The Hindu Business Line : Arbitration tribunal for commercial disputes set up

Redressal forum: Mr Ajit Prakash Shah (extreme right), Chief Justice of Madras High Court, taking a look at the arbitration tribunal and mediation centre at the Tamil Nadu Chamber of Commerce and Industry in Madurai on Saturday. Others are (from left): Mr D. Murugesan, Judge, Madras High Court; Mr A.R. Lakshmanan, Chairman, Law Commission of India; and Mr S. Rethinavelu, President, TNCCI. —

Our Correspondent

Madurai, Nov. 25 The Chief Justice of Madras High Court, Mr Justice Ajit Prakash Shah, inaugurated here on Saturday, the first ever Arbitration Tribunal with Mediation Centre for settlement of commercial disputes arising out of business deals in south Tamil Nadu.

The Tribunal was instituted by the Tamil Nadu Chamber of Commerce and Industry as a forum for Alternative Dispute Resolution under Arbitration and Conciliation Act, 1996.

Inaugurating the modern in-house Chamber Arbitration Tribunal (ChAT) with video conferencing facility, Mr Justice Shah said the businessmen should take to the alternative mechanism intended for early delivery of justice and smooth conduct of the business as court proceedings get protracted, resulting in inordinate delay in terms of time, technicalities, and escalation of costs.

They should come to court only if an interpretation of law is warranted. Under arbitration, as the disputing parties choose the arbitrators who would normally be well experienced in the chosen fields, expeditious and cost-effective remedy is made available.

Professionalism

The lawyers and the arbitrators should set high standards with commitment to the profession to inspire confidence in the proceedings. Handling the disputes in a professional manner, they should adopt proceedings followed by the Court of Arbitrators of the International Chamber of Commerce in Paris, he said.

Institutionalisation of arbitration and accreditation of arbitration centres to promote excellence are necessary. The courts should curb the tendency to intervene in awards by arbitrational tribunals, he added.

Delivering a special address, Mr Justice Dr A.R. Lakshmanan, former Judge, Supreme Court of India and Chairman, Law Commission of India, emphasised the need for establishing a State Law Commission and pointed out that Kerala has responded to his call and established a Commission with Mr V.R. Krishna Iyer at the helm.

‘Court decree’ status

Madras High Court Judge, Mr Justice D. Murugesan, in his key-note address, citing cases where the mechanism has helped amicable settlement at Chennai, opined that mediation offered a more helpful solution and suggested that settlements reached in such centers be given the status of court decree.

Speaking earlier, Member of Parliament and Chairman, Parliamentary Standing Committee on Personnel, Public Grievances and Law and Justice, Mr E.M. Sudarsana Natchiappan, said that the Standing Committee has recommended the setting up of an Indian Arbitration Commission presided over by the Chief Justice of India to grant accreditation to centres of arbitration.

Viable mechanism

In the present scenario, with entry of multinational companies, that justice is a product and not a service must be realised and that it is required to be delivered quickly must be understood. Arbitration procedure offered a viable mechanism in this respect than court proceedings, he said.

In his welcome address, Chamber President, Mr Rethinavelu, pointed out that traders needed to include a clause in their agreement with parties to resolving disputes any, through ChAT. Only a nominal fee has been decided, he said, and assured to endeavour to offer a satisfying service.

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