New Delhi, Sept. 8 -- Ambiguity in arbitration clauses can increase dispute resolution costs by at least 20 per cent and delay proceedings as companies may first have to approach courts to determine the seat and jurisdiction of arbitration.

Law firms are advising companies to use more precise arbitration clauses in commercial contracts, particularly by clearly specifying the seat, venue, jurisdiction and procedural rules, reported The Mint.

The issue assumes significance amid a substantial arbitration backlog in Indian courts. According to data from legal-tech and data analytics firm CubicTree, 289,525 arbitration-related cases were pending as of September 2, out of 729,761 cases tracked in its dataset.

Ambiguous Clauses Add To Arbitra...