India ranks second after China when it comes to taking arbitration cases to Singapore: Sundaresh Menon

Interview with chief justice, Singapore Supreme Court

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For Indian companies, Singapore has been preferred as the preferred arbitration destination. Disputes involving joint ventures, private equity space, oil and gas, infrastructure and commodities are being taken there. In an interview with Sanjay Jog, the Singapore Supreme Court chief justice Sundaresh Menon speaks on issues relating to arbitration, mediation and litigation.

Why should Indian companies consider Singapore as a venue to settle their disputes especially when there are more attractive destinations including New York, London and Dubai?
What we want to provide Indian communities is an alternatives to London, New York,  Dubai and others as well. Why Singapore? It is due to its connectivity, closeness, proximity and in some sense the cost advantage. These are some of the advantages Singapore offers to the Indian business community which is extremely familiar with Singapore.

At the Singapore International Arbitration Centre (SIAC), which commenced its operations in 1991 as an independent and not for profit organisation, Indian parties are number two after China in terms of share of parties who participate in the arbitration. Indians are most important users of SIAC.  India was at third rank in 2013 but is now in the second position.

India has  been always looking at SIAC as the preferred place for dispute resolution. A lot of disputes involving private equity,JVs, oil and gas and commodities are taken up at the SIAC.  The disputes are not restricted to transactions involving parties from overseas in India but also Indian companies venturing and investing in South East Asia and emerging markets. Those disputes were also resolved.

The SIAC court of arbitration comprises 17 eminent arbitration practitioners from around the world and its administration fees are competitive in comparison with all the major international arbitral institutions.

What is the rate of disposal of arbitration cases in Singapore?
I should say it is not any slower than New York, London, Dubai and other centres. However, the details will be available at SIAC. But in the Singapore Supreme Court one of our key indicators is clearance rate when the case enters the system and when does it close. Clearance rate we have maintained for last 20 years is 85% of cases are cleared within 18 months for high court cases and for appeals it is about 25 weeks we aim to clear appeals.

Is enforceability of an arbitration judgement in India an issue?
Enforceability is not an issue between Singapore and India. It is not only for arbitration but also for court judgements because we have reciprocal enforcement framework.