United Nations Convention on International Settlement Agreements – Free PDF Download

WHAT JUST HAPPENED

• The Union Cabinet chaired by Prime Minister Narendra Modi has approved the signing of the United Nations Convention on International Settlement Agreements (UNISA)

BASICS

• The UN gen. assembly adopted the United Nations Convention on International Settlement Agreements Resulting from Mediation on 20th December 2018.
• It is referred to as the “Singapore Convention on Mediation” (the Convention).
• The Convention provides a uniform and efficient framework for the enforcement of international settlement agreements resulting from mediation and for allowing parties to invoke such agreements.

54 NATIONS TO ATTEND S’PORE CONVENTION

• The United States and China are set to be among the first countries to sign a convention on mediation that is named after Singapore.
• The two economic giants, which have been locked in a trade war, are among 54 countries that will attend a signing ceremony for the Singapore Convention on Mediation on Aug 7. The countries include Australia, Brunei, Japan, South Korea, Switzerland, Uganda and Vanuatu.
• Around half of the countries, including the US and China, have indicated they will sign the treaty that will make it easier to enforce mediation settlements across borders.

BENEFITS

• Signing of the convention will boost the confidence of the investors and shall provide a positive signal to foreign investors about India’s commitment to adhere to international practice on Alternative Dispute Resolution (ADR).

INITIATIVES TO PROMOTE ADR MECHANISMS

• New Delhi International Arbitration Centre (NDIAC) Bill, 2019, seeks to establish a New Delhi International Arbitration Centre (NDIAC) as a statutory body.
• Earlier, the Committee chaired by Justice B.N. Srikrishna (“Srikrishna Report”) to review the institutionalization of arbitration in India had recommended the establishment of NDIAC.
• NDIAC will conduct arbitration, mediation and conciliation proceedings.
• The Commercial Courts Act, 2015, has been further amended and legislative exercise to further replace the Arbitration and Conciliation Act, 1996 with The Arbitration and Conciliation (Amendment) Bill, 2018 is currently underway.
• Commercial Division and Commercial Appellate Division of High Courts (Amendment) Bill, 2018 has been passed by Lok Sabha to resolve commercial disputes worth Rs 3 lakh or more.
• Several measures have been taken by the Ministry of Law and Justice to introduce Online Dispute Resolution mechanism.

UNISA

• The Convention ensures that a settlement reached by parties becomes binding and enforceable in accordance with a simplified and streamlined procedure.

NOTES

• The convention complements the Hague Convention on Choice of Court Agreements and the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, and fills the gap in the framework for enforcing international dispute settlements.
• It will give businesses and investors more assurance and will also help international trade flows by making it easier to enforce high-value, complex, cross-border commercial dispute settlements, the minister noted.

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