Law Weblog

London Court of International Arbitration opens in India

Sunday 26 April 2009 at 7:36 am | In News | Post Comment

The London Court of International Arbitration (LCIA) established a branch in the Indian capital New Delhi, this week. The opening ceremony was attended by Lord Goldsmith, QC, the former UK Attorney-General, and Sir Richard Stagg, KCMG, the British High Commissioner to India.

The move will allow disputes involving foreign companies with interests in India to resolve contractual claims under London arbitration rules without having to take disputes to London, Paris or Singapore.

London has had an arbitration court since 1883 and is one of the leading centres along with Hong Kong, New York, Paris and Singapore. The Indian domestic courts are seen as often chaotic and unreliable.

The move will provide American and English law firms a major source of revenue if the law is changed to allow them to compete with local firms. Arbitration has become increasingly popular in recent years as large companies expanded into emerging markets.

With domestic courts in such countries often unpredictable and vulnerable to corruption, companies regarded arbitration as a more reliable and neutral option. Another attraction is that hearings are typically held in private, away from the scrutiny of politicians, shareholders and the media.