UNCITRAL stands for United Nations Commission on International Trade Law. UNCITRAL is an agency of the United Nations. It aims to remove or reduce legal obstacles to the flow of international trade and progressively modernize and harmonize trade laws.
HISTORY OF UNCITRAL
In modern times, there has been a tremendous development and progress in transportation, telecommunication, science and technology, trade and so on. The development and progress in trade resulted in more trade disputes. As the Courts are already overburdened, therefore, the Courts may not have time to hear the trade disputes. Hence, there is a need of Alternative Dispute Resolution.
SALIENT FEATURES OF UNCITRAL
- Comprehensive statute- The UNCITRAL is a comprehensive statute. It is found to deal with the following- Domestic arbitration, Foreign arbitration and International arbitration
- Explanatory code- The UNCITRAL is an explanatory code. It is found to explain the following- Domestic arbitration, Foreign arbitration and International arbitration
- Curtailment of Court’s power- The UNCITRAL is found to curtail the Court’s power. The Court cannot interfere upon all the matters of Arbitration
- Precise powers of the Court- The UNCITRAL is found to precise the powers of the Court. The Court can interfere only upon such matters as prescribed by the UNCITRAL
- Conduct of Arbitral proceedings- Chapter v from Section 18 to 27 is found to deal with the conduct of Arbitral proceedings
- Making of Arbitral Award and Termination of Arbitral proceedings- Chapter V from Section 28 to 33 is found to deal with the making of Arbitral award and Termination of Arbitral proceedings
- A new form of Conciliation- Section 61 to 81 is found to deal with the new form of conciliation
- Powers of Arbitrator- The UNCITRAL is found to deal with the powers of arbitrators
- International applicability- The UNCITRAL is found to deal with enforcement of foreign award
ALTERNATIVE DISPUTE RESOLUTION
Alternative Dispute Resolution (ADR) refers to any means of settling disputes outside of the courtroom. The different modes of Alternative Dispute Resolution are as follows:
- Ad-hoc arbitration
- Institutional arbitration
- Contractual arbitration
- Statutory arbitration
- Domestic arbitration
- Foreign arbitration
- Fast track arbitration
- Med arbitration
WHY DO WE NEED TO KNOW ABOUT UNCITRAL?
If there is a commercial transaction between two parties and a dispute arises between them then the dispute can be settled by negotiation, mediation, conciliation, arbitration, etc. The UNCITRAL has provided a model law which is called the UNCITRAL, 1985. The model law of UNCITRAL, 1985 has included Arbitration and Conciliation. The Indian law on Arbitration and Conciliation is known as the Arbitration and Conciliation Act, 1996. The Arbitration and Conciliation Act, 1996 is inspired by the UNCITAL, 1985. Therefore, it is important to have the knowledge of UNCITRAL to understand the Arbitration and Conciliation Act, 1996.
ESSENTIALS OF UNCITRAL
The UNCITRAL/ Model law is absolutely essential because of the following two reasons:
- Inadequacy of Domestic laws
- Disparity in National laws
Inadequacy of Domestic laws
The old Arbitration Act, 1940 was inadequate. It was neither a comprehensive statute nor an explanatory code. The old Arbitration Act, 1940 didn’t provide for conciliation. The old Arbitration Act, 1940 was replaced by the Arbitration and Conciliation Act, 1996. The Arbitration and Conciliation Act, 1996 is a comprehensive statue and explanatory code. It also provided for conciliation. The Arbitration and Conciliation Act, 1996 is inspired by the UNCITRAL/ Model law.
Disparity in National laws
The UNCITRAL/ Model law helps to remove the disparity in National laws. It helps to bring about uniformity in National laws.
Hence, it is needed and is important to know about UNCITRAL!