‘Need for changes in arbitration law’

NEW DELHI: The International Chamber of Commerce (ICC) India has said that the government is looking into suitable amendments to the present arbitration law to attract more international awards. This is in view of the fact that the prevalent law is not in conformity with international practices.

“A parliamentary standing committee is looking into the present law to make it more effective,” said ICC India president YK Modi. The cost of arbitration should be reduced to benefit small companies. Arbitration is one of the parallel means of litigation and its main thrust is to have cost-effective and speedy settlement of disputes, said Mr Modi. India may emerge as Asia’s regional hub for arbitration, but it will require suitable changes in the Arbitration &Conciliation Act, 1996, he added.

ICC India executive committee member SK Dholakia pointed to the need to have changes in the present law on arbitration. “The 1996 law applies for both domestic and international arbitraions. This is against the practices elsewhere,” said Mr Dholakia. In Singapore, for example, there are two sets of law. One applies for domestic and the other for international arbitration, said Mr Dholakia.

Zeroing in on the enforcement of foreign arbitral awards in the country, Mr Dholakia said that there are many factors which influence settlements here. Factors like possible violation of Indian law and the perception of the legal luminaries dealing with such cases influence its final settlement.

ICC International Court of Arbitration chairman Pierre Tercier said that international arbitration should be developed in Asia. The business world is changing and Asia is playing a key role. Some of the economies that will become most powerful are to be found in this region, added Mr Tercier.