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8th June 2024 (15 Topics)

India is shifting from judicial interference to supporting arbitration

Context

The Indian judiciary has recently undergone a significant shift in its approach towards arbitration. Chief Justice of India (CJI) D Y Chandrachud announced this change during a lecture at the Supreme Court of the United Kingdom.

1: Dimension- Understanding Arbitration in India

  • Ad-hoc Arbitration: This involves a tribunal conducting arbitration between the parties, following the rules agreed by the parties or laid down by the tribunal if there is no prior agreement.
  • Institutional Arbitration: This refers to the administration of arbitration by an institution in accordance with its rules of procedure. The institution provides appointment of arbitrators, case management services, venues for holding hearings, etc.

2: Dimension- Challenges of Institutional Arbitration in India

  • Administrative and Management Issues: There are issues relating to the administration and management of arbitral institutions.
  • Perceptions and Expertise Issues: There are perceptions regarding arbitrators and expertise issues relating to resources and government support, lack of initial capital, poor and inadequate infrastructure, lack of properly trained administrative staff, lack of qualified arbitrators, etc.

3: Dimension- Measures to Improve Institutional Arbitration in India

  • Establishment of APCI: An autonomous body, the Arbitration Promotion Council of India (APCI), has been proposed to be set up, having representatives from all stakeholders for grading arbitral institutions in India.
  • Recognition of Professional Institutes: The APCI may recognize professional institutes providing for accreditation of arbitrators.
  • Training Workshops: The APCI may hold training workshops and interact with law firms and law schools to train advocates with interest in arbitration.
  • Creation of Specialist Arbitration Bar: The APCI may create a specialist arbitration bar.
Types of alternative dispute resolution in india :

In India, various types of Alternative Dispute Resolution (ADR) mechanisms are employed to resolve disputes outside of traditional court litigation. Some of the prominent types of ADR in India include:

  1. Arbitration: Arbitration involves the resolution of disputes by one or more arbitrators appointed by the parties. The decision of the arbitrator(s), known as the arbitral award, is binding on the parties. Arbitration in India is governed by the Arbitration and Conciliation Act, 1996.
  2. Mediation: Mediation is a voluntary and confidential process in which a neutral third party, the mediator, assists the disputing parties in reaching a mutually acceptable resolution. The mediator facilitates communication and negotiation between the parties but does not impose a decision.
  3. Conciliation: Conciliation is similar to mediation but involves a more active role by the conciliator, who may suggest solutions and make recommendations for resolving the dispute. Like mediation, conciliation is also a voluntary process.
  4. Negotiation: Negotiation is a direct discussion between the parties involved in the dispute, often facilitated by their legal representatives or advisors. The parties attempt to reach a mutually satisfactory settlement without the involvement of a neutral third party.
  5. Lok Adalat: Lok Adalat, or People's Court, is an informal dispute resolution mechanism in which retired judges, social activists, or legal professionals act as conciliators to settle disputes outside the formal court system. Lok Adalats emphasize conciliation and compromise.
  6. Online Dispute Resolution (ODR): ODR involves the use of technology, such as online platforms and video conferencing, to facilitate the resolution of disputes. ODR mechanisms aim to make dispute resolution more accessible, efficient, and cost-effective.
  7. Fast Track Arbitration: Fast track arbitration is a specialized form of arbitration designed to expedite the resolution of disputes, particularly commercial disputes. It involves streamlined procedures and time-bound processes to ensure quicker outcomes.
  8. Expert Determination: Expert determination involves the appointment of a neutral expert to resolve specific technical or factual issues in a dispute. The expert's decision is binding on the parties and is often used in disputes involving complex technical matters.
  9. Adjudication: Adjudication involves the appointment of a neutral adjudicator to make a binding decision on a dispute, typically within a fixed timeframe. Adjudication is commonly used in construction and infrastructure projects to resolve disputes quickly.

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