India International Arbitration Centre (IIAC) Chairperson retired Justice Hemant Gupta has said that although the IIAC has support from the government, it does not run on the whims and fancies of the Central government.
Addressing representatives of law firms at the Indian Arbitration Leadership Roundtable organised by the IIAC, Justice Gupta assured them that even though IIAC is funded by the Central government, it will function without interference.
The IIAC Chairperson said government support is one thing and having an overbearing effect is another. The Singapore International Arbitration Centre was also created as an Act of government, he said.
As far as our Centre is concerned, the three appointments have the similar procedure as Supreme Court judges. We don’t work at the whims and fancies of the government.
The IIAC Chairperson said they are making efforts to “design the IIAC as a hub for international arbitration and high-value domestic arbitrations on par and even beyond existing institutions of international repute”.
The law firms pitched in with their ideas about some of the best practices adopted across the world. However, the major concern many of them raised was on government interference.
One of the representatives said that when he informed his foreign clients about the IIAC, their very first concern was that the Centre’s members are directly or indirectly appointed by the government which even has the power to remove them.
Another representative said a major share of arbitration in India is between private firms and Public Sector Undertakings (PSUs). In such cases, how certain can we be that the government will not try to influence the arbitrators, a participant asked.
Justice Gupta responded that the Centre’s work will speak for itself. He said that the Central government does provide funds for the IIAC because, at present, the institution does not have its own funds.
The same is the case with the Supreme Court but no one can say that the Court is not independent, he stressed.
Justice Gupta informed that the Section 18 of the IIAC Act does empower the government to remove IIAC members but that process is like the impeachment of a judge of the Supreme Court.
Justice Gupta also stressed the Centre will have to try to conclude the arbitration proceedings in a timely manner and technology will play a major role in it.
He said that the parties can conduct the proceedings through video conference and the proceedings as well as the documents would be encrypted.
Justice Gupta further said they have held meetings with government authorities so that the government adopts the IIAC for its arbitration proceedings.