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Set up in 1927, the Federation of Indian Chambers of Commerce and Industry (FICCI) is the largest and oldest apex business organization of Indian business. With a nationwide membership of over 2000 corporates and over 500 chambers of commerce and business associations, FICCI espouses the shared vision of Indian businesses and speaks directly and indirectly for over 2,50,000 business units.

Set up in 1927, the Federation of Indian Chambers of Commerce and Industry (FICCI) is the largest and oldest apex business organization of Indian business. With a nationwide membership of over 2000 corporates and over 500 chambers of commerce and business associations, FICCI espouses the shared vision of Indian businesses and speaks directly and indirectly for over 2,50,000 business units.

In order to provide arbitral services for settlement of commercial disputes of a domestic as well as international nature, FICCI, in the year 1952, established FACT (formerly known as the FICCI Tribunal of Arbitration [FTA]). FACT was set up to offer dispute resolution services primarily to FICCI members and other parties who may desire to submit their disputes to FACT. FACT, headquartered at New Delhi with offices spread all across the country and overseas, has an active panel of prominent arbitration experts on its board. Besides, it has signed international co-operation agreements with several arbitration organisations around the world for facilitating international arbitration.

FACT services and rules

The FACT mission is to resolve business disputes outside the traditional framework offered by courts of law, i.e. by various alternate dispute resolution methods, namely arbitration and conciliation, as the case may be. Owing to its unique supervision and management in both arbitration and conciliation, FACT is positioned to offer its clientele customized follow-ups and quality service in an atmosphere of security, transparency and confidentiality.

FACT provides a wide range of services for parties engaged in trade and commerce with and within the region. As an institutional arbitration centre, FACT's outlook is to provide efficient, flexible and impartial administration of dispute resolution proceedings. The services it offers include administrative and support services, such as secretarial and other professional assistance for the holding of arbitration and conciliation proceedings along with supervision of arbitration and conciliation proceedings, appointment of arbitrators, choosing the venue for the arbitration and fixation of the fees of arbitrators and conciliators. FACT maintains a Panel of arbitrators / conciliators of the highest ability and professional competence, recognised for their diverse knowledge and practical experience in their respective fields

Our Aim

  • To administer international and domestic arbitration under the Rules of FACT.
  • To promote public confidence in the ADR mechanism of conciliation / mediation as a process for resolving disputes and to create a culture of settlement of disputes through such mechanisms.
  • To establish and maintain a comprehensive Panel of Arbitrators and Conciliators from an extensive array of distinguished and impartial persons, including retired Judges, Advocates, Chartered Accountants, Executives, Engineers, Company Secretaries, Businessmen, Foreign Nationals, Maritime Experts etc.





Timeline

2023
Jun
Press Release

Reforms undertaken by govt in dispute resolution to act as incentive for investors and take India-UK relations to new heights: Arjun Ram Meghwal

2022
Jul
Event

Conference on Arbitrating INDO-UK Commercial Disputes

2020
Feb
Press Release

Need for setting up a dedicated and specialized Arbitration Bar - Chief Justice of India

Event

International Conference on "Arbitration in the Era of Globalization" - The Third Edition

2019
Dec
Press Release

Arbitration has achieved judicial acceptance in India: Justice Surya Kant, Judge, Supreme Court of India

2018
May
Press Release

New Bill introduced to establish a chamber of Arbitration and Arbitration Academy : Suresh Chandra

2017
Dec
Press Release

Chief Justice of India: Timely, cost-effective and impartial arbitration ecosystem - key to making India a global arbitration hub

Event

International conference: Arbitration in the Era of Globalisation

Jul
Press Release

Arbitration in India will improve when attitude towards it will change - Justice B N Srikrishna

Jan
Event

Workshop on Labour Law Amendments: Impact on Industry

2016
Aug
Event

International Arbitration in BRICS: Challenges, Opportunities and Road ahead

Jul
Press Release

Amendments to the Arbitration Act could boost investors' confidence in India

Jun
Press Release

World Bank partners with the Indian Council of Arbitration (ICA) for Dispute Board services in India

Event

Training Course on SOP for DBs

2015
Dec
Study

ICA organises International Conference on ``Arbitration in the Era of Globalization``

Press Release

Ordinance to make arbitration law more effective in the offing

Study

Background Paper: Arbitration in the Era of Globalization

Event

International Conference on 'Arbitration in the Era of Globalization '

Aug
Press Release

Arbitration will Boost Trade & Commerce in SAARC Region

2014
Dec
Press Release

Need to promote institutional arbitration to place India amongst top 50 countries in the World Bank's ease of doing business ranking - Legal Affairs Secy

2013
Press Release

Justice Sikri urges legal and judicial community to reflect on need for code of ethics for arbitration judges for speedy and cost-effective dispute resolution

Event

48th AGM of Indian Council of Arbitration

2011
Feb
Press Release

FICCI to Assist Delhi Judiciary in Mediation of Commercial Disputes

Event

Seminar On ''Resolving Disputes through Mediation a Win- Win Approach for Business''

Events

Jul, 2022

Conference on Arbitrating INDO-UK Commercial Disputes

Jul 05, 2022,

Feb, 2020

International Conference on "Arbitration in the Era of Globalization" - The Third Edition

Feb 08, 2020, New Delhi

Dec, 2017

International conference: Arbitration in the Era of Globalisation

Dec 09, 2017, FICCI, New Delhi

Jan, 2017

Workshop on Labour Law Amendments: Impact on Industry

Jan 23, 2017, New Delhi

Aug, 2016

International Arbitration in BRICS: Challenges, Opportunities and Road ahead

Aug 27, 2016, New Delhi

Jun, 2016

Training Course on SOP for DBs

Jun 21, 2016, FICCI, New Delhi

Dec, 2015

International Conference on 'Arbitration in the Era of Globalization '

Dec 11, 2015, New Delhi

Dec, 2013

48th AGM of Indian Council of Arbitration

Dec 19, 2013, New Delhi

Feb, 2011

Seminar On ''Resolving Disputes through Mediation a Win- Win Approach for Business''

Feb 19, 2011, Federation House, Tansen Marg, New Delhi

COVID-19 - Legal Update by L&L Partners

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Deccan Herald |

Pendency of cases a major issue: CJI

The Hindu |

CJI moots body to 'pre-vet' deals

AIR News |

Chief justice of India S A Bobde stresses on need for a law to make pre-litigation mediation mandatory

Chief justice of India S A Bobde has stressed on the need to have a comprehensive law on making pre-litigation mediation mandatory. He said it would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the third International Conference organised by the Indian Council of Arbitration (ICA ) and Federation of Indian Chamber of Commerce and Industry (FICCI) yesterday, Justice Bobde said the time is ripe to devise such a law.

The Chief Justice of India said, though arbitration is the most preferred mode of privately resolving a big range of disputes today, it is done at the cost of mediation and conciliation which is faster and less expensive. He said, arbitration and mediation are deeply embedded in dispute resolution mechanisms in India's commercial practices and social life.

The Sentinel |

CJI SA Bobde presses for the formation of AI-based arbitration bars

Chief Justice of India Sharad Arvind Bobde on Saturday asserted that there is huge ignorance about the arbitration system in India and pressed for the need for the formation of arbitration bars.

Arbitration is a technique to resolve disputes outside the court, by referring them to a neutral party for a binding decision.

“Arbitration plays an essential role in the global infrastructure of international trade, commerce, and investment. The presence of arbitration bars is imperative. There is, however, ignorance about arbitration and only few people resort to it,” CJI Bobde.

The Chief Justice said that institutional arbitration has met with “little success in India”.

Citing Justice BN Srikrishna committee report, Justice Bobde said that the lack of credible arbitral institutions, governmental support, specialist arbitration bars, misconception about institutional arbitration and judicial attitude are the reasons why it has not been able to set foot in the country.

“A robust arbitration bar is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of the practitioner with knowledge and experience in the field,” he added.

He said that artificial intelligence (AI) could provide immense benefit for arbitration process and its users.

“AI-based analytics systems could be used to predict cost, duration and possible resolution, including proposing range of settlements based on analysis of previous arbitration of similar size and complexities,” CJI Bobde said.

He further rued that arbitration system is replicating the judicial system.

“Arbitration was meant to be a simple process which it has ceased to be. It is not supposed to mirror litigation,” he said.

The Times of India |

Artificial Intelligence could help in arbitration in globalised era, says CJI

A fortnight after making it public that judiciary is exploring use of artificial intelligence to speed up justice delivery, Chief Justice S A Bobde on Saturday said traditional methods of arbitration in India could be augmented by use of AI to achieve international standards.

Speaking at an International Conference on ‘Arbitration in the Era of Globalisation’, organised by Indian Council of Arbitration and FICCI, the CJI said, “As we conceptualise international arbitration in a globalised era, we must also be cognisant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.”

“Artificial Intelligence could provide immense benefits for the arbitration process and its users. By augmenting human cognitive abilities, AI powered services could assist lawyers in drafting, identification of better authorities, reviewing documents etc. It is also well placed to assist arbitral tribunals in preparation of award, simultaneous judicial review, streamlining case management etc. AI-based analytics system could be used to predict costs, duration and possible resolution including proposing a range of settlement based on analysis of previous arbitrations of similar size and complexity. AI-assisted arbitration holds immense promise for the arbitration community,” he said.

On January 24, CJI Bobde had said he was looking to employ AI, which reads one million characters per second, in judiciary to help judges get gist of voluminous petitions quickly and propel the pace of case disposal.

Hindustan Times |

'Devise law to make mediation agreements binding': CJI SA Bobde

Chief Justice of India (CJI) SA Bobdeon Saturday called for the introduction of a law to ensure that all settlements arrived at in mediation proceedings are binding, and spoke in favour of compulsory pre-litigation mediation to reduce the backlog of cases in courts and save the time of both the courts and litigants.

The CJI was speaking at the third edition of the international conference on Arbitration in the Era of Globalisation, organised by the Indian Council of Arbitration and the Federation of Indian Chambers of Commerce and Industry.

“I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement, that is to say the un-enforceability of an agreement arrived at a mediation, would ensure efficiency and also reduce the time pendency for parties as well as the courts. Maybe if some method could be found for certifying that an agreement has been freely entered into and for making it executable like a degree, mediation could become the most effective ADR (alternative dispute resolution),” he said.

Mediation is an alternative method for resolving disputes between persons without resorting to the courts. In mediation proceedings, a mediator who is a neutral third-party facilitates a dialogue between the two sides in a dispute and works with them to help arrive at a settlement.

However, there is no law regulating mediation in India, and the agreement arrived at after mediation is non-binding. Disputes are many times taken to the courts even after mediation, resulting in loss of significant time in mediation without any fruitful outcome.

The CJI also spoke about the importance of arbitration, calling it the most preferred mode of privately resolving disputes between parties.

“Today, arbitration plays an essential role in the global infrastructure of international trade, commerce and investment. As an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.”

He, however, noted that institutional arbitration has met with limited success in India and a robust bar dedicated to arbitration is critical for the development of institutional arbitration.

“..it is clear that for institutional arbitration to expand its footprint in India, it would require concerted support from all stakeholders, in particular members of the legal profession. A robust arbitration bar is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience in the field of arbitration”, the CJI said.

Institutional arbitration is when an institution specialising in arbitration takes over the dispute and administers the arbitration proceedings between parties.

The problem, Bobde said, was that ADR mechanisms such as arbitration and mediation were seen as secondary options and unless that mindset changes, steps to reform and promote such mechanisms will remain ineffective.

The CJI also called for efforts to explore the use of artificial intelligence (AI) in arbitration, stating that AI-assisted arbitration holds immense promise for the arbitration community.

Hindustan Times |

CJI calls for law binding on mediation to reduce backlog

Chief Justice of India (CJI) SA Bobdeon Saturday called for the introduction of a law to ensure that all settlements arrived at in mediation proceedings are binding, and spoke in favour of compulsory pre-litigation mediation to reduce the backlog of cases in courts and save the time of both the courts and litigants.

The CJI was speaking at the third edition of the international conference on Arbitration in the Era of Globalisation, organised by the Indian Council of Arbitration and the Federation of Indian Chambers of Commerce and Industry.

“I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement, that is to say the un-enforceability of an agreement arrived at a mediation, would ensure efficiency and also reduce the time pendency for parties as well as the courts. Maybe if some method could be found for certifying that an agreement has been freely entered into and for making it executable like a degree, mediation could become the most effective ADR (alternative dispute resolution),” he said.

Mediation is an alternative method for resolving disputes between persons without resorting to the courts. In mediation proceedings, a mediator who is a neutral third-party facilitates a dialogue between the two sides in a dispute and works with them to help arrive at a settlement.

However, there is no law regulating mediation in India, and the agreement arrived at after mediation is non-binding. Disputes are many times taken to the courts even after mediation, resulting in loss of significant time in mediation without any fruitful outcome.

The CJI also spoke about the importance of arbitration, calling it the most preferred mode of privately resolving disputes between parties.

“Today, arbitration plays an essential role in the global infrastructure of international trade, commerce and investment. As an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.”

He, however, noted that institutional arbitration has met with limited success in India and a robust bar dedicated to arbitration is critical for the development of institutional arbitration.

“..it is clear that for institutional arbitration to expand its footprint in India, it would require concerted support from all stakeholders, in particular members of the legal profession. A robust arbitration bar is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience in the field of arbitration”, the CJI said.

Institutional arbitration is when an institution specialising in arbitration takes over the dispute and administers the arbitration proceedings between parties.

The problem, Bobde said, was that ADR mechanisms such as arbitration and mediation were seen as secondary options and unless that mindset changes, steps to reform and promote such mechanisms will remain ineffective.

The CJI also called for efforts to explore the use of artificial intelligence (AI) in arbitration, stating that AI-assisted arbitration holds immense promise for the arbitration community.

The Indian Express |

Time ripe for law on compulsory mediation before litigation: CJI

Underlining the effectiveness of mediation to address commercial disputes, Chief Justice of India S A Bobde on Saturday said it is time to have a comprehensive law on making pre-litigation mediation mandatory.

“I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement, that is to say the unenforceability of an agreement arrived at a mediation, would ensure efficiency and also reduce the time pendency for parties as well as the courts,” the CJI said.

Speaking at the Third International Conference organised by the Indian Council of Arbitration (ICA) and Federation of Indian Chambers of Commerce and Industry (FICCI), the CJI said: “Maybe if some method could be found for certifying that an agreement has been freely entered into and for making it executable like a degree, mediation could become the most effective ADR (Alternative Dispute Resolution mechanism).”

He said though arbitration is the most preferred mode of privately resolving a varied range of disputes today, “however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive”.

Tracing the history of ADR in India, he pointed out that it is not a recent phenomenon. “Arbitration and mediation are a deeply embedded dispute resolution mechanisms in India’s commercial practices and social life… Sage Yajnavalkya is said to have, in ancient Indian texts, referred issues to various arrangements including srenis (occupational guilds), kula (family or clan assemblies), and puga (tribunals that comprised of people dwelling in the same place), all of which closely approximate the present system of arbitration.”

Despite its long history, the arbitration regime in post-Independence India was considered to be archaic, unpredictable and expensive and it was in this background that the Arbitration and Conciliation Act 1996 was enacted.

The last few years, CJI Bobde said, “have witnessed an accelerated maturing of the Indian arbitration regime and community spurred on by an ever-increasing demand for arbitration services in India”.

The success in endeavours aimed at transforming India into an international arbitration hub, he said, would depend on the diligence shown by various stakeholders in spotting and addressing relevant concerns and issues.

Institutional arbitration, he said, has met with limited success in India as Indian parties still show a strong preference for ad hoc over institutional arbitration. He stressed the importance of the role of members of the legal fraternity in solving this and said “a robust arbitration bar is critical” for this.

The CJI also touched upon the importance of “disruptive technologies” in arbitration and said “as one scholar puts it both ‘IA’ (International Arbitration) and ‘AI’ (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance”.

“Artificial Intelligence could provide immense benefits for the arbitration process and its users. By augmenting human cognitive abilities, AI powered services could assist lawyers in drafting, identification of better authorities, reviewing of documents, etc… AI-assisted arbitration holds immense promise for the arbitration community,” he said.

The Telegraph |

CJI Bobde bats for arbitration

Chief Justice of India S.A. Bobde on Saturday underlined the need for developing the country into an international arbitration hub and said a specialised bar of advocates should be developed for the purpose.

Arbitration, mediation and conciliation are alternatives to time-consuming litigation and are used largely to resolve company, corporate and industrial disputes.

Under this system, specialised arbitrators, mediators or conciliators function like informal judges to resolve disputes.

Addressing the 3rd International Conference organised by the Indian Council of Arbitration and the Federation of Indian Chambers of Commerce and Industry (FICCI) here in Delhi, Justice Bobde said arbitration was an ancient Indian concept that seemed to have lost its footprints over time but was revived through the Arbitration and Conciliation Act, 1996, modelled on the lines of the UNCITRAL (United Nations Commission on International Trade Law) framework of laws.

Success in endeavours aimed at transforming India into an international arbitration hub would depend on the diligence shown by various stakeholders in spotting and addressing relevant concerns and issues,” Justice Bobde observed.

The CJI said India is blessed with a talented pool of individuals who can, with adequate training and orientation, act as arbitrators in the most complex of matters.

But given the diversity and quantum of matters being submitted to arbitration, the presence of a specialist arbitration bar with members working in close coordination with competent arbitral institutions is imperative, he said. So far, lawyers practising general law work as arbitrators.

Justice Bobde said: “Arbitration and mediation are a deeply embedded dispute resolution mechanism in India’s commercial practices and social life. Their usage could be traced back to when people voluntarily submitted their disputes to the panchayat, a group of wise men of the community, whose decisions were binding on the parties.

“Sage Yajnavalkya is said to have, in ancient Indian texts, referred issues to various arrangements including Srenis (occupational guilds), Kula (family or clan assemblies), and Puga (tribunals that comprised of people dwelling in the same place), all of which closely approximate the present system of arbitration,” Justice Bobde said.

The Tribune |

Make pre-litigation mediation must: CJI

Noting that judging is a difficult task, Chief Justice of India SA Bobde on Saturday said that popularity was a mirage for judges who tried to resolve disputes that others shunned. He was addressing the ‘3rd International Conference on Arbitration in the Era of Globalisation”. The CJI said judges aimed to resolve a dispute but dissatisfaction resulted in a hierarchy of appeals.

“Judging can be a difficult task and judges do what everybody avoids doing, i.e take decisions. Popularity is a mirage for judges. The idea is to resolve a dispute. But dissatisfaction with the outcome results in a hierarchy of appeals which cannot be avoided.” Highlighting the importance of alternative dispute resolution, he said the judiciary had no control over it and it should not interfere with awards given by arbitrators. The CJI mooted the idea of a comprehensive law for “compulsory pre-litigation mediation” to ensure efficiency and reduce pendency. He said a robust “arbitration bar” was critical to developing institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

“The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasise on the need for pre-litigation mediation, considering its very many benefits. I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement, that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency."

Maintaining that arbitration played an essential role in global infrastructure of international trade, commerce and investment, he said as an integral member of the global community and a trading and investment giant, how India engages with international arbitration had important ramifications on international trans-boundary flow of trade, commerce and investments as a whole.

He, however, cautioned against arbitration mirroring litigation. “The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation,” he maintained.

Advocating the use of disruptive technologies, the CJI said, “Both ‘IA’ (International Arbitration) and ‘AI’ (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance.”

NDTV |

Chief Justice SA Bobde calls for law on compulsory Pre-Litigation Mediation

Chief Justice of India SA Bobde on Saturday called for a comprehensive legislation spelling out "compulsory pre-litigation mediation" that will help reduce the massive pressure on the country's courts.

Speaking at the third edition of an international conference on "Arbitration in the Era of Globalisation", Justice Bobde said a robust "arbitration bar" is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts," he said.

He added that arbitration was not meant to mirror litigation. "The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation," he said.

Justice Bobde said that today arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

"Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth a salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided," he said.

Outlook |

Ignorance about arbitration in India, AI could benefit it: CJI Bobde

Chief Justice of India Sharad Arvind Bobde on Saturday asserted that there is huge ignorance about the arbitration system in India and pressed for the need for formation of arbitration bars.

Arbitration is a technique to resolve disputes outside the court, by referring them to a neutral party for a binding decision.

"Arbitration plays an essential role in the global infrastructure of international trade, commerce and investment. Presence of arbitration bars is imperative. There is, however, ignorance about arbitration and only few people resort to it," CJI Bobde.

The Chief Justice said that institutional arbitration has met with "little success in India".

Citing Justice B.N. Srikrishna committee report, Justice Bobde said that the lack of credible arbitral institutions, governmental support, specialist arbitration bars, misconception about institutional arbitration and judicial attitude are the reasons why it has not been able to set foot in the country.

"A robust arbitration bar is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of the practitioner with knowledge and experience in the field," he added.

He said that artificial intelligence could provide immense benefit for arbitration process and its users.

"AI-based analytics systems could be used to predict cost, duration and possible resolution, including proposing range of settlements based on analysis of previous arbitration of similar size and complexities," CJI Bobde said.

He further rued that arbitration system is replicating the judicial system.

"Arbitration was meant to be a simple process which it has ceased to be. It is not supposed to mirror litigation," he said.

Outlook |

Time is ripe for legislation containing compulsory 'pre-litigation mediation': CJI

Chief Justice of India S A Bobde on Saturday said the time is ripe to devise a comprehensive legislation which contains "compulsory pre-litigation mediation" that would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the 3rd edition of of an international conference on ''Arbitration in the Era of Globalisation'', Justice Bobde said a robust "arbitration bar" is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

Justice Bobde said that today arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

"The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasize on the need of pre-litigation mediation considering its very many benefits.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts," he said.

While talking about India''s role in international arbitration, Justice Bobde said, "In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters."

He added that arbitration was not meant to mirror litigation. "The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation," he said.

Justice Bobde said that in the 21st century, the "global and economic integration, filled by technological innovations, enhanced communication and affordable transportation" have sharply reduced the relevance of national border for trade commerce and economic activities.

"I do agree that the globalisation seems to stay. Exponential growth of trans-boundary interactions necessitates formation of complex regulatory frameworks, including provision of effective and efficient methods of dispute resolution.

"Yet attempts to resolve international commercial or investment disputes in jurisdiction-tethered-state-forums have met with little success. This void has been successfully plugged by various alternate methods of dispute resolution, in particular international arbitration.

"It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration," he said, at the programme was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He further said that one must also be cognizant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.

"Both ''IA'' (International Arbitration) and ''AI'' (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance," he said.

He said that the judges'' aim is to resolve a dispute, but the dissatisfaction in the outcome results in the hierarchy of the appeals which cannot be avoided.

"Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth a salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided.

"And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards," he said.

He further added, "I don''t think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, the interference is also like that of towards a judgment."

"I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process," he said.

Technology For You |

Need for setting up a dedicated and specialized Arbitration Bar : Chief Justice of India

Justice Sharad Arvind Bobde, Chief Justice, Supreme Court of India, today said that arbitration is not meant to mirror litigation.

Speaking at the ICA’s ‘3rd International Conference on Arbitration In The Era of Globalization’, organized at FICCI, Justice Bobde said that Institutional arbitration has met with limited success in India. It is a well-known fact that Indian parties still show a strong preference for adhoc over institutional arbitration, he added.

He added that with the sheer diversity and quantum of matters being submitted to arbitration, presence of a specialist arbitration bar with members who have not migrated from the general bar, who are working in close coordination with competent arbitral institutions is imperative.

Justice Bobde, while emphasizing on adopting the Artificial Intelligence said, “As we conceptualize international arbitration in a globalized era, we must also be cognizant of the synergistic opportunities available for international arbitration through utilization of disruptive technologies.”

He further said, “Pre-litigation mediation is critical to resolve disputes and reduce the stress on courts and the judicial system. We must structure courses and programmes to certify professionals in mediation.”

