Arbitration has emerged as the only effective dispute resolution mechanism for commercial disputes, said Justice N. Anand Venkatesh, Judge of the Madras High Court.
At an awareness session on “Arbitration and Mediation” organised in Coimbatore on Saturday by the Indian Chamber of Commerce and Industry, Coimbatore, and the Chamber Arbitration and Mediation Centre, he said that resolution of civil disputes, particularly commercial disputes, through mainstream litigation is time consuming and is no longer the preferred mode of dispute resolution.
Arbitration started as an alternative dispute mechanism. But, as time progressed, it has evolved as the only dispute resolution mechanism for commercial disputes, apart from mediation. Business investments, be it domestic or international, become more effective and viable only if a system is available for resolving disputes within a reasonable time.
Arbitrations is a system where two parties agree to appoint a private judge and resolve a dispute with minimal court intervention. People who have specialised understanding of a technical subject can also be arbitrators in this system.
He urged businesses to be careful about fundamentals while drafting agreements. There should be a clause where negotiation and mediation are mentioned as a pre-requisite for arbitration. The arbitration clause should include all the essentials.
