INTRODUCTION
Sports plays a significant role in the country's economy, as seen from the glimpse of 2024, India being the T20 World Champion to being the Grandmaster of chess. In 2023, the sports industry in India was valued at approximately 158 billion Indian rupees. The report, titled "Think Sports: Unlocking India's $130B Sports Potential", highlights that increased government investment, widespread digital adoption, healthier lifestyles, rising discretionary incomes, and a surge in high-quality sports content will drive the rapid expansion. Realizing the importance of this sector, it's important to address the dispute resolution associated with this. Recently, arbitration as a redressal mechanism has been celebrated as a fast-track mechanism to resolve sports-related disputes in the country.
WHY ARBITRATION OVER LITIGATION
The primary reason why arbitration is gaining popularity is due to its fast, cost-effective, and confidential resolution mechanism for disputes like doping, contracts, and governance issues. Imagine an athlete facing a charge related to doping. Instead of wasting a considerable amount on litigation, which goes around 10-15 years longer, the athlete's career is at risk. In contrast, arbitration offers a short-term, effective dispute-resolution method. The CAS heard the case of Vinesh Phogat in the Olympic Games of 2024, wherein she was disqualified for being overweight. According to Article 18 of CAS Arbitration Rules for the Olympic Games, the panel shall decide within 24 hours of the application submission; rules like these show the commitment to resolving disputes in less time by providing a streamlined and efficient process tailored to the needs of the parties involved. Unlike traditional litigation, arbitration eliminates procedural delays, such as prolonged pre-trial processes and multiple court hearings.
DEVELOPMENT OF ARBITRATION IN INTERNATIONAL CONTEXT
The Court of Arbitration for Sports (referred to as CAS) is the very heart of the redressal of sports on the world stage. CAS was established in the 1984, comprising three different types of CAS arbitration:
- The Ordinary Arbitration Procedure
- The Appeal Arbitration Procedure:
- The Ad Hoc Arbitration Procedure
The CAS is an independent quasi-judicial body that operates under the administrative and financial authority of the International Council of Arbitration for Sport. As per Article 27 of CAS Arbitration Rules, the rules are subject to any dispute directly or indirectly linked to sport and may be submitted to the CAS. Both commercial and disciplinary disputes can be referred to. The seat of CAS, as stated in Article 28, states about the seat of the arbitration that all arbitrations governed by the Code have their seat in Lausanne, Switzerland. The enforcement of the awards given by the tribunals is fundamentally Swiss-seated arbitration awards that are enforceable under the New York Convention.
POSITION OF ARBITRATION IN INDIAN CONTEXT
In India, however, the significance of CAS as a global forum for sports dispute settlement was recognized in the well-known case of IAAF v. Athletics Federation of India & Ors. This case saw the National Anti-Doping Disciplinary Panel suspending four Indian athletes for doping offenses. The World Anti-Doping Agency mentioned other CAS-adjudicated cases in their appeal before the NAADP, arguing for harsher penalties. This case demonstrated the significance of CAS. In 2011, the Indian Olympic Association constituted the Indian Court of Arbitration for Sports, an eight-member body including a retired Supreme Court Judge. In 2021, the law minister of India, Kiren Rijiju, inaugurated India's first "Sports Arbitration Centre of India." Ministry of Sports and Youth Affairs in 2016 issued guidelines as "Safeguarding the interests of sportspersons and provision of effective Grievance Redressal System in the Constitution of National Sports Federations." The guidelines' significant stress was establishing a practical, transparent, and fair grievance redressal system.
CHALLENGES IN SPORTS ARBITRATION
The role of CAS continues to grow in the ever-expanding sports sector, as the referee ensures fair play beyond the battlefield. Still, at the time, the growth is subject to challenges, including jurisdictional implications, implementation of the awards, accessibility for small stakeholders, and the limited scope of appeal. One of the major issues is the limited scope of judicial review. Generally, the awards given by the tribunals are final and binding. National courts are usually reluctant to interfere with the awards, while the aim is to respect the autonomy of arbitration. Still, it is essential as judicial oversight ensures that the procedural requirements, transparency, and impartiality are ensured. In the case of Rajiv Dutta v. Union of India, wherein the court uplifted the fact that a court of Arbitration could have better resolved the matter at hand, but since there was no regulation in the National Sports Federation and the contract had no arbitration provision entailed in it, the same couldn't be referred to arbitration as well. The decision of the Delhi High Court lays down the importance of Mandating the arbitration clause in the sports contract. In the ever-growing virtual world, the need to leverage technology for virtual hearings and post a partnership between national sports bodies and CAS will make the process fit the current needs. The scope of mediation, along with the arbitration, will further boost the dispute resolution mechanism.
CONCLUSION
Although the sports sector continues to grow, there is a need to develop a friendly environment to expand arbitration and mediation, conciliation, and negotiation in this sector, as this remains a challenge. Maintaining public trust and confidence is equally challenging and vital in this process. Although the judiciary has welcomed arbitration to resolve the dispute mechanism, the legislative reforms in alignment with the CAS and the European system will further standardize the regulations and set an example for the Indian context to work upon. The journey ahead is straightforward: sports arbitration will not only resolve disputes but will set the standard for fairness and integrity in a world where the stakes are higher than ever.
REFERENCES:
- International Association of Athletics Federations (IAAF) v. Athletics Federation of India (AFI) & Ors., CAS 2012/A/2763.
- https://media.squirepattonboggs.com/pdf/misc/User-Guide-to-the-Court-of-Arbitration-for-Sports-Booklet.pdf.
- https://www.acerislaw.com/sports-arbitration-certain-unique-features-and-the-court-of-arbitration-for-sport-the-cas/.
- https://www.scconline.com/blog/post/2022/04/13/arbitration-in-the-realm-of-sports-law/.
- https://ccadr.cnlu.ac.in/blog/arbitration/arbitration-in-the-realm-of-sports-in-india-an-analysis/
- https://www.tamimi.com/law-update-articles/sports-arbitration-a-peculiar-beast/
- https://scholarship.law.missouri.edu/cgi/viewcontent.cgi?article=1124&context=jdr.
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