Justice Bobde added, “Over the last decade or so, a catena of decisions and host of amendments, including fast track arbitration and establishment of specialized commercial courts, have attempted to transform India into a robust centre for international and domestic arbitration.”

Dr Sangita Reddy, President, FICCI, said that arbitration is the answer to expeditiously resolving business and commercial disputes. “Arbitration should be made more effective by minimizing Court intervention in the arbitral awards. Certain steps have already been taken through the interpretation of the Act by the Apex Court but more needs to be done.”

“The courts should prioritize disposal of arbitral related cases through the commercial courts in a speedy manner so that the industry and foreign investors have faith in the arbitration process which includes the post arbitration proceedings before the courts,” added Dr Reddy.

N G Khaitan, President, ICA & Senior Partner, Khaitan & Co said that disruption is the new norm. “It is time for both the legislation and the judiciary and the legal fraternity to support and promote arbitration.”

Ms Geeta Luthra, Senior Advocate & Vice President, ICA said there is a need to ensure that arbitration becomes a more realistic alternate dispute resolution mechanism.

livelaw.in |

'Arbitration is not meant to Mirror Litigation' : CJI Bobde

Arbitration is not meant to mirror litigation, said Chief Justice of India S A Bobde on Saturday.

While speaking at the 3rd International Conference organized by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry at New Delhi, the CJI said :

"Arbitration is not meant to mirror litigation. The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation".

The CJI also commented that Institutional arbitration has met with "limited success" in India. For institutional arbitration to expand its footprint in India, it would require concerted support from all stakeholders, in particular members of the legal profession. A robust arbitration bar is critical to the development of institutional arbitration India as it would ensure availability and accessibility of practitioners with knowledge and experience in the field of arbitration, he said.

The CJI spoke of the utility of Artificial Intelligence in International Arbitration.

"By augmenting human cognitive abilities, AI powered services could assist lawyers in drafting, identification of better authorities, reviewing of documents, etc. It is also well placed to assist arbitral tribunals in preparation of award, simulation of judicial review, streamlining case management, etc. AI based analytics systems could be used to predict costs, duration and possible resolution including proposing range of settlement based on analysis of previous arbitrations of similar size and complexity. AI assisted arbitration holds immense promise for the arbitration community", he said.

The Chief Justice lamented the failure of Alternate Dispute Resolution mechanism in bringing out the desired results. The problem lies in the mindset of public, which takes litigation as the "default mode", and ADR as the "alternative", quite literally!

"This mindset needs to change, and unless it does, all other reforms to promote ADR methods including arbitration, are likely to remain ineffective. A conscious effort must be made by all stakeholders to reorient the way they perceive ADR mechanisms, in particular arbitration".

The CJI also called for legislative changes to make mediation agreements enforceable in law.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts. Maybe if some method could be found for certifying that an agreement has been freely entered into and for making it executable like a degree, mediation could become the most effective ADR".

The Economic Times |

Time is ripe for legislation containing compulsory 'pre-litigation mediation': CJI

Chief Justice of India S A Bobde on Saturday said the time is ripe to devise a comprehensive legislation which contains "compulsory pre-litigation mediation" that would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the 3rd edition of of an international conference on 'Arbitration in the Era of Globalisation', Justice Bobde said a robust "arbitration bar" is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

Justice Bobde said that today arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

"The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasize on the need of pre-litigation mediation considering its very many benefits.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts," he said.

While talking about India's role in international arbitration, Justice Bobde said, "In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters."

He added that arbitration was not meant to mirror litigation. "The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation," he said.

Justice Bobde said that in the 21st century, the "global and economic integration, filled by technological innovations, enhanced communication and affordable transportation" have sharply reduced the relevance of national border for trade commerce and economic activities.

"I do agree that the globalisation seems to stay. Exponential growth of trans-boundary interactions necessitates formation of complex regulatory frameworks, including provision of effective and efficient methods of dispute resolution.

"Yet attempts to resolve international commercial or investment disputes in jurisdiction-tethered-state-forums have met with little success. This void has been successfully plugged by various alternate methods of dispute resolution, in particular international arbitration.

"It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration," he said, at the programme was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He further said that one must also be cognizant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.

"Both 'IA' (International Arbitration) and 'AI' (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance," he said.

He said that the judges' aim is to resolve a dispute, but the dissatisfaction in the outcome results in the hierarchy of the appeals which cannot be avoided.

"Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth a salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided.

"And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards," he said.

He further added, "I don't think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, interference is also like that of towards a judgment."

"I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process," he said.

Business Standard |

Time ripe for legislation carrying compulsory pre-litigation mediation: CJI

Chief Justice of India S A Bobde on Saturday said the time is ripe to devise a comprehensive legislation which contains "compulsory pre-litigation mediation" that would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the 3rd edition of of an international conference on 'Arbitration in the Era of Globalisation', Justice Bobde said a robust "arbitration bar" is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

Justice Bobde said that today arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

"The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasize on the need of pre-litigation mediation considering its very many benefits.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts," he said.

While talking about India's role in international arbitration, Justice Bobde said, "In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters."

He added that arbitration was not meant to mirror litigation. "The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation," he said.

Justice Bobde said that in the 21st century, the "global and economic integration, filled by technological innovations, enhanced communication and affordable transportation" have sharply reduced the relevance of national border for trade commerce and economic activities.

"I do agree that the globalisation seems to stay. Exponential growth of trans-boundary interactions necessitates formation of complex regulatory frameworks, including provision of effective and efficient methods of dispute resolution.

"Yet attempts to resolve international commercial or investment disputes in jurisdiction-tethered-state-forums have met with little success. This void has been successfully plugged by various alternate methods of dispute resolution, in particular international arbitration.

"It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration," he said, at the programme was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He further said that one must also be cognizant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.

"Both 'IA' (International Arbitration) and 'AI' (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance," he said.

He said that the judges' aim is to resolve a dispute, but the dissatisfaction in the outcome results in the hierarchy of the appeals which cannot be avoided.

"Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth a salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided.

"And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards," he said.

He further added, "I don't think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, the interference is also like that of towards a judgment."

"I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process," he said.

Financial Express |

Time is ripe for legislation containing compulsory ‘pre-litigation mediation’: CJI SA Bobde

Chief Justice of India S A Bobde on Saturday said the time is ripe to devise a comprehensive legislation which contains “compulsory pre-litigation mediation” that would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the 3rd edition of of an international conference on ‘Arbitration in the Era of Globalisation’, Justice Bobde said a robust “arbitration bar” is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

Justice Bobde said that today arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

“The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasize on the need of pre-litigation mediation considering its very many benefits.

“I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts,” he said.

While talking about India’s role in international arbitration, Justice Bobde said, “In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters.”

He added that arbitration was not meant to mirror litigation. “The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation,” he said.

Justice Bobde said that in the 21st century, the “global and economic integration, filled by technological innovations, enhanced communication and affordable transportation” have sharply reduced the relevance of national border for trade commerce and economic activities.

“I do agree that the globalisation seems to stay. Exponential growth of trans-boundary interactions necessitates formation of complex regulatory frameworks, including provision of effective and efficient methods of dispute resolution.

“Yet attempts to resolve international commercial or investment disputes in jurisdiction-tethered-state-forums have met with little success. This void has been successfully plugged by various alternate methods of dispute resolution, in particular international arbitration.

“It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration,” he said, at the programme was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He further said that one must also be cognizant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.

“Both ‘IA’ (International Arbitration) and ‘AI’ (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance,” he said.

He said that the judges’ aim is to resolve a dispute, but the dissatisfaction in the outcome results in the hierarchy of the appeals which cannot be avoided.

“Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth a salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided.

“And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards,” he said.

He further added, “I don’t think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, the interference is also like that of towards a judgment.”

“I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process,” he said.

The Times of India |

Arbitration not meant to mirror litigation, says CJI SA Bobde

Chief Justice of India (CJI), Justice Sharad Arvind Bobde on Friday said that arbitration is not meant to mirror litigation.

Institutional arbitration has met with limited success in India, the CJI was quoted as saying at the Indian Council of Arbitration (ICA) '3rd International Conference on Arbitration In The Era of Globalization'.

It is a well-known fact that Indian parties still show a strong preference for adhoc over institutional arbitration, he said.

The Chief Justice of India said it is clear that for institutional arbitration to expand its footprint in India, it would require concerted support from all stakeholders, in particular members of the legal profession.

"A robust arbitration bar is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience in the field of arbitration," Justice Bobde was quoted as saying, according to a statement.

He added that with the sheer diversity and quantum of matters being submitted to arbitration, the presence of a specialist arbitration bar with members who have not migrated from the general bar, who are working in close coordination with competent arbitral institutions is imperative.

Justice Bobde, while emphasizing on adopting Artificial Intelligence said, "As we conceptualize international arbitration in a globalized era, we must also be cognizant of the synergistic opportunities available for international arbitration through utilization of disruptive technologies."

He further said, "Pre-litigation mediation is critical to resolve disputes and reduce the stress on courts and the judicial system. We must structure courses and programmes to certify professionals in mediation."

Dr Sangita Reddy, President, FICCI, said that arbitration is the answer to expeditiously resolving business and commercial disputes.

"Arbitration should be made more effective by minimizing court intervention in the arbitral awards. Certain steps have already been taken through the interpretation of the Act by the Apex Court but more needs to be done," Dr Reddy said.

Devdiscourse |

Arbitration not meant to mirror litigation, says CJI SA Bobde

Chief Justice of India (CJI), Justice Sharad Arvind Bobde on Friday said that arbitration is not meant to mirror litigation. Institutional arbitration has met with limited success in India, the CJI was quoted as saying at the Indian Council of Arbitration (ICA) '3rd International Conference on Arbitration In The Era of Globalization'.

It is a well-known fact that Indian parties still show a strong preference for adhoc over institutional arbitration, he said. The Chief Justice of India said it is clear that for institutional arbitration to expand its footprint in India, it would require concerted support from all stakeholders, in particular members of the legal profession.

"A robust arbitration bar is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience in the field of arbitration," Justice Bobde was quoted as saying, according to a statement. He added that with the sheer diversity and quantum of matters being submitted to arbitration, the presence of a specialist arbitration bar with members who have not migrated from the general bar, who are working in close coordination with competent arbitral institutions is imperative.

Justice Bobde, while emphasizing on adopting Artificial Intelligence said, "As we conceptualize international arbitration in a globalized era, we must also be cognizant of the synergistic opportunities available for international arbitration through utilization of disruptive technologies." He further said, "Pre-litigation mediation is critical to resolve disputes and reduce the stress on courts and the judicial system. We must structure courses and programmes to certify professionals in mediation."

Dr Sangita Reddy, President, FICCI, said that arbitration is the answer to expeditiously resolving business and commercial disputes. "Arbitration should be made more effective by minimizing court intervention in the arbitral awards. Certain steps have already been taken through the interpretation of the Act by the Apex Court but more needs to be done," Dr Reddy said.

The World News |

Time is ripe for legislation containing compulsory 'pre-litigation mediation': CJI

Chief Justice of India S A Bobde on Saturday mentioned the time is ripe to plan a complete legislation which comprises “compulsory pre-litigation mediation” that will guarantee effectivity and cut back the time of pendency for events in addition to courts.

Talking on the third version of of a global convention on ‘Arbitration within the Period of Globalisation‘, Justice Bobde mentioned a sturdy “arbitration bar” is important to the event of institutional arbitration in India as it might guarantee availability and accessibility of practitioners with data and expertise.

Justice Bobde mentioned that as we speak arbitration performs a necessary function within the international infrastructure of worldwide commerce, commerce and funding and as an integral member of the worldwide group and a buying and selling and funding large, how India engages with worldwide arbitration has vital ramifications on worldwide trans-boundary flows of commerce, commerce and investments as an entire.

“The pre-institution mediation and settlement as talked about within the Business Courts Act would pave the best way for many extra establishments to emphasise on the necessity of pre-litigation mediation contemplating its very many advantages.

“I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts,” he mentioned.

