Govt approved ordinance to amend Arbitration Act for speedy settlement of commercial disputes.
- An arbitrator will have to settle case within 18 months
- Puts a cap on arbitration fee.
Why needed:
- Foreign companies have expressed their reluctance in doing business in India because of the long-drawn litigations.
- Arbitration proceedings are unduly prolonged since mostly retired judges are appointed as arbitrators and they view arbitration just like a case in court. It is normal to have 50-100 sittings in arbitration
- Cost in some arbitrations with 3 retired judges of the high court or SC often run in crores.