The document discusses the history and development of international commercial arbitration. It notes that arbitration first emerged in Europe in the 1920s to resolve international business disputes privately. Since then, various conventions and rules have been adopted to facilitate arbitration, including the New York Convention of 1958. The document outlines key definitions and concepts in international commercial arbitration such as the meaning of "international", different types of arbitration, and the laws that typically govern arbitration proceedings and awards. It also discusses important issues that commonly arise like jurisdictional questions and the interplay between procedural and substantive laws. The conclusion is that arbitration can replace court proceedings in India by offering faster and cheaper dispute resolution while allowing parties more flexibility and control over the process.
The Anatomy of a Commercial Arbitration - An Arbitration from Start to FinishNow Dentons
This document summarizes the key steps in a commercial arbitration process from start to finish. It begins with polling questions to gauge the experience and knowledge of participants. It then outlines the arbitration agreement, institutional vs ad hoc arbitration, jurisdiction issues, preliminary steps including meetings and pleadings, pre-hearing discovery, the hearing process, awards and appeals, and enforcement of arbitral awards. The goal is to provide an overview of the anatomy of an arbitration for those with varying levels of experience.
What to Look out for while choosing Arbitration ahead of Regular Litigation.
Essentials of an Arbitration Agreement.
Arbitration Act | ad hoc |Institutional Arbitration |
Cross border insolvency inevitably boils down to a scramble for assets, leaving creditors confused about the options available to them. We were delighted to have been invited by the National Law School in Bangalore to speak on the subject over the weekend
International commercial arbitration under the icc rules a critical viewVioleta Arce
The document outlines the structure and process of international commercial arbitration under the ICC Rules, including the arbitration request, tribunal appointment, proceedings, and awards/costs. It discusses recent changes to address challenges like time and costs, multi-party disputes, and good faith. Other arbitration institutions like UNCITRAL, LCIA, and AAA are compared, with the ICC noted as having more structure, support and experience in international arbitration. The conclusion states the ICC and other rules are largely similar, so parties should consider their specific needs in choosing the best dispute resolution mechanism.
The document provides guidance for NBFCs on conducting arbitral proceedings as an alternative to dispute resolution. It outlines the basic process, including pre-arbitration steps like case identification, selecting an arbitrator and counsel. During arbitration, key steps include filing statements of claim and reply, submitting evidence and witnesses, and framing issues. Post arbitration involves receiving and enforcing the award, including through attachment of property or garnishee orders. Supplements include fee schedules and forms to support the arbitration process.
This presentation discusses the question as to whether a statute on mediation is required to be enacted in India. It argues that an ADR code has to be enacted so that dispute and its resolution are seen holistically.
The document discusses the history and development of international commercial arbitration. It notes that arbitration first emerged in Europe in the 1920s to resolve international business disputes privately. Since then, various conventions and rules have been adopted to facilitate arbitration, including the New York Convention of 1958. The document outlines key definitions and concepts in international commercial arbitration such as the meaning of "international", different types of arbitration, and the laws that typically govern arbitration proceedings and awards. It also discusses important issues that commonly arise like jurisdictional questions and the interplay between procedural and substantive laws. The conclusion is that arbitration can replace court proceedings in India by offering faster and cheaper dispute resolution while allowing parties more flexibility and control over the process.
The Anatomy of a Commercial Arbitration - An Arbitration from Start to FinishNow Dentons
This document summarizes the key steps in a commercial arbitration process from start to finish. It begins with polling questions to gauge the experience and knowledge of participants. It then outlines the arbitration agreement, institutional vs ad hoc arbitration, jurisdiction issues, preliminary steps including meetings and pleadings, pre-hearing discovery, the hearing process, awards and appeals, and enforcement of arbitral awards. The goal is to provide an overview of the anatomy of an arbitration for those with varying levels of experience.
What to Look out for while choosing Arbitration ahead of Regular Litigation.
Essentials of an Arbitration Agreement.
Arbitration Act | ad hoc |Institutional Arbitration |
Cross border insolvency inevitably boils down to a scramble for assets, leaving creditors confused about the options available to them. We were delighted to have been invited by the National Law School in Bangalore to speak on the subject over the weekend
International commercial arbitration under the icc rules a critical viewVioleta Arce
The document outlines the structure and process of international commercial arbitration under the ICC Rules, including the arbitration request, tribunal appointment, proceedings, and awards/costs. It discusses recent changes to address challenges like time and costs, multi-party disputes, and good faith. Other arbitration institutions like UNCITRAL, LCIA, and AAA are compared, with the ICC noted as having more structure, support and experience in international arbitration. The conclusion states the ICC and other rules are largely similar, so parties should consider their specific needs in choosing the best dispute resolution mechanism.
The document provides guidance for NBFCs on conducting arbitral proceedings as an alternative to dispute resolution. It outlines the basic process, including pre-arbitration steps like case identification, selecting an arbitrator and counsel. During arbitration, key steps include filing statements of claim and reply, submitting evidence and witnesses, and framing issues. Post arbitration involves receiving and enforcing the award, including through attachment of property or garnishee orders. Supplements include fee schedules and forms to support the arbitration process.
This presentation discusses the question as to whether a statute on mediation is required to be enacted in India. It argues that an ADR code has to be enacted so that dispute and its resolution are seen holistically.
Ran Chakrabarti, Partner at IndusLaw explains Cross Border InsolvencyKartik Ganapathy
The document discusses key issues relating to cross border insolvency. It outlines potential scenarios when an Indian parent company or foreign parent company faces insolvency and the implications for their foreign and Indian subsidiaries respectively. These include whether assets located overseas can be protected, the risk of multiple insolvency proceedings across jurisdictions, and how guarantees between group entities may trigger insolvency events across borders. The consequences are examined in the context of UK and Indian insolvency laws and whether foreign representatives in each country would be recognized to administer cross border insolvencies.
This document is a dissertation submitted by Avinash Murkute to Bharati Vidyapeeth University in Pune, India for an LLM degree in the year 2015-2016. The dissertation analyzes international commercial arbitration from both an Indian and global perspective. It discusses the evolution of arbitration from traditional times to the UNCITRAL Model Law on International Commercial Arbitration. It examines key concepts like the UNCITRAL, Model Arbitration Law, arbitration provisions in the Indian law, composition and jurisdiction of arbitral tribunals, and enforcement of foreign awards. The dissertation also analyzes emerging topics like online dispute resolution and includes interviews with experts.
This document summarizes the applicable law in international arbitration. It discusses that there are three aspects of applicable law: 1) the law governing the arbitration agreement, 2) the law governing arbitration procedures, and 3) the law governing the merits of the case. For arbitration agreements, principles of private international law or the conflict of laws rules of the national law typically apply. For procedures, the law of the seat of arbitration usually applies. For the merits, the proper law of the contract or the law with the closest relationship to the contract typically applies, respecting party autonomy when present. The document outlines practices and cases from various countries to illustrate the application of these principles.
This document provides an overview of enforcing domestic and international arbitral awards in Canada. Some key points include:
- Arbitral awards rendered pursuant to a valid arbitration clause have finality and are more readily enforceable internationally than court judgments due to conventions like the New York Convention.
- In Canada, parties can apply to recognize and enforce domestic or international arbitral awards through the appropriate provincial superior court.