Whereas speaking about India’s function in worldwide arbitration, Justice Bobde mentioned, “In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters.”

He added that arbitration was not meant to reflect litigation. “The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation,” he mentioned.

Justice Bobde mentioned that within the 21st century, the “global and economic integration, filled by technological innovations, enhanced communication and affordable transportation” have sharply diminished the relevance of nationwide border for commerce commerce and financial actions.

“I do agree that the globalisation appears to remain. Exponential development of trans-boundary interactions necessitates formation of advanced regulatory frameworks, together with provision of efficient and environment friendly strategies of dispute decision.

“But makes an attempt to resolve worldwide business or funding disputes in jurisdiction-tethered-state-forums have met with little success. This void has been efficiently plugged by numerous alternate strategies of dispute decision, specifically worldwide arbitration.

“It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration,” he mentioned, on the programme was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He additional mentioned that one should even be cognizant of the synergistic alternatives out there for worldwide arbitration by means of utilisation of disruptive applied sciences.

“Both ‘IA’ (International Arbitration) and ‘AI’ (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance,” he mentioned.

He mentioned that the judges’ purpose is to resolve a dispute, however the dissatisfaction within the end result ends in the hierarchy of the appeals which can’t be averted.

“Judging generally is a troublesome activity and judges do what all people avoids doing, i.e., take choices. Recognition is a mirage for judges. No decide value a salt goals at reputation. The thought is to resolve a dispute. However there is a dissatisfaction within the end result which ends up in the hierarchy of the appeals which can’t be averted.

“And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards,” he mentioned.

He additional added, “I don’t think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, the interference is also like that of towards a judgment.”

“I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process,” he mentioned.

The Week |

CJI Bobde bats for law containing compulsory 'pre-litigation mediation'

Chief Justice of India S A Bobde on Saturday said the time is ripe to devise a comprehensive legislation that contains "compulsory pre-litigation mediation", which would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the 3rd edition of of an international conference on 'Arbitration in the Era of Globalisation', Justice Bobde said a robust "arbitration bar" is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

Justice Bobde said arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

"The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasize on the need of pre-litigation mediation considering its very many benefits.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts," he said.

While talking about India's role in international arbitration, Justice Bobde said, "In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters."

He added that arbitration was not meant to mirror litigation. "The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation," he said.

Justice Bobde said that in the 21st century, the "global and economic integration, filled by technological innovations, enhanced communication and affordable transportation" have sharply reduced the relevance of national border for trade commerce and economic activities.

"I do agree that the globalisation seems to stay. Exponential growth of trans-boundary interactions necessitates formation of complex regulatory frameworks, including provision of effective and efficient methods of dispute resolution.

"Yet attempts to resolve international commercial or investment disputes in jurisdiction-tethered-state-forums have met with little success. This void has been successfully plugged by various alternate methods of dispute resolution, in particular international arbitration.

"It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration," he said, at the programme was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He further said that one must also be cognizant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.

"Both 'IA' (International Arbitration) and 'AI' (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance," he said.

He said that the judges' aim is to resolve a dispute, but the dissatisfaction in the outcome results in the hierarchy of the appeals which cannot be avoided.

"Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth a salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided.

"And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards," he said.

He further added, "I don't think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, the interference is also like that of towards a judgment."

"I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process," he said.

Republic TV |

CJI Bobde bats for law containing compulsory 'pre-litigation mediation'

Chief Justice of India S A Bobde on Saturday said the time is ripe to devise a comprehensive legislation that contains "compulsory pre-litigation mediation", which would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the 3rd edition of of an international conference on 'Arbitration in the Era of Globalisation', Justice Bobde said a robust "arbitration bar" is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

Justice Bobde said arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

"The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasize on the need of pre-litigation mediation considering its very many benefits.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts," he said.

While talking about India's role in international arbitration, Justice Bobde said, "In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters."

He added that arbitration was not meant to mirror litigation. "The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation," he said.

Justice Bobde said that in the 21st century, the "global and economic integration, filled by technological innovations, enhanced communication and affordable transportation" have sharply reduced the relevance of national border for trade commerce and economic activities.

"I do agree that the globalisation seems to stay. Exponential growth of trans-boundary interactions necessitates formation of complex regulatory frameworks, including provision of effective and efficient methods of dispute resolution.

"Yet attempts to resolve international commercial or investment disputes in jurisdiction-tethered-state-forums have met with little success. This void has been successfully plugged by various alternate methods of dispute resolution, in particular international arbitration.

"It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration," he said, at the programme was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He further said that one must also be cognizant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.

"Both 'IA' (International Arbitration) and 'AI' (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance," he said.

He said that the judges' aim is to resolve a dispute, but the dissatisfaction in the outcome results in the hierarchy of the appeals which cannot be avoided.

"Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth a salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided.

"And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards," he said.

He further added, "I don't think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, the interference is also like that of towards a judgment."

"I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process," he said.

Timesnownews.com |

No judge aims for popularity, only to resolve disputes: CJI Sharad Arvind Bobde

Chief Justice of India (CJI) Sharad Arvind Bobde on Saturday asserted that judging is a difficult task, while adding that judges never aim at gaining popularity but only at resolution of disputes.

"Judging can be a difficult task. Judges do what everybody avoids, which is taking decisions. No judge aims at popularity, the idea is to resolve disputes," Bobde said at an international conference on 'Arbitration in the era of Globalisation' here.

Arbitration is a technique to resolve disputes outside the court, by referring them to a neutral party for a binding decision. Addressing the conference, he said that arbitration should not mirror the judicial process.

"Globalisation has led to growth in cross-border trading which has in turn led to arbitration," the CJI added.

News18 |

'No Judge Worth One's Salt Aims at Popularity': CJI Bobde on Dispute Redressal

Chief Justice of India SA Bobde on Saturday said the time is ripe to devise a comprehensive legislation which contains "compulsory pre-litigation mediation" that would ensure efficiency and reduce the time of pendency for parties as well as courts.

Speaking at the 3rd edition of an international conference on 'Arbitration in the Era of Globalisation', Justice Bobde said a robust "arbitration bar" is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of practitioners with knowledge and experience.

Justice Bobde said today, arbitration plays an essential role in the global infrastructure of international trade, commerce and investment and as an integral member of the global community and a trading and investment giant, how India engages with international arbitration has important ramifications on international trans-boundary flows of trade, commerce and investments as a whole.

“The pre-institution mediation and settlement as mentioned in the Commercial Courts Act would pave the way for many more institutions to emphasise on the need of pre-litigation mediation considering its very many benefits.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts," he said.

While talking about India's role in international arbitration, Justice Bobde said, "In recent times, globalisation has led to the dramatic growth in cross-border transactions involving India, which has led to an increasing demand for cross-border arbitration. This has resulted in establishment of transnational practices to deal with growing quantum and complexity of matters."

He added that arbitration was not meant to mirror litigation. “The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation," he said.

Justice Bobde said that in the 21st century, the "global and economic integration, filled by technological innovations, enhanced communication and affordable transportation" have sharply reduced the relevance of national border for trade commerce and economic activities.

"I do agree that globalisation seems to stay. Exponential growth of trans-boundary interactions necessitates formation of complex regulatory frameworks, including provision of effective and efficient methods of dispute resolution.

"Yet attempts to resolve international commercial or investment disputes in jurisdiction-tethered-state-forums have met with little success. This void has been successfully plugged by various alternate methods of dispute resolution, in particular international arbitration.

"It would not be wrong to suggest that today arbitration is the most preferred mode of privately resolving a varied range of disputes, however it must be kept in mind that the same is at the cost of mediation and conciliation which is much faster and less expensive than arbitration," he said, at the programme that was organised by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry.

He further said one must also be cognizant of the synergistic opportunities available for international arbitration through utilisation of disruptive technologies.

"Both 'IA' (International Arbitration) and 'AI' (Artificial Intelligence) are leading alternatives to status quo: IA to traditional methods of dispute resolution, AI to traditional methods of performance," he said.

He said that the judges' aim is to resolve a dispute, but the dissatisfaction in the outcome results in the hierarchy of the appeals which cannot be avoided.

“Judging can be a difficult task and judges do what everybody avoids doing, i.e., take decisions. Popularity is a mirage for judges. No judge worth one’s salt aims at popularity. The idea is to resolve a dispute. But there is a dissatisfaction in the outcome which results in the hierarchy of the appeals which cannot be avoided.

"And therefore the utmost importance of alternative dispute resolution and that is something over the judiciary has no control except that it should not interfere with awards," he said.

He further added, "I don't think it was intended that the arbitrators should look at pleadings, look at evidence, analyse pleadings, look at precedents and then deliver the award which must be like a judgement. And once you deliver an award which reads like a judgment, the interference is also like that of towards a judgment."

"I think arbitrator was intended to be somebody who knows the subject, who knows the people who have appointed him, who have broad idea of the dispute and is simply looks at the evidence and says this should be the result. This was meant to be a simple process," he said.

livelaw.in |

'Arbitration is not meant to Mirror Litigation' : CJI Bobde

Arbitration is not meant to mirror litigation, said Chief Justice of India S A Bobde on Saturday.

While speaking at the 3rd International Conference organized by Indian Council of Arbitration and Federation of Indian Chambers of Commerce and Industry at New Delhi, the CJI said :

"Arbitration is not meant to mirror litigation. The time-consuming methods of long oral arguments, long written submissions and a reference to precedence are bound to bring about the same effect in arbitration as it is done in litigation".

The CJI also commented that Institutional arbitration has met with "limited success" in India. For institutional arbitration to expand its footprint in India, it would require concerted support from all stakeholders, in particular members of the legal profession. A robust arbitration bar is critical to the development of institutional arbitration India as it would ensure availability and accessibility of practitioners with knowledge and experience in the field of arbitration, he said.

The CJI spoke of the utility of Artificial Intelligence in International Arbitration.

"By augmenting human cognitive abilities, AI powered services could assist lawyers in drafting, identification of better authorities, reviewing of documents, etc. It is also well placed to assist arbitral tribunals in preparation of award, simulation of judicial review, streamlining case management, etc. AI based analytics systems could be used to predict costs, duration and possible resolution including proposing range of settlement based on analysis of previous arbitrations of similar size and complexity. AI assisted arbitration holds immense promise for the arbitration community", he said.

The Chief Justice lamented the failure of Alternate Dispute Resolution mechanism in bringing out the desired results. The problem lies in the mindset of public, which takes litigation as the "default mode", and ADR as the "alternative", quite literally!

"This mindset needs to change, and unless it does, all other reforms to promote ADR methods including arbitration, are likely to remain ineffective. A conscious effort must be made by all stakeholders to reorient the way they perceive ADR mechanisms, in particular arbitration".

The CJI also called for legislative changes to make mediation agreements enforceable in law.

"I think the time is ripe to devise a comprehensive legislation which contains compulsory pre-litigation mediation and a remedy for the biggest drawback in a mediation agreement that is to say the unenforceability of an agreement arrived at a mediation would ensure efficiency and also reduce the time pendency for parties as well as the courts. Maybe if some method could be found for certifying that an agreement has been freely entered into and for making it executable like a degree, mediation could become the most effective ADR".

Research Columnist |

Time is ripe for law containing obligatory ‘pre-litigation mediation’: CJI

Leader Justice of India S A Bobde on Saturday stated the time is ripe to plan a complete law which accommodates “obligatory pre-litigation mediation” that might be certain potency and scale back the time of pendency for events in addition to courts.

Talking on the third version of of a world convention on ‘Arbitration within the Generation of Globalisation’, Justice Bobde stated a strong “arbitration bar” is important to the advance of institutional arbitration in India as it could be certain availability and accessibility of practitioners with wisdom and revel in.

Justice Bobde stated that as of late arbitration performs an crucial position within the world infrastructure of global industry, trade and funding and as an integral member of the worldwide group and a buying and selling and funding large, how India engages with global arbitration has necessary ramifications on global trans-boundary flows of industry, trade and investments as a complete.

“The pre-institution mediation and agreement as discussed within the Industrial Courts Act would pave the best way for lots of extra establishments to emphasise at the want of pre-litigation mediation making an allowance for its very many advantages.

