August 22,2019:
Senior Advocate Arvind Datar told Financial Express Online that,“Before we can attract international arbitration to the country, we should build a very strong domestic arbitration culture. It should be institutional arbitration, it should not be ad-hoc arbitration”.
Government has stated that rapidly changing economic activity demands speedy settlement of disputes and creation and establishment of institutional arbitration.
Under PM Narendra Modi, India has made concerted efforts to attract foreign direct investment by improving the country’s ease of doing business ranking. However, foreign investors prefer a well established judicial system and dispute resolution mechanism before investing in a country.
New Delhi International Arbitration Centre Bill, 2019 states that,“Dispute resolution process has a huge impact on the Indian economy and global perception on doing business in our country and it has become necessary to inspire confidence and credibility among the litigants of commercial disputes”.
Senior Advocate Arvind Datar further states that,“There should be faster disposal of appeals at the court level. If arbitration is to be finished in 12 months then disposal of appeal at the court level should not take more than a year. It should not drag on for 3-4 years otherwise there is no point in having arbitration”.
According to a survey conducted by a British University in 2018, London is the most preferred place for international arbitration followed by Paris, Singapore, and Hong Kong. In addition to these cities, Geneva, New York, Stockholm, and Dubai have also been preferred destination for international arbitration.
International arbitration centres like London have evolved highly specialised branches of arbitration like shipping arbitration, construction arbitration and metals arbitration that deal with international commercial disputes of a particular sector.
“In large commercial centres like Delhi, Mumbai, Chennai, and Bangalore, if there is a trained judiciary to decide arbitration cases then it can show that from start to finish it will not take more than 36 months. It will go a long way in convincing the people that things can move really fast in India,” adds Senior Advocate Arvind Datar.
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