'Indian Courts Are Known For Their Pro-Arbitration Stance' : CJI NV Ramana At International Conference In Dubai

Speaking at the fourth edition of the International Conference on 'Arbitration in the Era of Globalisation' in Dubai, the Chief Justice of India, N.V. Ramana pointed out the importance of developing an acceptable and fair dispute mechanism system for the globalised world. Chief Justice Ramana briefly alluded to how countries have moved away from protectionism and towards liberalisation and the same had resulted in growth of trade and commerce across the globe. "The world today is very different from when I started my professional career in the 1980s. Countries across the world have moved from being protectionist States to open economies. This has led to immense growth in trade and commerce between countries. In the 1980s, the total value of world trade stood at around 2 trillion US dollars. In 2019, the value of global trade was more than 19 trillion US dollars. This clearly shows that there has been rapid growth in world trade over the past four decades, and the trend suggests that it shall grow further."With technological advancements, improvement in the mode of transportation and communication, he noted, that the world has become a global village. He indicated that the same has also made us dependent on each other in such a manner that a crisis in one country flows down, in some manner, to the others, ultimately disturbing the global supply chain and in turn the global trade. "Advancements in the field of science and technology, easier travel and faster communications have turned the world into a global village. At the same time, the enhanced inter-dependence also makes us vulnerable. Crisis in one part of the world often creates ripples in other parts and can affect the global supply chain. From time to time, conflicts between territories, environmental changes, natural calamities, and even the ongoing pandemic have resulted in economic disturbances. Such disturbances tend to leave a lasting impact on global trade." Chief Justice Ramana stated that each country though a part of the globalised world has a distinct legal regime and while evolving a universally acceptable mechanism for dispute resolution the same has to be taken into account. He believed that conferences like the present one can help navigate the path of such evolution. He was of the opinion that a dispute redressal mechanism acceptable and fair to all is the demand of the globalised world. He identified arbitration as the best suited dispute resolution mechanism because it is time bound and is aimed at delivering immediate relief. "The globalised world demands embracing a dispute redressal mechanism that is acceptable and fair to everyone. Fairness demands a platform where both parties get an equal say in the resolution of their dispute. This is where International Arbitration comes into play. Arbitration is the best suited dispute resolution mechanism for the globalised world. International Arbitration is party driven, has procedural flexibility and involves domain experts. Further, arbitration is a time bound mechanism structured to deliver immediate relief."It was pointed out that uniformity in the arbitration process is essential to gain the confidence of the parties, to the effect that the award passed in one jurisdiction can be enforceable in another without any hassle. He asserted that countries have already attempted to create effective structural mechanisms and provided statutory backing to the enforcement of awards. Justice Ramana elucidated the importance of enforcement of foreign awards and how the process can be made effective by entering into reciprocal arrangements opting for automatic enforcement of foreign decrees, like the one that India and UAE had entered into in 2020. "It might be relevant to mention that, when it comes to the enforcement of foreign decrees, different countries follow different procedures for recognition and enforcement of the same. India and the United Arab Emirates have entered into a reciprocal arrangement in 2020 to opt for automatic enforcement of foreign decrees by Courts of either countries. This is a special procedure meant only for decrees from specified reciprocating countries which form a part of the Schedule of recognised countries under Section 44A of the Code of Civil Procedure in India. Apart from the United Arab Emirates, India has entered into similar understandings with United Kingdom, Singapore, Bangladesh, Malaysia, Trinidad and Tobago, New Zealand and Hong Kong, among others."He briefly stated about the prevalence of mediation in India as an effective form of dispute resolution. "I think it is necessary to mention at this juncture another form of dispute resolution, that is, mediation. Mediation is increasingly gaining prominence in the international commercial sphere. Private mediations, which take place at the pre-litigation stage, are also becoming more prevalent in the country. Most ...

'Indian Courts Are Known For Their Pro-Arbitration Stance' : CJI NV Ramana At International Conference In Dubai

Sohini Chowdhury

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Sohini Chowdhury

'Indian Courts Are Known For Their Pro-Arbitration Stance' : CJI NV Ramana At International Conference In Dubai

Sohini Chowdhury

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