- In International courts Indian Govt has lost some of the high-profile battle.
- The Post-Covid Scenario has necessitated a closer examination of the country’s arbitration system.
- Courts are burdened with the justice delivery volume.
Amazon is fighting legal battle with RIL for control of Future Retail assets. Vodafone and Cairn are other examples of lengthy corporate battle with GOI. In International courts Indian Govt has lost some of the high-profile battle.
The legal and regulatory landscape in India is changing. Contractual duties are growing increasingly complex in today’s commercial world. Supply chain disruption, European war, post-pandemic damage, and sluggish growth are all causing financial hardship in several businesses. In the midst of economic uncertainty, businesses are facing a slew of lawsuits stemming from various performance duties clauses, resulting in greater financial burdens and strains.
Courts are burdened with the justice delivery volume.. Approximately 4 crore cases are pending, according to the National Judicial Grid. There are approximately 3 crore criminal cases and 1 crore civil cases in this category. The Indian judiciary implemented tribunalization for the primary goal of reducing backlogs of cases standing before various Indian courts. However, rather than relieving the load on Indian courts, tribunals have contributed to their own backlogs of cases.
It is high time to streamline the Arbitration procedure in order to facilitate the EODB.
It is critical that commercial disputes and economic offences are addressed quickly in India, so that India improves as a business-friendly nation. The Indian judiciary implemented tribunalization for the primary goal of reducing backlogs of cases standing before various Indian courts. However, rather than relieving the load on Indian courts, tribunals have contributed to their own backlogs of cases. India requires a solid institutional system to encourage ADR in the country in order to boost our enterprises and help us reach the visionary milestone of a $5 trillion economy.
Committee constituted under Justice B. N. Srikrishna, has also highlighted the need of Institutional Arbitration in India. Earlier Government has introduced the Mediation Bill, 2021 in the Rajya Sabha on December 20, 2021, considering the fact that Alternate Dispute Redressal (ADR) offers an informal, simple, non-adversarial approach to resolve civil and commercial disputes. However, the Bill had been sent to the Committee on Law and Justice for further scrutiny. The bill intends to promote institutional mediation for faster resolution of disputes and enforce mediated settlement agreements, including provision for online mediation.
The Post-Covid Scenario has necessitated a closer examination of the country’s arbitration system and the use of available tech-solutions to enable faster dispute settlement. Arbitration through the use of technological platforms may also be useful in assisting parties with their decision-making. Today capital is flying freely across the globe. Jurisdiction which secures investors interest by providing policy predictability and framework for resolving disputes in a quicker way, will end up attracting more capital.
Staff Galactik Views