May 26: Indo Italy Chamber of Commerce and Industry (IICCI) has launched AD-IDEM, the dispute resolution center for bi-lateral mediation and arbitration activities related to contracts signed between Italian and Indian companies.
Speaking in a webinar titled “Legal Needs of Indo-Italian Companies During the Emergency“ His Excellency Mr. Vincenzo De Loca, Honourable Ambassador, Italy Embassy in India, New Delhi said that due to the COVID19 pandemic many companies are facing challenges in execution of contracts and due to which many have defaulted on the contracts or invoked force majeure or acts of God.
He cited 2 examples where
In the first example, he mentioned An Italian company wanted to buy Masks from Indian manufacturer and the payment in full had been made. However, Directorate General of Foreign Trade (DGFT), Government of India had put the masks under banned list and because of which the Indian manufacturer could not deliver through the masks were manufactured. Now due to the situation, the Italian company no longer requires the masks due to the delay and requires the payment to be repaid and the Indian company has invoked the force majeure clause.
In the second example he mentioned about an Italian company which had a contract with the indian government and due to covid, the contract couldn ot be executed and they had invoked force majeure clause on the same.
He further congratulated the role of Indo Italian Chamber of Commerce and Industry (IICCI) in setting up of the AD-IDEM dispute resolution center and helping both Indian and Italian companies to come into an amicable solution to solve the problem of the pandemic.
AD-IDEM and its activities
Cesare Saccani, Chairman of IICCI said the benefits of the AD-IDEM dispute resolution centre to be Neutrality, Expertise, Enforceability, Flexibility, Confidentiality, Rapidity and Reduced Legal costs.
He mentioned that a dispute resolution in IICCI is as low as Euro 2960 for a Euro 40,000 value contract which compared to other arbitration centers are much higher. He said that in arbitration, there is no winning, there is only a degree of losing.
He suggested to companies to include the Arbitration center as part of the contracts and if in case the contracts are already written, it can be added as an addendum.
More information of the activities of the AD-IDEM could be found at https://www.indiaitaly.com/ad-idem