1. The Union Cabinet has approved the signing of the United Nations Convention on International Settlement Agreements (UNISA) resulting from mediation by India.
Benefits of signing the convention
1. It is expected to boost the confidence of the investors and shall provide a positive signal to foreign investors about India’s commitment to adhere to international practice on Alternative Dispute Resolution (ADR).
Initiatives to promote ADR Mechanisms in India.
1. To evolve a comprehensive ecosystem of arbitration the Government is establishing the New Delhi International Arbitration Centre (NDIAC) as a statutory body.
2. The Commercial Courts Act, 2015, has been amended and legislative exercise to further amend the Arbitration and Conciliation Act, 1996, is currently underway.
3. These initiatives are being taken with a view to encourage the settlement of commercial disputes, domestic and international, in India through ADR Mechanism of Arbitration, Conciliation and Mediation.
4. The provisions of the ‘Convention’ are in line with the domestic laws and the efforts made to strengthen Alternative Dispute Resolution Mechanisms.
About the Convention
1. The United Nations General Assembly adopted the United Nations Convention on International Settlement Agreements Resulting from Mediation in December 2018, and it is open for signatories.
2. It will be known as the “Singapore Convention on Mediation” (the Convention).
3. The Convention provides a uniform and efficient framework for the enforcement of international settlement agreements resulting from mediation and for allowing parties to invoke such agreements.
4. It is similar to the framework that the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) (the “New York Convention”) provides for arbitral awards.
5. The Convention defines two additional grounds upon which a court may refuse to grant relief.
6. Those grounds relate to the dispute that would not be capable of settlement by mediation or would be contrary to public policy.