Telangana has the highest rate of recurrent investments : KTR

KTR said, that Telangana Chief Minister KCR believes that the cost of doing business and the quality of doing business are equally important

Telangana has the highest rate of recurrent investments : KTR

HYDERABAD: Telangana has the highest rate of recurrent investments, indicating that our existing investors are quite happy with the state's industrial climate, said Telangana MA&UD and IT minister KT Rama Rao on Tuesday.

During a Fireside Chat session at the Hyatt Gachibowli, KTR said that recurring investments show that our existing investors are pleased with the industrial climate in the state, which encourages them to introduce new projects, ultimately creating more jobs and contributing to economic growth.

The minister spoke on Telangana Govt's revolutionary policies, transparent governance, and TSiPASS, which is in keeping with Telangana Chief Minister K Chandrshekhar Rao's vision, at a fireside chat hosted by The International Arbitration and Mediation Centre (IAMC) in collaboration with Cyril Amarchand Mangaldas law firm.

KTR said, that Telangana Chief Minister KCR believes that the cost of doing business and the quality of doing business are equally important. It is important to resolve disagreements in a timely manner.

"I am pleased that IAMC has made a good beginning and is operating smoothly. An institution such as the IAMCH can be tremendously advantageous since it fosters a business-friendly climate by assuring an efficient and prompt dispute resolution mechanism. We will continue to endorse it" he said.

Justice Ujjal Bhuyan, Chief Justice of the High Court of Telangana, Justice L Nageswara Rao, Former Judge of the Supreme Court of India, and Justice V.K. Rajah, Former Judge and Attorney General of the Supreme Court of Singapore, participated in the fireside chat session.

Fireside Chat

Question to V.K. Rajah

What can India learn from Singapore?

Rajah: States can reposition themselves to take India to the next level of legal development. It is my first visit to Hyderabad. I am impressed.

  • It takes a commitment on the part of the State to look at ADR seriously.
  • There is a lack of attention by the State to increase the efficiency of ADR.
  • ADR is appropriate dispute resolution not alternative dispute resolution.
  • Studies show a majority of cases filed in courts do not find a place in courts. Parties should be nudged to adopt better dispute resolution systems. An arbitration center will not become a global hub, if you do not address the competence of the judiciary. Looking at global trends. The trend is towards specialization. Need to find tools to objectively ascertain specialized areas.
  • We need to figure out how to build deep capacities and deep knowledge in the judiciary.
  • Amicuses should be appointed if a judge is not subject expert and the counsels are
  • If parties do not have confidence in courts, arbitration is not going to work. Efficient legal system in Hyderabad is the requirement.
  • Big business names in Hyderabad. No reason why Hyderabad cannot be a template for good legal systems in India.
  • KPIs should be set up.
  • I challenge the centre, to set targets and publish them. When the business community knows these are the standards set, things will fall in place.
  • Judiciary, the bar together is a ecosystem.
  • Bar has to support the centre.
  • There is no point if in ten years the centre becomes only a hub for foreign lawyers.
  • Continuing education and attracting national firms is necessary. Attracting best legal minds in India to work in Hyderabad. Hyd needs to be a premier legal hub, not just IAMC becoming a premier center.
  • Other states also want set up centers. Key is execution.
  • It will take time. Contribution of bar and judges necessary.
  • Not lessons from Singapore. But, necessary lessons.
  • As KTR said, lessons from the best in the world have to be learned.

Justice Bhuyan

What are efficient systems of ADR?

  • Response: Efficient systems are those with least intervention by courts. At the threshold and at the end. Section 11 petitions are like mini trials. It is not a ministerial function, it is judicial. They require lengthy orders dealing with many contentions.
  • Medium is not important. Resolution of disputes is important. Meditation can come into play.
  • Parties should accept awards instead of filing appeals.

Lomesh: point well taken that there needs to be a change of mindset in lawyers.

Justice LN Rao

  • A doubt raised by Roscoe Pound: Adversarial system is not working. Courts are not working well.
  • People realized this and started a Pound conference.
  • In 2012, there was a conference in India.
  • What is the concept of ADR?
  • Harvard Prof. Frank Sanders: Multi door courthouse. His theory was that in one building there will be multiple doors to choose the method of dispute resolution.
  • Meditation has not really taken off in this country.
  • What can government do - there should be a mandatory mediation clause in all contracts. That's how culture would change.
  • Government should lead the way. Other parties will follow suit.
  • Why are indian parties going to Singapore for arbitration? They do not have confidence in Indian institutions and they are scared of courts.
  • Along with ease of doing business, enforcing contracts is important.
  • Specialized courts like commercial courts with trained judges should be there. A dedicated arbitration bench at the Telangana HC would send the right signal.

Lomesh next question to Rajah

What can corporates do to take ADR to the next level?

  • V.K. Rajah: Commercial people want disputes to be resolved efficiently. If it takes years of time, interspersed with interlocutory processes, it won't work out for businesses.
  • It is an undesirable state of affairs for Indian companies to choose foreign seated arbitrations.
  • Agree with Justice Bhuyan and Rao, ad hoc arbitration is a ghost of the past and must be banished.
  • The best national (domestic) law firms are like national assets.
  • What should corporate cohnselss and in house lawyers do? If the IAMC succeeds, you want to be a part of that success.
  • Lawyers between 30-45 years of age should come together and synergies with senior lawyers to improve the legal systems in India.
  • There needs to be a world class LLM course in India.
  • Lomesh - question on ad hoc and institutional mediation:
  • Justice Bhuyan - We are steeped into adversarial mediation culture.
  • Judges of the Telangana HC are contemplating undergoing mediation course from trained mediators during this summer vacation.

Justice LN Rao

  • In Delhi, courts rigorously implement Section 18 of the CPC under which Courts should decide whether the case can be resolved through mediation.
  • At SIMC, a 5 billion USD dispute was settled through mediation was settled in four days.
  • Meditation would work well in complicated commercial disputes.

VK Rajah: We should be cautious about mandatory mediation. Voluntary mediation works best.

Lomesh: It is humbling to learn that High Courts judges are willing to go through mediation training. It sets an important example for the bar.

Lomesh - do you see emergency arbitrations reducing the burden of courts in dealing with arbitration related cases in which parties seek interim relief?

Justice LN Rao: While framing rules for IAMC, we took care to include provisions for emergency arbitrations.

V.K. Rajah - There is certainly space in India for two or three arbitration centres. Resolution of disputes in Pharma and Tech sectors need to be focused on.

In Singapore, the success of institutional arbitration is attributable to the entire state's long term commitment to making Singapore the global hub for arbitration.

Looking at the advances made by Indians in the technology and banking sectors, there can be Indian global thought leaders in international arbitration in the next 10-15 years.

Justice LN Rao to V.K. Rajah: There are 230 arbitration institutions in China. Do you have any insight on how they are performing?

V.K. Rajah: There could be a shake out and the numbers would be reduced.

I don't think China could become a global arbitration hub even though they have competent lawyers and judges.

Indians have enormous advantage over Chinese lawyers in the context of international arbitration, because of their language and their use of the common law system.

Lomesh: We benefit from working with foreign practitioners.

Justice Bhuyan: There need to be full time arbitrators and a full time arbitration bar.

Justice LN Rao: There is an imminent need for a specialized arbitration bar. This was recommended by the Justice BN Srikrishna committee on arbitration reforms in India.

V.K. Rajah: Courts should uphold arbitration case management orders on not allowing repeated adjournments in arbitrations.

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