Arbitration now a preferred ADR mechanism in India: Survey

NEW DELHI: Arbitration is emerging as a preferred dispute resolution mechanism in India and the country has become one of the top three seats for arbitration in the world along with Singapore and England, says a survey.


According to a PwC survey on Corporate Attitudes and Practices towards Arbitration in India, 95 per cent of the companies surveyed used arbitration in isolation or in combination with other dispute resolution mechanisms.

Moreover, a clear majority of companies (91 per cent) in India which have a dispute resolution policy, use arbitration and not litigation for resolution of future disputes, while, 82 per cent of the companies with arbitration experience indicated they would continue to use arbitration in the future disputes as well.

The survey highlighted that the retired Supreme Court /High Court judges were a preferred choice for arbitration cases. It also revealed that India, Singapore and England are the top three seats for arbitration in the world.

The top three factors that make arbitration the most preferred dispute resolution mechanism include -- speed, flexibility and confidentiality.

"Corporate attitudes and practices towards arbitration in India point to a positive trend as more companies in India are adopting arbitration to resolve disputes, despite the challenges," PwC India Leader Forensic Services Vidya Rajarao said.

He added, "The future of arbitration is cautiously optimistic especially given the changes in the arbitration landscape in India are on the anvil and there is a steady increase in arbitration institutions in India."

Meanwhile, in terms of the concern areas, the level of dissatisfaction is substantial for arbitrations seated in India as compared to the arbitrations outside.

As many as 21 per cent of the companies surveyed were dissatisfied with the proceedings seated in India while only 7 per cent of them expressed this concern for arbitrations seated outside India, the report said.