Arbitration Act may help settle disputes faster

MUMBAI: A faster and cheaper alternative to litigation, for settling corporate disputes, remains unused in India despite the existence of a law enacted in 1996 — The Arbitration and Conciliation Act. This despite the fact that the alternate route for settlement can settle disputes much faster, often in days.
Karl Mackie, founding chief executive officer of the Centre For Effective Dispute Resolution, a non-profit organisation based in the UK, says that the alternate dispute resolution mechanism is widely used in Europe and the US for settling corporate disputes. In Asia, the alternate route is increasingly being sought after in countries like Singapore and Hong Kong, while in other Asian countries it is yet to gain acceptance.
Mr Mackie, who is on a visit to India, on the invitation of Confederation of Indian Industries (CII) said the success rate of such a mechanism is nearly hundred per cent, as people rarely take the matter to the court, even though it is permissible under law. He said the agreement reached through mediation is as good as a court decree.
“It is a much cheaper alternative to litigation,� Mr Mackie said. Disputes between individuals can also be solved through mediation. Besides, there were cases in which mediation was sought for settling territorial disputes between certain small countries. Professional mediators are well qualified personnel, most having a degree in law. A degree in law is not a prerequisite, but knowledge of the subject and respectable antecedents are necessary for a good mediator, Mr Mackie said.
In India, the judicial process is painstakingly slow and engages the parties concerned in courts for several years. The arbitration mechanism is quite popular, but this is also costly and time consuming, like litigation. Settlement through mediation, under the provisions of Arbitration and Conciliation Act, 1996, is a viable alternative in the Indian context, Mr Mackie told ET.