Monday, August 23, 2010

Alternative Dispute Resolution In India Needs Reforms

Alternative dispute resolution (ADR) is an effective method of dispute resolution these days. Foreign investors and multi national companies prefer ADR over traditional litigation in India as the same is very cumbersome and time consuming.

Equally important are e-commerce disputes and commercial dispute resolution. These disputes have high stakes and the same cannot be effectively taken care of by the archaic and collapsed legal and judicial system of India. There are many factors that have led to the inadequate international commercial arbitration in India.

Recently, the SEBI introduced arbitration guidelines for stock exchanges and security related disputes. This is a welcome step as security related disputes are on rise in India. Dispute resolution of construction industry is also one of the upcoming fields in ADR.

However, Indian arbitration and conciliation act 1996 is not at all conducive for commercial arbitration and international commercial arbitration. The same needs to be reformulated keeping in mind the contemporary international norms and standards.

India stands nowhere when it comes to technology driven arbitration. The concept of online dispute resolution (ODR) does not exist in India. There is just a single techno legal ADR and ODR institution in India.

Even the national litigation policy of India (NLPI) failed to consider ODR and e-courts as effective methods of judicial reforms. Till the month of August 2010 India is still waiting for the establishment of first e-court of India.

Law Minister Veerappa Moily must consider active use of technology for arbitration and judicial purposes and must include the same in the NLPI.