§ 89 (1) of the Code of Civil Procedure of 1908 provides that, where it finds that elements of settlement are acceptable to the parties, the court may refer the parties to arbitration, conciliation, judicial settlement by Lok Adalat or mediation; and India have signed the United Nations Convention on International Resolution Agreements (UNISA), also known as the Singapore Convention on Mediation. It was signed by the Indian High Commissioner for Singapore, Jawed Ashraf, who represents the Government of India (GoI). To date, 46 countries have signed this international treaty of settlement agreements. Accordingly, prior to the entry into force of the Singapore Mediation Convention, settlement agreements concluded by “conciliation” were subject to enforceability in India under Part III of the Arbitration Act, agreements concluded by mediation could only be applied as contracts. This legal vacuum has been filled with India`s ratification of the Singapore Mediation Convention, which provides for the application of settlement agreements concluded by mediation. Topics covered: bilateral, regional and global groups and agreements that involve India and/or affect India`s interests. Gregory Vijayendra, president of the Law Society in Singapore, said South Asia was one of the largest international arbitration markets under the Singapore International Arbitration Centre (SIAC), which is dominated by Indian corporate litigation. (b) it does not apply this Convention to settlement agreements to which it is a party or to which governmental authorities or persons acting on behalf of a public authority are parties, to the extent specified in the declaration. India on Wednesday signed a major UN convention on international settlement agreements, although experts have demanded local laws to support the transposition of the treaty into business contracts. While the Singapore Mediation Convention does not insist on using the term “mediation” to describe how a settlement can be reached (mediation and mediation being used interchangeably in several jurisdictions), Indian law distinguishes between mediation and conciliation. For example: benefits for India: It is especially important for the growth of mediation in India and the improvement of ease of business in India, especially on the legal front.
It will help boost investor confidence, especially foreign investors investing in India.