ADR MECHANISM -
A RIDGEWAY FOR COMMERCIAL
DISPUTE RESOLUTION
G. P. SRIVASTAVA
Director General
AICADR
About ASSOCHAM
ASSOCHAM is an apex chamber of India and initiated
its endeavour of value creation for Indian industry in
1920 as a Non-profit organization.
Having in its fold more than 400 Chambers and Trade
Associations and serving more than 4.5 lacs members
from all over India and abroad.
Currently, ASSOCHAM has more than 100 National
Councils and 18 International Councils covering the
entire gamut of economic activities in India and abroad
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PENDENCY OF COMMERCIAL
LITIGATION IN COURTS
More than 2.5 crore cases involving Rs. 4 lakh crore
are currently pending at different stages in various
courts across the country.
1 crore of commercial cases are pending in courts
involving over 2 lakh crore funds of public sector
banks, undertakings , in different sectors.
Since Commercial Courts, Commercial Division and
Commercial Appellate Division of High Courts
Act, 2016 is passed and once implemented, it would
fast-tract commercial litigation.
SHORTAGE OF JUDGES
Out of 740 posts of High Court Judges, 320 posts
are yet to be filled up.
The increase is steeper at the higher levels
compared to district and subordinate courts. The
burden of cases per judge has increased in the
Supreme Court and High Courts while it has
decreased in district courts.
In the last quarter of 2013, there were 6,963
pending cases per high court judge. The
corresponding figures for Supreme Court and
district courts were 2,288 and 1,776 respectively.
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CASES OF TOP TEN NATIONALITIES
FILED IN SIAC IN 2013
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10
20
30
40
50
60
70
80
90
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WHY AICADR
The Law Commission, Government of India, in its
246th Report emphasized on culture of institutional
arbitration in India, recommended chambers of
commerce to set up new arbitration centers with
rules/latest provisions.
ASSOCHAM International Council of Alternate
Dispute Resolution (AICADR) has been formed as
an exclusive Council of the Associated Chambers
of Commerce & Industry of India, providing
Arbitration, Conciliation, Mediation or any other
dispute resolution methods.
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The ADR Rules are based on UNCITRAL model,
drawn up after meetings and deliberations with the
Hon’ble Judges of Supreme Court, High Court,
Leading Practitioners, Senior Bureaucrats, Industrial
Representatives and Authorities from Secretariat of
United Nations Commission on International Trade
Law etc.
Incorporated latest provisions, aiming to bring a fair
and trustworthy, faster and cost effective ADR
mechanism catering to the needs of domestic and
global dispute resolution.
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AIMS & OBJECTS
Propagation of Alternate Dispute Resolution
Training of Arbitrators and business executives
Research and Coordination with other similar
Alternate Dispute Resolution Institutions
Speedy/fair resolution of disputes within fixed
time frame at minimum cost.
INFRASTRUCTURE
Panel of renowned arbitrators/conciliators/
mediators
Professional Team of Secretariat
ADR meeting rooms equipped with state-of-the-art
facilities including :
Digital Projector
Audio & Visual Facilities
Dedicated System including Transcription etc.
Multi-point video conference facilities
Centrally located offices at different locations in
India & Abroad
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Library
Meeting Room - 1
Meeting Room - 2
EASE OF DOING BUSINESS
It is advisable to use the ADR clause in all domestic and
global commercial contracts as stipulated in AICADR
Manual; clause(b) of Part-1 of General Rules
AICADR Rules offers fast track resolution of commercial
disputes within fixed time frame at most economical cost
REFERENCE OF DISPUTES :
Disputes can be referred to AICADR under its Rules for
Arbitration/ Conciliation/ Mediation:
By an clause in a contract providing for reference of the
dispute under that contract
By a separate agreement providing for reference of the
existing dispute
By an agreement for providing administrative services
under any other rules.
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Revolution in resolving commercial disputes
The Arbitration & Conciliation (Amendment) Act, 2016 and
setting up of Commercial Courts have brought out a
revolution in the speedier resolution of commercial disputes in
India. Important changes brought out in both the Acts includes;
Application for appointment of arbitrator by the courts to be
disposed off within 60 days;
Grant of interim measures by the arbitral tribunal;
Award to be given within one year and its challenge, if any, also
to be disposed off within the same period;
Introduction of fast track procedure and model fee structure; etc
Commercial Courts, Commercial Division & Commercial
Appellate Division of High Courts Act,2016 is set to try all
suits and applications of a specified value91
The appeals against the decision of Commercial Courts
is to be brought out within sixty days and to be
disposed off within six months.
Apart from the above, amendments in several Sections
have also been brought out in the Arbitration &
Conciliation (Amendment) Act, 2016 for making
arbitration process more effective.
ASSOCHAM ADR Rules incorporate all the latest
provisions of the recent amended ADR laws aiming at
to resolve all commercial disputes within fixed time
frame at minimum cost.
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ADR COMMITTEE
The governing body of the ASSOCHAM shall
constitute an ADR Committee for performing the
functions under the Rules.
It shall consist of a Chairman who shall normally be
ex-officio Secretary General of ASSOCHAM, a
Director General and maximum of eight other
members, from different disciplines/Ministries such
as Director General Foreign Trade, Min. of External
Affairs, Min. of Finance, Shippers Body, Min. of
Commerce, Min of Law, EU Commission, Public
Sector Corporation etc., subject to their suitability
and consenting to be a member.
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TIME FRAME FOR
PUBLICATION OF AWARD
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The Tribunal (ADR Panel Member(s)/Conciliator(s)/
Mediator(s) appointed shall after its first meeting
communicate the time table to the Registrar along with
time period for publication of the result/decision/award
which should be adhered to and may not exceed 1 year.
