No plans for setting up International Arbitration Centre in the country: Law Ministry

New Delhi, Apr 15 (KNN) In response to question raised by Yogi Aditya Nath recently in the Parliament on whether or not the Government has taken a decision to set up International Arbitration Centre, P.P Chaudhury, Minister of State for Law and Justice said at present no such proposal of setting up of International Arbitration Centre in the country is under consideration of the Government.

Currently, most of the global business disputes involving Indians have to go to the Singapore or the London arbitration centers. According to a study conducted by the Singapore International Arbitration Centre, of the total number of cases it receives every year, almost 30 per cent of the cases relate to matters involving Indian businesses.

Considering the scenario, there is a rising need for Credible International Arbitration centres in the country.

Talking to KNN Arashveer Brar, Partner and Vice Chair of Maheshwari Legal Services exhorted the importance of setting up such centers in India. “The main purpose of the Arbitration act was to lower the cost of litigation and to provide speedy disposal, but with the lack of proper International Arbitration centers in the country, the cases end up going to Singapore or London, where both costs incurred and time is a lot” she said.

According to a media report, at present, the total outflow of funds to resolve such cases, complete with logistics and other related expenditure, works out to around $ 5 billion.

Explaining further, Arashveer said that the business disputes which have higher value approach the Centres in Singapore or London, whereas for lesser value disputes it is not possible. They therefore end up at the Ad-Hoc Arbitration centers. 

She further mentioned that since these Ad-Hoc centres in the country lack the standards and credibility, the clients have to further approach the courts to get the disputes settled.

She also added that The Mumbai Centre for International Arbitration (MCiA) was launched recently to address these concerns, but it is too soon to expect significant results from the Mumbai Centre.

During the launch event of MCIA last year, Chief Minister Devendra Fadnavis also emphasized the importance of such centres across the country. “A crucial factor to establish ease of doing business and attract foreign direct investments is a healthy arbitration resolving eco-system. In this, time and space are key” the CM said. (KNN/ DA)