Maharashtra’s ambitious plans to set up India’s first international arbitration centre in Mumbai has begun ahead of the Make In India Week to be held in the city from February 13 to 18. In the absence of an international arbitration centre, the majority of global disputes land at the Singapore International Arbitration Centre. Overseas disputes arbitration, if pursued in Mumbai, would bring revenue worth Rs 2 billion.

The statistics from Singapore International Arbitration Centre shows in 2013, out of total 259 new cases, Indian companies contributed to highest number of filing at 85. It indicated the number of Indian companies seeking redressal have grown tenfold between 2001 to 2012. The proposal states, “Mumbai Centre for International Arbitration (MCIA) falls in the framework of Make in India. It will help in attracting higher global investments to Mumbai and Maharashtra.”

MCIA will open up avenues to attract legal and business talent across the state. The chief minister has appealed to the law university and its students to evolve expertise in laws related to intellectual property regulations and Information and Technology which would require greater interpretation.

Although MCIA will evolve its own framework in accordance with international standards, Maharashtra stands to gain for housing the centre which would be on the lines of Singapore (SIAC), France (ICC) and London (LCIA).

What is Arbitration?

Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.