India clears new arbitration law to resolve commercial disputes

New Delhi

INDIAN lawmakers approved a bill to hasten resolution of commercial disputes through arbitration, another step in Prime Minister Narendra Modi's plan to make it easier to do business in Asia's third largest economy. The law would impose deadlines to resolve cases, empower tribunals to enforce decisions, and limit the courts' ability to challenge awards. The bill will replace an executive order announced in October and amend a 1996 law.

"The reason a lot of people shy away from international arbitration in India is the scope of interference by local courts," said Ramesh Vaidyanathan, managing partner at Mumbai-based lawfirm Advaya Legal. "That has been diluted."