Punjab and Haryana High Court has proposed an international arbitration center in Gurugram, the satellite city of New Delhi and has requested the Government of India to do the needful. The proposal may take a few years to get it sanctioned and the center may take a few more years to become operative. The media has started publishing wrong stories stating that this is going to be the 2nd arbitration center since the first center in Mumbai International Arbitration Center and will reduce the need of parties going to Singapore, London etc., for the purpose of arbitration. Unfortunately, most those media reports are wrong and hence the author has endeavored to publish this article with some necessary information.
India has many Arbitral Institutions: India has many arbitration Institutions and a few of them have been working for a very long time. Indian Council of Arbitration (ICA) is the first and oldest arbitral institution of India, having its office in New Delhi and administering both International and Domestic Arbitrations. Nani Palkiwala Arbitration Centre is an arbitration Centre having its office in Chennai (Madras) and administering both international and Domestic Arbitration Centers. IDAC India is another International Arbitration Centre having its Registered office in Vadodara and having offices in Mumbai, New Delhi & Chennai. These Institutions are administering the services much before even staring of the Mumbai Centre.
Why Parties are Choosing Foreign Arbitration seats? There is a wrong impression that since there was no International Arbitration Center in India parties were going to Singapore, London, Paris etc., for their arbitrations. Parties choose arbitration seats (place of arbitration) considering various points including the speed in which courts dispose the arbitration related matters, updated law on the basis of the global commercial requirements, geographical location, availability of professionals, number of countries accepting to enforce the arbitration awards given from that seat etc., In our courts even enforcement proceedings will take 10 years and challenge to an arbitration award will take many years. When arbitration is completed in one year if challenge proceeding takes years, it frustrates the parties. In popular arbitration seats such proceedings are disposed of faster (in a few months). After our 1996 Arbitration and Conciliation Act came into force there were requirements for important changes. But it took 20 years for us to incorporate half of the proposed changes. Still very important amendments like “emergency arbitrator” was left out by the law makers. High Courts and Supreme Court of India do not realize that commercial laws should be interpreted to ease the business activity and hence they also confuse the business men by their conflicting interpretations. Without solving these issues, international parties wont come to India for the purpose of arbitration (unless there is a compulsion).
Conclusion: It is good that High Courts are taking efforts to start arbitration centers and they will surely help atleast domestic parties and free them from adhoc arbitrations. But with out doing a complete restructuring of the Arbitration process and with out improving the overly burdened judiciary, India’s dream to become an arbitration hub will remain as a dream only.
Skip & continue
Disclaimer
In Compliance with Indian Regulations, Kindly Review the User Acknowledgement and Disclaimer below and then Proceed.
User Acknowledgement
By proceeding further and clicking on the "ACCEPT" button herein below, I acknowledge that I of my own accord wish to know more about Law Senate (LS) for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from Law Senate (LS) or any of its members to create an Attorney-Client relationship through this website. I further acknowledge having read and understood the Disclaimer below
This website (www.lawsenate.com) is a resource for informational purposes only and is intended, but not promised or guaranteed, to be correct, complete, and up-to-date. Law Senate (LS) does not warrant that the information contained on this website is accurate or complete, and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause. Law Senate (LS) further assumes no liability for the interpretation and/or use of the information contained on this website, nor does it offer a warranty of any kind, either expressed or implied. The owner/Partners of this website do not intend links from this site to other internet websites to be referrals to, endorsements of, or affiliations with the linked entities. Law Senate (LS) is not responsible for, and makes no representations or warranties about, the contents of Web sites to which links may be provided from this Web site.
This website is not intended to be a source of advertising or solicitation and the contents of the website should not be construed as legal advice. The reader should not consider this information to be an invitation for a lawyer-client relationship and should not rely on information provided herein and should always seek the advice of competent counsel licensed to practice in the reader's country/state. Transmission, receipt or use of this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act, or refrain from acting, based upon any or all of the contents of this site.
Furthermore, the owner of this website does not wish to represent anyone desiring representation based solely upon viewing this Web site or in a country/state where this website fails to comply with all laws and ethical rules of that state. Finally, the reader is warned that the use of Internet e-mail for confidential or sensitive information is susceptible to risks of lack of confidentiality associated with sending email over the Internet.
As per the rules of the Bar Council of India, lawyers are not permitted to advertise themselves. The information about the Firm, its Key Practice Areas or its Key Team Members provided under this website is only for informational purposes and it should not be interpreted as soliciting or advertisement of any nature whatsoever.
The information provided on this website is for general information only. It is not intended to create or promote an attorney-client relationship and does not constitute and should not be relied upon or construed as legal advice.
Communications via this website also do not create an attorney-client relationship. Visitor should always seek appropriate professional advice before acting on the basis of any information contained herein.
