Some Indian law firms charge more than English companies for international arbitration: Sarosh Zaiwalla

Sarosh Zaiwalla

Some Indian law firms charge more fees than English firms for international arbitration, Sarosh Zaiwalla, founder of London-based Zaiwalla & Co, told Moneycontrol in an exclusive interview.

“What is happening (in the Indian market) is that international arbitrations are conducted like court proceedings – there are some three or four specialist international arbitration firms in Delhi who charge enormous amounts of money,” Zaiwalla said in the context of changes to allow foreign law firms to enter India. “So when the international law firms come in, they will be competitive. Here, we don't charge such huge fees because they are monitored.”

He elaborated by saying that in England, the fee is normally charged on an hourly or fixed rate.

“So yes, the Indian firms and top lawyers – from what I've heard – charge enormously excessive fees,” Zaiwalla said.

In England, the Solicitors Regulation Authority’s price transparency rules require firms to publish price and service information on their websites for certain areas of practice. They are also required to publish their complaints procedures and display a digital badge to show they are regulated by the SRA.

Zaiwalla noted that things such as charging a reasonable fee and quicker resolution will make India an attractive destination for venture capitalists.

The Bar Council of India, in a gazette notification dated March 10, 2023, said it had resolved to implement rules enabling foreign lawyers and foreign law firms to practice foreign law and diverse international law and international arbitration matters in India on the principle of reciprocity in a well-defined, regulated and controlled manner.

Retired judges

Zaiwalla is against appointing retired Supreme Court and high court judges as arbitrators in important commercial matters, while caveating that some of the judges do a great job as arbitrators.

“They (retired judges) manage the arbitration like a court case. I have seen it as I have appeared myself. Whereas in London and every other international seat of arbitration, the arbitrators are very commercial. They want to come to a quick decision, early decision, without ignoring the intention of making sure that parties have an opportune time.”

He noted that in India, arbitrators grant adjournments easily, as a result of which arbitral proceedings drag on.

“The arbitral award is challenged in the courts, which go on for another six to seven years,” Zaiwalla said. “This is not what a growing economic giant like India should be doing.”

India needs to improve its arbitration standards to match those of global seats of arbitration such as London, New York, Singapore, Zurich and Paris, said Zaiwalla, an alumnus of Government Law College, Mumbai.

He has been involved in over 1,200 international energy, maritime and construction arbitration cases worldwide either as a solicitor, counsel, party-appointed arbitrator or sole arbitrator.

Zaiwalla has acted for many prestigious clients including the President of India, the Government of the People’s Republic of China, the Iranian government and the Venezuelan government.