Topics Covered: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
United Nations Convention on International Settlement Agreements Resulting from Mediation:
Why in News?
The convention came into force on 12th September 2020.
What you need to know?
- The United Nations General Assembly adopted the Convention on 20th December 2018 and it was opened for signature on 7th August 2019 in Singapore.
- It is also known as the Singapore Convention on Mediation and also the first UN treaty to be named after Singapore.
Key Features of the Convention:
- Applicability: The Convention will apply to international commercial settlement agreements resulting from mediation.
- Non- applicability: It will not apply to international settlement agreements that are concluded in the course of judicial or arbitral proceedings and which are enforceable as a court judgment or arbitral award. It will also not apply to settlement agreements concluded for personal, family or household purposes by one of the parties (a consumer), as well as settlement agreements relating to family, inheritance or employment law.
- The courts of a contracting party will be expected to handle applications either to enforce an international settlement agreement which falls within the scope of the Convention or to allow a party to invoke the settlement agreement in order to prove that the matter has already been resolved, in accordance with its rules of procedure, and under the conditions laid down in the Convention.
The Convention has 53 signatories, including India, China and the U.S.
- India approved the signing of the Convention in July 2019.
Benefits for India:
- Signing of the Convention will boost the confidence of the investors and shall provide a positive signal to foreign investors about India’s commitment to adhere to international practice on Alternative Dispute Resolution (ADR).
- Businesses in India and around the world will now have greater certainty in resolving cross-border disputes through mediation, as the Convention provides a more effective means for mediated outcomes to be enforced.
Sources: the Hindu.