About - Arbitration As An Alternative Dispute Resolution Technique
The liberalisation policy of the Government of India, to integrate the Indian economy with the world economy, is bound to trigger a spurt in international sale of goods and services, infrastructural investments, communications and transportation. Disputes arc likely to arise between the trading parties, which would be diverse in dimensions and complex in nature. Such disputes require quick and amicable settlement, and cannot tolerate the prolonged legal process followed in the Indian Courts. Indian law, with the introduction of the Arbitration and Conciliation Act, 1996 is nov treading the path walked upon by other developed nations. Greater autonomy has been provided and judicial interference has been limited to a narrower circumference than under the previous law.
The Act, 1996 has repealed the Arbitration (Protocol and Convention) Act, 1937, the Arbitration Act, 1940, and the Foreign Awards (Recognition and Enforcement)Act, 1961. Arbitration in all forms is practised in India and the law now expressly recognises institutional arbitration and permits ad hoc arbitration. An agreement to arbitrate should be in a written form and mayor may not form part of the actual contract. India however, continues to maintain its commitment for the enforcement of foreign awards under the multilateral conventions, such as, the Geneva Convention, 1927 and the New York Convention, 1958.
Conciliation on the other hand is a process, whereby the conciliator induces the parties themselves, to come to a settlelnent and therefore, the final result depends on the will of the parties. Conciliation, hence, can be resorted to in all "disputes arising out of a legal relationship", whether contractual or non¬contractual.
The Act of 1996 has definitely instilled a iot of confidence in the foreign investors as it is based on the United Nations Commission on International Trade Law (UNCITRAL) Model with which they are familiar, and the Indian law now provides for an equally quick, speedy and cost-effective remedy as any other law in the world.