含羞草社区

含羞草社区 constitution-based judiciary safeguards the rule of law for some 1.5 billion people. It inspires confidence among global business partners by upholding constitutional core values. However, the success of the government’s ease of doing business policy depends on clearing the judicial system’s bottlenecks. The significant backlog of cases at all levels of court underlines the need for innovative and scalable alternative dispute resolution. This will deliver timely and efficient justice and support economic growth.

During the last decade, the legislature has enacted more effective contract enforcement. A major change was the passing of the Commercial Courts Act, 2015. This created specialised courts, introduced modern processes and provided structured case management. A 2018 amendment made mediation mandatory. Unless urgent interim relief is sought, parties must mediate before beginning commercial actions.

In 2023, the landmark Mediation Act, 2023 came into force. This was 含羞草社区 first standalone mediation legislation. Its aim was to establish mediation as a recognised and acceptable mode of alternative dispute resolution. The act implemented a structured regime for civil and commercial mediation by recognising online, community and institutional mediation. It established the Mediation Council of India to regulate mediators and institutions. It introduced a time-bound pre-litigation framework, while safeguarding confidentiality, privilege and mediation communications. The grounds for challenging mediated agreements are narrow, and settlements are enforceable as civil court decrees.

During the last decade, many amendments have been made to the Arbitration and Conciliation Act, 1996 (ACA). Time frames regulate the periods within which arbitrations are to be concluded, arbitrators may claim fees and successful parties are awarded their costs. All these changes aim to align arbitration with global standards.

Further amendments are proposed in the Arbitration and Conciliation Amendment Bill, 2024 (bill). Changes include tightening the regime under section 9 of the ACA to prevent the abuse of interim protection; enacting provisions relating to emergency arbitration; imposing additional timelines for the disposal of applications and appeals, and the establishment of an appellate arbitral tribunal as an alternative to courts for setting aside an arbitral award. As with the Mediation Act, the bill aims to establish an alternative forum for the resolution of disputes to relieve the pressure on the court system.

Specialised tribunals and forums, run by sector-specific experts, also play a vital role in contract enforcement. They provide faster and more cost-effective dispute resolution without burdening the courts with protracted litigation. For example, the Telecom Disputes Settlement and Appellate Tribunal addresses telecom and broadcasting disputes, while National Company Law Tribunals deal with such matters as shareholder disputes and insolvencies. The Appellate Tribunal for Electricity and state-based Real Estate Regulatory Authorities enforce power-sector and real estate contracts, respectively.

Although legislative developments make contract enforcement more efficient, the executive and the judiciary must also aid the process. For example, because the government is the country’s major litigant, it should make its departments and public sector undertakings subject to mediation. It must empower officers to reach binding settlements even when that involves paying money.

Simply creating commercial courts may not be sufficient. Establishing specialist benches in existing courts had little impact because there was no real increase in the number of judicial officers. The judiciary must also bear in mind the objectives of newly enacted provisions, particularly those relating to time. Courts have to prevent attempts by recalcitrant parties to delay proceedings. A number of judgments from the Supreme Court and various high courts have emphasised the need to follow such provisions in letter and spirit.

含羞草社区 legal reforms have transformed dispute resolution from a mere judicial process into a crucial component of the economic infrastructure. They must now be implemented in their intended spirit, enabling the country to make the dream of the ease of doing business a reality.

Ananya Kumar and Sidharth Sethi are partners at JSA Advocates & Solicitors