Why in the News?
The Supreme Court recently referred two cases to the Mumbai Center for International Arbitration (MCIA) for arbitration.
Former Chief Justice of India (CJI), Ranjan Gogoi was appointed as the sole arbitrator in one of those cases.
In Grasim Industries case, senior advocate Sharan Jagtiani was appointed sole arbitrator
What is Arbitration?
Arbitration is a process in which a dispute is presented, by agreement of the parties, to one or more
arbitrators who make binding decisions on the dispute. In choosing arbitration, the parties opt for a private dispute resolution process rather than going to court.
Salient Features of Arbitration.
· Parties select the arbitrator
The parties can simultaneously choose a sole arbitrator. If they elect a three-member arbitral tribunal, each party appoints one of the arbitrators; Those two persons then agree on the
arbitrator. Alternatively, the Center may suggest potential arbitrators with related expertise or directly appoint members of the arbitral tribunal. The Center maintains a broad roster of arbitrators ranging from arbitral dispute-resolution generalists to highly specialized practitioners and experts
covering the entire legal and technical spectrum of intellectual property.
· Arbitration is consensual
Mediation can only take place when both parties agree to it. In case of future disputes arising under a contract, the parties insert an arbitration clause in the respective contract. An existing dispute may
be referred to arbitration through an agreement presented between the parties. Unlike arbitration, a party cannot withdraw from unilateral arbitration.
· Arbitration is neutral
In addition to their selection of neutrals of appropriate nationality, the parties are able to choose key elements such as applicable law, language and venue of arbitration. This allows them to ensure that
no party avails home court.
Mumbai Centre for International Arbitration (MCIA)
The Mumbai Center for International Arbitration (MCIA) is a first-of-its-kind intermediary in India, set up in a joint initiative between the domestic and international trade and legal communities.