BriefReport

InteractiveSeminaron

Advantages of Institutional Arbitration

8thApril,2013Bhuvaneswar

The emergence and importance of institutional arbitration rest on the role of administering the
arbitration process. In terms of cost benefit, expediency, efficiency and hasslefree mechanism for
dispute resolution, the institutional arbitration has its apparent edges over other decisionmaking
forums. In order to acquaint the Odishabased State and Central Public Sector Units with the
preferentialvaluesofinstitutionalarbitration,ICAorganisedanInteractiveSeminaronAdvantagesof
InstitutionalArbitrationon8thApril,2013atBhubaneswar.

Mr. Prasanna Acharya, Honble Minister of Finance & Public Enterprises, Govt. of Odisha, graced the
occasion as the Chief Guest. In his keynote address, he preferred the need for prevention of dispute
rather than adjudication of dispute. In the background of litigation proceeding suffering from
deficiencieslikedelay,cost,institutionalarbitrationwastheneedofthehour,asstatedbyhim.Hefelt
the adoption of ADR a must for business in the state like Odisha where foreign investment is at
premium. However, he observed that for creating fair arbitration atmosphere, there was a need of
trainingprogrammefordevelopingtheskillsofarbitrators.

Mr.CJVenugopal,PrincipalSecretary,PublicEnterprisesDepartment,Govt.ofOdisha,inhisspecial
address, raised his concern about too much adhocism in arbitration, which suffers from varied
inadequaciesresultinginadverseeffectontheentiredisputeresolutionsystem.HighlightingtheState
Governmentsvariousinitiativesinintroducingarbitrationintheplaceofcourtproceeding,especially
inthedisputesbetweenStatePSUsandCommercialTaxDepartment,Mr.Venugopalmentionedabout
formationofaCommitteeheadedbyDevelopmentCommissioner,whosemainroleistomakeoutof
courtsettlementofdisputesarisingoutofintercorporateissues.HetoosuggestedforPSUstosettleits
disputesthrougharbitrationundertheauspicesofarbitralinstitutionslikeICAinsteadofgoingtothe
courts.

Mr. R P Singh, Director, IFFCO and Mr. V N Singh, GM Head Legal, ONGC Videsh, both discussed
abouttheirrespectivepastexperiencesindealingwithadhocarbitration.Boththepanellistsadvocated
forinstitutionalarbitrationandadoptionofICAarbitrationclauseinthefuturecontractsofrespective
organisationsas,accordingtothem,ICAstandardisesarbitration.ThereisanotherreasonwhyMr.V
N Singh wanted to propagate ICA arbitration because it is omnipresent in India and can cater to
varied needs of business and industry. Mr. Aurobindo Acharya, Company Secretary and Head Legal,
IDCOL,alsopromotedtheideaofintroducinginstitutionalarbitrationinordertogeneratespeedyand
effectiveresolutionofdispute.

Earlier,inhiswelcomeaddress,Mr.NGKhaitan,President,ICA,alertedtheaudiencebystatingthat
arbitration/mediation cannot succeed without the support of strong arbitral institutions. In order to
accomplish its objective for promotion of commercial arbitration, Mr. Khaitan mentioned, ICA had
received unconditional support from retired Judges,Advocates and Ministries and other experts from
various fields as also from business and industry at large. In spite of various demerits of adhoc
arbitration,hewondered,whypeoplestillpreferadhocarbitrationoverinstitutionalarbitration.Inhis
bid to underscore the excellence of ICA in rendering arbitration services for nearly five decades, Mr.
KhaitanmentionedaboutrecentamendmentstoICARulesofArbitration,whichwasdonetoaccelerate
the pace of arbitration proceedings. He insisted on educating the Ministries and other government
authoritiesabouttheedgesofinstitutionalarbitrationoveradhocarbitrationandpromisedtoextend
cooperationonbehalfofICAforimpartingsucheducation.

The Seminar was concluded with Questionnaire Session where the interested participants got
immediatefeedbacktotheirqueriesfromtheexpertsinthepanel.

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