Arbitration in India
Why in News?
- The article provides an overview of the current state of arbitration in India, highlighting recent legislative amendments and judicial pronouncements aimed at strengthening the arbitration framework and promoting alternative dispute resolution mechanisms in the country.
Important Key Points:
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Legislative Framework:
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The Arbitration and Conciliation Act, 1996, as amended in 2015, 2019, and 2021, governs arbitration proceedings in India.
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The 2019 Amendment introduced the Arbitration Council of India (ACI) to promote institutional arbitration and set standards for arbitral institutions and arbitrators.
. Judicial Developments:
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The Supreme Court has upheld the validity of arbitration agreements in unstamped or inadequately stamped contracts, emphasizing the importance of party autonomy and minimal judicial intervention in arbitration matters.
. Alternative Dispute Resolution (ADR) Mechanisms:
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Apart from arbitration, other ADR mechanisms like conciliation, mediation, and negotiation are gaining prominence.
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Conciliation: A non-binding process where a conciliator assists parties in reaching a mutually agreeable settlement.
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Mediation: An impartial mediator facilitates communication between parties to help them arrive at a voluntary agreement.
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Negotiation: Direct discussions between parties to resolve disputes without third-party intervention.
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. Institutional Support:
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The establishment of the Arbitration Council of India (ACI) aims to grade arbitral institutions, accredit arbitrators, and promote ADR mechanisms.
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The Mediation Act, 2023, seeks to institutionalize mediation processes and enforce mediated settlement agreements.
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