation of decision-making.

• Legal Representation (Rule 31): Any change in legal representation now requires tribunal approval, particularly if it impacts tribunal composition or award finality.

• Third-Party Funding (Rule 37): Parties are now required to disclose third-party funding arrangements, including the funder’s identity and any undertaking to bear adverse costs, aligning with other prominent institutional rules.

4. Other Notable Amendments

• Same Nationality Arbitrator: Rule 10.5, regarding Same Nationality Arbitrator, now allows the Council to appoint an arbitrator who shares a party’s nationality if it’s suitable and no objections are raised, providing greater flexibility. 

• Delegation by Indian Courts (Rule 15.5): Rule 15.5, on Delegation by Indian Courts, states that the MCIA will appoint substitute arbitrators under the 2025 Rules whenever Indian courts delegate tribunal appointments.

• Good Faith (Rule 27.2): Parties are now under an express obligation to act in good faith for fair, efficient, and expeditious arbitration conduct.

• Remote Hearings (Rule 34.4): Tribunals can order remote hearings, facilitating international participation and adapting to modern realities.

• Publication of Awards (Rule 47): The MCIA can publish redacted versions of awards and decisions, subject to party objection, promoting transparency and jurisprudence.

• Information Security (Rule 48): Parties can agree on and tribunals can order measures to protect information security, addressing data protection concerns.

• Schedule of Fees and Model Clauses: The 2025 Rules include a clear schedule of fees and model clauses for various procedures.

Conclusion

The MCIA’s 2025 Rules signify a proactive step towards modernizing and refining India’s arbitration landscape. By introducing mechanisms for early dismissal, summary determination, and consolidated proceedings, the new rules are expected to significantly reduce the time and cost associated with arbitrations. 

The emphasis on information security, alongside other emerging themes and user-centric provisions, reflects the MCIA’s commitment to providing a tailored, efficient, and transparent dispute resolution mechanism. This forward-looking approach, aligning with global trends in arbitral institution reforms, is anticipated to further boost the MCIA’s international caseload and solidify India’s position as a robust and reliable jurisdiction for international commercial arbitration. The effectiveness of these new rules in practice, particularly in conjunction with the Arbitration and Conciliation (Amendment) Bill 2024 and the recently launched Arbitration Bar of India, will be closely watched.

Citations

1. Mumbai Centre for International Arbitration (MCIA)

Expositor(s): Adv. Archana Shukla