WHY PARTIES PREFER INTERNATIONAL ARBITRATION OVER DOMESTIC COURTS.
What makes arbitration a common choice among corporations is that it is more confidential to solve disputes this way and limit the courts and litigation process.
In recent years, international arbitration has become one of the most preferred alternate dispute resolution mechanisms for international contracts and investments. People are now choosing it over traditional court proceedings. In particular, international arbitration has been used to resolve an increasing number of technology and intellectual property (IP) disputes and commercial contracts. With its growing economy, India acknowledges the requirement for an effective and efficient approach to disputes. It has been a lively player within the growing field of international Arbitration, successfully maintaining the dynamical desires of the parties.
Reasons why companies prefer international arbitration or reasons for growth-
1. Prevention of bias- It is preferred to avoid the bias that domestic courts may cause. A common notion in the minds of parties is that the courts of the contract breacher’s country might favour it when any international dispute arises. To prevent such situations to arise, the parties prefer international arbitration.
2. Flexibility- International Arbitration offers greater flexibility of laws, rules, arbitration institution and jurisdictional scope, which attracts the parties
3. Rules and procedures- It has a better general procedure and arbitration proceeding conduct,
4. Offers Alteration-As compared to the domestic courts, international arbitration offers more legal customisation to the subject matter of the dispute that may arise.
Even though the parties are sometimes sceptical and concerned for some time about the length and cost of arbitration, they prefer international arbitration. Arbitration anyway is a costly affair, and the cost related factor increases. At the same time, the party decides to go for international arbitration. However, because of all the factors mentioned above, the party bears all the expenses and still chooses it over national arbitration.
In Conclusion, With the increased globalisation, there has been a correspondent growth in international trade and contracts, including explicit clauses of international arbitration. International trade across international borders has expanded hugely, which has impacted the planet economy by inter-weaving the world's economies. The expansion in an international exchange of capital, goods, and services ensuing from the growing desires and needs have given way to various strategies to break down the disputes that arise from those exchanges. International business Arbitration refers to one such technique of dispute resolution that arises beneath international business contracts. International arbitration is more relied on than national arbitration because of its effectiveness in solving commerce and investments. It secures a degree of freedom for the parties to create choices regarding the principles.
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.