Problems in International Commercial Arbitration
One of the characteristics of international arbitration is that the right of the parties to settle on the decision-makers. While this characteristic is usually presented together with the most advantages of international arbitration, it has also given rise to criticism. Primarily, critics have raised questions on the legitimacy of an award issued by privately appointed arbitrators. The legality of party-appointed arbitrators may also be strengthened if the parties were to agree on the tribunal's President first then nominate the other two arbitrators with their input.
Conduct of counsel-
While the parties’ counsel plays a fundamental role in international arbitration, thanks to their diversity of backgrounds and legal cultures, they are not always guided by equivalent values and ethical principles. The shortage of a binding uniform code and a worldwide authority to enforce it make the regulation of counsel conduct challenging in practice, raising questions on the legitimacy of international arbitration.
Domestic court oversight-
It has been argued that the arbitral process is just too autonomous from domestic law and domestic court oversight. Arbitration is now one among the foremost essential methods of dispute resolution in international commerce.' Thus, to work effectively within the field of international business and trade, attorneys must understand how international arbitration works. An efficient and credible method of dispute resolution is a crucial, indeed critical, element within the negotiation of any international commercial transaction. Therefore, the parties to such a transaction will best serve their interests by arriving at a transparent understanding of dispute resolution.
International arbitrations become increasingly lengthy for a spread of reasons:
- a) Generally, the disputes that come for arbitration are of complex nature
- b) While the parties and the tribunal are liberal in determining the procedure they want to follow as per party autonomy, they often agree on reasonably lengthy procedures.
While the value of arbitration was also traditionally considered a bonus of arbitration over litigation, that judgment is today being revised. International arbitration has grown more and more complex and, accordingly, expensive.
In conclusion, an efficient and credible method of dispute resolution is a crucial, indeed critical, element within the negotiation of any international commercial transaction. And so it's vital to eliminate the issues in international arbitration so on make it the most straightforward choice for dispute resolution.
(This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, or Religion, Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts made to ensure the accuracy and correctness of the information published, White Code VIA Mediation and Arbitration Centre Foundation shall not be responsible for any errors caused due to human error or otherwise.)