INDIA - Arbitration Legislation - Arbitration in Asia - 2d Ed - Indian Council of Arbitration Rules of Arbitration and Conciliation
Originally from Arbitration in Asia
INDIAN COUNCIL OF ARBITRATION RULES OF ARBITRATION AND CONCILIATION
(As Amended on and with Effect from May 8, 2012)
Recommendation of the Ministry of Commerce, Government of India for Using ICA Arbitration Service
Office Memorandum No. 37(1)/98-TPD, Ministry of Commerce, Govt. of India.
Sub: Utilization of services of the India Council of Arbitration in Resolving Commercial Disputes
1. With the expansion of world trade and with more Indian and foreign corporations entering into trade agreements, the potential for international business disputes has risen significantly. Increasingly companies are using international commercial arbitration to resolve their international contract problems. Arbitration offers many advantages to the resolution of international business disputes. It offers privacy; freedom from national courts and strict application of national procedural law; freedom to choose one's arbitrator, space of arbitration and rules to govern arbitration proceedings and a flexible, informal procedure, often more conducive to settlement and less adversarial than litigation. Treaties and conventions ensure simple and expeditious enforcement of foreign arbitral agreement and awards virtually all over the world. International arbitration today is an important tool of the international business community and serves to resolve a wide variety of transnational commercial dispute.
2. it is noticed that many Indian parties while making business transactions do not have agreements in writing with foreign parties.
In cases where the agreement is in writing, the arbitration clause is not included in the contract. In case arbitration clause has been used, no reference is mode to the institutional arbitration. Instead ad hoc arbitration issued for resolving the dispute. Ad hoc arbitration proceedings often suffer from innumerable legal and practical problems which cause inordinate delays and cost in actual practice. This is because ad hoc arbitrations do not have the advantage of any arbitration machinery set up under the comprehensive rules of procedures of an arbitral institution.
3. The Indian Council of Arbitration has its own rules of arbitration and provide arbitration services nationally and internationally. The Council also has a large number of eminent and experienced persons in the law and practice of international arbitration on its panel of arbitrators. The panel not only includes persons from India but also from the foreign countries. The ICA panel has been used on a number of occasions by courts and ICC arbitration cases also.
4. Therefore, you may like to consider recommending to the concerned department in your organization to use the Indian
Council of Arbitration clause of arbitration indicated below in all business contracts entered with any party in India or abroad.
“Any dispute of difference whatsoever arising between the parties out of or relating to the construction, meaning, scope, operation or effect of this contract or the validity or the breach thereof shall be settled by arbitration in accordance with the Rules of Arbitration of the Indian Council of Arbitration and the award made in pursuance thereof shall be binding on the parties”.
The above arbitration clause could be used in all commercial contracts concluded by all commercial department under your organization so that the ICA may be able to assist through arbitration/mediation for economical and expeditious settlement of disputes that may arise under the contract in future.
5. After the enactment of the Arbitration and Conciliation Act, 1996, the ICA brought out a study comparing the old and the new law. A copy of the study on the Arbitration and Conciliation Law in India which compares the main features of the old and new law of arbitration is enclosed (copy available on request to ICA)
Sd/- (K.M. Chandrasekhar)
Joint Secretary to Govt. of India