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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60

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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

dg.aicadr@assocham.com shivam.bharadwaj@assocham.com