IAMC does not want to compete with SIAC, ICC: Justice RV Raveendran on what could become the hub for ADR in South India

With a view to facilitating time and cost effective dispute resolution methods for domestic as well as foreign investors having investments in Telangana and elsewhere in India, the International Arbitration and Mediation Centre (IAMC) was recently launched at Hyderabad..The Centre, which aims to achieve the goal of ease of doing business by ensuring effective and speedy dispute redressal mechanisms, is equipped to provide cutting-edge, technologically advanced arbitration and mediation services..IAMC's operations will be managed by a Secretariat and guided by an autonomous Governing Council consisting of experts in the field of arbitration and mediation from India and abroad. Also part of the setup is a Board of Trustees comprising senior judges, legal luminaries, a senior minister from the Telangana government and an industry veteran..Former Supreme Court judge, Justice RV Raveendran is part of the Board of Trustees, which also comprises sitting Supreme Court judges, Justices L Nageswara Rao and Hima Kohli, as well as Chief Justice of the Telangana High Court, Justice Satish Chandra Sharma..In this interview with Bar & Bench, Justice Raveendran talks about how IAMC can change the narrative surrounding dispute resolution through arbitration and mediation, the goals of the Centre, and more..What are the short and long term goals of the Centre?.The short-term and long-term goals of IAMC are the same. It is to provide efficient, effective and time-bound dispute resolution services to the commercial world. To this end, IAMC will offer services to domestic and international disputants in the field of (i) mediation through experienced and neutral mediators; (ii) arbitration through experienced, independent and impartial arbitrators; and (iii) Med-Arb (a combination of mediation and arbitration)..How will IAMC compete with already established and renowned arbitration institutions like the SIAC/ICC etc? How will the Centre benefit the users and meet the expectations of other stakeholders?.It is not the objective of IAMC Hyderabad to ‘compete’ with arbitral institutions like SIAC and ICC, but to establish itself as a reputable and dependable institution providing arbitration and mediation services (domestic as well as international) to the Indian industry, and gradually extend to South Asia. Some of the advantages of the Centre are: (i) Strategic location (Hyderabad) facilitating arbitration and mediation services to Telangana and neighbouring states; (ii) State-of-the-art facilities; (iii) Governance through an independent and autonomous Governing Council; (iv) Panels of experienced, independent, impartial arbitrators and mediators; (v) Efficient management of arbitrations and mediations through its Secretariat at comparatively economical cost. The Centre will introduce new services like Med-Arb, emergency arbitration, on-line arbitration and mediation, and constantly strive to improve its services to meet the expectations of the stakeholders..India is not seen as a preferred seat of arbitration. How do you think the Centre can change this perception?.Generally, four reasons are given for India not being seen as a preferred seat of arbitration - delay, cost, non-professionalism and excessive intervention by courts. The Centre will try to deal with the first three aspects by reducing the delay and cost and increasing the professionalism of mediators and arbitrators through its institutional mechanisms. The Supreme Court and High Courts are conscious of the complaint of excessive intervention and through a series of decisions, are trying to give effect to the spirit of the Arbitration and Conciliation Act, 1996 by limiting interventions and making efforts to expedite arbitration matters. Parliament has also stepped in by making special provisions relating to arbitration matters and providing for pre-institution mediation by enacting and suitably amending the Commercial Courts Act, 2015..Why do you think there was a hesitancy in India towards institutional arbitrations until now, in light of the prevalence of ad-hoc arbitration? Why is it necessary to institutionalize arbitration in India?.Traditionally, the Indian Bar and litigants are accustomed to ad-hoc arbitration (except where some trade bodies provided for arbitration to settle disputes among their members). The growth of arbitral institutions has also been slow. Most of the active arbitral institutions till now are set up either by the High Courts or by trade bodies. The Arbitration Act, 1940 and the Arbitration and Conciliation Act, 1996 (as originally enacted) were designed to cater to ad-hoc arbitration. A conscious effort has been made to encourage institutional arbitration by the 2019 amendment to Arbitration and Conciliation Act 1996. It is felt that institutionalising arbitration will increase professionalism among arbitrators and arbitral tribunals, and reduce delays. When that happens, ad-hoc arbitration will also automatically become more professional and cost-effective, leading to an overall improvement in the quality of arbitration services..Mediation in India has not been able to make much headway due to various reasons. Do you think this Centre will play an important role in promoting mediation culture in India?.The advantages of mediation are: quick resolution of the dispute; tailoring the outcome/settlement to meet and suit the needs of the parties; low cost; avoidance of difficulties in enforcement; paving the way for continuation of relationship between the parties; and providing a non-hostile atmosphere for negotiations and settlement. But mediation being a voluntary, non-adjudicatory process, does not always end in a ‘decision’ or ‘solution’ unless the parties reach a settlement.To be successful, mediation requires awareness about its advantages among disputants (in particular, industry and business community), increased availability of professional neutral mediators, and the support and trust of the Bar by accepting mediation as an effective alternative dispute resolution process. The Supreme Court has played an important role in developing and popularising mediation through its Mediation Council. Parliament is contemplating the enactment of the Mediation Act, which will go a long way in developing mediation.IAMC Hyderabad will play an important role by actively propagating mediation and by offering quality mediation services. It will offer information sessions regarding mediation to all disputants and encourage them to resort to mediation..India became a signatory to the Singapore Convention on Mediation in August 2019. Do you think the enforceability of mediation settlements will encourage more parties to opt for mediation as a dispute resolution mechanism?.What the New York Convention did to encourage international arbitration, the United Nations Convention on International Settlement Agreements Resulting from Mediation (Singapore Convention) will do for mediation.But for such an International Convention, a mediation settlement arrived in one country will be considered in another country to be merely an agreement between parties. The Singapore Convention provides the framework for enforcing settlement agreements reached in international mediations in its participating/signatory countries, by putting such settlement agreements on par with court decrees and arbitral awards. As a result, when a settlement arrived at in international mediation satisfies the requirements of the Singapore Convention, a party thereto will be able to enforce it not only in the jurisdiction where the settlement is arrived at, but also in other countries which are parties to the Convention. Therefore, the Singapore Convention will go a long way in providing impetus for promoting international mediation..What is the role of the Board of Trustees in furthering the objectives of the Centre?.The role and object of the Board of Trustees is to promote and develop arbitration and mediation for providing effective and expeditious justice. For this purpose, it is in the process of establishing (and commencing operations by the end of this month) an arbitration and mediation centre for international and domestic arbitration and mediation.The Board of Trustees has constituted a Governing Council to manage and run IAMC, Hyderabad. The Governing Council, with distinguished arbitrators and arbitration practitioners from India and abroad, will act as an independent and autonomous body to ensure the independence, impartiality and neutrality of arbitration and mediation conducted through the institution.The Trust also proposes to coordinate and collaborate with other domestic and international institutions and conduct training courses, awareness programmes, workshops and conferences, to encourage research and promote arbitration and mediation..Do you think the IAMC is strategically placed to be the go-to hub for ADR in South India?.Yes. The Centre is coming up at Hyderabad, which is a fast-developing technology-cum-industry centre with excellent infrastructure and an efficient Bar. It is easily accessible from the adjoining States of Andhra Pradesh, Chhattisgarh, Orissa, Karnataka and Maharashtra, as also the other southern states of Tamil Nadu and Kerala. The state-of-the-art facilities with several arbitration halls, mediation halls, break-out rooms, library, secretarial and support services will provide the infrastructure and the proposed panel of renowned arbitrators and mediators will assure quality arbitration and mediation.