How do you ensure privacy and confidentiality in an arbitration room?

Answered by

A Agarwalla & Co.

Published At July 11, 2024

Answer

Ensuring privacy and confidentiality in an arbitration room in India is crucial for maintaining the integrity of the process. The Arbitration in India framework is governed by the Arbitration and Conciliation Act, 1996, with significant reinforcement from the Arbitration and Conciliation (Amendment) Act, 2019. This amendment introduced Section 42A, mandating that arbitrators, arbitral institutions and parties must maintain the confidentiality of all proceedings, except for the arbitral award’s disclosure necessary for implementation and enforcement​.

To uphold privacy and confidentiality, several measures are implemented:

  • Legal Mandates: Section 42A ensures that confidentiality is legally required, overriding conflicting laws. This legal framework protects all aspects of the arbitration, including evidence and documents​​.
  • Controlled Access: Arbitration hearings are held in private settings with restricted access, allowing only involved parties, legal representatives and arbitrators. This physical control prevents unauthorized information leaks​​.
  • Confidentiality Agreements: Parties and participants often sign confidentiality agreements, legally binding them to secrecy. These agreements extend to legal counsel, witnesses and any other involved individuals.
  • Technological Security: For virtual arbitrations, secure communication platforms and encrypted document-sharing systems are used to protect confidentiality​​.

These measures collectively ensure that Arbitration in India adheres to high privacy and confidentiality standards, aligning with global best practices and providing a secure dispute resolution environment.