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.

ADR And ODR In India

Alternative dispute resolution (ADR) in India is not new and it was in existence even under the previous Arbitration Act, 1940. The Arbitration and Conciliation Act, 1996 has been enacted to accommodate the harmonisation mandates of UNCITRAL Model. To streamline the Indian legal system the traditional civil law known as Code of Civil Procedure, (CPC) 1908 has also been amended and section 89 has been introduced. Section 89 (1) of CPC provides an option for the settlement of disputes outside the court. It provides that where it appears to the court that there exist elements, which may be acceptable to the parties, the court may formulate the terms of a possible settlement and refer the same for arbitration, conciliation, mediation or judicial settlement.

Some bold steps have also been undertaken in India to utilise the benefits of Information and Communication Technology (ICT) for ADR purposes. For instance, Perry4Law has been providing online dispute resolution (ODR) services in India to resolve disputes out of the court. These ODR services are unique as they also cater the needs of techno-legal segment besides the traditional litigation requirements.

India is presently greatly overburdened by the backlog of cases in the courts. If the Indian courts have to function properly, they have to actively use ADR and ODR for out of court dispute resolutions. Further, India has to take care of International commercial arbitration and commercial disputes as well. ADR and ODR seem to be a viable solution for the problem of backlog of cases in India.

SOURCE: GROUND NEWS