From UPSC perspective, the following things are important :
Prelims level : Singapore Convention
Mains level : ADR mechanisms
- The Union Cabinet has approved the signing of the United Nations Convention on International Settlement Agreements (UNISA) resulting from mediation by the India.
- The UN gen. assembly adopted the United Nations Convention on International Settlement Agreements Resulting from Mediation on 20th December 2018.
- It is referred to as the “Singapore Convention on Mediation” (the Convention).
- The Convention provides a uniform and efficient framework for the enforcement of international settlement agreements resulting from mediation and for allowing parties to invoke such agreements.
- It is akin to the framework that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) (the “New York Convention”) which provides for arbitral awards.
- The Singapore Convention defines two additional grounds upon which a court may, on its own motion, refuse to grant relief.
- Those grounds relate to the fact that a dispute would not be capable of settlement by mediation or would be contrary to public policy.
- The provisions of the ‘Convention’ are in line with India’s domestic laws and the efforts made to strengthen Alternative Dispute Resolution Mechanisms.
- Signing of the Convention will boost the confidence of the investors.
- It shall provide a positive signal to foreign investors about India’s commitment to adhere to international practice on Alternative Dispute Resolution (ADR).
Initiatives to promote ADR Mechanisms in India
- In order to encourage international commercial arbitration in India, to evolve a comprehensive ecosystem of arbitration the GoI is establishing the New Delhi International Arbitration Centre (NDIAC) as a statutory body.
- The Commercial Courts Act, 2015, has been further amended and legislative exercise to further amend the Arbitration and Conciliation Act, 1996, is currently underway.
- These initiatives are being taken with a view to encourage the settlement of commercial disputes, domestic and international, in India through ADR Mechanism of Arbitration, Conciliation and Mediation.
- A new Chapter (IIIA) has been inserted in the Commercial Courts Act, 2015, for mandatory pre-institution mediation and settlement in certain category of cases.