Bridging Borders: India's Legal Framework For Alternative Dispute Resolution In International Commerce

Ms. Nitika Bagaria, is an Advocate practicing at the Bombay High Court. She graduated from Government Law College, Mumbai (Mumbai University) in 2020 (B.L.S. LL.B.) and is an incoming candidate of the Masters of Law Program 2024 at London School of Economics & Political Science.

ABSTRACT

This article examines India’s evolving legal framework for Alternative Dispute Resolution (ADR) in the context of international commerce, highlighting its significance amid increasing cross-border transactions. It analyzes the historical development of ADR mechanisms, focusing on arbitration, mediation, and conciliation, and discusses key legislative milestones, including the Arbitration and Conciliation Act, 1996 and the recent Mediation Act, 2023. By comparing India’s ADR landscape with international standards, the article underscores the importance of these frameworks in facilitating effective dispute resolution. It also addresses the challenges faced, such as procedural delays and enforcement issues, while also highlighting the emergence of online dispute resolution methods post- COVID-19 as a transformative shift in the ADR ecosystem. Ultimately, the article posits that while significant progress has been made, continued development is essential for positioning India as a prominent hub for international dispute resolution with respect to both international commercial arbitration and mediation.

Keywords: Arbitration, mediation, international commercial disputes, international transactions, online dispute resolution