NEW DELHI: An expert panel tasked with drafting rules for an international arbitration center at GIFT City has recommended significant changes to India's arbitration and mediation laws. This initiative aims to expedite out-of-court dispute resolutions within the country's first International Financial Services Centre (IFSC).
One of the key recommendations includes reducing the time limit for filing appeals against arbitral awards from 90 days to just 21 days. This measure is intended to prevent case backlogs and streamline the dispute resolution process. Additionally, the panel proposes that appeals to the Supreme Court against arbitral awards should only be allowed through a Special Leave Petition (SLP), potentially reducing delays in judicial proceedings.
Sidharth Kapoor, Public Policy and Legal Strategy Manager at Presolv360, emphasized the importance of such reforms nationwide, stating that they would enhance the ease of doing business in India. He highlighted examples from other arbitration hubs like the UK and Singapore, where similar reforms have bolstered efficiency.
Established by the International Financial Services Centre Authority in May 2023, the panel, led by former chairperson of the Insolvency and Bankruptcy Board of India M.S. Sahoo, aims to set up guidelines for an Alternative Dispute Resolution Centre (ADRC) at GIFT City. It advocates for recognizing arbitrations seated at GIFT City as "international commercial arbitration," a move intended to attract more foreign investments to India.
Furthermore, the panel proposes amendments to the Arbitration and Conciliation Act to explicitly allow parties--both Indian and foreign--to opt for GIFT City or any other IFSC as the arbitration seat. This suggestion aims to position India's IFSCs as preferred arbitration centers for international disputes.
In addition, the panel recommends the creation of a dedicated bench within the Gujarat High Court to handle matters arising from the GIFT City ADRC. It further advocates for the establishment of a separate high court to exclusively address IFSC-related issues nationwide, signaling a concerted effort to enhance the jurisdictional framework for financial arbitration in India.
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