Affiliated institute
Abstract
Business all over the world need faster dispute settlement methods. However, Judiciary in India and in many countries of the world have not been upto the mark with the required timeline, hence Alternative Dispute Resolution (ADR) methods have been designed and implements all over the world. These methods are easier, faster, cost-effective and up to the mark with all the National or International Business Dispute Settlements.
Business Dispute Settlement in India
Indian Judicial system often delays the judgment of dispute settlement hence it is not a great idea in case of dispute to go for litigation on disputes. Instead, today Alternative Dispute Resolution Methods are used more. These methods are more effective in resolving the disputes and saves unnecessary waste of time. ADR methods are: negotiation, mediation, conciliation and arbitration etc. Out of these methods, Arbitration is the most preferred one. Not just in India but all over the world Arbitration is seen as the most effective way for dispute resolution then visiting courts or judiciary. Arbitration is neutral and cost-effective way to resolve dispute and it also saves precious time.
Arbitration is the age old method of dispute resolution in India. Age old institution of Panchayat, is the model of arbitration. Presently it is governed by Arbiration and conciliation act 1996, which has been adopted from United Nations Commission on International Trade and Law (UNCITERAL). Court’s intervention is essential for maintaining control and improving efficacy of the Arbitration system. Although too much intervention is avoided as it will defeat the purpose of going for Arbitration.
The 1996 act has been improved over majorly on this point only over 1940 act where there was too much intervention by court and matters kept pending for long duration of time.
Business Dispute Settlement in USA
The New York Convention of 1958 is widely adopted by International Business Community; hence it provides a favorable legislative climate that enables enforcement of Arbitration clauses. A key role is dispute settlement is played by administrative authority, In USA it is played by ICDR (International Centre for Dispute Resolution) which works under AAA (American Arbitrators Association) ICDR has the ability to move matter forward, facilitate communications, ensure appointment of quality arbitrators and mediators, Control Costs, understand sensitivities, resolve procedural impasses and properly interpret and apply its International Mediation and Arbitration Rules.
Following are the highlights of International Mediation Rules:
Agreement of parties : Here first written agreement from parties are taken in order to go ahead with the mediation.
Initiation of Mediation: Any party or parties under dispute can initiate mediation.
Representation: A party can choose a person as a represent.
Appointment of a mediator: A mediator is provided from panel of mediators.
Mediator’s impartiality and duty to discourse: All the mediators abide by the rules of mediations and follow model of standards and conduct for mediators.
Negotiations:
The parties under dispute can go for negotiations amongst themselves to come to a mutually beneficial solution. This is the simplest for of Alternative Dispute Resolution. There the solution can be reached very fast, very cost-effectively and which is mutually beneficial. Parties undergoing negotiations can also appoint a solicitors to take the negotiations to the mutually beneficial solution.
The biggest benefit of the negotiation is that it offers mutually beneficial solution. Which may not be case in the case of litigation or court which offers solution that are beneficial to one party only. At the same time, negotiation is not very time consuming, as both the parties can put their perspective on table against each other and find a solution, which saves a lot of business time.
WTO and Business Disputes:
WTO supervises International trade. The Organization came into being replacing General Agreement on tariffs and trade (GATT) in 1995 under Marrakech Agreement.
offers dispute settlement solutions to its members. WTO offers dispute settlement through the procedure that involves DSB panels, appellate body, WTO Secretariat, Arbitrators, independent experts, and several specialized institutions.
Private Law:
In more common law oriented Jurisdiction, Private Law is known as conflict of laws. Private International Law is the body of law that resolves questions that arises because of presence of foreign element in legal relationship. Examples may be contractual disputes between parties belonging to different jurisdictions, civil disputes, property disputes, labor disputes, etc.
Ramification of choosing private law can be positive for businesses, as disputes can be cleared on time and thus a lot of business time and money can be saved. These can be result oriented and thus produce the solutions on time thus businesses can clear the impasse and focus on the growth.
Government Law:
This heading covers administrative laws or constitutional laws, while there are also state government laws that deal largely with the operations of government. Ramification of using these laws could be delay in businesses. Government laws take a lot of time to deliver the solutions and also the path to achieve solution is also very complicated and tedious.
Conclusion:
Laws can be tedious and complicated to deal with many a times. A lot of ‘business time’ gets wasted in settling the disputes and thus they veer away from growth objectives. Although there are many options available to handle disputes but the best one that suits both the parties is Negotiation. As soon as the dispute come into being, parties under the dispute can maturely sit together and discuss things out. This way they can achieve mutually beneficial solutions and stay well on the path of growth.
References:
1. Agarwal A. (2008). Indian Institute of Management Ahemdabad, 3 December 2008. Retrieved from http://www.iimahd.ernet.in/publications/data/2008-12-03Agarwal.pdf
2. International Dispute Resolution Procedures (2010). 1 June 2010. Retrieved from http://www.adr.org/si.asp?id=6449
