The Law Department of Government of Telangana, on 17.03.2022 issued an Order designating International Arbitration and Mediation Centre (IAMC), Hyderabad as the arbitral /mediation institution in all contracts above 3 crores where the Ministries, Departments, Public Sector Companies and other entities controlled or managed by the Government of Telangana are a party.
The said Order has been issued in furtherance of a Memorandum of Understanding (MoU) which was entered between the Government of Telangana and the International Arbitration and Mediation Centre Trust (IAMC Trust) on 27 .10.2021.
The highlights of the Order issued by the Government of Telangana are as under:
- All Ministries, Departments, Public Sector Companies, and other entities controlled or managed by the State shall designate IAMCH as the arbitral / mediation institution in all their contracts containing an arbitration clause having a value of more than Rs.3crores.
- With respect to subsiding contracts valued at more than 10 crores all Ministries, Departments, Public Sector Companies, and other entities controlled or managed by the State must discuss with counterparties to suitably amend the same to designate IAMC, Hyderabad as the concerned arbitral/mediation Institution.
- Any ongoing ad-hoc arbitrations valued at more than Rs.10 crores to which the Government of Telangana, or its instrumentalities are parties are to request the arbitral tribunal to use the facilities and services of IAMC, Hyderabad for conducting their proceedings.
This will mean that all government agencies in the State of Telangana will include institutional arbitration clause in all contracts above the value of Rs. 3 crores. Further, in all subsisting contracts above the value of Rs. 10 crores, all government agencies will discuss with the other party to consider amending the dispute resolution clause and designate IAMC, Hyderabad as the concerned arbitral/mediation institution for resolving disputes. The Government of Telangana has also directed its agencies that in ad-hoc arbitrations in all contracts above the value of 10 crores, facilities and services of IAMC, Hyderabad be used for conducting their proceedings.
“It is heartening to see government of Telangana leading the way in supporting institutionalization of ADR and I hope that other states will follow. This movetakes us closer to the vision of the Chief Justice of India in making IAMC, Hyderabad a world class centre at par with Centers in London,Dubai and Singapore” said Tariq Khan, Registrar of IAMC, Hyderabad.