Gujarat International Maritime Arbitration Centre

News: The Gujarat Maritime University signed a Memorandum of Understanding (MoU) with the International Financial Services Centres Authority in GIFT City to promote the Gujarat International Maritime Arbitration Centre (GIMAC).

Why do we need such centre?

  • India’s Focus on Arbitration: Recently, the Arbitration and Conciliation (Amendment) Act, 2021 was notified, considered as the landmark step towards making India as the hub of International Commercial Arbitration. Arbitration is a kind of dispute resolution method where the disputes arising between the parties are resolved by the arbitrators appointed by them instead of state’s legal bodies.
  • There are over 35 arbitral institutions in India, however, none focus exclusively on the disputes related to the maritime sector. With the state continuing to witness a rapid extension in maritime activities and inching closer to becoming a global maritime hub with the implementation of Gujarat Maritime Cluster project, a strong growing and recurring demand is being generated for a specialized facility for maritime arbitration services.
  • The idea is to create a world-class arbitration centre focused on maritime and shipping disputes that can help resolve commercial and financial conflicts between entities having operations in India. The arbitration involving Indian players is now heard at the Singapore Arbitration Centre. Globally, London is the preferred centre for arbitration for the maritime and shipping sector.

What is GIMAC?

  • The GIMAC will be part of a maritime cluster that the Gujarat Maritime Board (GMB) is setting up in GIFT City at Gandhinagar. The Maritime Board has rented about 10,000 square feet at GIFT House which is part of the Special Economic Zone (SEZ) area with clearance from the development commissioner.
  • This will be the first centre of its kind in the country that will manage arbitration and mediation proceedings with disputes related to the maritime and shipping sector. The centre is expected to be ready by the end of August.

Benefits:

  • Facilitate faster dispute resolution.
  • Enhance the attractiveness of GIFT Special Economic Zone (SEZ) among the International Maritime Community.
  • Increase the ease of doing business.
  • Reduce burden on courts.