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New Delhi: A view of the Supreme Court (SC) of India, in New Delhi, Friday, July 12, 2024. SC on Friday granted interim bail to Kejriwal in a money laundering case linked to the alleged excise policy scam. (Photo: PTI)
The courts in the country have bolstered India’s reputation as a favourable destination for arbitration by upholding the sanctity of arbitral awards, Supreme Court judge Justice Hima Kohli has said.
She was speaking at a seminar — ‘Recent Developments in Arbitration to Promote Business’ — organised by law firms Gibson Dunn Secretariat and UNUM Law, along with the International Arbitration and Mediation Centre (IAMC) and General Counsels’ Association of India on Friday.
Justice Kohli said the growth of international trade made dispute resolution more complex and to address the challenges, Alternative Dispute Resolution (ADR), especially arbitration, had emerged as a powerful tool for businesses.
“In recent years, India has made significant strides in establishing itself as a reliable partner in arbitration and mediation services. India’s transformation into a commercial arbitration hub has been driven by the judiciary’s unstinting commitment to fast-tracking matters under the Arbitration and Conciliation Act, 1996 and fostering a broadly pro-enforcement regime,” said Justice Kohli.
The apex court judge said various landmark judgments showed that India is committed to upholding the sanctity of arbitral awards.
“By limiting judicial intervention and respecting arbitral awards, the effort of the Indian courts has bolstered India’s reputation as a favourable destination for (alternative) dispute resolution. This judicial philosophy complements legislative reforms and signifies India’s ambition to become a global hub for arbitration,” she said.
Justice Kohli underlined the need to foster a specialised arbitration bar, comprising experts and legal practitioners solely engaged in arbitration, because of the upsurge of institutional arbitration in the country.
She said seminars and training sessions would streamline every facet of the arbitration process, from the drafting stage to enforcement of the award, besides boosting confidence in the country as an arbitration hub.
“This would also ensure that arbitration gains traction and does not take a back seat compared to litigation in court,” said the top court judge.
Justice Kohli underscored that the recent amendments in the Arbitration and Conciliation Act aligned the laws with the best international practices and promoted a pro-arbitration regime that inspired confidence in the resolution of commercial disputes.
“In 2021, the Act underwent further amendments. The 2021 amendment to the arbitration process is aimed at addressing new challenges and improving its effectiveness. These changes are directed towards promoting institutional arbitration, recognising the importance of specialised arbitration institutions, ensuring confidentiality during the proceedings and impartiality in the appointment of arbitrators,” she said.
Regarding the entry of foreign law firms in India in specific areas and on a reciprocal basis, which was permitted by the Bar Council of India in March 2023, Justice Kohli said it would provide the young talent with opportunities to compete with peers in the Western countries, besides enabling Indian law firms to adopt global best practices.
“Additionally, these regulations will help address concerns about the influx of Foreign Direct Investment (FDI) and establish India as a hub for international commercial arbitration,” she said.
Justice Kohli said the country had the potential to establish itself as a preferred choice for international arbitration, particularly for commercial businesses.
“It has a progressive legislative framework, a pro-enforcement judiciary and robust institutional support. Through its verdicts and administrative initiatives, the Indian judiciary has consistently demonstrated its commitment to ensuring the finality of the arbitral awards, encouraging mediation and fostering a pro-investment environment,” she said.
“Undoubtedly, India stands as a reservoir of untapped potential, poised to ascend as a premier destination for commercial mediation on the international level,” she added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Aug 03 2024 | 9:25 AM IST
