New Delhi, Aug 24 (IANS) Union Finance Minister Arun Jaitley will inaugurate a conference on arbitration at the BRICS Summit 2016 on August 27 in the national capital. The conference aims to assess, evaluate and debate ideas on international arbitration among the member countries.
“India has initiated a number of events within the spirit of BRICS (Brazil, Russia, India, China and South Africa), one of which being the conference on ‘International Arbitration in BRICS: Challenges, Opportunities and Road Ahead’,” the Finance Ministry said in a statement here on Wednesday.
“An efficient and effective measure for the resolution of any commercial dispute by investors or trading entities among the BRICS nations, which have inter-trade of $242 billion, is imperative to encourage further economic activity and cooperation,” the statement added.
The “International Arbitration Conference” will bring together national and international experts from the BRICS countries in the field of international arbitration.
It will outline the necessary and latest developments in particular areas of arbitration in respective countries, showcase related challenges and deliberate towards a stronger arbitration regime.
The conference comes amidst the backdrop of the the Arbitration and Conciliation (Amendment) Act, 2015 which was passed by both houses of parliament in the winter session.
The Arbitration and Conciliation (Amendment) Bill introduced a provision that requires an arbitral tribunal to make its judgement within 12 months, which may be extended by a six month period.
According to the legislation, if the judgement came within six months, the arbitral tribunal will receive additional fees but if it is delayed beyond the specified time because of the tribunal, the fees of the arbitrator is reduced by up to 5 per cent, for each month of delay.
The Bill states that any challenge to an arbitral decision that is made before a court, must be disposed off within a period of one year.
It also permits parties to choose to conduct arbitration proceedings in a fast track manner, in which the judgement would be granted within six months.
Some legislators are of the opinion that India stands a good chance of becoming an arbitration hub as cost involved in the processes is much lower as compared to other countries.