Hyderabad: On Friday, the Telangana High Court division bench, comprising Justices Kunuru Lakshman and Kalasikam Sujana, overturned GO 126. This order, dated December 26, 2021, granted 3.7 acres of valuable land in Plot no.27, Survey no. 83/1, Raidurg village, Serilingampally mandal, in RR district to the International Arbitration and Mediation Centre (IAMC) in Hyderabad.
The court, however, maintained the validity of GO 76, issued on November 12, which allocated Rs. 3 crore for the operational expenses of IAMC. It also upheld GO 6, dated March 17, 2022, which instructed all departments and public sector units to channel disputes over Rs. 3 crore to IAMC for arbitration.
The bench decided to revoke the land allocation after reviewing two PILs. Koti Raghuntha Rao and A Venkatarami Reddy, a retired employee, filed these petitions. The court criticized IAMC’s performance, noting its poor track record since starting in 2021. By January 29 this year, IAMC had handled only 15 cases, with 11 offered for free. Out of 57 mediation cases, 17 were also conducted pro bono.
The government received a warning to reconsider the costs involved in referring cases to IAMC. If expenses burden the state budget, the referral policy needs revision.
The bench acknowledged the government’s choice to support new institutions like IAMC initially. However, IAMC must eventually become self-sustaining. Considering its last five years’ performance, the court doubted its long-term viability.
The court mentioned the International Centre for Alternative Dispute Resolution (ICADR), established by the Indian government in 1995 to support arbitration. Despite financial backing, ICADR failed to perform effectively. The court expressed hope that IAMC would not face the same fate. Both PILs have been concluded.