- There are limitations periods and procedural requirements that parties must follow depending on whether the award is domestic or international.
- Generally, courts will enforce awards unless there is a pending appeal or valid grounds to refuse enforcement under the applicable legislation. The court may also grant a stay of enforcement pending other challenges to the award
This document discusses arbitration, mediation, and their roles in resolving corporate disputes in India. It provides an overview of the Arbitration and Conciliation Act of 1996, which is based on the UNICITRAL Model Law and succeeded the 1940 Arbitration Act. It outlines what types of disputes can be arbitrated in India, such as contractual, tort, and winding up claims. The document also discusses the role of courts in domestic arbitrations and the grounds for setting aside arbitral awards. Additionally, it compares the factors and procedures of litigation, arbitration, and mediation, noting mediation is usually fastest, least costly, and allows parties the most control and possibility of a win-win outcome.
Conduct of arbitral proceeding vaibhav goyalVaibhav Goyal
The document discusses the conduct of arbitral proceedings under the Arbitration and Conciliation Act of 1996. It summarizes key sections of the Act related to equal treatment of parties, determination of procedures, place of arbitration, and commencement of proceedings. The arbitrator is not bound by strict rules of evidence or civil procedure, but must follow principles of natural justice. The parties have freedom to agree on procedures and location, or the arbitrator will determine based on convenience.
This document provides an overview of key sections from Chapters IV and V of the Arbitration and Conciliation Act relating to the jurisdiction of arbitral tribunals and the conduct of arbitral proceedings. It summarizes sections 16-21 which address an arbitral tribunal's jurisdiction to rule on its own authority, procedures for raising objections, interim measures, place of arbitration, and commencement of proceedings. The document also discusses related case laws that have supported arbitral tribunals' powers to determine procedures and evidence admissibility.
The document discusses the doctrine of binding non-signatories to arbitration agreements through group of companies theory. It traces the evolution of the doctrine through ICC cases like Dow Chemical v Isover Saint Gobain. While recognized in some jurisdictions like France, the doctrine is rejected in the UK and status varies in the US and India. The submissions note issues with expansive application of common intent and implications of jurisdictional approaches on forum shopping and ICC arbitrations.
The document is the Arbitration and Conciliation Act of 1996 in India. It contains 86 sections organized into 4 Parts and 2 Schedules. Part I covers arbitration provisions, including definitions, the arbitration agreement, composition of the arbitral tribunal, jurisdiction of tribunals, conduct of proceedings, awards, appeals, and enforcement. Part II deals with enforcement of foreign awards under the New York and Geneva Conventions. Part III covers conciliation. Part IV provides supplementary provisions. The Act aims to consolidate arbitration laws and incorporate the UNCITRAL Model Law on arbitration and conciliation.
Benoit Le Bars & Tejas Shiroor, Provisional Measures in Investment Arbitration: Wading Through the Murky Waters of Enforcement, 6 INDIAN J. ARB. L. 1, 27 (2017)
1. Arbitration is preferable to litigation for resolving international commercial disputes as it is typically faster, less expensive, and helps preserve business relationships.
2. Key advantages of arbitration include that arbitral awards are enforceable in many countries under the New York Convention, arbitrators can have relevant technical expertise, proceedings are often confidential, and discovery tends to be more limited than in litigation.
3. Parties can choose between ad hoc arbitration or institutional arbitration administered by organizations like the ICC or AAA. The rules selected and institution chosen if any can impact costs, process, and enforceability of awards.
The document provides an overview of the Insolvency and Bankruptcy Code of India. It discusses India's poor ranking in resolving insolvency which led to the creation of the new code. The code aims to create a single law consolidating existing bankruptcy laws and establish a standardized process for insolvency resolution with strict timelines. Key aspects covered include the roles of various authorities and professionals involved, the corporate insolvency resolution process, and liquidation process if resolution fails.
Convention on the Recognition and Enforcement of Foreign Arbitral Awards Joyce Williams
The document provides an overview of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It notes that the convention was adopted in 1958 and has 156 signatories including Ghana. The key provisions discussed include that arbitration agreements must be in writing, the convention defines five grounds for refusing enforcement of an award, and courts can also refuse enforcement based on arbitrability and public policy concerns. The convention aims to encourage broad enforcement of international arbitration awards.
The document summarizes the arbitration procedures of the International Center for Settlement of Investment Disputes (ICSID). Key points:
- ICSID was created in 1965 by the World Bank to provide impartial dispute resolution between investors and host states over expropriated investments.
- Cases are heard by tribunals made up of arbitrators from countries other than the disputing parties. Consent from both the investor and host state is required.
- Awards are binding and exclude other legal remedies. The tribunal has authority to determine its own jurisdiction over disputes arising from investments.
This document provides information about Vinod Kothari Consultants Private Limited, an Indian law firm with offices in Kolkata, New Delhi, and Mumbai. It lists contact details for the firm's offices and key personnel. The document then provides a brief overview of arbitration and alternative dispute resolution, the history of arbitration law in India, key definitions related to arbitration, and the structure of the Arbitration and Conciliation Act, 1996.
Describe a detail research on how judiciary in each and every possible way has help in promoting and uplifting the working system in Alternative Dispute Resolution
The document summarizes key amendments made to the Arbitration and Conciliation Act of India in 2015. The objectives of the amendments were to make arbitration more expedient, cost-effective, and the preferred mode of dispute resolution. Some key changes include imposing time limits on arbitration proceedings and court decisions related to arbitration, reducing judicial interference, enhancing the powers of arbitrators, and aligning the law more closely with international standards for arbitration.
This document discusses various professional opportunities for Chartered Accountants in the field of alternate dispute resolution (ADR) in India. It outlines roles that CAs can play as arbitrators, counsel for clients, experts for arbitral tribunals, and advisors on selecting appropriate ADR processes. CAs are recognized under Indian law to act as arbitrators due to their objective and balanced approach. The document also discusses international commercial arbitration and how CAs can assist with drafting arbitration clauses and representing clients in international arbitration cases.
Suitability of ADRs to particular types of disputes;Civil Procedure Code and ...Hitendra Hiremath
This document discusses the suitability of alternative dispute resolution (ADR) methods for different types of disputes and their relationship to the Civil Procedure Code in India. It notes that ADR methods like mediation and conciliation are well-suited for family disputes, industrial disputes, and consumer disputes. The Civil Procedure Code was amended to allow courts to refer disputes to arbitration, mediation, or other settlement methods. The amendments empower courts to direct parties to attempt outside settlement and establish procedures for ADR referrals. Landmark court rulings have also helped develop the framework for integrating ADR into the civil litigation system in India to reduce judicial backlog and expedite case resolutions.
On 04 April 2020, I had the pleasure of doing a webinar for Dhruva Advisors LLP's, the leading tax and regulatory services' firm's principals and associates on "Arbitration". We covered the arbitral process and interface of tax and arbitrations, particularly India's BIT arbitrations that arose from tax disputes.
Thank you to Dinesh Kanabar and Vishal Gada for the collaboration.
