SEBI Is Encouraging Arbitration In India

Alternative dispute resolution (ADR) system of India is not up to the mark and there is an emergent need to rejuvenate the same. Further, the arbitration law of India incorporated in the arbitration and conciliation act 1996 also needs many suitable reformative actions.

One such innovative concept that can solve many dispute resolution problems in India is the use of information technology. For instance e-courts and online dispute resolution (ODR) mechanisms can be used to settle disputes amicable, efficiently and in a timely manner.

While the legal and judicial systems of India are not contributing much in this direction, a good initiative has been taken by the Securities and Exchange Board of India (SEBI). In order to streamline the disputes arising out of security related matters and matters incidental thereto, SEBI has issued some good arbitration guidelines for stock exchanges.

These include maintain a panel of arbitrators for settling disputes, the arbitration reference will have to be concluded by way of issue of an arbitration award within four months from the date of arbitrator appointment, if the aggrieved party is unhappy with the arbitration award, he can appeal against it to the appellate panel of arbitrators of the stock exchange, etc.

Let us hope the Law Minister Veerappa Moily and Supreme Court of India would also come up with good legal and judicial measures to promote and encourage ADR and ODR in India.

Commercial Division of High Courts Bill, 2009

Law Minister Veerappa Moily is planning to put before the Parliament of India the Commercial Division of High Courts Bill, 2009 for its approval. This is a crucial piece of legislation as it intends to provide a quick and effective commercial disputes resolution mechanism. The Bill aims at establishing special courts for speedy hearing of commercial disputes of Rs five crores and above.

Commercial disputes require immediate and appropriate dispute resolution to retain faith of business and commercial community in the dispute resolution machinery. India has not been a preferred destination for commercial disputes resolution due to inadequate commercial dispute resolution machinery.

India needs to strengthen its alternative dispute resolution (ADR) mechanism as well as online dispute resolution (ODR) mechanism to inculcate confidence among the business community. Similarly, the Arbitration and Conciliation Act, 1996 must also be suitable amended to incorporate necessary provisions regarding ODR and e-courts.

The present arbitration law of India is not adequate for ad hoc as well as institutionalised arbitration. It is also not effective for international commercial arbitration as well. Moily is planning to bring suitable amendments in the arbitration law of India. With this we can hope that India may get its deserving share of ad hoc and institutionalised arbitration and commercial dispute resolution services.

National Litigation Policy Of India

Law Minister Veerappa Moily has recently released the National Litigation Policy of India (NLPI). It has many good legal and judicial reforms ideas. From avoiding unnecessary litigation by governmental departments to use of alternative dispute resolution (ADR) mechanism, the NLPI is full of great ideas.

However, the NLPI is also deficient when it comes to use of information and communication technology (ICT) for legal and judicial purposes. The NLPI lacks ICT impetus as it failed to address the issues like e-courts and online dispute resolution (ODR) mechanism as means of speedy and effective dispute resolutions.

Further, in the absence of political will, India also cannot be a global arbitration hub. The absence of political will would also jeopardise the NLPI and the same may remains as mere words.

Moily is working really hard in the direction of legal and judicial reforms and all he need is accomplishment of the tasks assigned in NLPI. Further, he must also have a pro active approach towards use of ICT for legal and judicial purposes.

Moily must insist upon time bound achievements regarding crucial projects like e-courts and ODR. There is also an emergent need of techno legal trainings of police officers, lawyers, judges, court staffs, etc.

Let us hope that Moily would pay attention to all these crucial aspects so that legal and judicial reforms can be a reality in India.

Domain Name Dispute Resolution Institutions In India

Domain name disputes are increasing day by days these days. This is primarily attributable to cyber squatting episodes. The growing cyber squatting incidences require strong domain name protection and effective domain name dispute resolution mechanism.

The present domain names are based upon IPv4 and very soon India would adopt the IPv6 framework. This would also add its own share of domain name dispute that have to be handled effectively.

All over the world individuals, organisations and nations are working in the direction of using online dispute resolution (ODR) mechanism for resolving various disputes, including domain name disputes. The World Intellectual Property Organisation (WIPO) has been using ODR mechanism to resolve disputes for long.

In India, we have selective institutions that are providing alternative dispute resolution (ADR) services. Even fewer are institutions providing ODR services and just a single platform providing techno- legal ODR services.

The limited growth of ADR and ODR in India is primarily attributable to lack of awareness among the individuals and companies engaged in disputes. Further, even the laws in this regard are not appropriate.

The Arbitration and Conciliation Act, 1996 is the sole ADR law of India and there is no dedicated law regarding ODR in India. Although arbitration services in India are for long yet they have to match the international standards. This is the reason why Law Minister Veerappa Moily is considering amendments in the ADR law of India.

With the ADR law in the process of amendments and India’s stand to shift to IPv6 the future of Indian domain name dispute resolution institutions seems to be bright.