Enforcing int'l arbitration awards vital
legal experts believe better enforcement of international arbitration awards to solve disputes between business houses is needed to sustain the momentum.
By PTI |
NEW DELHI: With foreign companies eager to invest more and more in India, legal experts believe better enforcement of international arbitration awards to solve disputes between business houses is needed to sustain the momentum.
"Arbitration laws should not focus only on disputes after they have arisen, but how to avoid conflict situations" said vice-president of ICC Court of Arbitration Lord Michael J Mustill.
The gray areas in enforcement of arbitration awards should be removed as India is going to become the hub of international arbitration, geographically and strategically as the country witnesses a boom in economic activities, Mustill said.
Many in the Indian legal community are also thinking on the same lines.
"The problem in enforcement of international arbitration is the time taken by the Indian Courts to enforce it. Before enforcing, an Indian Court is required to adjudicate and decide any objections of the losing party to the award. Invariably, the losing party attempts to make all kinds of objections to the award which then takes years for the court to decide and dispose of," said Diljeet Titus of Titus & Co.
The main hurdle in the enforcement is time, which normally takes another two to three years in court after two to three years of arbitration.
"Mere filing of an appeal against the award will render it unenforceable until the conclusion of the appeal. Therefore, the effective enforceability of an arbitral award is reduced," adds Sajan Poovayya, solicitor in England & Wales of Poovayya & Co.
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