International Commercial Arbitration In India

International commercial arbitration (ICA) in India has not taken the shape it deserves to be. As a result other countries have established themselves as the hub for ICA whereas India is still trying to reform it arbitration law.

The Arbitration and Conciliation Act 1996 governs the arbitration and mediation regime in India. It has become outdated and requires good amendments to attract ICA in India. At the same time the traditional litigation methods of dispute resolution are not very helpful for high staked commercial disputes. There is an urgent need to bring suitable legal and judicial reforms in India.

One factor that has resulted in inadequate ICA in India is India’s reluctance to use information and communication technology (ICT) for dispute resolution. This has resulted in a limited growth of Online Dispute Resolution (ODR) in India. ICA can be greatly benefited by the use of ODR in India.

Till now only private professionals are having necessary infrastructure and expertise regarding ODR services in India. For instance, techno-legal firm Perry4Law is the only institution that is providing techno-legal ODR services in India through its online dispute resolution centre of India. We need more initiatives on the lines suggested by Perry4Law.

According to Praveen Dalal, Managing Partner of Perry4Law the Law Ministry of India is in the process of revamping its alternative dispute resolution laws and it would be a good idea to make it a comprehensive and technology driven legislation.

We need some really innovative ideas that can bring necessary legal and judicial reforms in India. Perry4Law Techno Legal Base (PTLB) has suggested some innovative technological methods to resolve this problem. The chief among them are use of ODR mechanism and e-courts in India.

The Law Minister Mr. Veerappa Moily must adopt these innovative ideas and must make them a part of the national litigation policy of India (NLPI).

International Commercial Arbitration In India And Commercial Transactions

Information and communication technology (ICT) has given a new meaning to international commercial transactions and business. E-commerce has now become an indispensable part of our day to day commercial activities. This has also given rise to both traditional as well as contemporary international commercial disputes all over the world. So much so that the Law Minister Veerappa Moily has said that a commercial court would be set up in each high court and all cases with an investment exceeding a certain sum will be tried in the commercial court.

At the same time alternative dispute resolution (ADR) mechanism in India is also under the process of rejuvenation. Though online dispute resolution (ODR) and e-courts in India are still a distant dream yet the procedure of bringing suitable amendments in the existing arbitration law of India is in pipeline.

Thus 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 ADR mechanisms like Arbitration, Mediation, Conciliation, etc.

India has tremendous capabilities for both ADR and ODR. However, India is lacking on the front of a good law in this regard. The Arbitration and Conciliation Act, 1996 has proved more to be a burden than a relief. There is an emergent need of reformulating Indian laws in this regard.

Judicial Reforms In India Are Urgently Required

India is in emergent need to adopt judicial reform as public trust and confidence in Indian judiciary is at its nadir. E-Courts have the potential to remove the mammoth backlog of cases existing in India but India does not have expert individuals and firms to implement this ambitious project. There is an emergent need to not only bring transparency and fairness in the judicial dealings in India but also to train and make the judicial officers more competent and up to date. It is high time to do something lest people of India loose their faith in Indian judiciary absolutely.

A blue print of the National Mission for Delivery of Justice and Legal Reforms (NMDJLR) has been recently released by the Law Minister M Veerappa Moily. Judicial reforms in India have become the pressing need of the hour. This is so because the huge backlog of cases is increasing on the one hand and the efficiency of the courts is decreasing on the other. This is happening because the numbers of judicial officers are much shorter than the required strength. If there is not an urgent, immediate and holistic judicial reforms drive in India, the judicial system of India is going to collapse.

E-Courts in India have tremendous potential to reduce the backlog of cases. However, establishment and implementation of e-courts requires techno-legal expertise that is presently missing in India. As a result e-courts projects in India always failed from time to time.

Fortunately, the NMDJLR Plan has many good suggestion that if implemented would be very beneficial for the judicial and legal reforms in India. The problem seems to be lack of “techno-legal expertise” in this regard. India has been evading establishing e-courts since 2003. Even today we come across various media reports claiming establishment of e-courts in India. The mechanism of e-courts facilitates the filing of applications, arguments through the electronic mode, submission of documents and evidence using ICT, etc. Till now none of the essential features of e-courts have been utilised in India.

The NMDJLR Plan has appreciated some of the prerequisites of e-courts and mentioned them in its document. They have to be complied with if we have to establish real and effective e-courts in India. Only time will tell whether the NMDJLR Plan would die in the absence of political will and techno-legal expertise or the government of India would actively use the techno-legal services of world renowned firms like Perry4Law to accomplish it.

SOURCE: GROUND NEWS