Ran Chakrabarti, Partner at IndusLaw explains Cross Border InsolvencyKartik Ganapathy
The document discusses key issues relating to cross border insolvency. It outlines potential scenarios when an Indian parent company or foreign parent company faces insolvency and the implications for their foreign and Indian subsidiaries respectively. These include whether assets located overseas can be protected, the risk of multiple insolvency proceedings across jurisdictions, and how guarantees between group entities may trigger insolvency events across borders. The consequences are examined in the context of UK and Indian insolvency laws and whether foreign representatives in each country would be recognized to administer cross border insolvencies.
This document is a dissertation submitted by Avinash Murkute to Bharati Vidyapeeth University in Pune, India for an LLM degree in the year 2015-2016. The dissertation analyzes international commercial arbitration from both an Indian and global perspective. It discusses the evolution of arbitration from traditional times to the UNCITRAL Model Law on International Commercial Arbitration. It examines key concepts like the UNCITRAL, Model Arbitration Law, arbitration provisions in the Indian law, composition and jurisdiction of arbitral tribunals, and enforcement of foreign awards. The dissertation also analyzes emerging topics like online dispute resolution and includes interviews with experts.
This document summarizes the applicable law in international arbitration. It discusses that there are three aspects of applicable law: 1) the law governing the arbitration agreement, 2) the law governing arbitration procedures, and 3) the law governing the merits of the case. For arbitration agreements, principles of private international law or the conflict of laws rules of the national law typically apply. For procedures, the law of the seat of arbitration usually applies. For the merits, the proper law of the contract or the law with the closest relationship to the contract typically applies, respecting party autonomy when present. The document outlines practices and cases from various countries to illustrate the application of these principles.
This document provides an overview of enforcing domestic and international arbitral awards in Canada. Some key points include:
- Arbitral awards rendered pursuant to a valid arbitration clause have finality and are more readily enforceable internationally than court judgments due to conventions like the New York Convention.
- In Canada, parties can apply to recognize and enforce domestic or international arbitral awards through the appropriate provincial superior court.
- There are limitations periods and procedural requirements that parties must follow depending on whether the award is domestic or international.
- Generally, courts will enforce awards unless there is a pending appeal or valid grounds to refuse enforcement under the applicable legislation. The court may also grant a stay of enforcement pending other challenges to the award
This document discusses arbitration, mediation, and their roles in resolving corporate disputes in India. It provides an overview of the Arbitration and Conciliation Act of 1996, which is based on the UNICITRAL Model Law and succeeded the 1940 Arbitration Act. It outlines what types of disputes can be arbitrated in India, such as contractual, tort, and winding up claims. The document also discusses the role of courts in domestic arbitrations and the grounds for setting aside arbitral awards. Additionally, it compares the factors and procedures of litigation, arbitration, and mediation, noting mediation is usually fastest, least costly, and allows parties the most control and possibility of a win-win outcome.
Conduct of arbitral proceeding vaibhav goyalVaibhav Goyal
The document discusses the conduct of arbitral proceedings under the Arbitration and Conciliation Act of 1996. It summarizes key sections of the Act related to equal treatment of parties, determination of procedures, place of arbitration, and commencement of proceedings. The arbitrator is not bound by strict rules of evidence or civil procedure, but must follow principles of natural justice. The parties have freedom to agree on procedures and location, or the arbitrator will determine based on convenience.
This document provides an overview of key sections from Chapters IV and V of the Arbitration and Conciliation Act relating to the jurisdiction of arbitral tribunals and the conduct of arbitral proceedings. It summarizes sections 16-21 which address an arbitral tribunal's jurisdiction to rule on its own authority, procedures for raising objections, interim measures, place of arbitration, and commencement of proceedings. The document also discusses related case laws that have supported arbitral tribunals' powers to determine procedures and evidence admissibility.
The document discusses the doctrine of binding non-signatories to arbitration agreements through group of companies theory. It traces the evolution of the doctrine through ICC cases like Dow Chemical v Isover Saint Gobain. While recognized in some jurisdictions like France, the doctrine is rejected in the UK and status varies in the US and India. The submissions note issues with expansive application of common intent and implications of jurisdictional approaches on forum shopping and ICC arbitrations.
The document is the Arbitration and Conciliation Act of 1996 in India. It contains 86 sections organized into 4 Parts and 2 Schedules. Part I covers arbitration provisions, including definitions, the arbitration agreement, composition of the arbitral tribunal, jurisdiction of tribunals, conduct of proceedings, awards, appeals, and enforcement. Part II deals with enforcement of foreign awards under the New York and Geneva Conventions. Part III covers conciliation. Part IV provides supplementary provisions. The Act aims to consolidate arbitration laws and incorporate the UNCITRAL Model Law on arbitration and conciliation.
Benoit Le Bars & Tejas Shiroor, Provisional Measures in Investment Arbitration: Wading Through the Murky Waters of Enforcement, 6 INDIAN J. ARB. L. 1, 27 (2017)
1. Arbitration is preferable to litigation for resolving international commercial disputes as it is typically faster, less expensive, and helps preserve business relationships.
2. Key advantages of arbitration include that arbitral awards are enforceable in many countries under the New York Convention, arbitrators can have relevant technical expertise, proceedings are often confidential, and discovery tends to be more limited than in litigation.
3. Parties can choose between ad hoc arbitration or institutional arbitration administered by organizations like the ICC or AAA. The rules selected and institution chosen if any can impact costs, process, and enforceability of awards.
The document provides an overview of the Insolvency and Bankruptcy Code of India. It discusses India's poor ranking in resolving insolvency which led to the creation of the new code. The code aims to create a single law consolidating existing bankruptcy laws and establish a standardized process for insolvency resolution with strict timelines. Key aspects covered include the roles of various authorities and professionals involved, the corporate insolvency resolution process, and liquidation process if resolution fails.
Convention on the Recognition and Enforcement of Foreign Arbitral Awards Joyce Williams
The document provides an overview of the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. It notes that the convention was adopted in 1958 and has 156 signatories including Ghana. The key provisions discussed include that arbitration agreements must be in writing, the convention defines five grounds for refusing enforcement of an award, and courts can also refuse enforcement based on arbitrability and public policy concerns. The convention aims to encourage broad enforcement of international arbitration awards.
The document summarizes the arbitration procedures of the International Center for Settlement of Investment Disputes (ICSID). Key points:
- ICSID was created in 1965 by the World Bank to provide impartial dispute resolution between investors and host states over expropriated investments.
- Cases are heard by tribunals made up of arbitrators from countries other than the disputing parties. Consent from both the investor and host state is required.
- Awards are binding and exclude other legal remedies. The tribunal has authority to determine its own jurisdiction over disputes arising from investments.
This document provides information about Vinod Kothari Consultants Private Limited, an Indian law firm with offices in Kolkata, New Delhi, and Mumbai. It lists contact details for the firm's offices and key personnel. The document then provides a brief overview of arbitration and alternative dispute resolution, the history of arbitration law in India, key definitions related to arbitration, and the structure of the Arbitration and Conciliation Act, 1996.
Describe a detail research on how judiciary in each and every possible way has help in promoting and uplifting the working system in Alternative Dispute Resolution
The document summarizes key amendments made to the Arbitration and Conciliation Act of India in 2015. The objectives of the amendments were to make arbitration more expedient, cost-effective, and the preferred mode of dispute resolution. Some key changes include imposing time limits on arbitration proceedings and court decisions related to arbitration, reducing judicial interference, enhancing the powers of arbitrators, and aligning the law more closely with international standards for arbitration.
