International Arbitration
India will use the Supreme Court (SC) order to deal with the arbitration cases related to Dewas abroad.
Sometime back the National Company Law Appellate Tribunal (NCLAT) had ordered the winding up of Dewas Multimedia Private Limited. The Supreme Court has upheld this order in its recent decision.
Earlier, ISRO’s commercial arm ‘Antrix’ had agreed to build, launch and operate two satellites under a 2005 agreement with Dewas. Also, 90% of the satellite’s transponder capacity was leased to Dewas. However, the government cancelled the deal in 2011 due to security concerns.
Devas initiated arbitration against the annulment at the International Chambers of Commerce (ICC). Two separate arbitrations were also initiated under the Bilateral Investment Treaty (BIT) by Mauritius investors in Devas Multimedia under the India-Mauritius BIT and by Deutsche Telekom a German company under the India Germany BIT. India lost all three disputes and has to pay a total of USD 1.2 billion in damages.
About International Arbitration
- It is a means of settlement of international commercial disputes. It aims to provide support to trade and investment through intermediaries.
- In arbitration, the parties involved in a dispute opt for a private dispute resolution process rather than going to court.
Key features:
- Arbitration is based on mutual consent. The arbitrators are selected by the parties.
- Arbitration is neutral and a confidential process. The decision of the arbitral tribunal is final and easy to enforce.
- The Convention on the Recognition and Enforcement of Foreign Arbitration Decisions 1958 (New York Convention) and through the BIT made arbitration decisions more comprehensive and easier to enforce.
Arbitration in India:
- It is regulated by the Arbitration and Conciliation Act,
- It is based on the Model Law of the United Nations Commission on International Trade Law (UNCITRAL) of 1985 on International Commercial Arbitration.
- The Arbitration Council of India has been set up under the Arbitration and Conciliation (Amendment) Act, It is an independent body to promote arbitration.
Source – The Hindu
