HISTORY & DEVELOPMENT OF DISPUTE RESOLUTION MECHANISM IN INDIA
AUTHOR – ADITI MAURYA, STUDENT AT IILM UNIVERSITY, GREATER NOIDA
BEST CITATION – ADITI MAURYA, HISTORY & DEVELOPMENT OF DISPUTE RESOLUTION MECHANISM IN INDIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 213-220, APIS – 3920 – 0001 & ISSN – 2583-2344.
ABSTRACT
Arbitration serves as a time-tested method of resolving disputes, with roots tracing back to ancient practices such as the panchayat system in India. This alternative dispute resolution system allows parties to present their conflicts to a neutral arbitrator, whose decision, known as an “award,” is binding upon both parties. In India, the Arbitration and Conciliation Act of 1996 governs this process, providing a framework for fair and efficient resolution.
India’s development in various sectors, including industry, agriculture, and international trade, has underscored the importance of effective dispute resolution mechanisms. In the realm of international commerce, contracts often include arbitration clauses to mitigate potential conflicts.
The 1996 Act aligns with the UNCITRAL model law, offering globally recognized standards for arbitration proceedings. However, procedural aspects of international commercial arbitration can vary significantly across jurisdictions due to the increasingly transnational and multi-jurisdictional nature of commerce.
The adoption of Alternative Dispute Resolution (ADR) mechanisms, including arbitration, aims to alleviate the burden on courts and ensure swift justice delivery. Among various ADR methods, arbitration stands out as the preferred choice, especially in business settings, fostering both national and international trade relations. International arbitration operates within a complex legal framework encompassing national laws, international conventions, and institutional rules. These mechanisms aim to provide a stable and predictable environment for commercial activities, facilitating international trade and investment by offering an effective legal recourse for dispute resolution. Arbitration plays a pivotal role in fostering economic cooperation and resolving conflicts in both domestic and international contexts, contributing to a more efficient and equitable global business environment.