This document discusses various professional opportunities for Chartered Accountants in the field of alternate dispute resolution (ADR) in India. It outlines roles that CAs can play as arbitrators, counsel for clients, experts for arbitral tribunals, and advisors on selecting appropriate ADR processes. CAs are recognized under Indian law to act as arbitrators due to their objective and balanced approach. The document also discusses international commercial arbitration and how CAs can assist with drafting arbitration clauses and representing clients in international arbitration cases.
Suitability of ADRs to particular types of disputes;Civil Procedure Code and ...Hitendra Hiremath
This document discusses the suitability of alternative dispute resolution (ADR) methods for different types of disputes and their relationship to the Civil Procedure Code in India. It notes that ADR methods like mediation and conciliation are well-suited for family disputes, industrial disputes, and consumer disputes. The Civil Procedure Code was amended to allow courts to refer disputes to arbitration, mediation, or other settlement methods. The amendments empower courts to direct parties to attempt outside settlement and establish procedures for ADR referrals. Landmark court rulings have also helped develop the framework for integrating ADR into the civil litigation system in India to reduce judicial backlog and expedite case resolutions.
On 04 April 2020, I had the pleasure of doing a webinar for Dhruva Advisors LLP's, the leading tax and regulatory services' firm's principals and associates on "Arbitration". We covered the arbitral process and interface of tax and arbitrations, particularly India's BIT arbitrations that arose from tax disputes.
Thank you to Dinesh Kanabar and Vishal Gada for the collaboration.
The document summarizes several roadblocks to international arbitration in India and proposed reforms. It discusses issues like judicial intervention in foreign-seated arbitrations, anti-arbitration injunctions, enforcement of foreign awards, incentives for frivolous litigation, and the unruly concept of public policy. It analyzes relevant cases and outlines reforms proposed by the Law Commission to address these issues, such as clarifying applicable law, establishing timeframes, and implementing a mandatory costs regime. The goal is to make India a more arbitration-friendly jurisdiction and reduce incentives for dilatory tactics.
The document discusses arbitration as an alternative dispute resolution mechanism where parties agree to have their dispute settled by a neutral third party arbitrator. It defines arbitration and outlines the key features including that arbitration awards are binding on parties. It also discusses the Arbitration and Conciliation Act of 1996 and different types of arbitration like institutional, ad-hoc, statutory, and international arbitration. The roles of arbitrators and how they can be challenged are also summarized. The document differentiates arbitration from conciliation.
Commercial Arbitration in Asia (Ammar Younas)Ammar Younas
This lecture has been prepared by Ammar Younas, Senior Lecturer in Commercial Law at Westminster International University in Tashkent for the Class of 2019-2020 Introduction to Business Law.
The document discusses arbitration and alternative dispute resolution mechanisms in India. It begins by defining arbitration and classifying it as one of four types of alternative dispute resolution - negotiation, mediation, collaborative law, and arbitration. It notes that arbitration involves a third party imposing a resolution, unlike mediation which facilitates resolution.
It then discusses the history and development of arbitration law in India from 1859 to the present. Key acts and amendments that have shaped the legal framework are highlighted, including the Arbitration and Conciliation Act of 1996. The definitions, types, and essential elements of arbitration agreements are explained. The roles and appointment processes for arbitrators and arbitral tribunals are also summarized.
Judicial interverntion in foreign seated arbitration - in view of 246th Law C...Aastha Dhingra
The document discusses judicial intervention in foreign-seated arbitration in light of the 246th Law Commission Report. It summarizes key cases that established the scope of judicial intervention for foreign awards and domestic awards from international commercial arbitrations seated in India. The 246th Report proposed restricting the scope of public policy grounds for setting aside awards. It also recommended distinguishing between arbitration seat and venue, and clarifying that Part I of the Arbitration Act only applies when the seat is in India.
This document provides an overview of international transactions and transfer pricing regulations in India.
It defines an international transaction as a transaction between two or more associated enterprises, where one or both parties are non-residents. International transactions can include purchase/sale, services, lending/borrowing, or other transactions affecting profits.
It also describes "deemed international transactions" - transactions between a resident enterprise and third party that are determined by an agreement between the third party and an associated non-resident enterprise.
The document analyzes key cases related to determining what constitutes an international transaction and the application of transfer pricing adjustments.
Key issues to consider when venturing into business in India. Some topics include repatriation of investments, taxation, court proceedings and IP issues.
An easy to understand ppt on the National company Law Tribunal , which gives complete details about the NCLT Act in very brief and in an easy to understand manner.
This document will also help you in increasing the knowledge level of the individual regarding the law in very easy manner.
IMO PROFILE 2023 ^L0 mediation Bill 2023 FINAL 20.10.2023.pdfSIVA KUMAR. D. R.
The document provides information about the International Mediations Organisation (IMO). IMO is a registered trust that advocates and promotes mediation. It was founded by trained and certified mediators. IMO's vision is to provide a holistic mediation experience through the process of mediation. Its mission is to act as a think tank in mediation research and development and promote mediation as the primary resolution process. IMO conducts various awareness programs and training on mediation.
IMO PROFILE 2023 ^L0 mediation Bill 2023 FINAL 20.10.2023.pdfSIVA KUMAR. D. R.
The document provides information about the International Mediations Organisation (IMO). IMO is a registered trust that advocates and promotes mediation. It was founded by trained and certified mediators. IMO's vision is to provide a holistic mediation experience through the process of mediation. Its mission is to act as a think tank in mediation research and development and promote mediation as the primary resolution process. IMO conducts various awareness programs and training on mediation.
Guide for Arbitration Clause in International Agreements in IndiaAnil Chawla
This Guide is useful for companies planning to develop international relationships. It gives an overview of arbitration clause that is an essential part of all international commercial agreements. It also gives an estimate of the costs involved under various options of international arbitration. The last chapter is about pre-arbitration clause which can help one avoid arbitration and associated legal costs.
This document discusses international transactions and transfer pricing regulations in India. It begins by introducing international transactions and defines them as transactions between two or more associated enterprises, where at least one enterprise is non-resident. It then discusses what constitutes a "transaction" and provides examples. It also discusses deemed international transactions where transactions between a resident enterprise and third party are deemed international transactions if there is a prior agreement between the third party and an associated non-resident enterprise. The document concludes by summarizing a key case related to deemed international transactions between two resident Indian companies.
Get all the information related to companies act 2013/1956 including its rules, draft rules, forms, notifications, circulars, orders, definitions, guidelines, schedules, etc.
https://www.nclt.in/
Assignment 4 - Certification in Dispute ManagementJyotpreet Kaur
Domestic arbitration in India involves disputes that arise wholly within India where the parties and subject matter are governed by Indian law. International arbitration can take place in or outside India when there is a foreign element such as parties from different countries. There are conflicting views among Indian courts on whether Part I of the Indian arbitration law applies to arbitrations seated outside India. The document discusses the definitions and differences between domestic and international arbitration under Indian law.
