Alternative Dispute Resolution In Indian Stock Exchanges

Securities and Exchange Board of India (SEBI) has recently suggested use of alternative dispute resolution (ADR) mechanisms like arbitration for resolving security related disputes. These disputes include claims, complaints, differences arising between a client and a member (stock broker, trading member and clearing member) across various market segments, etc.

To streamline the arbitration procedure, SEBI has issued some good arbitration guidelines for stock exchanges. This primarily aims at streamlining the disputes arising out of security related matters and matters incidental thereto.

According to these guidelines, the stock exchanges with nationwide terminals have been mandated to provide arbitration facility (arbitration as well as appellate arbitration) at all four regional centres (Delhi, Mumbai, Kolkata and Chennai). SEBI also stipulated that the arbitration and appellate arbitration were required to be conducted at the regional centre nearest to the client.

However, to meet these objectives, there must be a good arbitration infrastructure in India. Presently, both the arbitration law as well as arbitration infrastructure in India is in poor state of affairs.

Another area where India has miserably failed pertains to online dispute resolution (ODR). A special emphasis must also be given to construction industry arbitration in India as well as defence related arbitration issues. India urgently needs ADR and ODR related reforms.

Even security related disputes can be effectively solved by using the techno legal ODR services of world renowned firms like Perry4Law. India stands nowhere when it comes to technology driven arbitration. The concept of 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 September 2010 India is still waiting for the establishment of first e-court of India.

SEBI seems to be proactive and it would be a good idea if it considers using ODR for resolving security related disputes of aggrieved parties. Expert services of Perry4Law and Perry4Law Techno Legal Base (PTLB) can be taken for establishing a good techno legal ODR model by SEBI.

What Ails Arbitration In India

Infrastructure is core to the arbitration, mediation and conciliation services. Countries like Singapore have invested great in terms of alternative dispute resolution (ADR) infrastructure.

India on the other hand is following an obsolete arbitration law in the form of arbitration and conciliation act 1996. Further, India has also not done much in the fields like international commercial arbitration and institutional arbitration.

Another area where India has miserably failed pertains to online dispute resolution (ODR). A special emphasis must also be given to construction industry arbitration in India as well as defence related arbitration issues. India urgently needs ADR and ODR related reforms.

On the positive side, the law ministry of India is planning to upgrade the ADR law of India. Similarly, the Securities and Exchange Board of India (SEBI) has also suggested use of ADR for resolving security related disputes.

Law minister Veerappa Moily has to take active steps in this direction as till now his declarations have been more like noises without actual implementation.

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.

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.

Best Arbitration Institutions In India

Alternative dispute resolution (ADR) in India has been in use since many decades. The present law that governs ADR in India is the Arbitration and Conciliation Act, 1996. The Act provides for ADR remedies through arbitration and mediation. However, the Act suffers from many legal, procedural and structural defects and is in the process of being amended.

There are many good arbitration institutions in India that provide world class arbitration services. However, they are not following the contemporary international practices and norms. For example, there are hardly one or two arbitration institutions that are providing online dispute resolution (ODR) services in India.

In fact there is just a single techno legal ODR centre in India that is providing techno legal ODR services in India and worldwide. Further, there is a single online platform that provides techno legal research, training and education regarding ODR in India.

The national litigation policy of India (NLPI) declared by Law Minister Veerappa Moily is proactive and promising. It has advocated active use of ADR mechanisms like arbitration in India. However, even NLPI failed to consider the contemporary issues like ODR and e-courts.

India has a single ODR institution and single e-courts research, training and consultancy centre. This explains why e-court project of India failed and why till the month of August 2010 we are still waiting for the establishment for first e-court in India.

The problem lies with lack of political and judicial will in India as well as lack of expertise to use information technology for legal and judicial reforms in India. It would be a good idea if concepts like ODR and e-courts are essentially made part of NLPI and the proposed amended arbitration law of 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.

ODR In India Got Techno Legal Rejuvenation

Online Dispute Resolution in India (ODR in India) is in its infancy stage. Even if we compare the same with other parts of the world, India is not lagging much far behind. However, there is a dearth of initiatives in this regard in India.

Further, the laws of India are also not conducive for the establishment and growth of ODR in India. Fortunately, we have a guiding path in the form of techno legal ADR and ODR platform that can be utilised to establish ODR in India.

With the establishment of PTLB training, education and policy making platform a great impetus has been provided to ODR in general and techno –legal issues in particular. The cycle seems to be complete with the establishment of a techno legal ODR platform in this regard.

Law Minister Veerappa Moily must incorporate the relevant provisions in the proposed amendments in the arbitration law of India to accommodate ODR as well. These techno legal platforms can provide valuable guidance and support for an ODR regulatory framework in India and world wide.

Perry4Law Launched Online Dispute Resolution Centre In India

Online dispute resolution (ODR) in India is in its infancy stage and it is gaining prominence day by day. With the enactment of Information Technology Act, 2000 (IT Act 2000) in India, e-commerce and e-governance have been given a formal and legal recognition. Even the traditional arbitration law of India has been reformulated and now India has Arbitration and Conciliation Act, 1996 in place that is satisfying the harmonised standards of UNCITRAL Model. Even the Code of Civil Procedure, 1908 has been amended and section 89 has been introduced to provide methods of alternative dispute resolution (ADR) in India.

However, India is clinging to its traditional core and is shying away from trying new experiments. India is not using information and communication technology (ICT) for dispute resolution whether it pertains to traditional litigation in courts in the form of e-courts or contemporary out of court dispute resolution in the form of online dispute resolution. Fortunately, the first ever Techno-Legal Online Dispute Resolution Centre of India has been launched by Perry4Law that would cater the dispute resolution, training, educational and many more such crucial requirements in India.

There is a lack of training among police, lawyers, judges, etc regarding use of information and communication technology (ICT) for legal, judicial and ADR /ODR purposes. Judges in India need cyber law training, e-courts training, ADR/ODR training, etc that allow them to effectively understand and use ICT for judicial and ADR/ODR purposes.

ODR has many benefits but it has failed to arouse interest of Indians. The present centre has been established at the right moment when backlog of cases has overburdened Indian courts too much. It is high time that the courts in India must also encourage out of court settlements whether through ADR or ODR. The best situation would be when the parties to the disputes actively use ADR/ODR for resolving their disputes.

SOURCE: MYNEWS

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