IIAC regulations for conduct of arbitration involving Micro and Small Enterprises notified

The India International Arbitration Centre (IIAC) recently issued the IIAC (Conduct of Micro and Small Enterprises Arbitration) Regulations, 2024, which has been notified on June 7 in the Official Gazette..As per a press release, the regulations recognise the need to promote faster and more effective resolution of disputes affecting Micro and Small Enterprises (MSEs), as part of IIAC's efforts to promote arbitration in this sector in the Indian economy."It is now widely recognised that arbitration is no longer an 'alternative' but the preferred mode of resolving commercial disputes. In this direction, IIAC Conduct of Micro and Small Enterprises Arbitration Regulations will lead from the front to inspire confidence amongst parties by providing a neutral dispute resolution platform for the speedy resolution of disputes affecting Micro and Small Enterprises," the press release stated..The regulations facilitate the conduct of arbitration upon receipt of a reference from the Micro and Small Enterprises Facilitation Council under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act)..Notable features of IIAC Conduct of Micro and Small Enterprises Arbitration Regulations include:No filing fee for claims or counterclaims; minimal arbitrator fees (less than the rate specified in the fourth schedule of the Arbitration and Conciliation Act,1996); and minimal administration fee payable by parties. Fast track procedure based on pleadings, documents and submissions filed by parties, is the default procedure for all arbitrations. Oral hearings may be held only if all parties request or if the arbitral tribunal considers it necessary to clarify certain issues. The award shall be made within six months from the date of intimation by the Registrar to the parties of the constitution of the arbitral tribunal. However, upon application by the party, the arbitral tribunal may order that arbitral proceedings shall not be conducted following this fast-track procedure. Appointment of sole arbitrator by Chairperson, IIAC on the advice of an Advisory Panel constituted by the IIAC. In appointing an arbitrator, due consideration shall be given to ensure that the arbitrator is independent and impartial, and has sufficient time, availability and competency to conduct the case promptly and efficiently. Legal aid to MSEs facing financial difficulties. To seek legal aid, an MSE may make an application to the IIAC along with supporting documents. Where an application is allowed, it may result in a waiver of up to 50 per cent of the administration fee of the IIAC. A counsel at a no-cost basis may also be provided to aid and assist, subject to the decision of the arbitral tribunal regarding the costs of arbitration. The IIAC also intends to use Artificial Intelligence Software developed by Digital India Bhashini Division, an Independent Business Division with Digital India Corporation under the Union Ministry of Electronics and Information Technology, to achieve its objective of making the process of arbitration easy and transparent for all involved pan India irrespective of the region and the language used by the parties. This will include live or real-time translation of documents from one language to another language; translation of one language to another language or speech; and the translation of documents from any of the languages (for which the software is available) mentioned in the eighth schedule of the Constitution of India etc. to English or Hindi. .[Read the Regulations]