Due to the outbreak of novel corona virus (COVID-19), which is being declared as a pandemic, has badly affected the business, corporate entities and had ruined the financial market deliberately along with the business pipelines and working environments. Moreover, because of this vulnerability all around, organizations became incapable (or reluctant) to perform existing legally binding commitments and additionally they require attention of new weights on their finances and tasks.
The positive and negative impacts of the pandemic is well discussed by the corporate lawyers in the country, so that they could work accordingly followed by the disputes and its resolution in UAE.
The current crisis has made a necessity for business and their legal representatives to be more cautious when it comes to decision making inclusive of alternative choices for the productive, opportune and practical dispute resolution processes. Seeking the need, they should be focused on modifying their business relationship, re-arranging the agreement, or discovering alternative ways to determine and resolve their conflicts, as opposed to insisting on performance of strict contractual obligations.
There is a possibility when the business officials stay dedicated it can be very prompting decision in the interest for mediation, arbitration and conciliation or combination of different methods of dispute resolution, which will help In over coming the natural crisis .However, this pandemic is being more prominent for the arbitration process to discover innovative approaches to consolidate more noteworthy utilization of technology, by arranging virtual hearing to provide resolution on disputes .
Virtual hearings are encouraged by the most leading arbitration institutes following the rules and regulation along with the appropriate procedures. For instance, Dubai International Arbitration Center, DIFC-London Chamber of Commerce, ADGM-International Chamber of Commerce has shown tremendous efforts in avoiding the further spread of coronavirus and to not delay any proceedings.
Furthermore, Cybersecurity is playing the vital role in discretion as the validity and honesty of the arbitration process relies upon it. As one would expect, COVID-19 has prompted a spike in specific sorts of debates or conflicts. The conjuring of force majeure clauses in any agreement, specifically, has seen a huge ascent this year. For instance, in a significant judgment, the Dubai Rental Committee as of late confirmed that COVID-19 is a substantial motivation to end a rental contract, as long as it is proved that COVID-19 has contrarily influenced the party who looks for the early termination of the rental contract.
In this particular committee debate, a party was incapable to proceed with long term understanding. However, the Dubai Rental Committee permitted the proprietor to seek compensation for early termination of the rental contract.
Nevertheless, Due to this pandemic the digital procedure has received high number of responses in the form of e-mediation, e-arbitration, online courts and the utilization of Artificial Intelligence in judicial process.