ICC’s New Expedition Arbitration Framework Imperative Impact on Indian Business & Reforms in Arbitration Laws
This Blog is Written by Shiva Singh Gaur, 4th Year, BBA LLB, Bharati Vidyapeeth New Law College, Pune & Devanshi Singh, 4th Year, BBA LLB, Bharati Vidyapeeth New Law College, Pune.
Blog 26 | Edition VII
The Internation Chamber of
Commerce revamped its rules concerning arbitration this modification has been
the greatest since 2021. the modifications include changes that deserve
significant attention: the death of mandatory terms of reference, expanded
disclosures and codification of early determination powers.
The term used by ICC is referred
to as “the highly expedited Arbitration Provision” (herein after “HEAP”) which
aims at providing resolution to the dispute in a short span of four months
only. The system is not just a reform but a completely new track specifically
creating efficiency for parties that don’t want to restrict themselves to the
traditional time duration. The impact is not just restricted to Europe India
stands as one of the ICC’s top user countries.
The
major question stands as when will this actually take an imperative impact between
parties.
The answer points towards
another growing trend in Arbitration matters i.e., An Indian company signs a
cross-border contract with an ICC arbitration clause, the operative ambit of
ICC’s model starts the essential part to be taken note of is that HEAP only has
operative ambit when parties agree to it otherwise it won’ applicable.
The simpler break down of HEAP
would be the arbitration mechanism that is opted upon by parties not by the
mechanism that gets kick started when the monetary value of dispute crosses a
certain threshold. Once selected upon by parties, procedure as described in
Appendix VI gets initiated as the established procedural regime.
During a traditional
arbitration proceeding the days stipulated into an institutional rulebook take
over i.e., 20 days for respondent’s answer then 20 days for parties to nominate
sole arbitrator jointly, 7 days to challenge the appointment, 7 days from
receiving file for sole arbitrator to hold an initial case management
conference, again 30 days for the respondent to file full answer, counter
claim, so on and lastly 20 days for reply on the counterclaim filed. Yet again
the Tribunal issues its final award three months from the date of initial case
management conference.
Now, during the commencement
of all these procedures there are high chances of delay and that’s where HEAP
comes to rescue, the stringent deadlines that cannot be extended until and
unless parties themselves agree to the same. While HEAP won’t restrict itself
to the delay tactics. This is where the new mechanism of eliminating delays and
expediting the resolution gradually builds a revamp into the year old
mechanism.
The motive behind building
HEAP stands simple yet powerful, HEAP is not just another delay curbing
mechanism but a competitive move. Singapore International Arbitration Centre
very recently updated its rules in the year 2025, and even institutions like Hong
Kong International Arbitration Centre and Mumbai Centre for International
Arbitration, all these significant Arbitration Institutions have one thing in
common in the recent years i.e., updates and modification in the rules
established to resolve the disputes between parties.
ICC, president Claudia Salomon
has given a glimpse of what ICC meant while launching broader 2026 Rules as
being about efficiency, clarity and usability. HEAP is most suitable and well-defined
example of the same. this also stands as a competitor to the other institutions
focusing on faster pace lane to arbitration procedures.
when does HEAP actually stands
a point from lower value dispute to ultimately companies that function as
franchisor or even supply chain intermediary businesses if these enterprises
included HEAP Clause in the agreement signed between parties the dispute
resolution mechanism between these parties would be not just efficient but also
cost effective for the parties at the same time the pendency and delay usually
involved in the traditional mechanism would be curbed.
India’s pivotal interest to
this update isn’t incident but largely based upon the fact that any new
Arbitration filed on or after 1 June 2026 regardless of seat of jurisdiction is
ultimately governed by the updated rules of 2026 along with HEAP included with
it. Hence this is not just a theoretical paper-based approach but an immensely
practical one to the current situation withstanding Arbitration proceedings in
India.
Though after all these
deliberate discussions the enforceability of the same is an open question under
Indian Laws. A significant attention to be laid upon the Indian Arbitration
laws to provide for efficient enforcement in India. The enforcement of HEAP in
India will be determined and tested against Part II of Arbitration and
Conciliation Act, 1996 and Indian Courts have always paid enormous attention to
Section 48 which elaborates about the due process established and provision for
scrutinization of whether a party was given a fair opportunity of presenting
its case. While HEAP considers unreasoned award is not by itself a valid ground
for refusing enforcement so, basically contravenes the reasoning court would
give to examine for due process violation.
The arbitration clauses somewhere
stuck in mid of whether to skip this to opt for it or not, should consider a
few significant i.e., the simple and straightforward payment dispute should be
routed to HEAP while intrinsic ones like IP and regulatory ones should be
traced back to the standard route. if opting of India Arbitration seats
consciously invoke section 31(3) and the record of the agreement between
parties to dispense with reason, so there is no ambiguity if any chances are
brought upon in the awards domestically.
(Write to the authors at singhdevanshi833@gmail.com & devanshisingh1702@gmail.com.)

Comments
Post a Comment