' Pro­mote in­sti­tu­tional ar­bi­tra­tion to make In­dia a busi­ness haven'

FICCI Business Digest - - Special Features -

PDepart­ment K Mal­ho­tra, Sec­re­tary,

of Le­gal Af­fairs, Min­istry of Law and Jus­tice, Gov­ern­ment of In­dia, has un­der­lined the need for pro­mot­ing in­sti­tu­tional ar­bi­tra­tion to achieve Prime Min­is­ter Naren­dra Modi's vi­sion of plac­ing In­dia amongst the top 50 coun­tries in the World Bank's ease of do­ing busi­ness rank­ing. To im­prove In­dia's rank­ing, en­force­ment of con­tracts and quick com­mer­cial dis­pute res­o­lu­tion were the need of the hour.

While ad­dress­ing a sem­i­nar on 'Ar­bi­tra­tion in In­dia: The Fu­ture Sce­nario' or­gan­ised by In­dian Coun­cil of Ar­bi­tra­tion (ICA) on the oc­ca­sion of its 49th An­nual Gen­eral Meet­ing in New Delhi on De­cem­ber 22, 2014, Mal­ho­tra said that the big­gest impediment to make In­dia an in­ter­na­tional ar­bi­tra­tion hub was lack of sin­cer­ity on the part of ar­bi­tra­tors, ad­vo­cates and at times the par­ties in­volved, who have a lan­guid ap­proach to­wards ar­bi­tra­tion. He added that long de­lays in set­tle­ment of dis­putes and lack of in­fras­truc­ture also

'Fly-in, fly-out' for for­eign lawyers should be al­lowed for in­ter­na­tional ar­bi­tra­tion cases, like Sin­ga­pore and Malaysia, to make In­dia an ar­bi­tra­tion hub.

acted as hin­drances and dis­cour­aged in­ter­na­tional ar­bi­tra­tion to take place in the coun­try.

On open­ing up of the le­gal sec­tor for other com­mu­ni­ties, Mal­ho­tra said that the Bar Coun­cil of In­dia needs to come on­board and ef­forts were be­ing made to get the stake­hold­ers on a level play­ing field. He added that it would be fea­si­ble to open the sec­tor step by step but the pace of the process needs to be quick­ened.

Speak­ing on com­mer­cial courts, he said that ded­i­cated courts at the dis­trict level could speed up the process of judg­ment as sub­ject ex­pert judges could be ap­pointed to deal with com­mer­cial dis­putes.

Jus­tice S S Ni­j­jar, Former Judge, Supreme Court of In­dia, said that it was time for the gov­ern­ments both at the Cen­tre and state to en­cour­age ar­bi­tra­tion. In In­dia, ar­bi­tra­tion was not con­sid­ered se­ri­ously and com­mit­ment on the part of lawyers and ar­bi­tra­tors were miss­ing. For in­stance, ma­jor­ity of the lawyers take up an ar­bi­tra­tion case only af­ter court hours or on week­ends. The ap­proach needs to change and ar­bi­tra­tion should not be con­sid­ered as a part time ac­tiv­ity.

N. G. Khai­tan, Pres­i­dent, ICA, said that to re­solve com­mer­cial dis­putes there were two ways – lit­i­ga­tion and ar­bi­tra­tion. To­day peo­ple were ready to adopt ar­bi­tra­tion over lit­i­ga­tion but there was a need for an in­sti­tu­tional ar­bi­tra­tion mech­a­nism. Also, it was nec­es­sary to dis­ci­pline ad-hoc ar­bi­tra­tion to avoid de­lays and to pro­nounce judg­ments in a time bound man­ner. He sug­gested that 'fly-in, fly-out' for for­eign lawyers should be al­lowed for in­ter­na­tional ar­bi­tra­tion cases, like Sin­ga­pore and Malaysia, to make In­dia an ar­bi­tra­tion hub.

L to R: Arun Chawla, Ad­viser, In­dian Coun­cil of Ar­bi­tra­tion & As­sis­tant Sec­re­tary Gen­eral, FICCI; N. G. Khai­tan, Pres­i­dent, ICA; Jus­tice S S Ni­j­jar, Former Judge, Supreme Court of In­dia; P K Mal­ho­tra, Sec­re­tary, Depart­ment of Le­gal Af­fairs, Min­istry of Law and Jus­tice, Gov­ern­ment of In­dia and Dr. A Di­dar Singh, Sec­re­tary Gen­eral, FICCI.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.