New Delhi: The government is setting up a panel of mediators whom businesses and other stakeholders can approach for speedy resolution of disputes.
The Ministry of Corporate Affairs has invited applications from former Supreme Court, High Court and tribunal judges and arbitration experts who wish to be included in the panel.
The move signals efforts to promote arbitration for faster dispute resolution as lengthy litigation is believed to dampen investor sentiment and affect efficiency in the economy. In mediation – a voluntary and confidential process – a neutral third party, the mediator, helps the parties reach a settlement.
An announcement posted on the ministry’s website said the Regional Director, North West Region, Ahmedabad, would set up and maintain the panel.
Experts said such a panel would help businesses and stakeholders resolve disputes quickly and cheaply. The mediation panel will be composed of trained mediators who will work with the parties in reaching a mutually acceptable settlement.
“By setting up arbitration panels, the ministry is providing a way for businesses and stakeholders to access arbitration services in a structured and consistent manner. This can help promote the use of arbitration as a tool to resolve disputes, which in turn can lead to greater efficiency, cost savings and better relations between the parties,” said law firm KS Legal & said Sonam Chandwani, managing partner, Associates.
Chandwani said arbitration can be particularly beneficial to businesses and stakeholders as it avoids the cost and time associated with traditional litigation. In addition, it can help maintain relationships between parties, a factor that is often important in business contexts where ongoing collaboration is essential, she said.
Krutika Jagannathan, associate partner at law firm Lakshmikumaran & Sreedharan Attorneys, said the announcement has provided momentum to the regime for alternative dispute resolution in India. Jagannathan said, “It is good for the entire eco-system as a time-efficient avenue for litigation-weary companies, an avenue for experts to develop bespoke strategies for disputes and an opportunity for the courts to In form of.”
The government is keen to encourage mediation on a large scale so that fewer cases reach the courts and tribunals.
The Arbitration Bill, 2021 pending in Parliament seeks to promote arbitration, especially institutional arbitration, for the resolution of commercial and other disputes and to enforce arbitration settlement agreements.
The Bill also proposes to create a body for registration of arbitrators and to make online arbitration an acceptable and cost-effective process.
The Bill proposes to create the Arbitration Council of India. Once the Bill becomes law, arbitration and conciliation will be conducted as per its provisions.
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