Chief Justice of India (CJI) DY Chandrachud shared his vision for reforming India’s arbitration system during the recent LCIA International Arbitration Symposium held in London. Responding to a light-hearted question- “If you could wave a wand and change one thing about mediation practice in India today, what would it be?”- the CJI proposed four transformational reforms.
If these four changes are implemented, the arbitration process can be significantly streamlined and confidence in India’s dispute resolution mechanism can be further strengthened.
Read also: SCBA flags SCAORA encroachment on common bar issues, urges CJI to intervene
- Finality of arbitral awards
"Finality means finality – not to arbitrate now, but to litigate forever."
CJI BR Gavai emphasised that the primary goal of arbitration is to deliver a final award. However, in India, arbitral awards often lead to litigation lasting for many years. He asserted that arbitration should not be considered the first step in a lengthy legal process. Except in cases of "clear injustice", the arbitral award should be considered the last word.
Read also: Supreme Court Refuses to Halt Incineration of Bhopal Gas Tragedy Waste at Pithampur Facility
- Making institutional arbitration mandatory
"Institutions bring structure, credibility and discipline."
He expressed concern that institutional arbitration is sidelined in India, often treated as an afterthought. According to him, institutional arbitration should not be considered an exception but should be the norm. With a well-defined structure and professional framework, institutions can increase skilfulness and maintain continuity in arbitration proceedings.
- Elimination of delays and tactical obstructions
“I would like to cast a spell on the black art of delay.”
The Chief Justice criticised the practice of extending arbitration deadlines through deliberate ploys. He pointed out that due process is essential, but excessive vigilance often leads to unnecessary delays. He favoured strict adherence to deadlines and also discouraged abuse of procedural rights.
Read also: Tamil Nadu government moves Supreme Court against HC order on university vice-chancellor law
- Promoting diversity among arbitrators
“Diversity is not just a good look; it is a better outcome.”
CJI Gavai emphasised the need to broaden the pool of arbitrators. He remarked that a diverse and inclusive panel leads to more balanced decisions and improves overall confidence in the system. Arbitrators should be selected not from a limited circle but from a broad and diverse background to ensure fair and equitable decisions.
His remarks at the international forum reflect the growing recognition of the need for urgent reforms in the Indian arbitration landscape. These suggestions are in line with the global push for speedy, transparent and inclusive dispute resolution mechanisms.