“I believe the time is ripe to plan a complete law which accommodates obligatory pre-litigation mediation and a treatment for the most important downside in a mediation settlement this is to mention the unenforceability of an settlement arrived at a mediation would be certain potency and in addition scale back the time pendency for events in addition to the courts,” he stated.

Whilst speaking about India’s position in global arbitration, Justice Bobde stated, “Lately, globalisation has resulted in the dramatic expansion in cross-border transactions involving India, which has resulted in an expanding call for for cross-border arbitration. This has ended in established order of transnational practices to care for rising quantum and complexity of issues.”

He added that arbitration used to be now not intended to reflect litigation. “The time-consuming strategies of lengthy oral arguments, lengthy written submissions and a connection with priority are sure to result in the similar impact in arbitration as it’s accomplished in litigation,” he stated.

Justice Bobde stated that within the 21st century, the “world and financial integration, crammed through technological inventions, enhanced verbal exchange and reasonably priced transportation” have sharply decreased the relevance of nationwide border for industry trade and financial actions.

“I do agree that the globalisation turns out to stick. Exponential expansion of trans-boundary interactions necessitates formation of advanced regulatory frameworks, together with provision of efficient and environment friendly strategies of dispute solution.

“But makes an attempt to get to the bottom of global business or funding disputes in jurisdiction-tethered-state-forums have met with little luck. This void has been effectively plugged through quite a lot of exchange strategies of dispute solution, particularly global arbitration.

“It could now not be flawed to indicate that as of late arbitration is probably the most most popular mode of privately resolving a various vary of disputes, on the other hand it will have to be stored in thoughts that the similar is at the price of mediation and conciliation which is way quicker and more cost effective than arbitration,” he stated, on the programme used to be organised through Indian Council of Arbitration and Federation of Indian Chambers of Trade and Business.

He additional stated that one will have to even be cognizant of the synergistic alternatives to be had for global arbitration thru utilisation of disruptive applied sciences.

“Each ‘IA’ (World Arbitration) and ‘AI’ (Synthetic Intelligence) are main choices to established order: IA to standard strategies of dispute solution, AI to standard strategies of efficiency,” he stated.

He stated that the judges’ goal is to get to the bottom of a dispute, however the dissatisfaction within the consequence leads to the hierarchy of the appeals which can’t be have shyed away from.

“Judging is usually a tough activity and judges do what everyone avoids doing, i.e., take selections. Recognition is a mirage for judges. No pass judgement on value a salt objectives at reputation. The speculation is to get to the bottom of a dispute. However there’s a dissatisfaction within the consequence which ends up in the hierarchy of the appeals which can’t be have shyed away from.

“And subsequently the maximum significance of other dispute solution and that’s one thing over the judiciary has no keep an eye on with the exception of that it must now not intervene with awards,” he stated.

He additional added, “I don’t believe it used to be supposed that the arbitrators must have a look at pleadings, have a look at proof, analyse pleadings, have a look at precedents after which ship the award which will have to be like a judgement. And whenever you ship an award which reads like a judgment, the interference may be like that of in opposition to a judgment.”

“I believe arbitrator used to be supposed to be anyone who is aware of the topic, who is aware of the individuals who have appointed him, who’ve wide concept of the dispute and is just appears to be like on the proof and says this must be the outcome. This used to be intended to be a easy procedure,” he stated.

Business World |

Indian Arbitration System should be ‘Seamless & Efficient’: Justice B.R. Gavai

It normally does not happen that on a single day, India’s two leading industry bodies – FICCI & ASSOCHAM – organizes seminar on similar themes. On December 7, Saturday, top judges of Supreme Court emphasized the need for India to not only evolve an Arbitration System that should be ‘seamless and efficient’ but the arbitrators need to take care of ethics while conducting the proceedings at the two separate events held on the same day.

At the Global Conference on International Commercial Arbitration organised by industry body ASSOCHAM, Justice B.R. Gavai, Judge, Supreme Court of India said in order to build confidence among international investors it is very necessary to establish that dispute redressal system in India that will not be time consuming.
In another event on arbitration organized by FICCI, a leading industry body, Justice Surya Kant, Judge, Supreme Court of India said that arbitration in India has achieved judicial acceptance but the arbitrators need to take care of ethics while conducting the proceedings.

“Today’s conference will go a long way in emerging India as a preferred arbitration destination. It will go a long way in resolving international commercial disputes in India in a shortest possible manner. It will go a long way in growing India as one of the most emerging economies of the world,” Justice B.R. Gavai said.

In his keynote address Justice Hari Shankar, Judge, Delhi High Court said that international commercial arbitration today has achieved a great deal of significance and in years to come commercial disputes in international arena are most likely to be completely resolved by arbitral process rather than litigation process. "So it is essential that such conferences where we get to know the nitty-gritties of international commercial arbitration are welcome and are held more often," he added.

Vineet Agarwal, Vice President, ASSOCHAM said, “The dispute resolution process has a huge impact on the Indian Economy and the global perception of doing business in India. This is clearly indicated by the World Bank rating on ease of doing business. Hence, it is very imperative for us to discuss effect and implications of amended arbitration and reconciliation bill and establishment of commercial partners. India is on track to build confidence in its legal system which is the fundamental condition for any country to become International Arbitration venue.”

FICCI Event: Indian Council of Arbitration

In another event on arbitration organized by FICCI, a leading industry body, Justice Surya Kant, Judge, Supreme Court of India said that arbitration in India has achieved judicial acceptance but the arbitrators need to take care of ethics while conducting the proceedings.

Speaking at the conference on ‘Arbitration in India: The New Scenario’, organized by Indian Council of Arbitration (ICA) at FICCI, Justice Kant said that the need for arbitration grew post-1991 after India’s integration with the global economy.

“Indian courts have developed new attitudes to balance constitutional objectives with economic realities. There is a sea change in the approach of Indian courts towards arbitration. Arbitration has now achieved judicial acceptance in India,” he said.

Justice Kant, however, flagged some areas of concern related to arbitration. He said the cost factor plays an important role for parties going into arbitration and so it should not be conducted according to the strict procedures of court proceedings.

Saying India still lacks enforceability of contracts, he warned about the possibility of arbitration converting into litigation. “Ethics is one area where arbitration institutions need to strengthen themselves. It is necessary to focus on ethics in arbitration given that arbitration to some extent replaces courts,” he added.

Apart from stressing the importance of ethics, independence and impartiality among the arbitrators, he advocated for institutional arbitration as the ad-hoc arbitration can lead to unpredictability. Arbitration must be taken as a regular profession, he said.

Justice JR Midha, Judge, Delhi High Court, spoke about a new procedure he had formulated in Delhi High Court, which is expected to revolutionize the enforcement of arbitral awards.

Stressing on the need to invoke morality or justice in setting aside arbitral awards, he said, “When we are hearing an appeal against a civil decree and order, we are not supposed to look at the morality. We are supposed to look only at legality. But arbitration awards should be put at a higher pedestal.” The ultimate purpose of every judicial proceeding is to find the truth and then do justice, he added.

NG Khaitan, President, ICA, said, “All stakeholders must take arbitration as serious business to overcome one of the hindrances to ease of doing business in India and to overcome delay in enforcement of contracts.”

The Free Press Journal |

Panel to review penal provisions under cos law

The government on Sunday said it has constituted a 10-member committee to review the penal provisions under the companies law and examine de-criminalisation of certain offences.

The high-level panel, chaired by Corporate Affairs Secretary Injeti Srinivas, would submit its report in 30 days to the government.

Noted banker Uday Kotak, former Lok Sabha Secretary General TK Vishwanathan, law firms Shardul Amarchand Mangaldas’ Executive Chairman Shardul S Shroff and AZB & Partners’ Founder Managing Partner Ajay Bahl are among the members.

The Corporate Affairs Ministry has set up the panel for review of the penal provisions in the Companies Act, 2013 to examine ‘de-criminalisation’ of certain offences. The ministry “seeks to review offences under the Companies Act, 2013 as some of the offences may be required to be decriminalised and handled in an in-house mechanism, where a penalty could be levied in instances of default,” a release said.

This would also allow the trial courts to pay more attention to offences of serious nature, it added. According to the ministry, it has been decided that the existing compoundable offences in the Act — offences punishable with fine only or punishable with fine or imprisonment or both, may be examined.

“A decision may be taken as to whether any of such offences may be considered as ‘civil wrongs’ or ‘defaults’ where a penalty by an adjudicating officer may be imposed in the first place and only consequent to further non-compliance of the order of such authority will it be categorised as an offence triable by a special court,” it noted. Further, the panel would look at whether any non-compoundable offences — offence punishable with imprisonment only, or punishable with imprisonment and also with fine under the Act, may be made compoundable. The committee would examine the nature of all ‘acts’ and recommend if any of such ‘acts’ may be re-categorised as ‘acts’ which attract civil liabilities wherein the company and its ‘officers in default’ are liable for penalty.

GSA Associate’s Senior Partner Amarjit Chopra, Vidhi Centre for Legal Policy’s Arghya Sengupta, former FICCI President Sidharth Birla, Smart Group’s Partner Preeti Malhotra and a Joint Secretary of the ministry are also members of the panel.

Financial Express |

Ten-member panel to review penal provisions under companies law

The Ministry of Corporate Affairs (MCA) has constituted a 10-member committee to review the penal provisions under the companies law and examine decriminalisation of certain offences, a government release said.

The committee will be headed by MCA secretary Injeti Srinivas. The members include Kotak Mahindra Bank MD Uday Kotak, former FICCI president Sidharth Birla, former Lok Sabha secretary general TK Vishwanathan, law firm Shardul Amarchand Mangaldas executive chairman Shardul S Shroff and AZB & Partners founder managing partner Ajay Bahl. The committee will submit its report to the government in 30 days, the release said.

The government “seeks to review offences under the Companies Act, 2013 as some of the offences may be required to be decriminalised and handled in an in-house mechanism, where a penalty could be levied in instances of default,” the release said, adding that this would also allow trial courts to pay more attention to offences of serious nature.

According to the ministry, it has been decided that the existing compoundable offences in the Act – offences punishable with fine only or punishable with fine or imprisonment or both, may be examined.

“A decision may be taken as to whether any of such offences may be considered as ‘civil wrongs’ or ‘defaults’ where a penalty by an adjudicating officer may be imposed in the first place and only consequent to further non-compliance of the order of such authority will it be categorised as an offence triable by a special court,” it said.

The panel will look at whether any non-compoundable offences – offence punishable with imprisonment only, or punishable with imprisonment and also with fine under the Act, may be made compoundable. It will examine the nature of all ‘acts’ and recommend if any of such ‘acts’ may be re-categorised as ‘acts’ which attract civil liabilities wherein the company and its ‘officers in default’ are liable for penalty.

The Economic Times |

MCA panel may offer penal relief for some offences

The government is looking to decriminalise some of the offences in the Companies Act of 2013 so that courts are freed of these cases to focus on more important ones.

The ministry of corporate affairs (MCA) has set up a 10-member committee to review the penal provisions in the Act.

The committee, to be headed by the MCA secretary, may propose decriminalisation and suggest ways in which to replace the provisions with an in-house mechanism, where a penalty could be levied in instances of default.

“This would also allow the trial courts to pay more attention on offences of serious nature,” MCA said in a statement. The committee, which has Uday Kotak, Shardul S Shroff, Sidharth Birla and Bankruptcy Law Reforms Committee chairman TK Vishwanathan among its members, will submit its report with recommendations within 30 days to the government.

The committee will see if existing compoundable offences in the Companies Act can be considered as ‘civil wrongs’ or ‘defaults’ where a penalty by an adjudicating officer can be levied.

Only consequent to further non-compliance of the order of such authority will it be categorised as an offence that can be tried by a special court.

Compoundable offences are those that are punishable with just a fine or with a fine or imprisonment or both.

The panel will look into the possibility of making several non-compoundable offences — offences punishable with imprisonment only, or punishable with imprisonment and also with a fine — compoundable where just a fine is levied.

