India has now created a launchpad (through a new law combined with Prime Minister’s initiative) to becoming an arbitration friendly country, Anthony Abrahams, Director General, Chartered Institute of Arbitrators (CIArb) has said.
However, to create the body of cases that would bring the confidence of people to use India for arbitration does need Government support. The kickstart for this should come from the government, Abrahams told BusinessLine here on Wednesday.
“You don’t become a Centre or hub for arbitration overnight. The catalyst has to be a Government initiative. On any major infrastructure project where Government is involved, if they say that any dispute will be settled at an Indian arbitration centre, the credibility will increase and more people will come to resolve disputes in India,” he said.
Abrahams, who was visiting India for the launch of Young Members’ Group of CIArb in India, said that India is growing as an arbitration Centre and courts are now supportive of the process.
“There is a sea change in India in the approach to arbitration”, he said.
Abrahams expressed confidence that control of time factor—which was a weak spot so far—would bear fruit now that a new amendment law has been enacted on Arbitration.
India’s efforts to emerge as an arbitration hub has been frustrated by judicial interventions, high costs and time delays.
Lalit Bhasin, who heads the India Chapter of CIArb, said that judicial interventions are on the decline in the last couple of years. “We have seen Supreme Court judgments that have laid down that there will be least interference by courts in arbitral proceedings and awards,” Bhasin said.
He admitted that other factors such as high costs and time delays are still thorny issues that need to be sorted out to improve the country’s standing in the arbitration world.
Bhasin said that lack of institutional arbitration was still a handicap and this prompted people to go in for ad-hoc arbitration, an area monopolised by retired judges of the higher courts. There is a need to promote arbitration within the country, he said.