LCIA Vs UNCITRAL- WEIGHING THE PROS AND CONS

Since the letters of retainership have an ambiguity regarding the selection of the arbitration rules which
would govern the proceedings, hence it is pertinent to analyse the pros and cons of both the rules so as to
make an informed decision about which set of rules are favourable to the interest of the client.

After having thoroughly studied the inherent differences between the two provided rules, in our opinion
it would be better if the client opts for the London Court of international arbitration rules, 2013
because of the following reasons:-

1. Institutional rules bring a level of certainty as far as the mechanism and the time frame of the
conducting of the proceedings and a variety of other issues which may hamper the arbitration process.

2. Another advantage of opting for the London Court of international arbitration rules over the
UNCITRAL rules is the fact that institutional rules have an added advantage of provisioning a
professional administrative Service, which an Ad Hoc Tribunal cannot frequently provide you with the
cooperation of the parties to the dispute.

3. Another major advantage of opting the London Court of international arbitration rules is the fact that it
seeks to moderate the cost involved in the arbitration procedure along with the fees charged by the
Tribunal. Cost cutting in the arbitration procedure is a major unique selling point of the London Court of
international arbitration rules on account of the fact that the London Court of international arbitration
rules set out the quantum of compensation on the basis of the amount of time actually spent by the
administrator and the arbitrators on the case and not on the quantum of the monetary claim or the
complexity of the case, which makes it all the more attractive vis a vis the UNCITRAL rules.

4. Another major advantage which can be attributed to the London Court of international arbitration rules
is the fact that the institution acts as is a secure and independent fund holder of the sums deposited by the
parties, no aspersions can be cast on the disbursal of the funds by the court. This service is provided by
the London Court of international arbitration not only for the cases which are conducted under the LCIA
rules but also under the UNCITRAL rules and ad hoc arbitration.

5. The London Court of international arbitration also has the major advantage of preventing delays in the
arbitration proceedings. Since time is of the essence in any International commercial dispute, this makes it
all the more lucrative for the parties to opt for the LCIA rules.