“The committee will examine the existing mechanism of levy of penalty and suggest any improvements along with laying down the broad contours of an in-house adjudicatory mechanism where penalty may be levied in an MCA21-system driven manner, so that discretion is minimised,” the statement said. “It will also take necessary steps in formulation of draft changes in the law.”

A legal expert welcomed the move.

“There are certain instances under the Companies Act where a simple typographical mistake in filings could be categorised as fraud and accordingly the penalty is quite rigorous,” said Anshul Jain, partner, Luthra & Luthra. “It’s a good thing that government is liberalising certain aspects of the law.”

The government wants to see disputes resolved without having to approach the courts. “There are several offences that have fine as penalty or fine with penal provisions,” a government official said.

“In certain cases of defaults, the government is planning to remove the penal provision and just impose the fine. Only consequent to further non-compliance of the order will it be categorised as an offence triable by a special court. We are looking at resolving most cases in-house without going to the courts. This would also allow the trial courts to pay more attention on offences of serious nature.”

India Today |

10-member committee to review the offences under the 'Companies Act'

The Ministry of Corporate Affairs (MCA) on Saturday set up a 10 Member Committee, headed by the Secretary of Ministry of Corporate Affairs, for review of the penal provisions in the Companies Act, 2013 may be to examine de-criminalisation of certain offences.

The MCA seeks to review offences under the Companies Act, 2013. The committee may propose decriminalisation and suggest ways to replace it with in-house mechanism, where a penalty could be levied in instances of default.

Government believes this would also reduce the pressure on trial courts where prosecution cases land up and allow the trial courts to pay more attention on offences of serious nature.

In a major signal to the companies and businesses, it has been decided that the existing compoundable offences in the Companies Act - 2013 which are punishable with fine only or punishable with fine or imprisonment or both, may be examined.

Based on the recommendations of the committee, a decision may be taken as to whether any of such offences may be considered as civil wrongs or defaults where a penalty by an adjudicating officer may be imposed in the first place and only consequent to further non-compliance of the order of such authority will it be categorised as an offence triable by a special court.

It is also required to be seen as to whether any non-compoundable offences punishable with imprisonment only, or punishable with imprisonment and also with fine under the Companies Act, 2013 may be made compoundable.

The Committee headed by the Secretary Ministry of Corporate Affairs has 10 members which includes Uday Kotak, MD, Kotak Mahindra Bank and Sidharth Birla, Former President, FICCI as Members.

The committee has been asked to submit its report within 30 days.

The terms of reference of the committee include examining the nature of all acts categorised as compoundable offences, recommend whether any such provisions need to be re-categorised as compoundable offence, mechanism of levy of penalty and lay down the broad contours of an in-house adjudicatory mechanism

The ministry is speeding up the process as some of the changes will need amendment to the existing company law and the winter session of parliament would be the last opportunity to make the required changes.

The Tribune |

Govt to decriminalise some corporate offences

In an exercise to "decriminalise" certain corporate offences, the government has set up a panel for review of the penal provisions in the Companies Act, 2013.

In this regard, the Ministry of Corporate Affairs (MCA) has constituted a 10-member committee, headed by the Secretary of Ministry of Corporate Affairs, Injeti Srinivas.

Last week, the Narendra Modi government had raised the monetary threshold of filing appeals by the tax department which would reduce tax litigation.

The MCA seeks to review offences under the Companies Act, 2013 "as some of the offences may be required to be decriminalised" and handled in an in-house mechanism, where a penalty could be levied in instances of default.

"This would also allow the trial courts to pay more attention on offences of serious nature", an official statement said.

MCA has decided that the existing compoundable offences in the Companies Act, 2013 - namely offences punishable with fine only or punishable with fine or imprisonment or both - may be examined.

Following the review, a decision may be taken as to whether any of such offences may be considered as "civil wrongs" or "defaults" where a penalty may be imposed in the first place and only on further non-compliance will it be categorised as an offence triable by a special court.

MCA said it is also required to be seen as to whether any non-compoundable offences namely offence punishable with imprisonment only, or punishable with imprisonment and also with fine under the Companies Act, 2013 may be made compoundable.

The committee will submit its report within 30 days to the central government for consideration of its recommendations.

Other members of the panel include T K Vishwanathan, former Secretary General, Lok Sabha, and Chairman, BLRC; Uday Kotak, MD, Kotak Mahindra Bank; Shardul S Shroff, Executive Chairman, Shardul Amarchand Mangaldas; Sidharth Birla, former president, FICCI, among others.

millenniumpost |

New Bill to reduce settlement time, cost of arbitration: Govt

The government on Saturday said that the introduction of 'New Delhi International Arbitration Centre Bill 2018' would reduce the settlement time and also cost of arbitration.

While speaking at an event organised by FICCI in association with Indian Council of Arbitration (ICA) and SAARC Arbitration Council (SARCO), Law Secretary Suresh Chandra said that the new Bill would help in building confidence with regard to dispute settlement and India can become the hub of International arbitration.

"There was a need of institutionalisation of arbitration and we are pre-envisaging a situation where we will have arbitral institutions graded by the Arbitration Council of India. In case of International arbitration, it will be designated by the Supreme Court and by various high courts in case of domestic arbitration," Chandra added.

The Law Secretary also stressed on having a stronger arbitration process by establishing a pre-institutional mediation mechanism which will ensure out-of-court settlement in 50 per cent of litigation.

Present on the occasion, Uma Sekhar, the Joint Secretary, Legal & Treaties Division, Ministry of External Affairs, said that SAARC countries have a lot in common and SARCO should also be strengthened to establish as a more accurate, fair and efficient institution in settlement of cases by arbitration.

"We can develop a database of the jury, legal advisors, arbitrators, counsellors which may help in achieving the objective of becoming the International hub of arbitration settlement," Sekhar said.

DNA |

Arbitration most viable form of dispute resolution: Justice TS Thakur

As the Indian judicial system shows no signs of breaking free from the huge pendency of court cases, former Chief Justice of India, Justice TS Thakur singled out arbitration as the most viable form of dispute resolution that could reduce pressure on courts allowing quicker delivery of justice.

There are over 30 million cases pending in the Indian courts, of which over 80 percent are in district and subordinate courts, which are short of about 5,000 (23 percent) judges as per the figures of December 2014.

Speaking at the valedictory session of ICA-FICCI - International Conference: Arbitration in the Era of Globalisation on Sunday, Justice Thakur said, "When the judicial system comes under tremendous pressure, you look for alternatives & arbitration is most viable and today it's the most favoured alternative form of settlement of disputes."

Justice Thakur also stressed on the need to take proactive measures steps for establishing an institution a source to inspire confidence in people about arbitration. "Reform of legal framework, setting up of national institution, and we must sensitise our judges not interfere with the arbitral awards," he said.

Union Law Secretary Suresh Chandra singled the issues of timeline, cost, neutrality and enforceability as the four driving elements that will push for arbitration in the country.

"I feel whatever mechanism, law we bring, unless the quality of arbitrators, unless we have a dedicated bar, we can't bring an improvement into the system," he said.

Former Supreme Court Judge, Justice SS Nijjar was of the opinion that commercial disputes need the support of not only the bar but also the bench.

Asserting that the Indian arbitrators are no less in calibre in comparison to foreign ones, Justice Nijjar cautioned that the arbitration practices have to keep pace with the developments that are taking place across the world.

millenniumpost |

Institutional arbitration system essential to lure investors: CJI

If India wants to attract investments, it needs to develop a good institutional arbitration system with minimum interference of courts and maximum execution of arbitration awards, Chief Justice of India (CJI) Dipak Misra said on Saturday. Justice Misra stressed that the country needs to adjust without surrendering "our conceptual sovereignty".

The shift has to be towards institutional arbitration while also keeping in mind the interests of the country. He was speaking at the 'International Conference on Arbitration in the Era of Globalisation' here.

"There is a need and there is a purpose. When you are handling a complex economy, there has to be structural adjudication of disputes," he observed. He added that "apart from the legal issue, it is an issue of getting the investment" and that "India has to inculcate faith in global investors that it has a very good institutional arbitrator system".

"It is not human nature alone but the commercial perceptions, the clauses in the contract and swings in the business sometimes attract arbitrations," he said, adding that alternative dispute resolution system has gained priority and arbitration is one of them. Regarding international disputes, he said that they are required to be solved through international dispute resolution mechanisms.

"We have to adjust. But when we adjust, we don't surrender our conceptual sovereignty. And that is where India has to grow its own arbitration system so that people from other jurisdictions get attracted to have arbitration proceedings here.... While doing business, you also have to look after the interests of the country," he said.

Focus News |

Chief Justice of India: Timely, cost-effective and impartial arbitration ecosystem - key to making India a global arbitration hub

Chief Justice of India (CJI), Justice Dipak Misra has suggested a model for ensuring timely, cost-effective and impartial arbitration ecosystem in the country, which can make India a global hub of arbitration.

Justice Misra said in his inaugural address at the ICA-FICCI "International conference: Arbitration in the Era of Globalisation" today that, "while talking about court-annexed arbitration, I must say I am in favour of institutional arbitration like ICA, MCA and whatever they are having throughout the country ... the shift has to be towards institutional arbitration, there is a need and there is a purpose. When you are handling a complex economy, there has to be a structural adjudication of disputes".

He stressed that, "In the US, UK and other progressive countries, they have realised and we have also realised that the best way to serve commercial disputes are not the court litigations, there has to be alternate dispute resolution system".

Justice Misra said, "India has to grow to have its own arbitral system - so that the people from other jurisdictions get attracted to have arbitration proceedings in India".

He pointed out that sometimes the business agreements are so drafted by the companies that the concept of jurisdiction shifts from India to outside, and said "...that is your choice. Nobody can impose a contractual choice on you, but if you are doing business, you must look after the interest of the country".

Justice Misra also made it clear that an essential element of a robust arbitration system would be ensuring minimum interference and maximum executability.

"A stage has come where investment can come when we can really inculcate faith among the investors that we have a very good, excellent arbitration system," he added.

Justice Misra elaborated that timely, cost-effective and impartial arbitration must be an integral part of such a system.

In his welcome address, Mr. NG Khaitan, President, ICA stated that while India has improved in ease of doing business ranking, it still ranks low on enforcing contracts. "The cost of enforcing contracts in India at 31% is way higher than 10 to 15% prevalent in developed nations".

Mr. Khaitan stressed on promotion of institutional arbitration and having an inbuilt arbitration clause in bilateral investment treaties. He also highlighted the need to permit foreign arbitrators to operate in the country and imposing a limit on the number of cases an arbitrator can take in a year to ensure a speedy resolution of disputes.

Secretary General FICCI and Director General of ICA, Dr. Sanjaya Baru said in his concluding address, "We would like to bring whatever (arbitration) is done currently around the world, back home. As India globalises, one of the consequences have been the globalisation of arbitration, and we would like to bring back and retain that business in India, and strengthen India as the hub of arbitration, not just for Indian companies, but for companies around this entire region. We want to make India a big centre of arbitration, and FICCI is dedicated to that cause".

Business Standard |

CJI calls for timely and cost-effective institutional arbitration

Chief Justice of India, Justice Dipak Misra on Saturday called for shift towards institutional arbitration which should both timely and cost effective for making India a sought-after arbitration centre.

He said that there is "need" and "purpose" as well for shifting towards the institutional arbitration.

"...the shift has to be towards institutional arbitration, there is a need and there is a purpose. When you are handling a complex economy, there has to be a structural adjudication of disputes," Chief Justice Misra said in his inaugural address at the "International Conference: Arbitration in the Era of Globalisation".

The daylong conference was organised by the Indian Council of Arbitration (ICA) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

"I must say I am in favour of institutional arbitration like ICA, MCA and whatever they are having throughout the country ..." he said.

Underlining the importance of arbitration in settling the commercial deputes, Chief Justice said: "In the US, UK and other progressive countries, they have realised and we have also realised that the best way to serve commercial disputes are not the court litigation... there has to be an alternate dispute resolution system."

He said that India has to grow to have its "own arbitral system" - so that the people from other jurisdictions look towards India for arbitration of their disputes.