Get all the information related to companies act 2013/1956 including its rules, draft rules, forms, notifications, circulars, orders, definitions, guidelines, schedules, etc.
https://www.nclt.in/about.php
The document provides background information on competition law in India. It discusses how the Monopolies and Restrictive Trade Practices Act (MRTP Act) of 1969 was replaced by the Competition Act of 2002 to promote competition after economic reforms in 1991. The Competition Act established the Competition Commission of India (CCI) to prevent anti-competitive practices. The CCI can investigate abuse of dominant position, mergers and anticompetitive agreements. It has powers to impose penalties and recommend structural changes to enterprises.
My presentation at Indian Institution of Technical Arbitrators on October 26,2012. Topic: Dispute resolution in UAE; An overview on the recent developments.
This document provides an overview of international investment laws, compliance, and regulations for Indian companies investing overseas. It discusses India's economic liberalization in 1991 that opened the door to more foreign investment. It also summarizes India's outbound investment trends in recent years. The document then covers important considerations for structuring overseas investments and deals with potential legal and regulatory hurdles when investing in different international jurisdictions. Finally, it introduces some relevant international organizations and private laws governing cross-border investments and transactions.
Similar to Transforming Commercial Dispute Resolution in India (20)
This document provides a summary of recent planning case law updates covering the following topics:
1. Enforcement cases relating to inspectors' powers and the Welwyn principle.
2. Procedural fairness cases on matters arising during inquiries and notification of hearings.
3. Housing cases on the duty to comply with the development plan, approaches to land supply calculations, determining housing need, and policy compliance.
4. Development plan making cases on the soundness of plans and consideration of housing needs.
5. Decision making cases on planning obligations, education contributions, and design considerations.
This document provides a summary of recent planning case law updates across various topics:
- Enforcement cases clarified inspector's powers to grant alternative schemes and limitations period exceptions.
- Heritage cases established a strong presumption against harm to listed buildings and importance of meaningful consultation for conservation area designations.
- Green Belt cases confirmed policies are not an exhaustive list and aims to preserve openness.
- Housing cases focused on objectively assessed need, five year land supply calculations, and weight of policies.
- Neighbourhood planning saw expansion of case law specific to neighbourhood development plans and their examination.
The document summarizes recent cases related to planning and environmental law across various topics:
- Decision making and fairness cases focused on when new issues can be raised and procedural fairness.
- Heritage cases clarified that statutory tests for listed buildings create a strong presumption against harm even if less than substantial, and that conservation area designations depend on characteristics like public access.
- Green Belt cases established that the NPPF exceptions lists are closed and that proposals map still defines the Green Belt even if policies lapse.
- Housing cases addressed land supply calculations, giving weight to objectively assessed needs, and when housing supply policies conflict with the NPPF.
This document provides a summary of recent developments in UK planning and environmental law across several topics:
- Decision making processes must ensure fairness for all parties and allow for emerging issues to be considered.
- Heritage law gives a strong presumption against harm to listed buildings and conservation areas. Environmental assessments are still required for projects with local impacts.
- Green belt boundaries and appropriate development are interpreted narrowly in England. Welsh law gives more flexibility for balanced decisions.
- Enforcement powers allow for alternative proposals that still remedy breaches. Deception directly undermining planning will not be protected by time limits.
- Strategic environmental assessments must consider reasonable alternatives and objectives, with discretion given to decision makers. Public participation is
NHS contracting and procurement in an age of austerity. The document discusses city devolution and clinical commissioning group co-commissioning. It addresses perceived problems, the principle of subsidiarity, limits to statutory powers and delegation, and pitfalls of clinical commissioning group co-commissioning. Questions are posed at the end regarding the topics covered.
The document provides a summary of recent legal updates related to planning and environment law in the UK. It discusses several notable cases related to topics such as enforcement, heritage, development planning, neighbourhood plans, green belt designations, housing, and environmental impact assessments (EIAs). For example, it summarizes a case that clarified an inspector's power to grant permission for a lesser development scheme when enforcing a larger one. It also discusses cases related to conservation area designations, interpreting saved policies, and the tests for assessing neighbourhood development plans.
This document provides a summary of case law updates related to freedom of information and data protection from 2015. It discusses several cases related to personal data exemptions under FOIA and definitions of personal data. It also summarizes cases related to vexatious requests, damages for data protection breaches, and environmental information charges. The document analyzes these legal issues and precedents set in multiple UK court rulings during that year.
This document summarizes current issues in local authority governance in the UK. It discusses the abolition of standards committees and their replacement with general codes of conduct and independent persons. It also examines legal issues around pre-determination, the conduct of local authority meetings, transparency requirements, and recent reforms to local audit and accountability through the Local Audit and Accountability Act 2014.
This document provides a summary of recent case law updates related to planning and environment topics. Key cases are summarized under the following topics: enforcement, heritage, green belt, decision-making and fairness, development plan-making, neighbourhood plans, housing, EIA/SEA, habitats, nuisance, air quality, and environmental sentencing. Notable cases provide guidance on interpreting the National Planning Policy Framework and considerations around housing need assessments, green belt development, listed buildings, and procedural fairness in decision-making.
The Insurance Act 2015 (IA 2015) comes into force on August 12, 2016 and applies to non-consumer contracts of insurance governed by English law. It introduces several key changes, including modifying the insured's pre-contractual duty from utmost good faith to a duty to make a "fair presentation of risk." It also abolishes the insurer's power to avoid the contract for a breach of utmost good faith, instead providing proportionate remedies for a breach of the duty to make a fair presentation. Warranties will operate as suspensive conditions only during the period of breach. The Act also establishes a statutory regime for fraudulent claims. Contracting out is permitted if disadvantageous terms are transparently presented.
This document summarizes the statutory liabilities and key issues regarding long-term nuclear energy liabilities in the UK. Presently, nuclear operators are liable for damage to third party property and personal injury for up to 10 years. New draft legislation would extend liability to 30 years for personal injury and add liability for economic loss and environmental damage. Key interpretation issues include defining "significant impairment of the environment", "measures of reinstatement", "direct economic interest", and "preventative measures". The document also outlines parties that could be affected like claimants, operators, suppliers, insurers, and the government.
This document discusses a panel on achieving justice and human rights in an era of climate disruption. It summarizes the context of climate change as the biggest challenge of all time and outlines definitions and structure of the discussion. The panel addresses emerging issues in climate change justice, state and corporate responsibility, legal issues, and recommendations for advancing protections and addressing challenges through proposed statutes and international agreements.
Global energy demand is projected to grow by around 30% between now and 2035. Fossil fuels will remain the dominant source but their share of the energy mix will decline slightly as renewables grow rapidly. The world's energy system is set to undergo significant change in the coming decades as countries seek to meet rising demand for energy access, economic growth and development while reducing emissions.
This interactive session looked at developments in adjudication enforcement decisions, including a panel discussion / debate on:
- Adjudication generally
- The implications of the Human Rights Act
This document discusses State Aid under EU law. State Aid refers to assistance from Member State resources that distorts competition. It is prohibited under Article 107 TFEU, subject to exceptions under Articles 107(2) and 107(3). The European Commission reviews existing aid and can require states to alter or abolish aid that distorts competition. If states do not comply, the Commission can refer them to the European Court of Justice. State aid decisions can result in recovery orders requiring repayment of illegal aid over 10 years with interest. The document then discusses applications to tax, including tax rulings challenged by the Commission, and achieving certainty in state aid decisions going forward.
