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.

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.

Cyber Arbitration In India

Alternative dispute resolution (ADR) in India has a history of more than 60 years with the Arbitration Act 1940 as one of the initial laws in this regard. The 1940 act was repealed by the Arbitration and Conciliation Act 1996.

This has, however, not produced much change in the ADR law of India. The backlog of civil cases keeps on increasing despite the 1996 Act. This is due to the fact that there are many legal, procedural and fundamental weaknesses in the 1996 Act.

The 1996 Act is in the process of reformulation and there are numerous lacunas that must be removed in the next ADR law of India. The Parliament of India has, however, a serious limitation while formulating ADR laws. It is not much aware of the information and communication technology (ICT) related issues of ADR.

Cyber arbitration is one such aspect. Cyber arbitration is popularly known as online dispute resolution (ODR) mechanism. ODR is a better and improved form of ADR provided India is willing to encash its benefits.

The problem is there are very few ODR institutions in India. Even lesser are ODR experts who can resolve technical, legal and other scientific disputes in an online environment. Even the national litigation policy of India (NLPI) failed to address this issue.

There is no doubt that formulating good techno-legal ODR practices and regulations require tremendous expertise. There are few ODR providers who can assist the Indian government in this regard.