In January 2016, the London Court of International Arbitration (“LCIA”) announced that it was going to close its office in India and end the physical presence of its Indian subsidiary, LCIA India. The LCIA has said that it has been a difficult decision to leave India, one that has been based on market feedback. The LCIA state that regrettably it did not see the uptake in contracting parties adopting LCIA India clauses to justify its continuing presence on the ground.
LCIA India began operations in 2009 in Delhi, and was operationally independent of the LCIA. Given the low uptake of LCIA India arbitration clauses, the LCIA consider it is a better approach to integrate LCIA India back into LCIA where from the 1st June 2016, the acting registrar in London will continue to administer the existing cases which are already in the system. New referrals based on contracts concluded after 1st June 2016 which contain LCIA India clauses will not be accepted for administration unless the parties agree to the case being administered under LCIA rules.
There is no denying that regional arbitration centres have their benefits in terms of being better placed to understand the law, language and culture of the local parties. But in practical terms, the lack of a physical presence in Delhi is unlikely to produce a notable difference in service. The availability of electronic forms of communication and the presence of a representative of India on the board (who knows the market well) will mean that arbitration services to Indian and international parties doing business with Indian counter-parties will be seamlessly offered through LCIA London.
LCIA is one of the world’s leading international intuitions for commercial dispute resolution and is generally regarded as the leading global forum for dispute resolution proceedings for all parties, irrespective of their location or system of law. The international nature of the LCIA’s services is reflected in the fact that over 80% of parties in pending LCIA cases are not of English nationality.
Acting for both private individuals and companies, Mackrell Turner Garrett’s solicitors are experienced in handling arbitration proceedings. We have first-hand experience and have conducted numerous commercial arbitrations, subject to a variety of governing substantive and procedural laws before the LCIA.
For more information please contact Kam Bhamera of our Arbitration team on: 0207 240 0521