Telangana designates IAMC, Hyderabad as the Arbitral/Mediation Institution in all contracts above ₹3 crores

The Law Department of the Telangana Government of Telangana issued an order last month designating the International Arbitration and Mediation Centre (IAMC), Hyderabad as the arbitral / mediation institution in all contracts above 3 crores where the Ministries, Departments, Public Sector Companies and other entities controlled or managed by the Government of Telangana are a party..The order was issued in furtherance of a Memorandum of Understanding (MoU) entered between the Government of Telangana and the IAMC Trust on 27 October last year..The order stipulates:"· to designate IAMCH as the arbitral / mediation institution in all their contracts, agreements, purchase orders, etc. (contracts) having value of more than Rs.3 crores (Rupees three crores only) and containing an arbitration clause;· in respect of subsisting Contracts of value of more than Rs.10 crores (Rupees ten crores only) to discuss with the counterparty to such contract a suitable amendment to designate IAMCH as the arbitral I mediation Institution; and· in respect of ongoing ad-hoc arbitrations of the value more than Rs.1O crores (to which Government of Telangana, or its instrumentalities are parties) to make a request to the arbitral Tribunal to utilize the services of the IAMCH for conducting their arbitration.".This will mean that all government agencies in the State of Telangana will include institutional arbitration clause in all contracts above the value of ₹3 crores.Further, in all subsisting contracts above the value of ₹10 crores, all government agencies will discuss with the other party to consider amending the dispute resolution clause and designate IAMC, Hyderabad as the concerned arbitral/mediation institution for resolving disputes.The Government of Telangana has also directed its agencies that in ad-hoc arbitrations in all contracts above the value of 10 crores, facilities and services of IAMC, Hyderabad be used for conducting their proceedings..“It is heartening to see government of Telangana leading the way in supporting institutionalization of ADR and I hope that other states will follow. This move takes us closer to the vision of the Chief Justice of India in making IAMC, Hyderabad a world class centre at par with Centres in London, Dubai and Singapore” said Tariq Khan, Registrar of IAMC, Hyderabad..[Read Government Order]