International Arbitration Tribunals in India and scope for growth.
The judiciary is and has been for a few times, clogged and burdened with a massive backlog of cases. It is commonplace for matters to be stuck within the judiciary for quite a decade pending resolution, mainly if the issues are of high value or complex nature. As a result, it is becoming standard practice for parties to incorporate arbitration clauses altogether in large transactions and agreements. Parties are hence preferring alternate dispute resolution techniques.
There are a variety of recent moves to enhance the arbitration landscape in India. Significantly, a lot of amendments to the Arbitration Act have sought to improve the speed and efficiency of arbitration proceedings by implementation the following points:
- Imposing deadlines.
- Encouraging institutional arbitration as compared to the ad hoc arbitration that is mainly preferred by the parties.
- Limiting the scope of court intervention both at the pre-arbitration and post-arbitration stages.
- Discouraging waggish filing applications challenging arbitral awards.
- Discouraging delays by introducing a more realistic cost regime and better procedures.
Courts have also followed the lead, with various recent decisions narrowing the scope of judicial interference. The executive has also sought to achieve efficiencies in arbitration involving government entities by encouraging ministries to adjust to arbitration awards, pending any proposed challenge, within the interests of ensuring cash flow, particularly about significant infrastructure disputes. Though changes in the law have made arbitration a well-liked alternative to litigation, it is still to be kept in mind that most arbitration in India is ad hoc arbitration, with institutional arbitration still a minor proportion of all arbitration conducted. Presently, India lacks institutions that are at par with organisations of international reputation like ICC (International Court of Arbitration), LCIA, SIAC, HKIAC, etc. As a result, it's been seen very often that foreign companies getting into the business.
Arbitration Council of India
The 2019 amendment seeks to remedy this problem of formal institutions by providing institutionalised arbitration in India. It includes the creation of the Arbitration Council of India, which has to take all such measures as could be necessary to market and encourage institutional arbitration or other non-traditional alternative dispute resolution mechanism and for that purpose to frame policies and guidelines for the establishment, maintenance, operation and formation of uniform standards. The 2019 Amendment also empowers the Supreme Court of India in a world Commercial Arbitration and, there. Therefore Courts in cases aside from international commercial arbitration establish such reputed arbitral institutions for appointment of arbitrators.
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