International Commercial Arbitration In India And Commercial Transactions

Information and communication technology (ICT) has given a new meaning to international commercial transactions and business. E-commerce has now become an indispensable part of our day to day commercial activities. This has also given rise to both traditional as well as contemporary international commercial disputes all over the world. So much so that the Law Minister Veerappa Moily has said that a commercial court would be set up in each high court and all cases with an investment exceeding a certain sum will be tried in the commercial court.

At the same time alternative dispute resolution (ADR) mechanism in India is also under the process of rejuvenation. Though online dispute resolution (ODR) and e-courts in India are still a distant dream yet the procedure of bringing suitable amendments in the existing arbitration law of India is in pipeline.

Thus scope of International Commercial Dispute Resolution (ICDR) Services in India is increasing day by day. ICDR can be availed of for disputes arising out of contracts on sales of goods, distributorship, agency and intermediary contracts, construction, engineering and infrastructure contracts, intellectual property contracts, domain name dispute resolutions, joint venture agreements, maritime contracts, employment contracts, etc. The list is just illustrative as the business transactions are too many to categorised here.

The traditional litigation methods of dispute resolution are not very helpful for such high staked commercial disputes. This has necessitated the requirement for ADR mechanisms like Arbitration, Mediation, Conciliation, etc.

India has tremendous capabilities for both ADR and ODR. However, India is lacking on the front of a good law in this regard. The Arbitration and Conciliation Act, 1996 has proved more to be a burden than a relief. There is an emergent need of reformulating Indian laws in this regard.

ADR Must Be Used As An Alternative To Litigation

Law Minister Veerappa Moily has recently announced the National Litigation Policy of India. It has many great reforms and if implemented in a timely and appropriate manner would go a long way in reducing the backlog of cases in India.

However, the policy is deficient in one crucial aspect. It failed to utilise the benefits of information and communication technology (ICT) for reducing the backlog of cases in India. Two most prominent use of ICT for reducing the arrears of cases in India are the use of e-courts in India and adoption of online dispute resolution (ODR) in India.

Till India is not ready for the use of ICT for legal and judicial purposes, we must concentrate upon using alternative dispute resolution (ADR) methods like arbitration, mediation, etc.

Adoption of use of ICT for legal and judicial purposes would not only reduce the arrears of cases but would also bring ADR business to India. India can become a hub for ADR and ODR services provided we must change the legal system and law in this regard.

There is an emergent need of amending the Arbitration and Conciliation Act, 1996 as soon as possible so that international commercial disputes can be resolved through international commercial arbitration in India.

The amendment procedure is already in the process and it would be a good idea if provisions regarding e-courts and ODR are also incorporated in the same.

International Commercial Arbitration And Dispute Resolution In India

The scope of International Commercial Dispute Resolution (ICDR) Services in India is increasing day by day. ICDR can be availed of for disputes arising out of contracts on sales of goods, distributorship, agency and intermediary contracts, construction, engineering and infrastructure contracts, intellectual property contracts, domain name dispute resolutions, joint venture agreements, maritime contracts, employment contracts, etc. The list is just illustrative as the business transactions are too many to categorised here.

The traditional litigation methods of dispute resolution are not very helpful for such high staked commercial disputes. This has necessitated the requirement for Alternative Dispute Resolution (ADR) mechanisms like Arbitration, Mediation, Conciliation, etc. India provides world class “ADR Services” for various fields including those for ICDR.

ICDR in India can be conducted either as “Ad hoc arbitration” or as “Institutional Arbitration”. India has tremendous capabilities for both these forms of dispute resolution. However, India is lacking on the front of use of information and communication technology (ICT) for dispute resolution. This has resulted in a limited growth of Online Dispute Resolution (ODR) in India.

ICDR can be greatly benefited by the use of ODR in India. All we need to do is to strengthen Techno-Legal Services in India.

SOURCE: GROUND REPORT