Report of the Committee for Reforming the Regulatory Environment ...

2.3 It is imperative that persons involved incommercial disputes should be encouraged to look atalternate dispute resolution as the preferred instrumentfor settlement of such disputes. Notwithstanding therelatively simpler processes of arbitration andconciliation, parties to commercial disputes are evennow prone to approach civil courts for disputeresolution. Since a contract between parties is anagreed commercial relationship, itmight not be appropriate tomandate that all disputes shouldbe settled by way of alternatedispute resolution. However,there should be a mechanism todis-incentivise such persons fromThere should be amechanism to disincentiviseuse ofcivil courts forresolving contractualdisputes, so as toencourage arbitrationas a preferredmanner of resolution.approaching courts so that they are persuaded overtime to include arbitration as an element of theircontract.2.4 It is relevant to note that while, in theory,arbitration is expected to result in quicker resolution,26