09/08/2019 - International Relations

KEY POINTS

·        In commercial disputes, mediation often proves to be the cheapest, quickest and the most confidential mode for dispute resolution.

·        Mediation is the answer as it helps to preserve business relationships. It also affords the parties greater control over the outcome, leading to a more commercially-sound resolution as opposed to a determination through an adjudicatory mechanism.

Singapore convention

·        The Singapore Convention essentially allows direct enforcement of mediated settlement agreements and places such agreements on a par with judgments and awards.

·        In effect, it promotes the credibility of mediation for resolving cross-border commercial disputes.

·        As more countries ratify the Singapore Convention, it will surely improve cross-border trade by making it easier to enforce the outcomes of mediated settlement agreements, and save both cost and time for the parties.

·        The Singapore Convention can be resorted to only in case of an international commercial dispute, and specifically excludes disputes arising from personal, family, inheritance or employment matters.

Mediation and India

·        The Code of Civil Procedure, 1908, has long recognised the concept of mediation as an effective alternative dispute resolution.

·        The recently introduced Commercial Courts (Pre-Institution Mediation and Settlement) Rules, 2018, prescribe the mechanism for convening a mediation before the institution of a commercial dispute.

·        The Arbitration and Conciliation Act, 1996, provides a conciliation mechanism whereby the resultant settlement agreement has the status or effect of an award.

·        However, in context of cross-border disputes, such a settlement agreement may not be necessarily enforceable outside India as an arbitral award.

·        As soon as India ratifies the Singapore Convention, in view of the international and constitutional obligations under Article 253 of the Constitution, India may have to enact a new law on mediation, setting out the process for enforcement.

·        This may include things such as requirement for enforcement of settlement agreements, the scope of public policy, the subject matters that are not applicable for being submitted to mediation, etc.

The decision to ratify the Singapore Convention is likely to promote the adoption of mediation by the parties in relation to international commercial disputes, as it will make ‘settlement agreements’ independently enforceable. This will promote mediation and could consequently reduce the burden on other forms of dispute resolution procedures.

Kindly review

Kindly review

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Kindly review sir,Thank u