Environmental caselaw update - covering:: nuisance, costs and Aarhus, costs & nuisance claims, Article 9 of the Aarhus Convention and Costs,Communications ACCCC/2013/85 and 68 to the Aarhus Convention Compliance Committee,EIA/SEA and conservation, wild birds and habitats
The document provides an overview of the costs budgeting approach under the Civil Procedure Rules (CPR) and associated Practice Directions. It discusses key aspects of the costs management process including exchanging and filing budgets, making costs management orders, taking approved budgets into account during assessments, revising budgets, and examples of cases where courts have considered costs budgets. The document aims to guide practitioners on properly following the costs budgeting process and factors courts will consider when reviewing and approving costs budgets.
सुप्रीम कोर्ट ने यह भी माना था कि मजिस्ट्रेट का यह कर्तव्य है कि वह सुनिश्चित करे कि अधिकारी पीएमएलए के तहत निर्धारित प्रक्रिया के साथ-साथ संवैधानिक सुरक्षा उपायों का भी उचित रूप से पालन करें।
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Our company bridges the gap between registered users and experienced advocates, offering a user-friendly online platform for seamless interaction. This platform empowers users to voice their grievances, particularly regarding online consumer issues. We streamline support by utilizing our team of expert advocates to provide consultancy services and initiate appropriate legal actions.
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Excited to share insights from my recent presentation on genocide! 💡 In light of ongoing debates, it's crucial to delve into the nuances of this grave crime.
Transforming Commercial Dispute Resolution in India
1. 39 ESSEX CHAMBERS
TRANSFORMING COMMERCIAL DISPUTE RESOLUTION
IN INDIA
INDIA: INVESTMENT TREATY DEVELOPMENTS
Marion Smith QC FCIArb
This material is intended to provoke and stimulate. It does not constitute legal advice. Legal advice
should always be sought before taking or refraining from taking any action
2. What is a BIT?
“A bilateral investment treaty is an
agreement between two countries
regarding promotion and protection of
investment made by investors from
respective countries in each other’s
territory”
3. What is a BIT?
“There is ample precedent for the success of
investment treaties ... Existing pacts have
helped reduce policy barriers limiting FDI and
enhance the investment climate between the
partner countries...”
4. What is a BIT?
“ ... a way to let multinational companies
get rich at the expense of ordinary people
... whenever a government passes a law
to, say, discourage smoking, protect the
environment or prevent a nuclear
catastrophe ...”
5. What is ISDS?
“... a fundamental element of States’
efforts to reinforce the credibility of the
commitments they make in their
international investment agreements.”
6. What is ISDS?
“....a special right to apply to a secretive
tribunal of highly paid corporate lawyers
for compensation.”
7. Facts and Figures
• India signed its first BIT in 1994.
• Signed about 84 since.
• At least 70 in force.
• Majority signed before 2007.
9. Claims History – post 2011
White Industries Australia Limited v.
Republic of India
Award, Nov.30, 2011
10. Further Claims History – post 2011
Photo: Aaron Glantz
Centre for Investigative Reporting
11. Further Claims History – post 2011
• Deutsche Telekom
• Vodafone International Holdings BV
• Sistema
• Telenor
• Children’s Investment Fund
• TCI Cyprus Holdings
• Capital Global and Kaif Investment
13. Indian Government Responses
• Moratorium on all ongoing BIT negotiations
• Announcement of an intention to renegotiate
existing BITs
• New (draft) amended model BIT
14. New Model Bit
• Narrow definitions
• Exclusions
• Changes to standard of treatment
• Omission of MFN clause
• Exhaustion of local remedies
15. What next?
• Termination of BITs?
• Domestic law reform?
• Indian investors as claimants?
• What is politically acceptable?
16. 39 ESSEX CHAMBERS
TRANSFORMING COMMERCIAL DISPUTE RESOLUTION
IN INDIA
INDIA: INVESTMENT TREATY DEVELOPMENTS
Marion Smith QC FCIArb
39 Essex Chambers LLP is a governance and holding entity and a limited liability partnership registered in England and Wales (registered number 0C360005) with its registered
office at 39 Essex Street, London WC2R 3AT. 39 Essex Chambers‘ members provide legal and advocacy services as independent, self-employed barristers and no entity connected
with 39 Essex Chambers provides any legal services. 39 Essex Chambers (Services) Limited manages the administrative, operational and support functions of Chambers and is a
company incorporated in England and Wales (company number 7385894) with its registered office at 39 Essex Street, London WC2R 3AT
17. 39 ESSEX CHAMBERS
TRANSFORMING COMMERCIAL DISPUTE RESOLUTION
IN INDIA
COMMERCIAL COURTS & ARBITRATION
Jonathan Bellamy FCIArb, Barrister
18. INDIA
Will doing arbitration business become easier?
• World Bank Group Report: “Doing Business 2015”
India: 186/189 for Enforcing Contracts
• Commercial cases pending (31.12.13):
High Court Dispute
pending
Cases > 1 Crore
(£100k)
Bombay 1,997 1,276
Calcutta 6,932 1,733
Delhi 3,582 236
Madras 5,865 958
Total 18,376 4,203
19. INDIA
• First instance civil cases pending (31.1213):
incl. arbitration petitions and appeals
High Court Cases Judges allocated
Bombay 47,924 3-8
Calcutta 36,087 ?
Delhi 17,597 ?
Madras 41,702 4
Total 143,310 ?
20. INDIA
Law Commission of India Report No. 253
• “Stepping stone” to general reform of the civil justice system
• Commercial Division & Commercial Appellate Division of High
Courts and Commercial Courts Bill 2015
• “Commercial disputes”
• Procedure:
• Judicial case management
• Pre-trial timetables
• Summary judgment
• Strike out of pleadings
• Written submissions and time limited oral argument
21. INDIA
Law Commission of India Report No. 253
• Specialist judiciary:
– Recruitment from recognised commercial lawyers and
judges
– 2 year allocation to Commercial Court
– Increased remuneration
• Costs:
• Presumption that costs substantial and to follow the event
• Conduct (and other UK CPR factors) relevant
22. INDIA
Law Commission of India Report No. 246
• Investment Treaty Risk: White Industries (2011)
• ICA: Indian Offshore companies
• Enforcement of ICA awards:
– Court = Commercial Court
– Limitation period: 3 months
– Disposal period: “expeditiously” and within 1 year
– No appeals against interlocutory orders
– All appeals to Commercial Appellate Division
– Disposal of appeals “preferably” within 6 months
– No further appeals
23. SINGAPORE
Can doing arbitration business be any easier?