However, in a caveat, Chief Justice Misra said that "an essential element of a robust arbitration system would be ensuring minimum interference and maximum executability".

Pointing to a linkage between timely and efficient arbitration and flow of overseas investments, he said: "A stage has come where investment can come when we can really inculcate faith among the investors that we have a very good, excellent arbitration system."

In his welcome address, ICA president N.G. Khaitan said that while India has improved in ease of doing business ranking but it still "ranks low on enforcing contracts".

"The cost of enforcing contracts in India at 31 per cent is way higher than 10 to 15 per cent prevalent in developed nations," he said.

Echoing the CJI's views on the need to promote institutional arbitration, Khaitan stressed on having an inbuilt arbitration clause in bilateral investment treaties.

He favoured permitting foreign arbitrators to operate in the country while limiting the number of arbitration cases an arbitrator can take in a year, as this, he said, would help speedy disposal of cases.

In his concluding remarks, FICCI Secretary General Sanjaya Baru said: "We would like to bring whatever (arbitration) is done currently around the world, back home."

At the same time, we have to grow as an attractive destination for other overseas companies as well, he added.

The Free Press Journal |

CJI Dipak Misra bats for timely and cost-effective institutional arbitration

Chief Justice of India, Justice Dipak Misra on Saturday called for shift towards institutional arbitration which should both timely and cost effective for making India a sought-after arbitration centre. He said that there is “need” and “purpose” as well for shifting towards the institutional arbitration.

“…the shift has to be towards institutional arbitration, there is a need and there is a purpose. When you are handling a complex economy, there has to be a structural adjudication of disputes,” Chief Justice Misra said in his inaugural address at the “International Conference: Arbitration in the Era of Globalisation”.

The daylong conference was organised by the Indian Council of Arbitration (ICA) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

“I must say I am in favour of institutional arbitration like ICA, MCA and whatever they are having throughout the country …” he said.

Underlining the importance of arbitration in settling the commercial deputes, Chief Justice said: “In the US, UK and other progressive countries, they have realised and we have also realised that the best way to serve commercial disputes are not the court litigation… there has to be an alternate dispute resolution system.”

He said that India has to grow to have its “own arbitral system” – so that the people from other jurisdictions look towards India for arbitration of their disputes.

However, in a caveat, Chief Justice Misra said that “an essential element of a robust arbitration system would be ensuring minimum interference and maximum executability”.

Pointing to a linkage between timely and efficient arbitration and flow of overseas investments, he said: “A stage has come where investment can come when we can really inculcate faith among the investors that we have a very good, excellent arbitration system.”

In his welcome address, ICA president N.G. Khaitan said that while India has improved in ease of doing business ranking but it still “ranks low on enforcing contracts”.

“The cost of enforcing contracts in India at 31 per cent is way higher than 10 to 15 per cent prevalent in developed nations,” he said.

Echoing the CJI’s views on the need to promote institutional arbitration, Khaitan stressed on having an inbuilt arbitration clause in bilateral investment treaties.

He favoured permitting foreign arbitrators to operate in the country while limiting the number of arbitration cases an arbitrator can take in a year, as this, he said, would help speedy disposal of cases.

In his concluding remarks, FICCI Secretary General Sanjaya Baru said: “We would like to bring whatever (arbitration) is done currently around the world, back home.”

At the same time, we have to grow as an attractive destination for other overseas companies as well, he added.

DNA |

Institutional arbitration must to lure investment: CJI Dipak Misra

Chief Justice of India Dipak Misra on Saturday emphasised the need for developing a good institutional arbitration system in the country to attract investments in Indian economy.

"If India wants to attract investments, it needs to develop a good institutional arbitration system with minimum interference of courts and maximum execution of arbitration awards," CJI Misra said while delivering the keynote address at 'International Conference on Arbitration in the Era of Globalisation' at FICCI in New Delhi.

Justice Misra stressed that the country needs to adjust without surrendering the 'conceptual sovereignty'. "The shift has to be towards institutional arbitration while also keeping in mind the interests of the country," he said

"There is a need and there is a purpose. When you are handling a complex economy, there has to be structural adjudication of disputes," he said.

He added that "apart from the legal issue, it is an issue of getting the investment," and that "India has to inculcate faith in global investors that it has a very good institutional arbitrator system".

"It is not the human nature alone, but the commercial perceptions, the clauses in the contract, and swings in the business sometimes attract arbitrations," he said, adding that alternative dispute resolution system had gained priority and arbitration was one of them.

Regarding international disputes, he said that they require to be solved through international dispute resolution mechanisms. "We have to adjust. But when we adjust, we don't surrender our conceptual sovereignty. And that is where is India has to grow," he said.

"If there is trust and neutrality of the arbitrator and quickness in the adjudication of the arbitral proceedings then as the act says, there will be minimum interference by the courts, which is also the view of various Supreme Court judgments," CJI Misra said.

The CJI has time and again highlighted the importance of arbitration. Addressing a conference in Mumbai on November 5, he had said that India would have a pivotal place in the world of arbitration in future.

Zee News |

CJI calls for timely and cost-effective institutional arbitration

Chief Justice of India, Justice Dipak Misra on Saturday called for shift towards institutional arbitration which should both timely and cost effective for making India a sought-after arbitration centre.

He said that there is "need" and "purpose" as well for shifting towards the institutional arbitration.

"...the shift has to be towards institutional arbitration, there is a need and there is a purpose. When you are handling a complex economy, there has to be a structural adjudication of disputes," Chief Justice Misra said in his inaugural address at the "International Conference: Arbitration in the Era of Globalisation".

The daylong conference was organised by the Indian Council of Arbitration (ICA) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

"I must say I am in favour of institutional arbitration like ICA, MCA and whatever they are having throughout the country ..." he said.

Underlining the importance of arbitration in settling the commercial deputes, Chief Justice said: "In the US, UK and other progressive countries, they have realised and we have also realised that the best way to serve commercial disputes are not the court litigation... there has to be an alternate dispute resolution system."

He said that India has to grow to have its "own arbitral system" - so that the people from other jurisdictions look towards India for arbitration of their disputes.

However, in a caveat, Chief Justice Misra said that "an essential element of a robust arbitration system would be ensuring minimum interference and maximum executability".

Pointing to a linkage between timely and efficient arbitration and flow of overseas investments, he said: "A stage has come where investment can come when we can really inculcate faith among the investors that we have a very good, excellent arbitration system."

In his welcome address, ICA president N.G. Khaitan said that while India has improved in ease of doing business ranking but it still "ranks low on enforcing contracts".

"The cost of enforcing contracts in India at 31 per cent is way higher than 10 to 15 per cent prevalent in developed nations," he said.

Echoing the CJI`s views on the need to promote institutional arbitration, Khaitan stressed on having an inbuilt arbitration clause in bilateral investment treaties.

He favoured permitting foreign arbitrators to operate in the country while limiting the number of arbitration cases an arbitrator can take in a year, as this, he said, would help speedy disposal of cases.

In his concluding remarks, FICCI Secretary General Sanjaya Baru said: "We would like to bring whatever (arbitration) is done currently around the world, back home."

At the same time, we have to grow as an attractive destination for other overseas companies as well, he added.

KNN |

Minimum interference – maximum execution in Arbitration system essential for investments: CJI Misra

Voicing imperative need for a well-defined arbitration mechanism in the country, Chief Justice of India, Dipak Misra said that the country needs to inculcate a minimum interference and maximum execution model.

Stressing the importance of arbitration, Misra added that in order to project the economy viable for business, it is important to have an approach based on trust, and this can be well facilitated by a healthy arbitration mechanism in place.

“Trust is the spine of the growth in the economy, without trust the economy is not as strong as it is with it “Misra said.

Tracing the evolution of the mechanism, Misra said that when he joined the Delhi office the arbitration used to happen in an annexe of the court premises, which he moved as a first realising the need to have an independent structure for the same.

Comparing the scenario in other countries including United States of America and United Kingdom, the Chief Justice said that these countries have already recognized the significance of the mechanism, and are therefore have already set institutionalised arbitration system.

Commenting on the international arbitration, Misra said that while dealing with international cases, there is a need to broaden and adjust and not remain stiff.

Misra was speaking at the inaugural event of the second edition of international conference ‘Arbitration In The Era Of Globalization’ organized by FICCI in association with Indian Council of Arbitration (ICA).

Financial Express |

CJI calls for timely and cost-effective institutional arbitration

Chief Justice of India, Justice Dipak Misra on Saturday called for shift towards institutional arbitration which should both timely and cost effective for making India a sought-after arbitration centre. He said that there is “need” and “purpose” as well for shifting towards the institutional arbitration. “…the shift has to be towards institutional arbitration, there is a need and there is a purpose. When you are handling a complex economy, there has to be a structural adjudication of disputes,” Chief Justice Misra said in his inaugural address at the “International Conference: Arbitration in the Era of Globalisation”. The daylong conference was organised by the Indian Council of Arbitration (ICA) and the Federation of Indian Chambers of Commerce and Industry (FICCI).

“I must say I am in favour of institutional arbitration like ICA, MCA and whatever they are having throughout the country …” he said. Underlining the importance of arbitration in settling the commercial deputes, Chief Justice said: “In the US, UK and other progressive countries, they have realised and we have also realised that the best way to serve commercial disputes are not the court litigation… there has to be an alternate dispute resolution system.” He said that India has to grow to have its “own arbitral system” – so that the people from other jurisdictions look towards India for arbitration of their disputes. However, in a caveat, Chief Justice Misra said that “an essential element of a robust arbitration system would be ensuring minimum interference and maximum executability”.

Pointing to a linkage between timely and efficient arbitration and flow of overseas investments, he said: “A stage has come where investment can come when we can really inculcate faith among the investors that we have a very good, excellent arbitration system.” In his welcome address, ICA president N.G. Khaitan said that while India has improved in ease of doing business ranking but it still “ranks low on enforcing contracts”. “The cost of enforcing contracts in India at 31 per cent is way higher than 10 to 15 per cent prevalent in developed nations,” he said. Echoing the CJI’s views on the need to promote institutional arbitration, Khaitan stressed on having an inbuilt arbitration clause in bilateral investment treaties.

He favoured permitting foreign arbitrators to operate in the country while limiting the number of arbitration cases an arbitrator can take in a year, as this, he said, would help speedy disposal of cases. In his concluding remarks, FICCI Secretary General Sanjaya Baru said: “We would like to bring whatever (arbitration) is done currently around the world, back home.” At the same time, we have to grow as an attractive destination for other overseas companies as well, he added.

The Indian Express |

Finance Minister Arun Jaitley makes a pitch for BRICS arbitration platform

Finance Minister Arun Jaitley on Saturday said BRICS nations should develop their own arbitration mechanism to cut reliance on dispute redressal centres in the developed nations. Such a mechanism will be needed as trade among these economies of Brazil, Russia, India, China and South Africa grows.

Speaking at a conference on ‘International arbitration in BRICS’, organised by the finance ministry, industry chamber FICCI and Indian Council of Arbitration, he said faster growth will return to emerging economies once the world comes out of the current slowdown and the dispute resolution mechanism should be now perfect as trade between countries grows.

The finance minister highlighted economic and political challenges that the Brics economies are facing since the global slowdown that started in 2008. Sharp drop in commodity and metal prices have created a new set of challenges for Brazil, Russia and South Africa, while China has conceded that its “new normal” for growth is lower than the rate at which it grew for past three decades, he said.

Security threat from ISIS and a new wave of trade protectionism unleashed by developed economies were creating political challenges globally, he noted. For free and fair trade to flourish in this background, there was a need for an adequate dispute resolution mechanism to look after interest of developing economies.

“Many countries fear, and have been suggesting, that the awards emerging out of these arbitration are at times loaded against the emerging economies. Therefore, a need has been felt to develop parallel arbitration centres across the world. Let alone London, let alone Paris, now we see Singapore emerging as an emerging arbitral centre.

“Therefore, inter-se the BRICS nations resolve trading disputes which may arise out of
Brics nations itself, it is extremely important that we have to develop a mechanism as far as the BRICS nations is concerned,” Jaitley said.

