What are the key recommendations of Justice Srikrishna committee on Institutionalization of Arbitration Mechanism? Discuss while analyzing the related issues.
Bilateral investment treaty are joint mechanism between two countries to safeguard investors of their country in, others economic jurisdictions. Government had set up Justice Srikrishna committe to institutionalise Arbitration mechanism to reduce stress on Justice dispensing system in commercial system, through efficient and effective justice arbitration system.
Some of its recommendations on BITs are as follows:
- Constitution of an IMC (inter ministerial committee) with officials from Ministry of finance, external affairs and law to resolve and manage disputes
- Hire external lawyers having expertise in BITs to boost the government’s legal expertise.
- Creating designated fund to fight BIT dispute.
- Post of International law advisor to be created to advise government in International legal disputes.
- Establishment of BIT appellate mechanism and multilateral investment court.
The recommendations may create certain conflicts with existing structure:
- IMC may come into conflict with existing legal and treaties division of Ministry of Economic Affairs
- Commerce ministry needs to be represented in IMC as it has been handling the trade issues
- Creating new posts and mechanism would require amendments of current law.
- Recommendations do not cover the existing Inter-State Dispute settlement mechanism which has led to problems
- Report did not provide any details about appointments, qualification of International Law advisor
Recommendations are innovative and have taken a holistic view of arbitration matter, but rather than creating new entities, empowering the existing structure and laws to make India hub of International Arbitration.