Mumbai to host arbitration tribunal

The Maharashtra government on Tuesday gave its nod to implement a draft policy for arbitration which would enable the government to provide institutional mechanism for arbitration tribunal in the state.

It would be for the first time in the country that such institutional mechanism for arbitration is being created.

Maharashtra Chief Secretary Swadheen Kshatriya said it would reduce the time and money for sorting out the disputes pertaining to financial nature of corporate contracts. It would also reduce the intervention by courts in such matters since the arbitration facility would be available within the state.

The Union government as well as the Supreme Court have expressed the need for such a mechanism. A section pertaining to arbitration tribunal would be incorporated in all the contracts or agreements which are above Rs 5 Cr.

This would enable the dispute to be taken to the arbitration tribunal and sort it out within stipulated timeframe by spending much less money for both the parties.

Kshatriya said that the state Cabinet has given its nod for setting up institutional mechanism and the rules for it would be framed now. He said there would be a need for setting up infrastructure for hearing at world standards.

The government has made it clear that the arbitration tribunal would be independent and work with utmost transparency. Kshatriya said it would be an integral part of the proposed International Financial Centre at Bandra-Kurla complex, but till it is set up the arbitration tribunal would work from rented premises in Nariman Point.