India's business capital Mumbai is planning to have its own international arbitration centre to resolve business conflicts instead of going courts and save time and money.

Arbitration is a process whereby the parties to the dispute appoint a third impartial person, called an arbitrator, before whom they present their claims and settle the dispute. By so appointing an arbitrator all by themselves, they agree to be bound by the decision of the arbitrator and this decision (called the "award") can be enforceable in the court of law. Thus, by doing so, money and time of the parties are saved. Unending litigation at courts can b avoided by doing so.

The upcoming arbitration centre at Mumbai will offer a range of arbitrary services to the business community across the world. At present, most disputes go to Singapore' SIAC (Singapore International Arbitration Centre) for arbitration. Mumbai centre will create great opportunities, as Mumbai already has a presence of global CEOs.

Also, just like every other organization doing business, startups too get to deal with many people - employees, consultants, contractors, designers, suppliers, marketers, distributors - the list is endless.

If things work out, the planned Mumbai arbitration centre would be India's first such centre. The development is significant as the government is also establishing an international finance services Centre in Mumbai. Arbitration is a less formal procedure than court litigation, and it is conducted in private, away from media and public glare.

Singapore's arbitration centre SIAC has been functional since 1991 as an independent non-profit organisation. Interestingly, SIAC also has a liaison office in Mumbai at One Indiabulls Centre since 2013.

Notably, India ranks second in the number of cross-border disputes reaching the SIAC, a jump from the third place in 2013. And thus, the upcoming Mumbai International Arbitration Centre is a much-needed step from Maharashtra government.

Two parties having no connection with Singapore can also seek arbitration from SIAC. Hearings can also be held in their respective countries.

Singapore's Arbitration Centre is currently the leading centre for arbitration. “With the Mumbai centre, we aim to shift focus here," said Devendra Fadnavis, Chief Minister, Maharashtra.

"There is a rise in intellectual property rights and international legal cases. An arbitration centre will help in creating a workforce to handle such cases," he added.

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