Introduction

The United Nations Commission on International Trade Law, which is known as the, “UNCITRAL”[1]  can be deemed to be regarded as a primary organ of the United Nations when it comes to the United Nations dealing with matters pertaining to international trade and laws mandating the trade between countries. The UNCITRAL is mandated by the United Nations General Assembly which aims to foster growth and development in international trade law and at the same time aims to harmonize the relations that persist between nations that are involved in trade. Under the scope of the framework which is established by the UNCITRAL, there are innumerable instruments which deal with aspects pertaining to Alternative Dispute Resolution methods. UNCITRAL primarily deals with rules pertaining to arbitration and there are rules which have been enumerated within the UNCITRAL model which are specifically applicable to ad hoc arbitrations, which come handy to various arbitration institutions. At the same time, it also enumerates upon the model laws of international commercial arbitration which have been incorporated and are adhered to by many States within their domestic legislations.

Indian Arbitration Act, 1996

The Arbitration and Conciliation Act, which was enacted by Parliament in the year 1996[2] is primarily drafted in consonance to the UNCITRAL Model Laws which enumerate upon the rules that an organization or a State may adapt or adhere to. This Act was passed since India signed the UNCITRAL treaty pertaining to Arbitration.

The primary focus here is to understand as to how the UNCITRAL model laws help countries in understanding the way in which they need to formulate their laws and at the same time how crucial it is to adopt the UNCITRAL rules dealing with Arbitration. It is imperative to understand that India partially adopted the UNCITRAL Model Laws as it specifically adopted its provisions pertaining to International Commercial Arbitration from the UNCITRAL model.

UNCITRAL and International Arbitration

With support from its working groups and an Arbitration and Conciliation/Dispute Settlement Working Group, UNCITRAL aimed to draft several instruments which could in turn help individuals and organizations in facilitating the settlement of their disputes while relying to Alternative Methods, instead of approaching a matter in the traditional way, i.e. by approaching a Court and filing for litigation. The UNCITRAL came up with the UNCITRAL Arbitration Rules, the UNCITRAL Model Law and the UNCITRAL transparency provisions.

1)      UNCITRAL Arbitration Rules: The UNCITRAL Arbitration Rules were primarily adopted by the UNCITRAL in the year 1976.[3]  The rules enumerated under the UNCITRAL Arbitration Rules majorly focus upon procedural rules which may aid the parties while dealing with their disputes. These rules basically enumerate the procedural aspects which the parties may agree when it comes to conducting an arbitral proceeding. These rules can be adhered to by the parties during the commencement of their arbitral proceedings as the same is a proceeding which arises as a result of their prevalent commercial relationship and these rules could be adhered to while carrying out ad hoc as well as institutional arbitration. These rules deal with all the stages in an arbitration proceeding right from the making of the arbitration agreement, to the composition and at the same time it also takes under its ambit the jurisdictional powers which have been conferred upon the arbitral tribunals. Lastly, it also takes under its scope the various aspects revolving around the arbitral proceedings and the form and the effect in which the award is to be passed by the arbitrator presiding over the arbitral tribunal.[4]

2)      UNCITRAL Model Law: In the year 1985, the UNCITRAL assumed the Model Law pertaining to International Commercial Arbitration, which was revised later on in the year 2006.[5] The Model law is not a piece which can be deemed to be regarded as binding, however, individual states are open to incorporate the various provisions of these model laws in their domestic legislations. It is imperative to note that Australia incorporated certain provisions from the UNCITRAL Model law in their domestic piece of legislation which is the, “International Arbitration Act, 1974”, this was after it was amended.

3)      UNCITRAL Transparency Provisions: Apart from establishing a model piece of legislation known as the UNCITRAL Model Laws, UNCITRAL also aimed to adopt a Convention on Transparency in Treaty-based Investor-State Arbitration in the year 2014.[6] The Convention particularly, can be deemed to be regarded as a piece of instrument which enables the Parties to an investment treaty, which is concluded before the 1^st Day of April, 2014, to show their consent with regards to the application of the UNCITRAL Rules pertaining to Transparency in Treaty-based Investor-State Arbitration.[7]

Advantages and Disadvantages of adhering to the UNCITRAL Arbitration Rules

The way in which the UNCITRAL Rules have been drafted, make it easier for the designating authorities to appoint arbitrators, however, these rules have been made much more comprehensive which has thereby strengthened the roles conferred upon the designating authorities, and these rules no longer are limited solely with the appointment of an arbitrator or the challenges that an organization may face when it comes to appointing an arbitrator. However, these rules also take under its ambit the relevant procedures which an arbitral institution may be required to follow when it comes to the proper supervision over arbitration proceedings in general. Therefore, if the arbitral institution or the arbitrators fail to adhere to the rules enumerated, or fail to perform any of the tasks enumerated under the rules, then under such circumstances, it could be replaced at the request of one of the parties to the proceedings.[8]

The Arbitration Rules could be deemed to be regarded as a set of rules which majorly focuses its aim towards strengthening the framework when it comes to dealing with ad hoc arbitration.[9], wherein limitations arise with regards to the deadlock that the parties may face when they find it difficult to come to a mutual ground in terms of settling the dispute during the pendency of the arbitration proceedings.

It is imperative to understand that the rules pertaining to arbitration as enumerated under the UNCITRAL have been drafted in such a way which aims to modernize the arbitration regime and in particular aims to taken into consideration the many issues surrounding the voids that have been left open either for interpretation or have not been adequately dealt with. Therefore, with the making of specific set of rules, which thereby deal with the process of transparency, the UNCITRAL seeks to change the arbitration regime or the arbitration practice.[10]

Conclusion

In a nutshell, it is imperative to understand that unlike the ICSID or the rules made by the ICC pertaining to arbitration, the UNCITRAL Rules on Arbitration, do not take into consideration the issues pertaining to enforcement per se. However, the award which is passed in favour of one of the parties to the dispute, which is made under the provisions of the UNCITRAL Rules, can be deemed to be regarded as something which will be enforced in consonance to the latter, which can be deemed to be regarded in accordance to the provisions on international rules of recognition and enforcement of arbitral awards, which may also include the New York Convention or the domestic laws of a nation if they are more in consonance when it comes to the aspects dealing with enforcement.[11]