M&Co Legal: Discusses India's Arbitration Hub Potential, DIFC Lessons

Tariq Khan, Partner and Head of International Disputes at M&Co Legal, Dubai, recently expressed his view that further amendments to India's Arbitration Act alone will not make India a global arbitration hub, emphasizing that businesses primarily seek a jurisdiction where "money cannot move" for effective dispute resolution.

This commentary highlights a critical perception gap regarding India's arbitration landscape, suggesting that while legislative reforms are important, the practical enforceability of awards and the perceived stability and efficiency of the legal environment are paramount for attracting international arbitration. It underscores the challenges India faces in competing with established arbitration centres like the Dubai International Financial Centre (DIFC), particularly concerning the speed and certainty of dispute resolution and the ultimate enforcement of awards. For practitioners, this signals that clients prioritize not just the arbitration process itself, but the ultimate ability to secure and enforce remedies without undue delay or interference.

The discussion implicitly references India's Arbitration and Conciliation Act, 1996, which has undergone several amendments aimed at making India a more arbitration-friendly jurisdiction. The comparison with the DIFC courts, a common law judicial system operating within the UAE, highlights the differences in judicial approach, particularly concerning interim measures, cost orders, and enforcement mechanisms. The mention that a "UAE-seated award still faces hurdles in India" points to challenges in the enforcement of foreign awards under the New York Convention, to which both India and the UAE are signatories, often due to public policy considerations or other grounds for refusal under Section 48 of the Indian Act.

Key parties in this discussion are Tariq Khan, who previously worked at Advani & Co in Delhi and the International Arbitration and Mediation Centre (IAMC) in Hyderabad, and Dr. Mahmood Hussain, Founding Partner of M&Co Legal and a former Deputy Registrar of the DIFC courts. Their firm, M&Co Legal, is based in Dubai, and the conversation was with Bar & Bench's Pallavi Saluja.

Indian arbitration practitioners and policymakers should focus not only on legislative amendments but also on strengthening the judicial infrastructure and ensuring swift, predictable enforcement of awards to enhance India's appeal as an arbitration destination. For businesses, the choice of arbitration seat remains critical, with factors beyond just procedural rules, such as the stability of the legal environment, the efficiency of the courts, and the ease of enforcement, heavily influencing decisions. Attorneys advising clients on dispute resolution clauses should carefully consider these practical aspects when recommending India versus other international arbitration hubs.