PR No – 26
7th December, 2024
New Delhi
PHDCCI hosts Conference on Dispute Resolution and Arbitration Norms for Construction & Infrastructure Sector – Indian and International Perspective
What arbitration law alone can do should not be the question as we still have yet to explore the possibility of amalgamating subsystems, said Shri R. Venkataramani, Attorney General Of India at PHDCCI’s Conference on Dispute Resolution and Arbitration Norms for Construction & Infrastructure Sector – An Indian and International Perspective held on December 7, 2024 at PHD House, New Delhi.
He further urged PHDCCI to set up a working group to examine how an amalgamated approach could produce better results and expressed his full support. Mr. Venkataramani, also emphasized the need to study the uncertainties in the current system and said that the construction and infrastructure are distinct economic activities, and no single factor can serve as a universal solution. There is a need to understand the economic impact of our dispute resolution system.
He mentioned that experiments are being conducted globally to address these issues, and India needs to adopt a similar approach. There are very encouraging developments going on, and we need to examine them more closely as a matter of economic principles, along with this there’s a need to study India’s position on arbitration laws.
While we discuss dispute resolution, procedures over time have continued to be problematic, we need to understand dispute avoidance, resolution, and adjudication, while moving away from clichés and adopting open-minded inquiry, he added.
The attorney general further expressed hope that parties could resolve disputes independently, with arbitration and mediation elements, and suggested moving away from the dominance of English contract law to develop a new scheme.
Ms. Charanya Lakshmikumaran, Chair – Law & Justice Committee PHDCCI said that we are, in the next couple of decades going to see humongous growth in the infrastructure sector as India will become an important power in the global supply chain. It is important to understand how arbitration can be useful, serve as an alternative, and technically improve the quality of awards.
Hon’ble Mr. Justice A.K. Sikri, Former Judge, Supreme Court of India discussed that the resolution of construction disputes are by far the most frequent. Around 55-65% of disputes are raised by the construction and infrastructure sectors, and they are not like other arbitration cases. In more than 90% of cases, disputes arise due to delays in contracts.
Regarding infrastructure projects, he emphasized their significant role in the economy, and discussed that such disputes should not hamper progress. These disputes need to be resolved speedily and mediation in construction matters should be given a boost, which is urgently required, he concluded.
Hon’ble Mr. Justice Jayant Nath, Former Judge, High Court of Delhi, deliberated on why arbitration is required in the construction and infrastructure sectors. He added that arbitration has existed in India since ancient times, through systems like panchayats. He further informed that the Arbitration Act has been amended to streamline the process, and now even the fee structure is controlled by schedules.
He also highlighted the need for state support in the arbitration process. Section 29A of the Act mandates completing the arbitration process within 1 to 1.5 years, making it a suitable mechanism for such disputes. He stressed that unless there is a robust mechanism for dispute resolution the entire industry will suffer, Mr Nath added.
Dr. Jatinder Singh, Deputy Secretary General, PHDCCI in the introductory address said that arbitration is not only important for the construction and infrastructure sector but also to the very framework of our economy. This issue resonates deeply in both the Indian context and the international arena, as we seek effective mechanisms to resolve disputes that arise in our ever-evolving construction landscape.
The conference was co-hosted with ProUltimus along with PHDCCI annual sponsors, DLF Ltd; Jindal Steel & Power; KLJ Group; Multani Pharmaceuticals Ltd; Marble City; MMG Group; Radico Khaitan Ltd; Uflex Ltd; Vestige; Eazy ERP Technologies; JK Tyre & Industries Ltd; Sagar Group of Industries; Superior Industries Limited; Samsung India Electronics; Oswal Greentech; Apeejay Stya Group; Blossom Kochhar Beauty Products Pvt Ltd; DCM Shriram; R E Rogers; Trident Group; Ajit Industries Pvt Ltd; Bhagwati Plastic and Pipes Industries; Central Coalfields Ltd; DD Pharmaceutical Ltd.; Hindware Sanitary; Jindal Steel; Modern Automobiles; P S BEDI & Co.
Regards,
Abha Singh
Executive Officer, Media Team