From 2015 onwards there has been efforts by the Government to amend the Arbitration and Conciliation Act, 1996 thrice to make it more in conformity with the policy of ease to do business.  To achieve quick and efficient settlement of contractual disputes - whether national or international, they could be subjected to arbitration.  One was expecting that the way arbitration and mediation are conducted in India will certainly make India an international arbitration hub like Singapore, Hong Kong and Paris.

Though the Mediation Act, 2023 has been enacted, yet  arbitration cannot be put to the back seat.  The policy under the Mediation Act is that all disputes must be decided by the parties with the help of a facilitator (mediator).  However, the fact remains that though India has signed the Singapore Convention two years ago, it has not ratified the same so far.  The same also does not form part of the Mediation Act 2023.

If the intent is to enhance resolution of disputes and conflicts more so in commercial disputes it would have been appropriate to amend the Mediation Act and recognize the Singapore Convention.  Business houses across the country have raised their voice against the circular of June 3, 2024.  In some cases, it has come to the notice of the Government and it is reconsidering the issue.

Reconsideration of the matter  by the Government is imperative to ensure that arbitration does not take the back seat, but at the same time the Government should take such steps as are necessary to get arbitration and mediation to resolve conflicts and bring harmony and peace in the society.

Guidelines for Arbitrationand Mediation in Contracts of Domestic Public Procurement