What Is the United Nations Commission on International Trade Law

(UNCITRAL)?

The United Nations Commission on International Trade Law (UNCITRAL) was

established as a subsidiary body of the U.N. General Assembly (UNGA) in 1966.
It is the core legal body of the U.N,'s system in the field of international trade law.
The official function of the UNCITRAL is the modernization and harmonization
of rules on international business. The organization is responsible for helping to
facilitate international trade and investment.

The annual sessions of UNCITRAL are held alternately in New York

City and Vienna, where it is headquartered.

On December 17, the General Assembly elected 30 members to the United Nations
Commission on International Trade Law (UNCITRAL). 
Belgium, Canada, China, Finland, France, Germany, Indonesia, Japan, Malaysia,
Republic of Korea, Singapore, Switzerland, United Kingdom, and Viet Nam were
elected by secret ballot to be members of the UNCITRAL for a six-year term
beginning on 8 July 2019. 
Additionally, since the number of candidates nominated by the African States, the
Eastern European States and the Latin American and Caribbean States
corresponded to the seats to be filled by each group, the General Assembly
declared that Algeria, Cameroon, Côte d’Ivoire, Croatia, Dominican Republic,
Ecuador, Ghana, Honduras, Hungary, Mali, Mexico, Peru, the Russian Federation,
South Africa, Ukraine and Zimbabwe were elected members of UNCITRAL for a
six-year term also beginning on 8 July 2019. 
The term of the following 30 States members of the Commission continues until
2022: Argentina, Australia, Austria, Belarus, Brazil, Burundi, Chile, Colombia,
Czechia, India, Iran, Israel, Italy, Kenya, Lebanon, Lesotho, Libya, Mauritius,
Nigeria, Pakistan, Philippines, Poland, Romania, Spain, Sri Lanka, Thailand,
Turkey, Uganda, United States, and Venezuela.
The UNCITRAL secretariat wishes to congratulate and welcome the new members
of the United Nations Commission on International Trade Law.
We look forward to working with you and are the entire disposal of the newly
elected members to help them fully and effectively participate in forthcoming
working groups and Commission meetings.
In an increasingly economically interdependent world, the importance of
developing and maintaining a robust cross-border legal framework for the
facilitation of international trade and investment is widely acknowledged. The
United Nations Commission on International Trade Law (UNCITRAL) plays a key
role in developing that framework in pursuit of its mandate to further the
progressive harmonization and modernization of the law of international trade.
UNCITRAL does this by preparing and promoting the use and adoption of
legislative and non-legislative instruments in a number of key areas of commercial
law.
UNCITRAL texts are developed through an international process involving a
variety of participants. UNCITRAL membership is structured so as to be
representative of different legal traditions and levels of economic development,
and its procedures and working methods ensure that UNCITRAL texts are widely
accepted as offering solutions appropriate to many countries at different stages of
economic development.
To implement its mandate and to facilitate the exchange of ideas and
information, UNCITRAL maintains close links with international and regional
organizations, both inter-governmental and non-governmental, that are active
participants in the work programme of UNCITRAL and in the field of international
trade and commercial law.
ARBITRATION CHAPTER I General provisions 2. Definitions.—(1) In this Part,
unless the context otherwise requires,— (a) “arbitration” means any arbitration
whether or not administered by permanent arbitral institution; (b) “arbitration
agreement” means an agreement referred to in section 7;
(c) “arbitral award” includes an interim award;
(d) “arbitral tribunal” means a sole arbitrator or a panel of arbitrators;
1 [(e) “Court” means— (i) in the case of an arbitration other than international
commercial arbitration, the principal Civil Court of original jurisdiction in a
district, and includes the High Court in exercise of its ordinary original civil
jurisdiction, having jurisdiction to decide the questions forming the subject-matter
of the arbitration if the same had been the subject-matter of a suit, but does not
include any Civil Court of a grade inferior to such principal Civil Court, or any
Court of Small Causes;
(ii) in the case of international commercial arbitration, the High Court in exercise
of its ordinary original civil jurisdiction, having jurisdiction to decide the questions
forming the subject-matter of the arbitration if the same had been the subject-
matter of a suit, and in other cases, a High Court having jurisdiction to hear appeals
from decrees of courts subordinate to that High Court;]
(f) “international commercial arbitration” means an arbitration relating to disputes
arising out of legal relationships, whether contractual or not, considered as
commercial under the law in force in India and where at least one of the parties is
— (i) an individual who is a national of, or habitually resident in, any country other
than India; or (ii) a body corporate which is incorporated in any country other than
India; or (iii) 2 *** an association or a body of individuals whose central
management and control is exercised in any country other than India; or (iv) the
Government of a foreign country;
(g) “legal representative” means a person who in law represents the estate of a
deceased person, and includes any person who intermeddles with the estate of the
deceased, and, where a party acts in a representative character, the person on
whom the estate devolves on the death of the party so acting;
(h) “party” means a party to an arbitration agreement
Arbitration agreement.—(1) In this Part, “arbitration agreement” means an
agreement by the parties to submit to arbitration all or certain disputes which have
arisen or which may arise between them in respect of a defined legal relationship,
whether contractual or not.
(2) An arbitration agreement may be in the form of an arbitration clause in a
contract or in the form of a separate agreement.
(3) An arbitration agreement shall be in writing.
(4) An arbitration agreement is in writing if it is contained in— (a) a document
signed by the parties; (b) an exchange of letters, telex, telegrams or other means of
telecommunication 1 [including communication through electronic means] which
provide a record of the agreement; or
(c) an exchange of statements of claim and defence in which the existence of the
agreement is alleged by one party and not denied by the other.
(5) The reference in a contract to a document containing an arbitration clause
constitutes an arbitration agreement if the contract is in writing and the reference is
such as to make that arbitration clause part of the contract.
 Composition of arbitrators
Number of arbitrators.—
(1) The parties are free to determine the number of arbitrators, provided that such
number shall not be an even number.

