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udgments and Awards Preamble 365

1999(4) RAJ Union of India Vs East Coast Boat Builders & Engineers Ltd

This case explored the effect of the Model Law and Rules. It was decided that it cannot be said that each and every provision of the said Mo part of the Act even though the preamble of the Act says that it is expedient to make laws respecting Arbitration and conciliation taking into Model law and Rules. Those Model law and Rules were taken into account while drafting and enacting the Act but whatever has been enacte enforceable in India.

Had there been a lacunae in the provisions of the Indian Arbitration Act on the point at issue or if it contained such provisions which is capa interpretations , then of course the internal aid to the preamble to the Act could be taken for interpreting such provision and then the releva Model Law and Rules could be read so as to interpret that provision because while enacting the Indian Act, the said Model Law and Rules we 1999(4) RAJ 365 (Del) Union of India Vs East Coast Boat Builders & Engineers Ltd

This case explored the effect of the Model Law and Rules. It was decided that it cannot be said that each and every provision of the said Mo part of the Act even though the preamble of the Act says that it is expedient to make laws respecting Arbitration and conciliation taking into Model law and Rules. Those Model law and Rules were taken into account while drafting and enacting the Act but whatever has been enacte enforceable in India.

Had there been a lacunae in the provisions of the Indian Arbitration Act on the point at issue or if it contained such provisions which is capa interpretations , then of course the internal aid to the preamble to the Act could be taken for interpreting such provision and then the releva Model Law and Rules could be read so as to interpret that provision because while enacting the Indian Act, the said Model Law and Rules we Section 1(3) - Effective date of coming into force of the Act

2001(2) RAJ 1 (SC) Fuerst Day Lawson Ltd Vs Jindal Exports Ltd.

This case clarified that an ordinance operates in the field it occupies, with the same effect and force as an Act.

The first Ordinance came into force on 25.1.1996 and the Act came into force on 22.8.1996. It was held that the Act came into force in Ordinance and this makes the position clear that although the Act came into force on 22.8.1996, for all practical and legal purposes, it shall effective from 25.1.1996, particularly when the provisions of the Ordinance and the Act are similar and there is nothing in the Act to the co Ordinance ineffective as to either its coming into force on 25.1.1996 or its continuation upto 22.8.1996. Section 2(1)(b) - determination of the existence of a binding arbitration agreement

2001(3) RAJ 531 (Del) MM Acqua Technologies Ltd Vs Wig Brothers Builders Ltd

This case helps in explaining the definition of a binding agreement between parties. In order to be a binding arbitration agreement between th be in writing and the parties should have specifically agreed to settle their disputes by arbitration. An arbitration agreement cannot be inferred

was held that existence of an arbitration agreement in pith and substance confers power upon the Chief Justice or a person or body designa arbitrator ie. The jurisdiction of the judge emanates from an existing arbitration agreement.

was held that as there is no arbitration agreement in writing between the petitioner and the respondent, the clauses of the contract between will not in any way be binding on the petitioner. It was also held that in the event the petitioner is not able to raise any dispute about t respondents have entered into amongst themselves, there is no question of any dispute being referred to the arbitrator. Therefore, th agreement between the petitioner and the second respondent, the question of appointing the arbitrator does not arise. Section 2(1)(b) - Essential ingredients of an arbitration agreement

ARBITRATION IN INDIA: RESOLVING INTERNATIONAL COMMERCIAL DISPUTES IN INDIA Increasingly, arbitration is recognised as the most effective method of solving commercial disputes, especially those of an international dimension. It can achieve equitable solutions more quickly than litigation, and at less cost; it allows parties to adopt whatever procedure they choose for the resolution of differences; it enables parties to decide where disputes shall be heard. Within and around Asia, India offers both the resources and a venue for Arbitrations and dispute resolution procedures and is dedicated in its mission to advancing and supporting arbitration as a means of resolving commercial disputes The Indians have long been aware of the advantages of arbitration, acknowledging its value as a method of resolving disputes, and more recently has extended tradition by the statutory adoption of the UNCITRAL Model Law for international commercial arbitration and the UNCITRAL Rules of Arbitration, with relevant modifications to fit into its institutional framework. With a sophisticated and well placed legal system, India is also a party to the New York Convention (on enforcement of arbitration awards) allowing arbitral awards to be enforced by the Courts in almost any country around the world. Legal Framework India has a comprehensive, contemporary and progressive legal framework to support international arbitration that is on a par with that of the world's leading arbitration institutions. Party autonomy and maximum judicial support with minimum judicial intervention are the abiding features of the New Arbitration and Conciliation Act, 1996, which provides for maximum judicial support of arbitration and minimal intervention. Maximum Court Support The courts in India offer full support and encouragement for arbitration. At the request of a party:

o o o o o

They stop a court case from being carried on in breach of an arbitration agreement They enforce foreign arbitral awards made in New York Convention countries They enforce awards made in international arbitrations taking place in India They issue a wide range of interim measures of protection, including: preservation and interim custody of the subject matter of the dispute interim injunctions to preserve the status quo appointment of receiver securing the amount in dispute securing costs of the arbitration They issue processes to compel witnesses to attend arbitral proceedings

Minimum Court Interference ----------------------------------3 United Nations Commission on International Trade Law Indian courts do not review the merits of an award in an arbitration, unless it is at the request of a party and only under restricted grounds of challenge laid down in the Arbitration Act. A foreign award may also only be reviewed according to a similarly limited set of criteria. Cost-Effective Legal Services

In addition to using lawyers from their own country, parties to an international arbitration have the choice of being represented by experienced arbitration lawyers from among India's leading full service law firms with offices in all major cities of the country. This large pool of legal expertise is available at a cost that is considerably lower as compared to other countries of the world. Arbitration in India offers parties to a dispute the advantages of

quality trained arbitrators speed of resolution a lower cost base internationally enforceable decrees

It is not this alone however, which makes India a compelling choice for the conduct of international arbitration With an open economy & pro-business environment, India offers substantial legal and business expertise - embracing all areas of comparative law, and of commercial/industrial practice - and makes this available to disputants through FACT, which operates under the aegis of the Federation of Indian Chambers of Commerce and Industry. The country is excellently placed geographically. A sub-continent in itself and also a part of Asia, historically and linguistically linked to the English language, being the language of international business. Finally there is the lure of the country itself. India lies in south Asia, between Pakistan, China and Nepal, bordered by the world's highest mountain chain. Side by side with the country's staggering topographical variations is its cultural diversity, offering visitors a complete experience in itself.