Mediation is currently under great development in India, and the technology has been widely used in India since the early 2000s. The country aspires to become an international hub for mediation.
In this article, we will examine the law of arbitration in India, the current status and impact of arbitration in India and finally the future of arbitration in India.
Law governing arbitration in India
In India, the law relating to arbitration is influenced by the common law of English. Arbitration in India is governed by the Arbitration and Conciliation Act 1996, which was developed in accordance with the 1985 UNCIAL, Model on International Commercial Arbitration and the 1976 UNCIAL, Arbitration Regulations.
This Arbitration Act distinguishes between two types of mediation: temporary mediation and institutional mediation.
Temporary arbitration means that arbitration behavior follows the rules agreed upon between the parties.
Institutional arbitration is a situation in which arbitration is governed by the policy rules of an organization, for example, a tribunal. An arbitration agreement is required to respect several mandatory provisions of the Arbitration Act. The arbitration agreement must specify the litigation to be conducted by the arbitrators in the courts, the initiation and termination of arbitration proceedings and the possibility for the parties to challenge the arbitration awards.
Disputes governed by mediation and the current status of mediation in India
Indian companies are generally not as effective at present. According to the World Bank Report 2019, India ranks 77th out of 190 in the Ease of Doing Business, 163rd in enforcing contracts and takes an average of 1445 days to resolve trade disputes in the courts of India. In such a case, the country must develop a comprehensive, effective and outcome-based arbitration system and reform its traditional legal system.
With 35 arbitration agencies and e-City-specific chambers of commerce in India for domestic, international, trade and trade associations, India does not allow every litigation to be settled through mediation. In India, the following cases can be settled through arbitration, including: criminal offenses, marital disputes, guardianship, trust litigation ...
The future of mediation in India
India has made ambitious changes in its mediation system. For example, the Arbitration Act has been amended so that the Challenging Arbitration Awards are no longer automated, which essentially improves the efficiency of arbitration processes and is really costly. The amendment was passed to improve the quality of arbitration proceedings, to reduce court intervention in relation to arbitration awards to India and to improve the trust institutions in the country with respect to arbitration awards.
Furthermore, since the early 2000s, India has been trying to implement technology as a standard in mediation activities, the Covid epidemic being the catalyst for such an aspiration. Strictly speaking, India has always authorized arbitration proceedings in any way required by section 19 of the Arbitration and Compromise Act, stating that "the parties agree to the procedure to be followed by the Arbitral Tribunal in the conduct of its proceedings". The Arbitration Council of India (ICA) has asked the mediating bodies to conduct arbitration proceedings through any means of communication, especially in the context of Covid and Lockdown, including video conferencing and search articles...
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