Cabinet approves signing UN Convention on Mediation

Union Cabinet chaired by Prime Minister Narendra Modi has approved signing of United Nations Convention on International Settlement Agreements (UNISA) resulting from mediation by India. It is scheduled to be signed in Singapore on 7th August, 2019 or at the United Nations.

UN Convention on International Settlement Agreement (UNISA)

It is also known as Singapore Convention on Mediation. It was adopted by UN General Assembly (UNGA) in December 2018.

It provides uniform framework for enforcement of international settlement agreements resulting from mediation and for allowing parties to invoke such agreements akin to framework that Convention on Recognition and Enforcement of Foreign Arbitral Awards (New York, 1958) (New York Convention) provides for arbitral awards.

It defines two additional grounds upon which court may, on its own motion, refuse to grant relief. These grounds related to fact that dispute is not be capable of settlement by mediation or is contrary to public policy.

It ensures that settlement reached by parties becomes binding and enforceable in accordance with simplified and streamlined procedure.

It seeks to become essential instrument in facilitation of international trade and in promotion of mediation as alternative and effective method of resolving trade disputes. It also seeks to contribute to strengthening access to justice, and to the rule of law.

Benefits of signing for India

It will boost the confidence of investors. It will also provide positive signal to foreign investors about India’s commitment to adhere to international practice on Alternative Dispute Resolution (ADR).

Month: Current Affairs - August, 2019