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| Dispute Settlement |
Settlement of business disputes can be through the mainstream court process or through the alternative process of arbitration and conciliation. However, some disputes can be resolved only through the mainstream judicial process in courts. The legal machinery can be painfully slow, and verdicts in civil suits can take several years. There are more than ten million cases pending in Indian courts, and there is a serious shortage of judges. Therefore, the best course of action for expeditious settlement is to settle disagreements by negotiations.
Arbitration is a legally recognised dispute settlement mechanism in India, and is embodied in the Arbitration and Conciliation Ordinance, 1996 which covers domestic as well as international arbitration and the enforcement of foreign Awards. The Act can be invoked if there is an explicit arbitration clause or a separate agreement between parties to refer differences to arbitration.
Arbitration can be provided through the following channels: |
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Arbitration Council of India |
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Joint Business Councils/Joint Chambers of Commerce |
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Trade Commission of the respective country |
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International Chambers of Commerce. |
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| The Arbitration Ordinance provides for the following important clauses: |
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Arbitrators can be of any nationality unless otherwise agreed by the parties |
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Indian Evidence Act will not bind arbitration, i.e. witness evidence is not mandatory. |
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| International Commercial Arbitration: India has accepted the UNCITRAL model law on International Commercial Arbitration, to bring greater uniformity between its law and needs of international arbitration. Under these provisions, foreign arbitration awards can be enforced in India - against proof/evidence of such awards-. Arbitration awards are final and binding on parties, subject to set time limits for responsive action such as application correction/interpretation, setting aside the award. |
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ICREON