The Tribunal may, where necessary, secure agreement
of parties to dispense with formal proof of documents,
except the question document.
The Tribunal may implead material party to the
proceedings with the consent of the parties and the
written consent of the party to be impleaded. The
proportionate fees will be paid by the new party as
determined by the Tribunal.
MOST ECONOMICAL FEES
“AICADR” Centre has adopted broadly the Law Commission 246th Report
Guidelines for fees of ADR Panel members , as under :
Sum in dispute (Rs.) Fees (Each ADR Panel Member)
Upto Rs. 5,00,000/- Rs. 45,000/-
Above Rs. 5,00,00/- and upto Rs.
20,00,000/-
Rs. 45,000/- + 3.5% of the claim amount over and above Rs.
5,00,000/-
Above Rs. 20,00,00/- and upto
Rs. 1,00,00,000/-
Rs. 97,500/- + 3% of the claim amount over and above Rs.
20,00,000/-
Above Rs. 1,00,00,000/- and upto
Rs. 10,00,00,000/-
Rs. 3,37,500/- + 1% of the claim amount over and above Rs.
1,00,00,000/-
Above Rs. 10,00,00,000/- and
upto Rs. 20,00,00,000/-
Rs. 12,37,500/- + 0.75% of the claim amount over and above
Rs. 10,00,00,000/-
Above Rs. 20,00,00,000/- Rs. 19,87,500/- + 0.5% of the claim amount over and above Rs.
20,00,00,000/- with a ceiling of Rs. 30,00,000/-
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INCENTIVE FOR SPEEDY RESOLUTION
In order to conclude ADR promptly with the period agreed
under Rule 8 of the General Rule (Part I), the incentive of
20% can be considered if award is declared within 9 months
from its commencement or 10% if within 12 months duration.
In the event, ADR Panel Member to be appointed is a Sole
ADR Panel Member; he shall be entitled to an additional
amount of 25% on the fee payable as per the table set out
above.
Summary ADR Panel Member Fees will be 66% of the rates
given above.
Fee payable to Conciliator and Mediator, will be 50% of the
ADR Panel Member’s fees.
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AICADR MEETINGS
Mr. Joao Riberio, United Nations Uncitral (Head of
Regional Centre for Asia and the Pacific) speaking at AICADR meeting
Shri G.P. Srivastava, Director General, AICADR
presentIng highlights of ASSOCHAM International Council of Alternate Dispute Resolution (AICADR)
Mr. Malik Imran Admad, D.G. SAARC Arbitration
Council and His Excellency Khalid Al- Amin
Chairman, BCCI addressing AICADR meeting
ADR Council Meeting in Progress
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Shri. D.S. Rawat, Secy. General
ASSOCHAM & Chairman, AICADR
facilitating Hon’ble Minister of Law and
Justice, Shri Sadananda Gowda on 1st
Dec. 2015
Shri. D.S. Rawat, Secretary General
ASSOCHAM & Chairman,
AICADR and Shri G.P. Srivastava
DG, AICADR briefing salient features
of AICADR to Hon’ble Minister of Law
and Justice, Shri Sadananda Gowda
on 1st Dec. 2015
ADMINISTRATIVE FEES BY AICADR
IN ADDITION TO FEES/EXPENSES, AICADR CENTRE
WILL CHARGE;
Registration of ADR
case
Administrative fees
All other facilities on
cost
Rs.25,000/- payable in
advance
2% of amount in dispute
including counter claim(s) if
any payable in advance
On each occasion from time to
time payable in advance
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UNCITRAL RULES ON TRANSPARENCY
IN TREATY-BASED INVESTOR-STATE
ARBITRATION
The UNCITRAL Rules on Transparency in
Treaty-based Investor-State Arbitration (“Rules
on Transparency’) shall apply to investor-State
arbitration initiated under the :
AICADR UNCITRAL Model Arbitration Rules
pursuant to a treaty providing for the protection of
investments or investors subject to the state
party to the dispute being a signatory to the
convention on transparency in the investor –
state arbitration.
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JOIN AS AICADR MEMBER IN
APPROPRIATE CATAGORIES
Individuals
Associations, firms, Companies,
undertakings etc. as Corporate
Others as may be decided by
ADR Committee
Any qualified person may offer
to be on the panels as ADR
Panel Member/Mediator/
Conciliator as decided by the
ADR Committee
JOINING FEE(including taxes i.e. SBC @0.5% and
Service Tax @ 14% = 14.5%)
Individual Membership Rs. 1718
Corporate Membership up to four
members from same Associations,
firms,companies,undertakings etc.
Rs. 8590
Empanelment Mediator /
Conciliator /ADR Panel Member
(He has to be a Life Member first)
Rs. 2865
ANNUAL SUBSCRIPTION -After first year
(including Taxes as applicable)
Individual Membership Rs. 1145
Corporate Membership (up to four
members)
Rs. 5725
Life Member 10 times of
Annual Fees.
The Membership subscription year runs fromJanuary to December. Except life members,others have to pay proportionate fee for fractionof the Calendar period as applicable
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BENEFITS TO MEMBERS
Use of infrastructure facility including library/e-library etc.
Receive periodical E-ASSOCHAM Legal Bulletin –
Articles solicited from members for publishing
Through conferences, seminars, workshops and
lectures, share ideas, exchange knowledge and to
network.
Members enjoy discounted registration fees at
conferences/seminars
Preferential rates for advertising in the Bulletin
Sponsorship opportunities
Lecture/programme/event invitation
Act as arbitrator/conciliator/mediator.20
For further details please visit our website http://assocham.org/upload/docs/AICADR-Manual.pdf
or contact:
Mr. S. L. Khurana Mr. Shivam Bharadwaj
Joint Registrar Executive
011-46550573, 09899111216 011-46550562, 9891895295