RESOLVE COMMERCIAL DISPUTES WITH “INSTITUTIONAL ARBITRATION”, AVOID AD HOC ARBITRATION : JUSTICE BHAT OF DELHI HIGH COURT AT PHDCCI
The International Conference on “Changing Landscape of Alternative Dispute Resolution in India” under aegis of PHD Chamber of Commerce and Industry (PHDCCI) which was inaugurated here today by Former Judge, Supreme Court of India, Justice Vikramajit Sen, who congratulated the Chamber for this wonderful initiative of having an Arbitration & Mediation Centre with its own rules. He also detailed out by giving examples what the issues arise as regards jurisdiction and the seat of arbitration. He emphasized that issues of the seat of arbitration and jurisdiction should be highlighted in the Arbitration clause of the Chamber.
He, however, pointed out that it is through arbitration process, most of commercial disputes could be amicably settled for good provided the clauses and details of arbitration process are laid out comprehensively.
The Guest of Honour Justice S Ravindra Bhat of Delhi High Court called for “Institutional Arbitration” as the preferred mode for settling up of commercial disputes urging India Inc. to avoid opting for ad hoc arbitration.
Speaking at the Conference, Justice Bhat also advised business communities to adopt online arbitration and use of innovative technology to cut discovery and volumes of documentation.
In addition, Justice Bhat also stressed, adding that arbitral innovations such as “Emergency Arbitration” should also be adopted widely by business houses to timely resolve their disputes for a win-win situation.
Quoting Justice Sri Krishna Committee on Arbitration Reforms, the Delhi High Court Judge recalled, “India has not fully embraced institutional arbitration as the preferred mode of arbitration despite the existence of several institutions which administer arbitrations. Despite the existence of around 35 arbitral institutions in India, parties in India prefer ad hoc arbitration and regularly approach courts to appoint arbitral tribunals under the relevant provisions of the Arbitration and Conciliation Act”.
He explained that institutional arbitrations offered the advantages of providing a clear set of arbitration rules and timelines for the conduct of arbitration. “The chief problem of ad hoc arbitration is that they tend to be protracted and costly”, reminded Justice Bhat.
Referring to Commercial Arbitration, Justice Bhat held that it was without doubt that commercial arbitration is one of the most effective methods of dispute resolution in a world of complex and ever growing global business transactions between nations governed by different commercial laws.
In his welcome remarks, President, PHDCCI, Mr. Rajeev Talwar also explained that at a time global business is getting integrated with rising complexities, institutional arbitration would be a step in the right direction.
Sr. Vice President, PHDCCI, Mr. D K Aggarwal also emphasized saying that arbitrations is the right process to resolve emerging business issues and cross border transactions.
Chairperson, Taskforce on ADR, PHDCCI, Ms. Priya Hingorani unfolded Rules of Arbitration and Conciliation of PHDCCI Centre for International Arbitration & Conciliation and Mediation and Conciliation Rules of PHDCCI Mediation & Conciliation Centre to the audience present on the occasion which were released today by the Judges and the leadership of PHDCCI.