4 ASIAN LEGAL BUSINESS – INDIA E-MAGAZINE MAY-JUNE 2024 Q&A ALB: What are the reasons behind the launch of the ABI, and what are the organisation’s goals for India’s burgeoning domestic and cross-border arbitration market? Gourab Banerji: Presently, India has the fifth largest economy in the world. India was the fastest-growing economy in G20 countries by end of 2023, and by 2030, the economy is predicted to surpass that of Japan and Germany. In other words, India is slated to be one amongst the big three in a multipolar world. India is an excellent option for foreign investors and international businesses in this climate, increasing the likelihood of choosing commercial arbitration when a dispute arises. We have a talented pool of arbitration practitioners with representation across disciplines and they are among our best human resources. The Arbitration Bar of India has been created to enhance the future of commercial arbitration in India. ABI will help India progress as a pro-arbitration jurisdiction by improving the efficiency and efficacy of the arbitration process, and fully harnessing its human capital by taking into account diversity, helping our present practitioners. ABI will be an organisation that connects practitioners and stakeholders all over India, not just in cities such as Delhi and Mumbai. This integration of arbitration will, I hope, promote the development of arbitration as a choice in commercial cities currently accustomed to litigation, such as Kolkata, Pune, Hyderabad, and Ahmedabad. ABI’s training programs, seminars and conferences are expected to develop professional development of arbitration practitioners in India and, therefore, increase confidence in foreign parties coming to India. ALB: Reports find that Singapore remains the preferred venue for India Inc. when it comes to cross-border dispute resolution. What is the roadmap to increase India-seated arbitration, and what are the biggest challenges to this objective today? Banerji: India was the third-highest foreign user of arbitration in the Singapore International Arbitration Centre in 2023 after Hong Kong and China. Most arbitration in Singapore is institutionalised arbitration, and this contrasts with the current arbitration climate in India, where ad hoc arbitration is very common. The solution is to address the problem of delayed enforcement and address the perception of undue court influence. There needs to be an increased presence of well-established arbitration institutions in India to improve the parties’ trust in certainty and predictability in the system. Additionally, with increasing use of institutional arbitration, a separate pathway for appointments can be established, which obviates the need to approach courts. ABI will help create and develop current arbitration institutions to be on par with LCIA and SIAC. Pertinently, there is a mindset shift in the attitude and approach towards arbitration as a serious mode of dispute resolution, in contrast with the situation ten years ago. There is also a lack of awareness of the public about arbitration as a dispute resolution mechanism. ABI will hold conferences and partner with stakeholders to generate awareness of arbitration among clients and the younger generation of lawyers to become full-time arbitrators. One of the objectives of the ABI is also to create a repository of academic materials. ALB: The central government has been actively promoting India as a venue and governing law for arbitration. What are the key regulatory changes in this regard and what has been the market response to these changes? Banerji: The central government has incorporated key regulatory changes as seen in the 2015, 2019 and 2021 Amendment of the Arbitration and Conciliation Act 1996. The 2015 Amendment helped quicken the time period of arbitration as it introduced a provision that requires the arbitral tribunal to make its award within a year. The introduction of fast track pro- ‘THERE IS A MINDSET SHIFT IN THE ATTITUDE AND APPROACH TOWARDS ARBITRATION’ The Arbitration Bar of India (ABI) was launched on 11th May, with Gourab Banerji, a senior advocate at the Supreme Court of India, appointed as its inaugural president. Banerji shares with ALB about how ABI’s plans to take arbitration to cities across India for better accessibility, increase the quality of arbitration institutions, address the issues of slow enforcement and long arbitral timelines for speedier dispute resolution, and integrate technology in the dispute resolution process for enhanced efficiency. BY NIMITT DIXIT GOURAB BANERJI
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