• World Bank Group Report: “Doing Business 2015”
Singapore: 1/189 for Enforcing Contracts
• Dedicated regime for ICA: International Arbitration Act
– Restricted judicial oversight
– No appeal on question of law
– Enforcement in accordance with Art V New York Convention: S31 IAA
• Judicial interpretation of public policy exception: AJU v AJT :
• “an international [not local] focus”
• “exceptional circumstances”
• “most basic notions of morality and justice”
• Fraud and due process but not errors of fact or law
24. 39 ESSEX CHAMBERS
TRANSFORMING COMMERCIAL DISPUTE RESOLUTION
IN INDIA
COMMERCIAL COURTS & ARBITRATION
Jonathan Bellamy FCIArb, Barrister
25. THE ROADBLOCKS TO INDIA
RELATED INTERNATIONAL
ARBITRATION
(WITH A SPECIFIC REFERENCE TO
THE PROPOSED REFORMS)
BY
ANIRUDH KRISHNAN
PARTNER, AK LAW CHAMBERS,
CHIEF - EDITOR, JUSTICE R.S. BACHAWAT’S LAW
OF ARBITRATION AND CONCILIATION
CONSULTANT, 246TH AND 253RD REPORTS OF
THE LAW COMMISSION OF INDIA
26. THE ROADBLOCKS TO INDIA RELATED
INTERNATIONAL ARBITRATION
I. Judicial interventions in foreign seated arbitrations
II. Anti-arbitration injunctions and the Section 45 test
III. Enforcement of foreign awards
IV. Incentives to frivolous litigation
27. JUDICIAL INTERVENTION IN FOREIGN
SEATED ARBITRATIONS
▪Application of Sections 9 and 34 to foreign seated arbitrations
•Sections 9 and 34 are in Part I of the Act.
•Section 2(2) of the Act-"This Part shall apply where the place of
arbitration is in India“
•Contrast with Article 1(2) of the UNCITRAL Model Law-“The
provisions of this Law, except articles 8, 9, 35 and 36, apply only if
the place of arbitration is in the territory of this State.”
28. ▪ Supreme Court in Bhatia (Bhatia International v. Bulk Trading
S.A. (2002) 4 SCC 105 ) on Section 2(2):
• Part 1 mandatorily applies if the arbitration is held in India.
• Part 1 applies if the arbitration is held abroad unless it is expressly
or impliedly excluded.
• Merely specifying the seat of arbitration to be foreign does not
amount to implied exclusion.
• Entire jurisprudence has since developed on how to construe an
implied exclusion.
JUDICIAL INTERVENTION IN FOREIGN
SEATED ARBITRATIONS
29. JUDICIAL INTERVENTION IN FOREIGN
SEATED ARBITRATIONS
Foreign seat alone = no implied exclusion
(Bhatia International v. Bulk Trading S.A. and Anr.,
(2002) 4 SCC 105)
Foreign law governing contract, nothing else specified= no implied
exclusion
(Venture Global Engineering v. Satyam Computer
Services Ltd. and Anr., (2008) 4 SCC 190)
Foreign seat+ foreign law governing the contract= implied exclusion
can be presumed
(Dozco India P. Ltd. v. Doosan Infracore Co. Ltd.,
(2011) 6 SCC 179)
30. SEATED ARBITRATIONS
Foreign law governing the arbitration+ Indian law governing contract=
express exclusion.
(Videocon Industries Limited v. Union of India (UOI) and Anr., (2011) 6 SCC
161)
Simple point- implied exclusion not based on conflict of laws principles.
31. ▪ Bhatia overruled by the Supreme Court in Bharat Aluminium
Company and Ors. v. Kaiser Aluminium Technical Service, Inc. and
Ors. (2012) 9 SCC 552 (“BALCO”)
• Only if the seat is determined to be India, would Part I be
applicable;
• If seat is outside India, even express inclusion of Part I cannot
confer jurisdiction on an Indian Court.
• The decision in BALCO would have prospective effect and apply
only to arbitration agreements executed after the date of
judgement.
JUDICIAL INTERVENTION IN FOREIGN
SEATED ARBITRATION
32. ▪ Consequence of BALCO
• If the seat of the arbitration is located abroad, a party cannot
resort to Sections 9, 27 of the Act;
• Courts to continue to apply Bhatia even though it is recognized
to be bad law.
JUDICIAL INTERVENTION IN FOREIGN
SEATED ARBITRATION
33. PROPOSED REFORMS
▪Law Commission changes
• Prospectivity of BALCO overturned;
• Section 9, 27, 37(1)(a) and 37(3) applicable to foreign
seated arbitrations unless expressly excluded.
34. PROPOSED REFORMS
(2) Scope.—This Part shall apply only where the seat of arbitration is in India.
Provided that, subject to an express agreement to the contrary, the
provisions of Sections 9, 27, 37 (1)(a) and 37 (3) shall also apply to
international commercial arbitration even if the seat of arbitration is outside
India, if an award made, or that which might be made, in such place would be
enforceable and recognized under Part II of this Act.
(2A) Notwithstanding any judgment/ decree to the contrary, the amendment
to this sub-section (2) shall not apply to applications which are pending before
any judicial authority on the date of such amendment, and which have arisen in
relation to arbitrations where the date of the arbitration agreement is prior to
06.09.2012.
35. THE ANTI-ARBITRATION INJUNCTION
▪ Source of power – Section 151 of the Civil Procedure Code, 1908
• Modi Entertainment Network and Anr. v. W.S.G. Cricket PTE. Ltd.,
(2003) 4 SCC 341
• PPN Power Generating Company Ltd. v. PPN (Mauritius) Company
and Ors., 2005 (3) Arb. LR 354 (Madras)
36. ▪ Test for grant of anti-arbitration injunction (Modi Entertainment test)
▪ in personam jurisdiction against Defendant;
▪ if the injunction is declined the ends of justice will be defeated and
injustice will be perpetuated;
▪ the principle of comity.
▪ the principle of forum non-conveniens.
THE ANTI-ARBITRATION INJUNCTION
37. THE USUAL RECOURSE – AN
APPLICATION UNDER SECTION 45 OF
THE ACT
Section 45 :-
“Power of judicial authority to refer parties to arbitration.-
Notwithstanding anything contained in Part I or in the Code of Civil
Procedure, 1908 (5 of 1908), a judicial authority, when seized of an
action in a matter in respect of which the parties have made an
agreement referred to in section 44, shall, at the request of one of
the parties or any person claiming through or under him, refer the
parties to arbitration, unless it finds that the said agreement is null
and void, inoperative or incapable of being performed.”
38. THE LEVEL OF SCRUTINY
▪ What is the level of scrutiny to decide if the arbitration agreement is
“null and void, inoperative or incapable of being performed”?
• Minority judgement in Shin-Etsu Chemical Co. Ltd. v. Aksh Optifibre
Ltd. and Anr., (2005) 7 SCC 234 (delivered by Justice Y.K.
Sabharwal):
– Test under Section 45 to be a “prima facie” test
– In-depth analysis only if prima facie finding against arbitration
• Majority judgement :
– Took the same view as Justice Y.K. Sabharwal on facts
– Did not reiterate finding on “prima facie” test
39. ▪ The test in Chloro Controls (I) Pvt. Ltd. v. Severn Trent Water
Purification Inc. and Ors., (2012) 4 Arb LR 1 (SC)
• Incorporates test in National Insurance Co. Ltd. v. Boghara
Polyfab (P) Ltd., (2009) 1 SCC 267
• The Part I test held to be applicable to Section 45
THE LEVEL OF SCRUTINY
40. PROPOSED REFORMS
• The test under Section 45 to be “prima facie”.
Prima facie is there a valid
arbitration clause?
If yes, final determination
to be made by the tribunal;
no appeal except to the
Supreme Court.
If no, court to make an in-
depth final finding and an
appeal is provided.
