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When two companies enter into a commercial agreement, they first reduce their vows to paper called an agreement or memorandum of understanding. During this journey of telling these vows, a goal comes when the parties determine the forum and mechanism to “go.” If there is a breach of the terms of the contract. During this journey of telling these vows, a goal comes. When the parties decide on the forum and mechanism, “go to” ……. if there is a breach of the contractual conditions.
And when that time comes there will be plenty of mind-boggling sessions that equate advantages and shortcomings as regular courts, namely arbitration as a dispute settlement mechanism. Long-drawn-out legal disputes are a deterrent factor, which is why the parties do not resort to regular courts and instead prefer arbitration.
In this article we will now perform a small comparative analysis between domestic arbitration and the judicial resolution of disputes, particularly in light of the Commercial Courts Act, Commercial Division, and Commercial Division of the High Court Act, 2015 (hereinafter referred to as “The Commercial Court Act “). The Commercial Courts Act was enacted to instill more trust among companies dealing with commercial activities than courts in India (need not mention international political factors). Various well-thought-out provisions have been introduced into this law that allow for the speedy elimination of trade matters. The term “commercial disputes” as defined in the Commercial Courts Act includes almost any transaction under the sun that involves money.
One of the most phenomenal provisions of the Commercial Courts Act is that any lawsuit that falls within the scope of this Act must be dismissed within six months of the first date of the case management hearing. In addition, any legal remedy must be removed within six months. Section 12 A of the Commercial Courts Act deals with another peculiarity of the aforementioned Act, according to which mediation is mandatory before a legal dispute, whereby a party must resort to mediation before initiating a case, although there is an exception.
In my experience, problems that are easily addressed at the beginning are often only deeply sore because of the egos of the officers or managers who form the vocal cords between two entities. Mediation is a respected, legally binding and effective platform for resolving disputes, and the glorious success rate of matters resolved through mediation is known to all. By settling disputes prior to mediation, the parties can be provided with a comfortable environment in which to resolve the problem. In addition, it is sometimes found that the higher hierarchy of both sides is inadequately updated in the right tone and tenor of the actual problem that causes resentment to lead to disputes by venturing into mediation decisions to determine the nooks and crannies of a business in the.
As the parties consider potential violations, they look for a workable mechanism in terms of time and finance. In the arbitration arena, a party can initiate pre-trial arbitration, known as emergency arbitration. Intermediate arbitration decisions are available to the judiciary, and arbitral awards are also available for various reasons available under Section 34 of the Arbitration and Conciliation Act. Losing party, on the face of it, if not final, will be able to denounce the credibility of the award. I am sure many of you reading this article have encountered or heard of such a situation. A company that has resorted to arbitration to circumvent the rigors of the court will only end up in court.
“So a fight that will end old-school style, it is better to fight it that way.”
If the parties often have to go “back and forth” from arbitration to regular courts, or if there is such a “back and forth”, it is better to join the line of not changing lanes.
The Arbitration and Conciliation Act was created for three purposes and has largely served its purpose.
- Consolidation of Arbitration Laws
- Enforcement of Foreign Arbitral Awards
- Consolidation of international commercial arbitration.
When financial analysis is done by regular courts, namely arbitration, ordinary courts are cheaper.
Each case has its own facts and circumstances, so one should consider which route to take. The Commercial Courts Act requires a comprehensive list of documents to be submitted, reducing the possibility of unnecessary delays. If the precedents are applied in the right perspective, there would rarely be a case where a full trial would take place. Most litigation can be sidetracked at an early stage. Most commercial matters involve documentary evidence that does not require oral evidence and unnecessarily saves time that is required for oral evidence. At the same time, we cannot negate the importance of international commercial arbitration, which we will discuss later.
At the same time, we cannot negate the importance of international commercial arbitration, which we will discuss later.