 "Putting arbitration on fast track")
The Maharashtra government has put in place a policy to promote institutional arbitration as a preferred mode of dispute resolution.
The state government feels institutional arbitration will provide a fillip to the establishment of the International Financial Services Centre (IFSC) in Mumbai.
“There is no uniformity in either the covenants of dispute resolution or the appointment of arbitrators in most government contracts. Institutional arbitration has clear advantages, including qualified arbitrators, rules and procedures,” an official said.
Arbitral institutions provide administrative support in the form of a secretariat and staff. Arbitration by institutes was also cost effective, he added. The policy is expected to reduce disparity in dispute resolution in contracts executed by the state government. “In some cases, there is both adjudication and arbitration. In other cases, there is a standard arbitration clause,” the official said.
The policy envisages the state government will recognise arbitration institutes. “The government will ensure the functional independence and impartiality of the institutes are not affected,” he added.
Chief Minister Devendra Fadnavis last week launched the Mumbai Centre for International Arbitration, an integral part of the proposed IFSC in Mumbai. The centre will help Indian parties to resolve disputes here instead of approaching other centres in London and Singapore.
