Maharashtra Chief minister Devendra Fadnavis launched India's first international centre for arbitration in Mumbai on Saturday . The Mumbai Centre for International Arbitration (MCIA) spread over 7,000 square feet at Express Towers in Nariman Point will have seven arbitration hearing rooms for commercial dispute resolution. Justice S S Nijjar, MP Poonam Mahajan, chief secretary Swadheen Kshatriya and MCIA CEO Madhukeshwar Desai were present at the launch.
The Mumbai Centre is part of the proposed plan to facilitate the setting up of an International Financial Services Centre (IFSC) in the city and is expected to help Indian companies resolve their disputes here instead of taking them to arbitration courts abroad such as those in London and Singapore. Most Indian firms are known to take their disputes to Singapore for resolution.
Speaking on the occasion, the chief minister said businesses coming to Mumbai under the 'Make in India' initiative will not need to go to Singapore, Hong Kong or London henceforth for arbitration settlement. Earlier chief secretary Kshatriya had said that the new centre would also be able to hear cases of global companies which are not headquartered in India.
The permanent building for the centre will come up in Bandra Kurla Complex. Till then, the centre will operate from South Mumbai. Maharashtra is the first state in the country to have an autonomous body to sort out disputes involving financial institutions and companies. The state has built in the arbitration clause into all government agreements worth Rs.5 crore and more.
Globally , all key financial centres such as London, Hong Kong, Singapore have an arbitration court to speed up settlements between companies that are independent of courts. In the Indian context, the arbitration mechanism is expected to cut legal costs and result in time-bound resolution.Business partners can resolve disputes away from the public eye using a neutral and impartial tribunal. Arbitral awards are “final and binding“ and there is no right of appeal, except on very narrow and limited grounds.
The Mumbai Centre is part of the proposed plan to facilitate the setting up of an International Financial Services Centre (IFSC) in the city and is expected to help Indian companies resolve their disputes here instead of taking them to arbitration courts abroad such as those in London and Singapore. Most Indian firms are known to take their disputes to Singapore for resolution.
Speaking on the occasion, the chief minister said businesses coming to Mumbai under the 'Make in India' initiative will not need to go to Singapore, Hong Kong or London henceforth for arbitration settlement. Earlier chief secretary Kshatriya had said that the new centre would also be able to hear cases of global companies which are not headquartered in India.
The permanent building for the centre will come up in Bandra Kurla Complex. Till then, the centre will operate from South Mumbai. Maharashtra is the first state in the country to have an autonomous body to sort out disputes involving financial institutions and companies. The state has built in the arbitration clause into all government agreements worth Rs.5 crore and more.
Globally , all key financial centres such as London, Hong Kong, Singapore have an arbitration court to speed up settlements between companies that are independent of courts. In the Indian context, the arbitration mechanism is expected to cut legal costs and result in time-bound resolution.Business partners can resolve disputes away from the public eye using a neutral and impartial tribunal. Arbitral awards are “final and binding“ and there is no right of appeal, except on very narrow and limited grounds.
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