b) This agreement does not apply to transaction agreements in which it participates or to which public authorities or persons acting on behalf of a government authority are parties, to the extent specified in the declaration. On 20 December 2018, the UN General Assembly adopted the UN Convention on International Comparison Agreements, which stems from mediation (“convention”). The General Assembly approved the opening of the agreement to signature at a signing ceremony to be held on 7 August 2019 in Singapore and will be known as the Singapore Convention on Mediation. The signing of the agreement will strengthen investor confidence and send a positive signal to foreign investors about India`s commitment to international practice of out-of-court dispute resolution (ADR). However, it is not clear how the courts will set out the Singapore Convention or how often it is invoked in practice. As one commentator notes, a 500-member poll from the region, commissioned in 2016 by the Singapore Academy of Law, showed a clear preference for international trade arbitrations, with 71% preference for arbitrations, 24% in favour of mediation. Interviewees noted opposability, confidentiality and fairness as key factors in the mediation arbitration decision. Background: The EU cabinet has authorised the signing of the UN Agreement on International Comparison Agreements (UNISA) resulting from the mediation of the Republic of India to be held in Singapore on 7 August 2019. On 20 December 2018, the UN General Assembly adopted the UN Convention on International Comparison Agreements, which stems from mediation (“convention”). The Convention provides a uniform and effective framework for the implementation of international settlement agreements arising from mediation and to enable parties to avail themselves of such agreements, as provided for by the Convention on the Recognition and Enforcement of Foreign Arbitration Awards (New York, 1958) (the “New York Convention”) for arbitrations.
The agreement defines two other grounds for which a court may automatically refuse to grant appeal. These grounds relate to the fact that a dispute is not resolved through mediation or would not be contrary to public policy. The Singapore Convention contains a language similar to that of the New York Convention on Enforcement, including the fact that each State party “enforces a transaction agreement in accordance with its internal regulations and under the conditions set out in this Convention.” (Singapore Convention, Article 3, paragraph 1).) It was found that this new provision on the application of legislation extends the potential effects of the Singapore Agreement on the limited effects of the 2008 directive on mediation in the EU. In particular, Article 6 of the European Directive obliges Member States to approve the written agreement resulting from mediation in order to make it enforceable. Furthermore, under the EU directive, the content of a conciliation agreement must not be contrary to the law of the Member State and the law of that State must provide for the applicability of the transaction. In order to promote international commercial arbitration in India, in order to develop a comprehensive arbitration ecosystem, the government is establishing the New Delhi International Arbitration Centre (NDIAC) as a legal seramic body. The Commercial Courts Act 2015 has been further amended and legislation to further amend the 1996 Arbitration and Conciliation Act is under way. These initiatives are being taken to promote the settlement of trade disputes between the two and the international community in India through the ADR arbitration, arbitration and mediation mechanism.