Telangana governmet defends land allotment to IAMC
HYDERABAD: Advocate General A Sudarshan Reddy on Monday defended the allotment of five acres of land to the International Arbitration and Mediation Centre (IAMC) in Hyderabad by the state government.
The matter was brought before a bench comprising Justice K Lakshman and Justice K Sujana, which is hearing two PILs questioning the rationale behind allotting the land to a private trust and providing financial support by the government.
In his arguments, Advocate General Sudarshan Reddy emphasised the necessity of IAMC as an institution to promote business and institutional arbitration. He highlighted that the objectives of the amended Arbitration Act support the establishment of arbitral institutions and referenced the Sri Krishna Committee’s recommendations for governmental backing to such institutions.
Sudarshan Reddy further explained that the IAMC’s governance structure, with the Chief Justice of the Telangana High Court and the state law minister serving as trustees, instills confidence among parties opting for institutional arbitration. He asserted that extending state support, including land and finances, is crucial for establishing an institution of international repute and fostering trust across various sectors of society.
Defending the state’s policy decision, the AG cited Supreme Court judgments, including Sachidanand Pandey & Others, which stress that such policy matters are best left to the discretion of the state and should not be interfered with in public interest unless there is evident harm. “No public interest suffers if the state chooses to support arbitration,” he argued.
Justice Lakshman, during the proceedings, underscored the importance of alternative dispute resolution (ADR) mechanisms such as arbitration and mediation to address the burgeoning case backlog in courts. “The number of pending cases across the country has exceeded five crore. Promoting ADR methods is no longer optional but essential,” he said.
Justice Lakshman also shared insights from his visit to the judicial academy as the head of the HC mediation committee, where 70 advocates were being trained as mediators. The bench adjourned the hearing to January 28.