Alternative Dispute Resolution Mechanism in the Budget

The Indian budget has conveyed the Congressional dimensions of economy drawing both bouquets and brickbats. However it was more of a average budget with a good and much needed emphasis of the rural sectors. Learned Minister Pranab Mukherjee who had mixed his speech with Kautilyas and Aam Admis have also drawn the importance of Alternative Dispute Resolution in the sphere of tax reforms. Transfer Pricing are applicable in inter-state transactions which are generally between parent Companies and their subsidiaries. The provisions in the Income Tax Act (Section 92 ) relating to such transactions are to be at arms-length depending on any of the five methods of Transfer Pricing decided by the Transfer Pricing Officer. Often their arises a conflict in selecting the best method for deciding the Price upon which a commodity shall pass through the parent company to the subsidiary company. This often results in litigations between the assessing officers and taxpayers. The present Finance Act, 2009 envisages an Alternative Dispute Resolution mechanism for settling such issues resulting therein. This is a welcome step from the Government as often it takes years to settle such issues causing loss on the Non-resident companies having a branch here in India. The Transfer Pricing Officer or the Assessing Officer needs to take the guidance of the ADR Commissioners appointed for this purpose. It can also take care of the misuse of Transfer Pricing provisions by such companies provided a safe settlement option is given.

Village Samithis

Village Samithis have been mooted to provide settlement solutions to the rural areas by Justice Kurian Joseph on behalf of Kerala Legal Service Authority. This would be in addition to the proposed Grama Nyayalayas to be setup by the state government at the lowest level. The Samithis would be consisting of a judicial officer sitting as an Adalat who will hear cases affecting the villages to be settled accordingly. The proposal is a welcome step to the villages which have been largely confined to their local limits foreign to justice delivery mechanisms including Courts. The rural people will find it more approachable and less strenuous once they are established in the local areas wherein they reside.

Arbitration Council in China

The Chinese Governments have started extending their reforms programme which was a farcry in the early stages of the communist regime. They have progressed at amazing speeds and attained unbeliveable heights at a short period of time largely due to their strong desire and will to bring reforms, added by strict enforcement methods. The latest development in constituting Arbitration Councils to clear of disputes relating to land especially in rural areas are a welcome approach. Often the people are at the recieving side in cases pertianing to cultivation of farmland which is still given as a lease for a period of time (10 years). The Government had brought out significant changes to the same and are making it more transparent and efficient by constituting Arbitration Councils. It is left to the Government to decide how they are going manage it.

conference on maritime arbitration

Kerala High Court Chief Justice S R Bannurmath addressed the gathering at a national seminar on ' Maritime Arbitration: Techniques and Enforcement' organized by the Indian Council of Arbitration (ICA) and the Kerala Chamber of Commerce and Industry (KCCI).
The following is an excerpt from his speech:
''India was an emerging economy with increase in international commerce. We need to assure that our laws are adapted to the needs of global markets and cross border transactions.'' Stressing the importance of reforms of the Indian Commercial Law, he said '' Our domestic laws cannot provide solutions to problems of international commerce and there was a need for codification and harmonization of uniform rules to provide a neutral legal regime, where parties do not select applicable laws but settle only the most essential terms. Institutional arbitration was an advantageous and appropriate mechanism and it deserves to be accepted. Listing out the advantages, institutional arbitration provides the availability of pre-established rules and procedures, which assure that arbitration, would get off the ground and proceed to conclusions."
Courtesy http://news.chennaivision.com/index.php/2009/06/reform-of-indian-commercial-law-warranted/

Grassroot Initiatives

The legal system is to facilitate the reach of justice to all levels of the society. But the fact is that it never happens and the demarcation of the haves and have nots is ever increasing inspite of the efforts of the Lok Adalats and the resurgent PILs. The Lok Adalats had a good beginning but a sad running for the reason that the poor people are largely unaware of its existence and further the people who are forced to come before it are left in the lurch because of the indignant officers of justice. In most of the cases they fail to reach a consensus because of the conservationist attitude or the lack of proper understanding of the grassroots. The judges should have an apathetic attitude to the apathy of the people who are in search of justice. In addition to this the Courts are placed quite distant from the areas which negativate any thought to go to the courts inspite of a dispute occurring. Grassroot initiatives like village panchayaths had taken this role but had weeded away. The proposed village samithis of the Legal Service Authorities is a welcoming signal, but needs to get implemented in the right manner. But the problems associated with the Lok Adalats have to be explored and rectified before the services are expanded. Gram Nyayalaya is yet to conceptualize owing to the laxity of the government and the opposition from various circles including lawyers. While the government is still making and exploring new ways and means for penetrating the justice system to the rural areas, they should improve the existing mechanisms and restructure for a more successful solution. But often they are more interested in discussing and holding seminars rather than implement it.

Kiran Bedi's Television Show and ADR

India's first woman IPS officer Kiran Bedi is again regularly seen in television, this time not for any of her statements or controversies that once followed her, but for the reality show she hosts which seeks to resolve real life disputes with parties presenting their cases before her. The program titled "Aap Ki Kacheri" aired in Star Plus channel can be termed as a breakthrough firstly becuase it brings the parties embrolied in civil disputes and willing to settle the issues before camera and secondly it is replacing the much popular serial "Kyunki Saas Bhi Kabhi Bahu thi. This program showcases the Raman Magsaysay award winner both as a judge and a cross examiner. The role played by advocates usually in the court room is played by Ms. Bedi in this show and here lies the success of the show. While in real life court rooms the lawyers argue for their clients, cross examine the opposite and instead of settling the issues that could be settled, take the partries to two different poles and make their settlement matter into a legal battle. Another higghlight of this show is that the matters that come before the camera are those that are not filed or pending before any court of law. This could well be example of new voluntary dispute redressal mechanism and could even trigger up such mechanisms around since she herself claims that the cases that are telecast in television are regularly being followed up by NGOs and have changed their minds.

Nyaya Panchayats Bill in pipeline

Shri Mani Shankar Aiyar, the Minister of Panchayati Raj informed the Lok Sabha in a written reply that the Draft Nyaya Panchayats Bill had been forwarded to the State Governments/UTs and the Central Ministries concerned for their comments and had been recast based on their comments and circulated to the Central Ministries concerned and State Governments/UTs.

The objective of the proposed Nyaya Panchayat Bill was to provide a sound institutionalized forum at the grassroots level for alternative dispute resolution through mediation and conciliation with community involvement. The Nyaya Panchayats would aim at resolving disputes before they reach the formal justice system without eliminating the right to go to judicial forum in case of disagreement of any party with the outcome of alternative dispute resolution.

The Draft Bill provides for the establishment of Nyaya Panchayats at the level of each Village Panchayat or cluster of Village Panchayats which are proposed to be constituted through the election of the Nyaya Panchas by people residing in the area to which the jurisdiction of the Nyaya Panchayats extends. It provides for the reservation of women, Scheduled Castes and Scheduled Tribes to ensure their representation in the Nyaya Panchayats. The Draft Bill defines the civil, criminal and additional jurisdiction of Nyaya Panchayats.