The Institute of Directors (IOD) has established the International Centre for Conciliation and Arbitration (ICCA) at Delhi. The centre with its panel of dedicated professionals will resolve disputes between companies in a timely and efficient manner. This will help expedite commercial disputes currently pending in courts.
The establishment of ICCA is in accordance with the recommendations put forth at the second International Conference on Corporate Governance held early this year in Mumbai.
The industry is of the view that expeditious and cost-effective resolution of commercial disputes is imperative to good corporate governance. The centre while headquartered in Delhi, will have branches in Mumbai, Bangalore, Kolkata and London.
The reason behind setting up a branch in London is to undertake company disputes internationally in a timely and cost-effective manner. In the present judicial environment, cases are pending in courts for a very long time and the rate of disposal is poor.
It was felt by the industry that a centre to resolve corporate litigation will assure that cases are handled quickly and in a cost-effective manner.
According to the IOD, though other fora for arbitration are available, these are too expensive and time consuming and defeat the purpose of their establishment. The centre would also play a crucial role in benchmarking best practices in corporate governance.
