• The Convention, also known as United Nations (UN) Convention on International Settlement Agreements Resulting from Mediation, is the first UN treaty to be named after Singapore.
• Convention applies to international settlement agreements resulting from mediation, concluded by parties to resolve a commercial dispute.
• It will allow businesses to seek enforcement of a mediated settlement agreement across borders by applying directly to courts of countries that have signed and ratified the treaty.
• Currently, Convention has 53 signatories, including India, China, and US.
• Significance of the Convention:
• It will facilitate international trade and commerce by enabling disputing parties to easily enforce and invoke settlement agreements across borders.
• Businesses will benefit from mediation as an additional dispute resolution (ADR) option to litigation and arbitration in settling cross-border disputes.
• It helps to save time and legal costs of companies.
Benefits for India:
• It will boost ease of doing business credentials by enabling swift mediated settlements,
• To provide a positive signal to foreign investors about India’s commitment to adhere to international practice on ADR.
Alternative Dispute Resolution:
• Alternative Dispute Resolution refers to any means of settling disputes outside of the courtroom. ADR typically includes negotiation, conciliation, mediation, and arbitration.
• Negotiation: A non-binding procedure in which discussions between the parties are initiated without the intervention of any third party with the object of arriving at a negotiated settlement to the dispute.
• Mediation: In mediation, an impartial person called a “Mediator” helps the parties try to reach a mutually acceptable resolution of the dispute.
• Arbitration: In this dispute is submitted to an arbitral tribunal which makes a decision (an “award”) on the dispute that is mostly binding on the parties.
• Conciliation: A non-binding procedure in which an impartial third party, the conciliator, assists the parties to a dispute in reaching a mutually satisfactory agreed settlement of the dispute.
Mains Paper 2: International
Prelims level: Singapore Convention
Mains level: Details about the convention and benefit to India