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Modi underlines need for vibrant ecosystem for international arbitration

 
India is experiencing a digital revolution: Modi
Prime Minister Narendra Modi today said creation of a “vibrant ecosystem” for international arbitration was one of the foremost priorities of the government and major amendments had been made recently in the Arbitration and Conciliation Act.
 
Delivering the valedictory address at the international conference on National Initiative towards Strengthening Arbitration and Enforcement in India, Mr Modi said this had made the arbitration process easy, timely and hassle-free.
 
“Our law is based on the UNCITRAL model law. The objective is to ensure tha,t in normal circumstances, arbitral tribunal makes its award within 12 months. In case of a fast track procedure, such award can be given in 6 months.
 
“Even the appointment of the arbitrator has to be decided by the court within a period of 60 days. The impediments encountered earlier in the grant and process of award have been removed,” he added.
 
Further, as per the new law, any application challenging the award is to be disposed of by the court within one year. The enforcement of award can be refused by the courts only as per international practices, the Prime Minister said.
 
“These amendments have brought our arbitration process in tune with global best practices. This has given us an opportunity to emerge as a leading arbitration jurisdiction,” he added.
 
However, great opportunities pose great challenges. These challenges include: Availability of excellent quality and globally recognized arbitrators; Observance of professional conduct, ensuring neutrality, and timely completion of proceedings; and, Cost effective arbitration proceedings, Mr Modi said.
 
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 “Our Government has been working on a strategy for convergence of existing tribunals. This will help transform the existing complicated tribunal system into a simpler structure,” the Prime Minister said.
 
“We need to simultaneously facilitate a vibrant ecosystem for alternate dispute resolution, including arbitration, mediation and conciliation. This will provide additional comfort to investors and businesses. More importantly, it will also ease the case-load on Indian courts,” he added.
 
Today, corporates and financial institutions want legal experts who can help close business deals and transactions without any disputes and litigations.
 
If a dispute arises, corporates want to resolve them quickly through arbitration, without going to courts. For this, they require specialized arbitration lawyers. Alternative dispute resolution processes also preserve personal and business relationships that might otherwise be damaged by the adversarial process.
 
“Recent trends indicate that Asian centres like Hong Kong and Singapore have emerged as preferred arbitration destinations. As popular business hubs, they also rank high in the levels of ease of doing business,” Mr Modi said.
 
“Thus, availability of quality arbitration mechanisms is an integral component of Ease of Doing Business, to which our Government is committed,” he added.
 
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