As per the 2019 economic survey there were 3.5 crores cases pending in the lower courts. Of these an estimated 20% cases are related to commercial disputes. This resulted in India ranking as far down as 163rd on contract enforcement, as published by the World Bank.
Additionally, the Arcadis Global Construction Dispute Report 2020 indicates, that the global average time taken to resolve construction disputes is 15 months, while in India this is 7-8 years. Delayed redressal of disputes is one of the leading causes of delivery delays and cost overruns in projects. This adversely impacts end-consumers as well.
In 2016, the Government set rules for speedy redress of construction disputes, while at the same time allowing for the establishment of commercial courts. However, commercial courts have not proved as effective as had been hoped in providing timely solutions that address construction disputes. ADR has become an effective way of settling disputes. RICS is working in collaboration with Indian Link Legal India Law Services and has introduced DRS in India.
RICS and Link Legal are introducing an online training programme for professionals with technical expertise followed by their empanelmentation and appointment as RICS arbitrators, post assessment. Over the next few years a limited number of experts and neutral arbitrators will be trained and empanelled by the RICS.Commenting on the launch of DRS, Nimish Gupta FRICS – MD, South Asia – RICS said, “For the sector to perform effectively, it is imperative to ensure that contracts are enforced appropriately and there is a robust dispute resolution mechanism in place. However, we have continued to witness challenges with ADR in India – specific to the sector. This is on account of arbitrators not possessing the technical skills and expertise, to completely grasp the challenges and deviation from contractual terms needed when awarding judgment / resolving disputes. The RICS training is designed not only for people who want to work as dispute resolvers, but for the growing number of built environment practitioners who recognize how valuable dispute resolution skills are in their day-to-day professional lives.”In a statement, John Fletcher, Head, Dispute Resolution Service, RICS said, “Ever since the changes to the Indian Arbitration Act, which in effect opened to market to arbitration by built environment professionals, RICS and Link Legal have worked closely to develop the training and appointment service needed to provide the Indian industry with arbitration which is efficient, expert, industry driven and cost effective”
Atul Sharma, Managing Partner, Link Legal India Law Services in a statement said, “This will create opportunities for professionals to acquire the skills and experience of dispute resolution as well as to train, qualify and act an arbitrator, with an international institutional framework in compliance with the requirements of our Indian laws.”