He suggested that the BRICS countries should set up a task force comprising officials and experts to discuss and then set up a appropriate mechanism where these nations can have arbitral centres of their own.

“And hopefully if we are able to evolve and develop that capacity, eventually those centres will also become centres of great international acceptability even with regard to the non-BRICS nations as far as arbitral abilities are concerned,” he said.

Giving rationale behind companies resorting to international arbitration, he said, they fear an institutional bias and hence look for a neutral forum for applicability of law.

“The experience over the years has been that some centres did monopolise a bulk of international arbitrations, they developed capacities, they created arbitrators of stature, they created a set on international lawyers who could practice from one jurisdiction to other. Therefore, those jurisdiction tended to have a big share in international arbitration,” he said.

The BRICS nations would have to put forth a common agenda for growth and the key is to develop local capabilities to deal with the challenges that lie ahead, he added.

Deccan Herald |

Need BRICS task force for arbitration facilities: Jaitley

Finance Minister Arun Jaitley on Saturday suggested creation of a task force of experts and officials to deliberate on the challenges in international arbitration in the BRICS countries and put in place institutional mechanisms to establish arbitral centres in these nations.

Delivering the valedictory address at the conference on ‘International Arbitration in BRICS – Challenges, Opportunities and Road Ahead’, jointly organised by Department of Economic Affairs, Ministry of Finance, FICCI and Indian Council of Arbitration (ICA), Jaitley said in the pursuit of free trade that one must not lose the sight of the fact that free trade also means fair trade, which is not detached from local commitments.

To strengthen the arbitration mechanism, the finance minister emphasised the need to have lawyers of credibility and said it was necessary to make enforcement of awards largely free from the interference by domestic courts. This, he said, was imperative as many countries fear that the arbitral awards are loaded against the emerging countries.

Jaitley said that the challenges posed by economic slowdown continue to haunt the global economy.

The emerging economies, predominantly the BRICS nations, would have to shoulder the responsibility of driving global growth. Therefore, he said, the BRICS nations would have to evolve and put forth a common agenda for growth, and the key is to develop local capabilities to deal with the challenges that lie ahead.

Shaktikanta Das, Secretary, Department of Economic Affairs stressed the need for striking an optimal balance between public good and private commercial requirements in the context of investment agreements.

For dispute settlement, the first recourse should be to reach out to local courts and if the local courts fail to deliver within five years, arbitration should be resorted to.

He added that there was a need for early disposal of frivolous claims.

Business Standard |

CJI says ordinance to make arbitration law more effective in offing

A new-look arbitration law to give more teeth to the alternative dispute resolution mechanism is in the offing. An ordinance to amend the Arbitration and Conciliation Act, 1996, is expected to be announced soon.

This was indicated by Mr. Justice T S Thakur, Chief Justice of India, while inaugurating an international conference on 'Arbitration in the Era of Globalisation' organised by Indian Council of Arbitration (ICA), an allied body of FICCI.

Chief Justice Thakur said the biggest challenge for adjudication by arbitration was that the arbitrator is a person of impeccable honesty. In India, arbitration can flourish provided the arbitrators develop a professional approach, where an arbitrator is committed to dispute resolution and sees through the proceedings till the end.

Chief Justice Thakur said that the judiciary also needed to be sensitised with respect to arbitration and show restraint while dealing with arbitration cases.

Acknowledging the suggestion of FICCI President, Dr. Jyotsna Suri, for setting up a separate arbitration bar, Justice Thakur said that this could be deliberated upon.

The chief justice said that with new laws and the growth of the country there had been a spurt in litigation as well. Hence, there was a need to assess and anticipate the impact of every legislation on litigation in the country and provide remedial measures.

Justice Mr. S S Nijjar, former judge of the Supreme Court of India and Member, Governing Body, ICA, said that while the judiciary was encouraging arbitration to lessen the burden of adjudication and solve business disputes, the interference of the courts at every step of arbitration is making the fast-track dispute resolution mechanism time consuming. He added that the stringent conditions being applied to arbitrators were a deterrent for the system.

Mr. N G Khaitan, President, ICA, said that Prime Minster Narendra Modi wants India to become a hub of international arbitration. Hence, there was a need to allow foreign arbitrators to participate in India. India has set a precedent in judiciary amongst the SAARC nations and the same cane be replicated in arbitration with the support of the government and judiciary. He added that there was need to relook at the rules for an arbitrator as the stringent rules are discouraging many to become an arbitrator.

Dr. Jyotsna Suri, President, FICCI, said that arbitration should be made more effective by minimizing court interference in the arbitral awards. The arbitration practice in India could also be made more contemporary, in line with the international standards.

She suggested the creation of a separate arbitration bar, which could be a step in that direction. Dr. Suri added that such an approach is bound to make businesses resort to arbitration as the only mechanism for resolving commercial disputes, making the business environment more stable and certain.

In his concluding address Dr. A Didar Singh, Secretary General, FICCI, said that quick and efficient dispute resolution mechanisms have always been a key to the success and competitiveness of an economy.

He added that speedy and fair dispute resolution is a prime factor in the ease of doing business and arbitration is the most feasible and easy mechanism of dispute resolution.

Business Standard |

Arbitration must be professional to flourish: CJI

Chief Justice of India T.S.Thakur on Friday said for arbitration to succeed in India, all those involved in the process, be it the arbitrator or the lawyers, would have to act professionally.

Pointing out that the arbitration overseas was highly professional, he said that it was this lack of professional approach that was coming in the way of arbitration not flourishing in India.

"If you want to flourish in India, you have to be professionally competent" and "a matter (under arbitration) must finish once it has started otherwise it becomes oppressive both to the parties to arbitration and the arbitrator," he said in his inaugural address at the two-day international conference 'Arbitration in the era of globalisation' organised by the Indian Council of Arbitration and business chamber FICCI.

He said that while in India, an arbitrator sits for two hours, in London, they sit for eight hours with half an hour break.

Similarly, Chief Justice Thakur said that if litigant was paying a lawyer, then the lawyer could not seek adjournment to suit his schedule.

Calling for a change in the legal format of arbitration, he said that there were things in law that need a relook but expressed satisfaction that the government was alive to it and was making changes, citing the instance of it bringing amendments even to the ordinance relating to the Arbitration Act.

Saying that there was no conflict between the judiciary and arbitration, he assured that judiciary from top to bottom would support its growth as it would take away that much burden of the judiciary.

However, he urged the judiciary to be sensitive and restrained in interfering with arbitration awards.

"Judiciary also needs to be sensitive. You need to (show) restraint in interfering in the arbitration awards. In any arbitration, one has to lose, both (the parties to arbitration) cannot walk out happily," he said.

However, he stressed need for "a proper format that may not provide for an open-ended challenge to the arbitration award".

Noting that arbitration was prevalent even in ancient India and merchants took recourse to it for settling commercial disputes, former apex court judge S.S.Nijjar said that effort needs to be made for India to become an "arbitration-friendly nation".

"We have to grow as an arbitration-friendly nation" and it can happen only if we have a system of giving finality to arbitration awards coupled with speedy arbitration and no multitude of litigations," he said.

FICCI president Jyotsna Suri also spoke on the occasion.

The Telegraph |

Plea to change aribitration rules

Supreme Court judges and other legal experts have called for a change in arbitration rules to allow lawyers from abroad to take part in the process.

Arbitration is a method of resolution of disputes outside court. It is mostly used to resolve commercial cases.

While 90 per cent of commercial disputes are settled through arbitration in developed countries, the corresponding figure in India is less than five per cent, though Indian-run companies are only second globally in terms of being involved in arbitration.

The trend in India of avoiding arbitration is not only affecting the economy but also burdening the already stretched judiciary, experts opined at a seminar on “Arbitration in India: The Way Forward” on Saturday.

The seminar was organised by the Indian Council of Arbitration, with support from the Indian Chamber of Commerce and the Federation of Indian Chambers of Commerce and Industry.

“We need to open up. Let’s come up with a comprehensive act (and become) an arbitration-friendly nation and judiciary,” Justice S.S. Nijjar of the Supreme Court said.

The judge, also former chief justice of Calcutta High Court, told Metro on the sidelines of the seminar that India needs to “liberalise” the arbitration process and allow foreign lawyers to participate in it.

The Law Commission of India has recently started the process of modifying the Arbitration and Conciliation Act that came into force in 1996.

“It is natural that foreign companies will depend on foreign lawyers. If we want the arbitration process to become popular in India, we need to provide a level playing field to foreign lawyers. This will improve the legal system in India,” said retired Supreme Court judge Asok Kumar Ganguly, a guest at the programme.

Both speakers agreed that India should not shut out foreign lawyers from arbitration at a time it is following a liberal economic policies.

Lawyer N.G. Khaitan, the chairman of the Indian Council of Arbitration, too rooted for opening India’s arbitration process. He also stressed that arbitration should be institutionalised, time-bound and cost-effective to succeed. “Surveys show that in India 91 per cent companies prefer arbitration to litigation. Still arbitration in India has not prospered much because of the unusually high cost involved, lack of timely resolution and absence of encouragement for institutional arbitration,” said Khaitan.

The legal expert quoted from a 2009 Supreme Court order that reads “...the cost of arbitration becomes very high in many cases where retired judge(s) are arbitrators”.

Khaitan said that “with support from judiciary, India can become a hub of arbitration”. Now, many arbitration cases involving India are settled in Singapore or the UK.

Another Supreme Court judge, P.C. Ghosh, supported institutional arbitration and asked parties and lawyers to take the initiative.

The Statesman |

Seminar on the future of arbitration mechanism

Most of the companies today prefer arbitration mechanism as opposed to litigation to settle their commercial disputes, mentioned Justice P C Ghose, judge, of the Supreme Court of India today in the city.

A seminar on "Arbitration in India: The Way Forward," was organised today by Indian Council of Arbitration (ICA) along with Indian Chamber of Commerce (ICC) and FICCI to reflect on the future of arbitration in India.

Dignitaries like Mr N G Khaitan, President, ICA, Justice S S Nijjar, Judge, Supreme Court of India graced the occasion. India occupies second position in sorting disputes through arbitration.

Referring to a survey, Mr N.G. Khaitan, said that 91 per cent of all the companies across the world prefer document arbitration and 68 per cent prefer retired judges as arbitrators.

Mr Khaitan, however, mentioned that this mechanism of commercial dispute settlement is often referred to as costly and also solutions are not provided on time.

Justice Ghosh while mentioning that Bengal Chamber of Commerce, Indian Chamber of Commerce have done commendable work as institutional arbitrator, points out that there are many shortcomings in Arbitration Act 1996.

He refused to comment on the exorbitant cost of arbitration process saying that it is the duty of the arbitrational institute to deal with that. "A paradigm shift is required in the mindset of all the stakeholders like arbitrators, entrepreneurs.”

“Arbitration should not be thought of as a last resort," said Justice Nijjar.

He, however, reflected on the fact that unlike the West, Singapore and some other countries like India does not update and review Arbitration Act. He, yet, hopes that this time when a new act of Arbitration comes up, it will be a comprehensive one.

"We need to convey the message to the world that we are an arbitration friendly nation," highlights Justice Nijjar.

Business Line |

Govt `considering' changes to Arbitration Act

The Government is considering making changes in the Arbitration and Conciliation Act to make dispute resolution for corporates speedier, cheaper and amicable.

RESOLVING DISPUTE

“The proposed changes in the Act would make the process of dispute resolution smoother and indicate that India is a business- friendly nation,” said a statement by industry body FICCI quoting Minister of State for Commerce and Industry E. M. Sudarsana Natchiappan.

The Minister was speaking at the 83rd Annual General Meeting of ICC India, Indian affiliate of the Paris- based International Chamber of Commerce, a world business organisation and an allied body of FICCI.

In 2010, the Ministry of Law and Justice had proposed to amend the Arbitration & Conciliation Act, 1996 to include provisions on out- of- court settlement.

MORE EFFECTIVE

“The government proposes to make the Act more effective in order to make dispute resolution for corporates speedier, cheaper and amicable,” it said, adding that the main objectives of the Act are to comprehensively cover international and domestic commercial arbitrations and conciliations.

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