41. Proposed Amendment
Test under Part I modified-
“Explanation 1: If the judicial authority is prima
facie satisfied about the existence of an arbitration
agreement, it shall refer the parties to arbitration
and leave the final determination of the existence
of the arbitration agreement to the arbitral tribunal
in accordance with section 16, which shall decide
the same as a preliminary issue; “
42. PUBLIC POLICY – THE UNRULY HORSE
Renusagar Power Co. Ltd. v. General Electric Co., AIR
1994 SC 860
▪ Public policy includes:
• Fundamental policy of Indian law
• The interests of India
• Justice or Morality
43. PUBLIC POLICY – THE UNRULY HORSE
Oil & Natural Gas Corporation Ltd. v. SAW Pipes Ltd.,
(2003) 5 SCC 705. (Domestic Award) (“ONGC I”)
▪ Additional grounds:
• Patent illegality
• So unfair and unreasonable that it shocks the
conscience of the Court
44. Phulchand Exports Ltd. v. OOO Patriot, (2011) 10 SCC 300
(“Phulchand”)
▪ ONGC 1 applied
Shri Lal Mahal Ltd. v. Progetto Grano Spa, (2014) 2 SCC 433
(“Shri Lal Mahal”)
▪ Phulchand overruled
▪ Back to Renusagar
PUBLIC POLICY – THE UNRULY HORSE
45. MAKING THE HORSE MORE UNRULY –
ONGC II
Oil & Natural Gas Corporation Ltd. v. Western Geco International
Ltd., (2014) 9 SCC 263 (“ONGC II”)
▪ Fundamental policy of Indian law construed very widely
• Includes Wednesbury reasonableness principle.
46. LAW COMMISSION RECOMMENDATIONS
▪ Shri Lal Mahal reiterated;
▪ Timeframe set for filing objections (90 days) and disposing off
the same (1 year);
▪ Supplementary Report – ONGC II nullified.
47. PROPOSED AMENDMENT
S. 48. Conditions for enforcement of foreign awards.—…
2) Enforcement of an arbitral award may also be refused if the Court finds that—
(a) the subject-matter of the difference is not capable of settlement by arbitration under the
law of India; or
(b) the enforcement of the award would be contrary to the public policy of India.
48. PROPOSED AMENDMENT
Explanation.— For Without prejudice to the generality of clause (b), it is hereby declared,
for the avoidance of any doubt, it is clarified that an award is in conflict with the public
policy of India only if:
(a) the making of the award was induced or affected by fraud or corruption; corruption.
(b) it is in contravention with the fundamental policy of Indian law;
(c) it is in conflict with India’s most basic notions of morality or justice.
(3) An objection under the above sub-sections shall not be made after three months have
elapsed from the date on which the party making such objections has received notice of the
application under Section 47 of the Act:
Provided that if the Court is satisfied that the party raising the objection was prevented by
sufficient cause from making the application within the said period of three months it may
entertain the application within a further period of thirty days, but not thereafter.
49. PROPOSED AMENDMENT
(4) An objection under this Section shall be disposed off expeditiously and in any event within a
period of one year from the date on which the notice issued pursuant to an application under
Section 47 is served.
(5)(3) If an application for the setting aside or suspension of the award has been made to a
competent authority referred to in clause (e) of sub-section (l) the Court may, if it considers it
proper, adjourn the decision on the enforcement of the award and may also, on the application of
the party claiming enforcement of the award, order the other party to give suitable security.
(6) The costs regime set out in Section 6A of the Act shall apply to a proceeding in relation to
Sections 47 and 48 of the Act.
50. PROPOSED AMENDMENT
Section 34(2)(b)(ii)
“For the avoidance of doubt the test as to whether
there is a contravention with the fundamental policy
of Indian law shall not entail a review on the merits of
the dispute.”
(Supplementary Report)
51. THE PRESENT REGIME- INCENTIVIZES
LITIGATION
▪ Costs rarely imposed
▪ “Costs follow the event” – applicable in theory (Salem Advocate
Bar Association, Tamil Nadu v. Union of India, (2005) 6 SCC
344)
▪ No timeframes for judicial decisions
▪ Vagueness on what constitutes International Commercial
Arbitration – potential source of litigation
• Gap filled by Supreme Court in TDM Infrastructure Pvt. Ltd.
v. UE Development India Pvt. Ltd., (2008) 14 SCC 271.
52. LAW COMMISSION AMENDMENT
▪ “Costs follow the event” – made mandatory;
▪ Timeframes fixed;
▪ TDM Infrastructure ruling incorporated into law as a policy
decision.
53. Proposed Amendment
Section 2 (f) “international commercial arbitration” means an arbitration relating
to disputes arising out of legal relationships, whether contractual or not,
considered as commercial under the law in force in India and where at least
one of the parties is—
(i) an individual who is a national of, or habitually resident in, any country other
than India; or
(ii) a body corporate which is incorporated in any country other than India; or
(iii) a company or an association or a body of individuals whose central
management and control is exercised in any country other than India; or
(iv) the Government of a foreign country;
54. Proposed Amendment
S. 6A- Regime for costs- (1) In relation to any arbitration proceeding or any proceeding under
any of the provisions of this Act pertaining to such an arbitration, the court or arbitral tribunal,
notwithstanding anything contained in the Code of Civil Procedure,1908, has the discretion as to
determine:
(a) whether costs are payable by one party to another;
(b) the amount of those costs; and
(c) when they are to be paid.
Explanation.—For the purpose of clause (a), “costs” means reasonable costs relating to—
(i) the fees and expenses of the arbitrators, courts and witnesses,;
(ii) legal fees and expenses,;
(iii) any administration fees of the institution supervising the arbitration,; and
(iv) any other expenses incurred in connection with the arbitral or court proceedings and the
arbitral award.
55. Proposed Amendment
(2) If the court or arbitral tribunal decides to make an order about in payment of costs –
(a) the general rule is that the unsuccessful party will be ordered to pay the costs of the
successful party; but
(b) the court or arbitral tribunal may make a different order for reasons to be recorded in writing.
(3) In deciding what order, (if any), to make about costs, the court or arbitral tribunal will have
regard to all the circumstances, including –
(a) the conduct of all the parties;
(b) whether a party has succeeded on part of its case, even if that party has not been wholly
successful; and
(c) whether the party had made a frivolous counter claim leading to delay in the disposal of the
arbitral proceedings; and
(cd) whether any reasonable offer to settle is made by a party and unreasonably refused by the
other party.
56. Proposed Amendment
(4) The orders which the court or arbitral tribunal may make under this provision include an order
that a party must pay:
(a) a proportion of another party’s costs;
(b) a stated amount in respect of another party’s costs;
(c) costs from or until a certain date only;
(d) costs incurred before proceedings have begun;
(e) costs relating to particular steps taken in the proceedings;
(f) costs relating only to a distinct part of the proceedings; and
(g) interest on costs from or until a certain date.
(5) An agreement which has the effect that a party is to pay the whole or part of the costs of the
arbitration in any event is only valid if made after the dispute in question has arisen.
57. CONCLUSION
▪ Allied amendments in the form of “Commercial Division and
Commercial Appellate Division of High Courts and Commercial
Courts Bill, 2015” (253rd Report of Law Commission)
• Creation of fast track dispute resolution processes
▪ Need for change in culture
▪ If not, risk of more awards such as White Industries v. Government
of India.