CHENNAI: Institutional arbitration a means of non-judicial dispute resolution is a speedy and confidential mechanism to resolve disputes of a commercial nature, especially where contractual obligations are involved, R. Jayasimha Babu, retired judge, Madras High Court, said.
Arbitration is a process where both parties opt for legally authenticated dispute resolution by utilising the services of an expert arbitrator as courts are normally unable to provide speedy solutions in business conflicts, he said while inaugurating a workshop on `Resolving disputes through institutional arbitration' organised by the Nani Palkhivala Arbitration Centre on Monday.
Though the freedoms given by arbitral laws are a great boon, if well utilised, the process is best suited to resolve only commercial disputes. In most cases, both parties have accepted arbitral decisions, though some decisions have been challenged legally too.
Though an arbitrator has to go by substantative laws, much of the arbitration done in the country was still ad hoc and done outside the recognised stream, he said.
With cross-border trade across nations increasing, the need for a mechanism like institutional arbitration fulfils a well-defined, scientific need, M. Rajagopalan, head, southern region, Wartsila India, said.
The Nani Palkhivala Arbitration Centre was a Sec (25) company, recognised by the Madras High Court, promoted by the Palkhivala Foundation, an independent trust, R. Anand, director of the centre, said.