The legislative aspects being a key determining factor when
foreign industry players are entering into international commercial
contracts, ease of doing business, enforcement of contracts and the
dispute resolution mechanism of a particular country also plays a
crucial role. Since the investments are large, it is paramount for
companies to feel confident in securing and recovering their
investments in the event disputes arise.
Arbitration has proven to be an effective way for resolving
disputes. The number of international arbitration centres bears
testimony to its growing importance. India has also become an
attractive destination for investments, business and
collaborations. The vast number of transactions being entered into
on a daily basis brought to the fore the importance of having a
strong and steady dispute resolution mechanism. The Courts in India
have also played an active role in interpreting the law by
maintaining a fine balance between the technicalities