(2) Failing the determination referred to in sub-section (1), the arbitral tribunal
shall consist of a sole arbitrator.

3. Appointment of arbitrators.—(1) A person of any nationality may be an

arbitrator, unless otherwise agreed by the parties.

(2) Subject to sub-section (6), the parties are free to agree on a procedure for
appointing the arbitrator or arbitrators.

(3) Failing any agreement referred to in sub-section (2), in an arbitration with

three arbitrators, each party shall appoint one arbitrator, and the two appointed
arbitrators shall appoint the third arbitrator who shall act as the presiding arbitrator.

(4) If the appointment procedure in sub-section (3) applies and— (a) a party fails
to appoint an arbitrator within thirty days from the receipt of a request to do so
from the other party; or (b) the two appointed arbitrators fail to agree on the third
arbitrator within thirty days from the date of their appointment, the appointment
shall be made, upon request of a party, by 1 [the Supreme Court or, as the case
may be, the High Court or any person or institution designated by such Court];

(5) Failing any agreement referred to in sub-section (2), in an arbitration with a

sole arbitrator, if the parties fail to agree on the arbitrator within thirty days from
receipt of a request by one party from the other party to so agree the appointment
shall be made, upon request of a party, by 1 [the Supreme Court or, as the case
may be, the High Court or any person or institution designated by such Court].

(6) Where, under an appointment procedure agreed upon by the parties,—

(a) a party fails to act as required under that procedure; or

(b) the parties, or the two appointed arbitrators, fail to reach an agreement
expected of them under that procedure; or

(c) a person, including an institution, fails to perform any function entrusted to

him or it under that procedure, a party may request 1 [the Supreme Court or, as the
case may be, the High Court or any person or institution designated by such Court]
to take the necessary measure, unless the agreement on the appointment procedure
provides other means for securing the appointment.

[(6A) The Supreme Court or, as the case may be, the High Court, while
considering any application under sub-section (4) or sub-section (5) or sub-section
(6), shall, notwithstanding any judgment, decree or order of any Court, confine to
the examination of the existence of an arbitration agreement.

(6B) The designation of any person or institution by the Supreme Court or, as the
case may be, the High Court, for the purposes of this section shall not be regarded
as a delegation of judicial power by the Supreme Court or the High Court.]

(7) A decision on a matter entrusted by sub-section (4) or sub-section (5) or sub-

section (6) to 3 [the Supreme Court or, as the case may be, the High Court or the
person or institution designated by such Court is final and no appeal including
Letters Patent Appeal shall lie against such decision].

