Disadvantages Of International Arbitration

V. RECOMMENDATIONS
From the above analysis, it is clear that globalization of the Indian economy in the early nineties and the consequent economic reforms necessitated the existence of effective dispute resolution mechanisms to quickly settle commercial disputes. The 1996 Act was enacted to achieve this purpose of quick and cost-effective dispute resolution. Arbitration occupies a prime position in commercial dispute resolution in India. An examination of the working of arbitration in India reveals that arbitration as an institution is still evolving, and has not yet reached the stage to effectively fulfill the needs accentuated with commercial growth. Viewed in its totality, India does not come across as a jurisdiction which carries an antiarbitration

The Arbitration and Conciliation (Amendment) Bill, 2003, appears to have partially remedied this flaw, but the Bill has not yet been taken up for consideration and passed by the Parliament.

(v) The government should disseminate knowledge of the benefits of alternate dispute resolution mechanisms to foster growth of an international arbitration culture amongst lawyers, judges and national courts. The real problem in enforcing foreign awards around the globe despite the enabling provision of the New York Convention, 1958, is not a legal one; but it is a lack of awareness particularly, amongst lawyers and judges, of the benefits of international arbitration and of its true consensual nature.

(vi) Questions relating to lack of impartiality of arbitrators and procedural defects in the conduct of arbitration proceedings are the subject-matter of frequent litigation and hence add to the caseload before an already overburdened judiciary. In fact, judicial interventions with arbitral proceedings and awards in India have come to constitute a distinct branch of law, i.e. the ‘law of arbitration’. This trend clearly frustrates the foundational aim of providing for arbitration clauses - which is to ensure speedy and efficient dispute-resolution in the commercial

Although the 1996 Act confers powers on arbitral tribunals to issue interim relief, there is variance in the degree and efficacy of these interim measures. Under the 1996 Act, the arbitral tribunal is possessed of limited powers to direct interim measures, pertaining to: