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Context: 

The Bharatiya Vayuyan Adhiniyam, 2024, though progressive, remains incomplete without specialised aviation arbitration reforms to prevent disputes from being resolved abroad.

Background

The Aircraft Act of 1934 was designed not to help Indian aviation grow but to keep British control over air traffic. It focused on military and administrative needs, not passenger flights or modern aviation. 

India replaced the old Aircraft Act of 1934 with a new law Bharatiya Vayuyan Adhiniyam, 2024. It makes licensing easier, improves air traffic management, and gives passengers better rights. 

Even though the new law fixes many things, one big issue remains: arbitration. Arbitration means solving disputes outside of court. Right now, India doesn’t have a strong system to handle aviation-related disputes, so companies often take their cases abroad to places like Singapore, London, or Paris. As a result, India loses capital and trust from foreign investors.

Why do aviation disputes go abroad instead of staying in India?

India has arbitration centers like the Delhi International Arbitration Centre and the Mumbai Centre for International Arbitration , but they aren’t as good as those in other countries. About 90% of corporate arbitration cases involving Indian parties happen in Singapore instead of India.

Why?

• Lack of Expertise : Indian arbitrators don’t specialize in aviation law.
• Too Much Government Control : Judges and government officials often interfere in arbitration decisions, making them less reliable.
• Long Court Battles : Even after arbitration, awards (decisions) often get challenged in Indian courts, delaying everything.

Because of these issues, companies prefer to settle their disputes in places like Singapore, where everything is faster and more reliable.

How Can India Fix This?

To become a global leader in aviation, India must improve its arbitration system. 

• Create Specialized Institutions: Set up dedicated arbitration centers for aviation disputes. For example, India could build something like the Singapore International Arbitration Centre but focused on aviation.
• Train Experts: Hire or train people who understand aviation laws, technology, and international treaties. Law schools can also teach students about aviation law.
• Ensure Neutrality: Appoint arbitrators only through mutual agreement or independent bodies. This builds trust among companies.
• Reduce Interference: Stop courts and the government from interfering in arbitration decisions. This will make the process faster and fairer.
• Attract Private Investment : Offer incentives to private companies to invest in aviation arbitration services.
• India should learn from countries like Singapore and the UK, which have excellent arbitration systems.
  • Singapore: They have a dedicated center for aviation disputes and ensure neutrality in choosing arbitrators.
  • UK: Their system is transparent and predictable, so companies trust it completely.

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BHARATIYA VAYUYAN ADHINIYAM, 2024

Source:

 THE HINDU

https://t.me/+hJqMV1O0se03Njk9