The Insolvency Law Academy and Shri Arun Jaitley Foundation have agreed to jointly establish Arun Jaitley Mediation Centre – the first of its kind, an independent mediation centre to facilitate resolution of disputes by use of mediation in the insolvency spectrum. Besides offering mediation services, the proposed international mediation centre will also serve as an advocacy body to promote mediation and develop a formidable cadre of mediators by training qualified professionals.
Introduction of the Insolvency and Bankruptcy Code, 2016 paved way for a modern framework to deal with the insolvency of corporate entities in India. A sound insolvency system is non-adversarial in design and process. Yet disputes may arise between parties in the process. These are best resolved by
adopting approaches that are different from conventional adjudication of disputes by courts. Mediation allows the parties to reach an agreement through persuasion and party-driven solutions.
Mediation is rapidly becoming as an acceptable mode of dispute resolution in insolvency, in countries with advanced insolvency systems. India is actively considering adopting mediation as a mode for resolving disputes in insolvency.
The proposed Mediation Centre is a befitting tribute to the man who championed many economic and legal reforms. Shri Arun Jaitley, former Union Minister of Finance, Corporate Affairs, Law, Defence and Information & Broadcasting, was an outstanding parliamentarian, a distinguished lawyer of India and public-spirited citizen. He held many important portfolios and made significant contributions in the areas of economic liberalisation, judicial reforms, electoral reforms and progressive social and economic legislations in India.
The structural reforms taken under his watch will have a wide-ranging impact in the years to come on freedom to start, freedom to continue and freedom to exit business, the three key inter-wined limbs of economic freedom. As India’s Finance and Corporate Affairs Minister, he heralded the enactment of the Insolvency and Bankruptcy Code 2016, an epic reform. Under his leadership, the Indian government defied its dismal track record on the implementation of laws by deploying unprecedented political will for effective roll out of the Code – a feat well-accomplished. He keenly observed developments and experience in the initial years of implementation of the Code and rapidly brought in changes to plug the gaps spotted in the Code to make the process and outcomes more efficient and efficacious.
