Angola, an African country known for its Oil reserves joined New York Convention on Recognition and Enforcement of Foreign Arbitration awards on 6th April 2017. New York Convention has convention has brought 157 countries together agreeing to enforce foreign Arbitration awards passed in other seats of the member countries, of course subject to some conditions. The Progress of recognizing the International arbitration awards globally has helped all member countries to increase the international business activities and to reduce the risk in the field of international commercial dispute resolution.
Mr S Ravi Shankar an International Arbitration lawyer, Senior Partner of Law Senate Arbitration law firm, while commenting on the above said News stated that the New York Convention & UNCITRAL Model law on arbitration have made wonders to not only international arbitration but also to International business. He further stated that the Courts in one country does not recognize the judgment of the other country barring a few exemptions. Hence the parties had to go to a foreign land where opposite party is living, to file a case and resolve their disputes. Naturally conducting a trial in a foreign country, producing witnesses and facing appeals made the dispute resolution very expensive. More over courts also were supportive to their citizens rather than ensuring justice to a foreigner and hence the element of neutrality was missing.
Now after the above said New York convention, if a party incorporates a clear international arbitration clause into its contract with the foreign company, it can choose the applicable laws and place of arbitration. Hence parties can choose a law of a neutral country and conduct the arbitration in a neutral place, hence the comfort level on both the sides are ensured.
Moreover, since it is a private system approved by law, it is faster and less expensive. The arbitrations are administered by very renowned arbitral institutions like International Chamber of Commerce (ICC), Singapore International Arbitration center (SIAC), IDAC India etc., These institutions have transparent Arbitration Rules and Fee structure. They have straight forward trained and experienced arbitrators in their panel. The final decision also will come within 12 months. These decisions can be enforced through the Court of the country where the opposite party is having its assets. Their properties will be attached and money will be recovered.
Hence all companies entering International Contracts should incorporate “International Arbitration clauses” in their contract and get the benefits. The International arbitration clause should specifically mention the number of arbitrators, language of arbitration, appointment procedure, name of administering arbitral institution, seat of Arbitration & applicable laws.
A Model clause of IDAC India is given below:
“In cases of disputes between the parties, arising out of or in relation to the contract shall be resolved by way of International Arbitration administered by IDAC India (www.idacindia.org). The language of arbitration shall be English and the seat of Arbitration shall be New Delhi, India. The substantive law and law applicable to arbitration shall be English laws and the procedural law shall be Indian law.”
We provide free service to parties, for drafting an arbitration agreement. Interested parties can contact email@example.com.
Skip & continue
In Compliance with Indian Regulations, Kindly Review the User Acknowledgement and Disclaimer below and then Proceed.
By proceeding further and clicking on the "ACCEPT" button herein below, I acknowledge that I of my own accord wish to know more about Law Senate (LS) for my own information and use. I further acknowledge that there has been no solicitation, invitation or inducement of any sort whatsoever from Law Senate (LS) or any of its members to create an Attorney-Client relationship through this website. I further acknowledge having read and understood the Disclaimer below
This website (www.lawsenate.com) is a resource for informational purposes only and is intended, but not promised or guaranteed, to be correct, complete, and up-to-date. Law Senate (LS) does not warrant that the information contained on this website is accurate or complete, and hereby disclaims any and all liability to any person for any loss or damage caused by errors or omissions, whether such errors or omissions result from negligence, accident or any other cause.
Law Senate (LS) further assumes no liability for the interpretation and/or use of the information contained on this website, nor does it offer a warranty of any kind, either expressed or implied. The owner/Partners of this website do not intend links from this site to other internet websites to be referrals to, endorsements of, or affiliations with the linked entities. Law Senate (LS) is not responsible for, and makes no representations or warranties about, the contents of Web sites to which links may be provided from this Web site.
This website is not intended to be a source of advertising or solicitation and the contents of the website should not be construed as legal advice. The reader should not consider this information to be an invitation for a lawyer-client relationship and should not rely on information provided herein and should always seek the advice of competent counsel licensed to practice in the reader's country/state. Transmission, receipt or use of this website does not constitute or create a lawyer-client relationship. No recipients of content from this website should act, or refrain from acting, based upon any or all of the contents of this site.
Furthermore, the owner of this website does not wish to represent anyone desiring representation based solely upon viewing this Web site or in a country/state where this website fails to comply with all laws and ethical rules of that state. Finally, the reader is warned that the use of Internet e-mail for confidential or sensitive information is susceptible to risks of lack of confidentiality associated with sending email over the Internet.