India: Institutional Arbitration And Singapore International Arbitration Centre Rules, 2013: Indian Outlook

As quoted by Justice V. N. Khare, Former Chief Justice of India, in his speech at the 30th Annual General Meeting, Indian Council of Arbitration, January 6, 2004;

"an Institutional Arbitration is one in which a specialized institution with a permanent character intervenes and assumes the functions of aiding and administering the arbitral process, as provided by the rules of that institution".

Institutional Arbitration has been proved advantageous as it not only diminishes the efforts of the parties in formatting the arbitration procedure for resolving the dispute but also limits the ambiguity in relation to the arbitration process. Another advantage of Institutional Arbitration is the appointment of arbitrator. Institutional Arbitration facilitates the appointment of arbitrator from its panel of arbitrators who at all times shall remain independent and impartial1. As observed by Justice Mr. M.Y. Eqbal, Chief Justice of Madras High Court in one of his judgment2 that "Institutional Arbitration has been defined to be an arbitration conducted by an arbitral institution in accordance with the rules of the institution".

With the liberalization of the economic policies and opening of the doors for foreign investment, it may not be out of question to apprehend the rising of disputes in such international contracts. The Hon'ble Supreme Court in a recent decision in Vodafone International Holdings B.V. vs. Union of India and another, SLP(C) No.26529 of 2010, dated 20.01.2012 observed that "every strategic foreign direct investment coming to India, as an investment destination should be seen in a holistic manner". For that reason, it cannot be overlooked that for the economic growth of the country, wherein foreign companies are involved, mechanism of resolving disputes by way of Institutional Arbitration is very much apposite.

Since International Commercial Arbitration involves parties from different nationalities who are unable to reach consensus on the issues like appointment of arbitrator or procedure to be followed to resolve the dispute and differences amicably, Institutional Arbitration can be considered as the suitable forum for resolving such disputes as it facilitates established and internationally accepted arbitration rules and procedures in relation to the appointment of arbitrator and also provides support and supervision in passing of a rational award.

ARBITRATION INSTITUTION "SIAC" AND INDIA

One of such arbitral institution has been established in Singapore, SINGAPORE INTERNATIONAL ARBITRATION CENTRE (SIAC), which has been globally recognized as one of the Premier International Arbitration Institution3 wherein a wide variety of complex arbitrations were filed, including major telecommunications and infrastructure disputes, financial derivatives arbitration, energy, insurance, IT and joint venture disputes, share sale and purchase shipping and commodity disputes.

There has been an impetus increase in the number of cases filed at the SIAC by the Indian Nationals. A remarkable 49 cases in the year 20124 highlights the increasing involvement of India in taking recourse to institutional arbitration as a mechanism for resolution of disputes as it provides a neutral, efficient and reliable dispute resolution system.

SIAC RULES 2013

The SIAC has announced new rules titled "SIAC Rules 2013" along with the Practice Notes for the better administration of cases filed with them that came into force on April 1, 2013. The SIAC Rules 2013 reflects significant refurbishment of the SIAC Rules 2010.

A Court of Arbitration was established5 with the motive to manage the substantial burden of caseload on the institution. The corporate and business development functions of the Centre will continue to be overseen by the Board of Directors.6 The Court of Arbitration was delegated with the powers of appointment of the arbitrator7, determining whether the arbitral proceedings can be conducted in accordance with the Expedited Procedure8, determining the challenge made by the parties to arbitrator's impartiality and independence- and determining the competence of the institution to administer arbitration10.

The Registrar11 of the Court of Arbitration is delegated with the power to determine the substantial compliance of the rules of institution in relation to the Notice of Arbitration12 and to extend or shorten any time limit prescribed for the arbitral proceedings13.

An entirely new rule which has been introduced is the finality given to the decisions of the President of the Court of Arbitration and the Registrar of the Court of Arbitration. The decision of the abovementioned authority shall be final and binding upon the parties and also the parties shall be taken to have waived any right to appeal or review in respect of any decision of the abovementioned authority to any state court or other judicial authority14.

A new rule which upholds the principle of party autonomy and granting the parties right to appoint their legal representative in the arbitral proceedings has been introduced wherein "Any party may be represented by legal practitioners or any other representatives15.

Another significant rule which has been introduced is in relation to witness interviews stating that "it shall be permissible for any party or its representatives to interview any witness or potential witness (that may be presented by that party) prior to his appearance at any hearing", thereby reflecting the practice and expectation of the parties in international arbitral proceedings.

CONCLUSION

On the basis of the above discussion and in the light of the recent updation of the SIAC Rules, it is reflected that Indian Nationals are actively involved in SIAC as not only the part of the institution but also rely on the institution's practice and rules to the extent that Indian Nationals are second highest in filing cases in SIAC in the year 2012. This goes to show that India has considerably adapted itself to the system of Institutional Arbitration and has commendably relied on SIAC Rules in resolving disputes.

Footnotes

1 Rule 10.1 of Singapore International Arbitration Centre Rules, 2013

2 A.K. Balaji versus The Government of India, rep. by its Secretary to Government, Law Department, 4th Floor, A-Wing, Shastri Bhawan, New Delhi - 110001 and Ors., reported at AIR 2012 Madras 124

3 Singapore International Arbitration Centre, CEO's Annual Report, 2012

4 Id

5 Rule 1 of SIAC Rules 2013

6 See at http://www.siac.org.sg/

7 Rules 6 – 10 of SIAC Rules 2013

8 Rule 5 of SIAC Rules 2013

9 Rule 13 of SIAC Rules 2013

10 Rule 25 of SIAC Rules 2013

11 Rule 1.5 of SIAC Rules 2013

12 Rule 3.3 of SIAC Rules 2013

13 Rule 2.5 of SIAC Rules 2013

14 Rule 36 of SIAC Rules 2013

15 Rule 20 of SIAC Rules 2013

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Similar Articles
Relevancy Powered by MondaqAI
Vaish Associates Advocates
S.S. Rana & Co. Advocates
 
In association with
Related Topics
 
Similar Articles
Relevancy Powered by MondaqAI
Vaish Associates Advocates
S.S. Rana & Co. Advocates
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions