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Abstract

India is presently in a fast track mode to promote itself as an international dispute resolution and commerce hub. With growing number of international consumers from India and Indian suppliers catering to international consumers, there is need to create a robust alternative dispute resolution (ADR) mechanism for international consumer disputes. This is especially important owing to the distinct characteristics of consumer disputes: low claim value, high volumes and requirement for speedy settlement for effective grievance redressal. Presently, the Indian laws do not provide for ADR mechanism for consumer disputes which is slated to change with the Consumer Protection Bill, 2015. Further, there is also a lack of enforcement mechanism for international settlement agreements. Since Arbitration and Conciliation Act, 1996 coupled with the New York Convention only cater to commercial disputes and the Indian Consumer Protection Act, 1986 excludes purchases made for commercial purposes, the enforcement of arbitral awards in international consumer matters becomes a grey area which has not come up for review before a court in India yet. Most consumer matters are resolved through mediation in India by court annexed mediation centres under Section 89 of Code of Civil Procedure, 1908. A strong mechanism coupled with online dispute resolution mode shall go a long way in projecting India as a strong international consumer market.

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