How Arbitration is Booming in India
Introduction
Arbitration is seeing a rapid hike in its usage and shift of the public. This drift we can see due to prominent reasons like prolonged litigations and due to inefficiencies of the court. Arbitration is mostly practiced in the area of business related to real estates, infrastructure, technology, etc in which the successful awards have been delivered till now. It is the most preferred option due to its flexibility, confidentiality, accurate award giving nature. Steps taken by the government are also been very remarkable in terms of promoting the arbitration by introducing Arbitration and Conciliation Act of 2015 and many more steps which has helped the India to improve is justice delivery system in lesser time.
Legal steps taken by Government
The Indian government is very proactive in introducing and bringing arbitration at forefront in various fields. Few acts which got introduced:
- The Arbitration and Conciliation (Amendment) Act, 2015– the main motive of this act was to limit the interference of the courts and give speed to the case by arbitration processes.
- The Commercial Courts Act, 2015– the main motive of this act was to establish the courts which will solely solve the issues arising out of commercial disputes. Basically we can say that, it is acting as a branch or ecosystem of arbitration.
- The Arbitration and conciliation (Amendment) Act, 2019– the main motive was to specify more clearly the process of arbitration by establishing Arbitration council in India, which can help to improve the standard of arbitrators and the awards given by them.
India also adopted UNCITRAL Model Law on International Commercial Arbitration, which has helped India to keep pace with the international standards of arbitration.
Extension of Arbitration Tradition
As arbitration is booming I India at a rapid phase so we have significant number of good and reputed arbitration institutions here. There are many institutions who are working hard to make our India the largest and reliable hub here for example Mumbai Centre for International Arbitration (MCIA) and the Delhi International Arbitration Centre (DIAC). These significant steps show that India is in its full intention to compete with the hubs at the world level.
How International playing significant role in booming our domestic Arbitration Culture
our country India is open to the global market which influences various joint ventures, big organizations, businesses and foreign investments which has led to rise up in cross border commercial disputes, automatically resulting in more and more need of arbitration because of the reason it is flexible, party friendly, confidentiality is maintained and the most important factor is that it is very fast.
Also, if we see from the perspective of India, so our economy and our infrastructure is increasing which is contributing significant and efficient role in booming the arbitration over traditional litigation.
Challenges
Challenges are the integral part in any process. Here we face challenges as it leads to delays in procedure due to lack of proper system, skilled arbitrators. And this field is new in India and still developing so lots of people are not aware about this procedure of arbitration. The role of judiciary has also decreased in this, which often leads to delay in arbitral awards. Although on a positive side, mostly it has impacted in a positive way and by its phase of booming it will keep improving as per the needs of the society and while dealing different kinds of cases.
Conclusion
The need for arbitration is at its peak and India through its various laws and acts trying to make it perfect and to take justice delivery system to its optimum level. India is trying its best to keep the pace and match the level with international arbitrations and policies to stand up with the global leaders and to expand it further for future growth.
Author: NOUMEE SHARMA, in case of any queries please contact/write back to us at support@ipandlegalfilings.com or IP & Legal Filing
