The Hindu Business Line : `Industry not forthcoming on changes to Arbitration Bill'

THE Parliamentary Committee, which is examining the Arbitration and Conciliation (Amendment) Bill for suggesting changes, has regretted the cold response from the industry and business houses.

Mr Sudarsana Natchiappan, Chairman of Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, told Business Line that there was hardly any response from the industry for whom the amendment was being introduced.

"This is despite our repeated public notifications asking them to come out with some suggestions. The response we got so far from this segment is negligible," he said.

The Amendment Bill, introduced in the Rajya Sabha in December last has been referred to `Department Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice' headed by Mr Natchiappan for its recommendations.

The Bill seeks to amend the Arbitration and Conciliation Act, 1996, to remove certain shortcomings in the Act and also to speed up arbitrations under the Act.

Arbitration and conciliation formed an important component of international trade. "In fact, it is the main requirement as huge monies are involved. There should be a mechanism to settle the disputes then and there," he said.

The panel is holding parleys with top legal luminaries and institutions of excellence in the area of arbitration and conciliation in India and abroad.

"We are holding discussions with officials of London and Hong Kong Councils of Arbitration in the first week of November through video conference. The Singapore council has already responded to our queries," he said.

The commission is likely to submit its report during the winter session.

On the need to have a sound and internationally accepted arbitration body, he said, the country should have such a centre keeping in mind the post-2005 global trading scenario.

Foreign investors always viewed India as a place where prolonged litigation was a way of life rather. Another view was that there was no alternative dispute resolution mechanism. "What they want is presence of an internationally reputed Council of Arbitrators for settling trade disputes on the lines of the ones in London, Paris, Hong Kong and Singapore," the Committee Chairman said.

The panel, according to him, found that the system needed to rise to the occasion to see to it that the needs of international investors were fulfilled by taking up legislation in Parliament.

Citing the ADR (Alternative Dispute Resolution) model, he said the country needed such bodies in trade business sectors as well.

The panel was likely to recommend setting up International Commercial Arbitration Council of global excellence.

"These exclusive councils should have secretarial support and availability of international lawyers, arbitrators and resource persons from a variety of business and professional segments," he felt.

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