Conduct of arbitral proceedings 18. Equal treatment of parties.—The parties shall

be treated with equality and each party shall be given a full opportunity to present
his case. 19. Determination of rules of procedure.—(1) The arbitral tribunal shall
not be bound by the Code of Civil Procedure, 1908 (5 of 1908) or the Indian
Evidence Act, 1872 (1 of 1872). (2) Subject to this Part, the parties are free to
agree on the procedure to be followed by the arbitral tribunal in conducting its
proceedings. (3) Failing any agreement referred to in sub-section (2), the arbitral
tribunal may, subject to this Part, conduct the proceedings in the manner it
considers appropriate. (4) The power of the arbitral tribunal under sub-section (3)
includes the power to determine the admissibility, relevance, materiality and
weight of any evidence. 20. Place of arbitration.—(1) The parties are free to agree
on the place of arbitration. (2) Failing any agreement referred to in sub-section (1),
the place of arbitration shall be determined by the arbitral tribunal having regard to
the circumstances of the case, including the convenience of the parties. (3)
Notwithstanding sub-section (1) or sub-section (2), the arbitral tribunal may, unless
otherwise agreed by the parties, meet at any place it considers appropriate for
consultation among its members, for hearing witnesses, experts or the parties, or
for inspection of documents, goods or other property. 21. Commencement of
arbitral proceedings.—Unless otherwise agreed by the parties, the arbitral
proceedings in respect of a particular dispute commence on the date on which a
request for that dispute to be referred to arbitration is received by the respondent.
22. Language.—(1) The parties are free to agree upon the language or languages to
be used in the arbitral proceedings. (2) Failing any agreement referred to in sub-
section (1), the arbitral tribunal shall determine the language or languages to be
used in the arbitral proceedings.

An arbitration award (or arbitral award) is a determination on the merits by

an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of
law. It is referred to as an 'award' even where all of the claimant's claims fail (and
thus no money needs to be paid by either party), or the award is of a non-monetary
nature.

The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of
India which seeks to consolidate the existing framework by creating a single law
for insolvency and bankruptcy. It was introduced amidst various other reforms
introduced by the Government, with focused emphasis on the Ease of Doing
Business in India. Ease of Doing Business not only means speedy and easy entry,
and ease of carrying out operation of businesses; it also covers in its ambit, the
ease of exit.

The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in
December 2015. It was passed by Lok Sabha on 5 May 2016 and by Rajya Sabha
on 11 May 2016. The Code received the assent of the President of India on 28 May
2016. Certain provisions of the Act have come into force from 5 August and 19
August 2016. The Code has been amended several times till June, 2020. The
bankruptcy Code is a one stop solution for resolving insolvencies which previously
was a long process that did not offer an economically viable arrangement. It was
done to consolidate all the existing laws related to insolvency in India and to
simplify the process of insolvency resolution.

This Code applies to a company registered under the Companies Act 1956, a
Limited liability partnership, Partnership firms and Individuals. Under the
Insolvency and Bankruptcy Code, any financial creditor or an operational creditor
can initiate corporate insolvency process against a corporate debtor when the
corporate debtor commits a default in repayment of debts. Default involves non
repayment of debt when it has become due

IBC lays down strict time frame for each and every process for resolution process
right from admission of application, appointment of Interim Resolution
Professional, lodging of claim, formation of Creditors Committee, consideration of
resolution plan and submission of plant to adjudicating authority and its approval
thereof. To effectively address the issues of participation of various stake holders,
the Code has divided creditors into two categories of Financial
Creditors and Operational Creditors.
The IBC has 255 sections and 11 Schedules. IBC is divided into 4 parts i.e.

 Preliminary (Part I);

 Insolvency Resolution and Liquidation of Corporate Persons (Part II);
 Insolvency Resolution and Liquidation of Individuals and Partnership Firms
(Part III);
 Regulation of insolvency professionals, agencies and information utilities
(Part IV).

As per the data provided by National Company Law Tribunal (NCLT), total
19,771 cases were pending with NCLT benches on 30.09.2019, which include
10,860 cases under Insolvency and Bankruptcy Code (IBC), 2016.

The main objective of this Code is:

 Consolidate and amend all existing insolvency laws in India.

 To simplify and expedite the Insolvency and Bankruptcy Proceedings in
India.
 To protect the interest of creditors including stakeholders in a company.
 To revive the company in a time-bound manner.
 To promote entrepreneurship.
 To get the necessary relief to the creditors and consequently increase the
credit supply in the economy.
 To work out a new and timely recovery procedure to be adopted by the
banks, financial institutions or individuals.
 To set up an Insolvency and Bankruptcy Board of India.
 Maximization of the value of assets of corporate persons.