Sunday 28 June 2020

EVALUATION OF ARBITRATION DURING PANDEMIC By Mridula Sharma


The novel coronavirus has left the world devastated, the worldwide disruption is witnessed in all facets of life, leaving no exception hence hitting the legal system too including Alternate Dispute Resolution Mechanism, which has also been among the hardest hit of 2020. However the new star which helped in the mechanism of the  Arbitration, as an alternate dispute resolution, turned out to be none other than technology, which has kept it ongoing to this very date, unscathed by Covid-19.

Arbitration proceedings are way more rapid procedure of resolving disputes as compared to the court proceedings. Arbitration displays an alternative to the delays and difficulties faced in the court litigation, both during and post pandemic. It is impossible to physically conduct the arbitral  proceedings while the entire planet is shut down, which can further lead to various other sets of problems due to the pilling of the previous non conducted proceedings. An extension of time period is given by the Supreme Court for the pending arbitral proceedings where the expiration of the given time period of the case is during the lockdown.

Cases which are of urgent  nature are given utmost priority by conducting them on a virtual platform during this hard time of complete lockdown in the entire country. Full assistances is provided by the Arbitral Tribunal in directing the parties in arbitration proceedings to file pleading via e-mail and with the platform of video calling and video conferencing or any other mode of communication which is considered fit and feasible promoting social distancing, hence the conduct of arbitration proceedings with full utilization of the 21st century technology, the least productivity wastage and in consonance with full convenience along with cost effectiveness in a much  greener way,  having easy access at their houses is proved fruitful. All these modes of communication are laid with strict statutory guidelines, the use of modern technology is need of an hour rather than a mere preference during this time of pandemic.

The recent virtual hearing of National Bank of Kazakhstan v Bank of New York Mellon and Ors[1], which took place in the English court was live-streamed on YouTube, providing full access and sensitive information of the case to the viewers spread worldwide, providing a basic measure of the court as it is considered as more of an obligation to ensure public access to the hearings. On the contrary arbitration ensures full sensitivity of the information being provided and therefore not always  open to the public.

Technology has evolved since ages and so is the Arbitration procedure. In these quarantine times arbitration portrays full social distancing with the desired versatility and flexibility in resolution of the cases. Arbitration does offer a panacea to crises in cases of international travel by acting as an online connecting bridge due to restrictions imposed across the countries. For instance- from the very beginning i.e the first step through an arbitration notice, the trail is carried through out with the absence of contact.  A major hike is seen in the placement of responses and appointments which are being done via online basis lately. Online communication modes have taken upon the whole system of case management and communication which contributes as a part of the  first stage itself, which is done between the lawyers, clients, Arbitration institutions and the Arbitration Tribunal. On top of it provision of electronic signature is also accepted by the Arbitration Tribunal.
Although some practical issues are faced in case of voluminous huge documentations where stakeholders are being limited by the capacity to upload on  cloud with secured access. Overall the screens have exclusively taken upon the old methods and is considered to be the next step in the evolution of arbitration. This modern approach has led to a high number of proceedings to carry on uninterrupted while the pandemic has totally taken over the litigation. No doubt Arbitration in consonance with technology will be the new normal during and post the novel coronavirus.

However it  still comes with some flaws such as lack of tangibility, instincts and intuitions which come out as reflexes can often turn around the cases. But surely these things would be overcome in the near future if kept on altering it and adopting new changes in accordance with the requirements of the society.


[1] Claim No FL-2018-000007-In the High Court of Justice- Business and Property Courts of England and Whales.

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