In a significant step towards cementing India’s commitment to international statutes on Alternative Dispute Resolution (ADR), the Union Cabinet has given its stamp of approval for signing the United Nations Convention on International Settlement Agreements (UNISA). The formal signing is scheduled to take place in Singapore on 7th August, 2019; an alternative location could also be at the United Nations’ headquarters.
Background: The Genesis of UNISA
Prior to the advent of UNISA, the most common hindrance inhibiting the application of mediation was the glaring absence of a solid and harmonized framework facilitating the cross-border enforcement of settlement agreements that were derivative of mediation. This prompted the development and subsequent approval of the convention by the General Assembly.
On 20th December 2018, the United Nations General Assembly adopted the UNISA. Following this, it was decided that the formal signing of the convention would take place in Singapore on 7th August 2019, hence christening it as the “Singapore Convention on Mediation”.
Benefits: An Impetus for Investors
The signing of the UNISA will serve to amplify investor confidence and paint a picture of India’s commitment to adhere to international norms on ADR. This move is bound to attract foreign investors, indicating the country’s dedication to international practices.
Initiatives Aimed at Promoting ADR Mechanisms
Several measures have been taken by the Indian government to encourage the uptake of ADR mechanisms. The New Delhi International Arbitration Centre (NDIAC) Bill, 2019 aims to establish the NDIAC as a statutory body. This recommendation was put forth by the Committee led by Justice B.N. Srikrishna to investigate the institutionalization of arbitration in India.
Legislative Amendments and Developments
The NDIAC will handle arbitration, mediation, and conciliation proceedings. Legislative amendments to the Commercial Courts Act, 2015 and the impending replacement of the Arbitration and Conciliation Act, 1996 with The Arbitration and Conciliation (Amendment) Bill, 2018 is also underway. The Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018 has been endorsed by Lok Sabha for resolving commercial disputes worth Rs 3 lakh or more.
Facts Related to the Amendments
| Title | Description |
|---|---|
| New Delhi International Arbitration Centre (NDIAC) Bill, 2019 | Aims to establish NDIAC as a statutory body to conduct arbitration, mediation, and conciliation proceedings. |
| The Commercial Courts Act, 2015 Amendments | Amended to bring about better dispute resolution mechanisms. |
| The Arbitration and Conciliation (Amendment) Bill, 2018 | Currently under works for replacing the Arbitration and Conciliation Act, 1996. |
| The Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018 | Passed by Lok Sabha to resolve commercial disputes over Rs 3 lakh. |
UNISA: An Instrument for Trade Facilitation
UNISA has been crafted with the objective of becoming a key instrument in the promotion of international trade and mediation as an effective alternative for settling trade disputes. It aims to bolster access to justice and uphold the rule of law. The convention spells out two additional elements upon which a court may refuse to grant relief. These are associated with disputes incapable of settlement by mediation or those that contradict public policy. UNISA guarantees that a settlement reached by parties becomes binding and enforceable following a simplified procedure.
Last Modified: February 6, 2024