New Delhi, Sep 4 (UNI) The Union Cabinet today approved the proposal to set up a Regional Facility of the Permanent Court of Arbitration (PCA) in New Delhi.
A meeting of the Cabinet, chaired by Prime Minister Manmohan Singh, also gave its approval for the signing and ratification of the "Host Country Agreement between the Government of India and the Permanent Court of Arbitration" and issue a notification under the United Nations (Privileges and Immunities) Act, 1946, for extending privileges and immunities.
An official spokesman told mediapersons that the Regional Facility of the PCA would provide a forum for international arbitrations in India for disputes arising in the country and in the region, both between States and between a state and a non-state entity, such as foreign companies, which had made investmetns in the region.
The cost of international arbitrations would be reduced which would also encourage more frequent recourse to arbitration as a means of settling disputes.
The Regional Facility would enable more legal experts from India to participate in arbitrations conducted under the auspices of the regional facility and to acquire expertise in this field, which would have beneficial effect on domestic arbitrations.
She said parties to a dispute would have opportunity for selecting the persons of their own choice, who were knowledgeable in the field, as arbitrators for the amicable settlement of the dispute.
It would further strengthen the policy of the Government of India for promoting alternative methods of dispute resolution.
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