What Is Arbitration And What Is Its Position In In (1).docx

What is Arbitration and what is its position in India vis a vis rest of the world? Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more impartial arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court1.Arbitration is often used for the resolution of commercial disputes, particularly in the context of international commercial transactions. Arbitration in India is regulated by the Arbitration and Conciliation Act, 1996.The Act is based on the 1985 UNCITRAL (The United Nations Commission on International Trade Law) Model Law on International Commercial Arbitration and the UNCITRAL Arbitration Rules 1976.2 In the past decade, it has been observed that parties are hesitating in choosing India as a preferred seat of arbitration and moving towards international arbitral tribunals such London Court of International Arbitration or Singapore arbitral institutions. These institutions provide better facilities and quick disposal of dispute.As per the LCIA's report for the year 2015, it made a total of 449 appointments of arbitrators this past year – not one of them happened to be an Indian. Most Indian international arbitrations are now seated in Singapore. The SIAC made a total of 126 appointments of arbitrators in 2015. Indians comprised a mere 3% of this total3.Foreign arbitral institutions such as the ICC and LCIA have long been used in India But the time is changing, EY research indicates that in the last three years, India has seen a growth of nearly 200% increase in the number of disputes that have been referred to arbitration. The entry of professional institutes in the market has brought in efficient structure, competence, world-class facilities, credibility, quality services and effective case management. This has resulted in the growing popularity of institutional arbitration in India.4 India is on a verge of legal revolution with introduction of the New Delhi International Arbitration Centre (NDIAC) Bill, 2018, issue of entry and practice of foreign lawyers and law firms in India, and other initiatives like the establishment of the Mumbai Centre for International Arbitration will definitely make India a leader in the arena of arbitration and alternate dispute resolution 1

www.wipo.int/arbitration

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https://www.clearias.com/arbitration-in-india/

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LCIA Registrar's Report 2015 [www.siac.org.sg/images/stories/articles/annual_report/SIAC_Annual_Report_ LCIA Registrar's Report 2015 [www.siac.org.sg/images/stories/articles/annual_report/SIAC_Annual_Report_ 2015.pdf]. 4https://www.ey.com/in/en/newsroom/news-releases/ey-press-release-progressive-improvement-of-arbitration-in-india