CJI Surya Kant Flags Trust Deficit In India's Arbitration Institutions

(MENAFN- KNN India) Gandhinagar, Mar 5 (KNN) Chief Justice of India Surya Kant said India must reflect on why it remains a less preferred destination for international arbitration despite major legislative and judicial reforms.

Speaking at the inauguration of the Gujarat High Court Arbitration Centre and a conference on institutional arbitration, he noted that although India's arbitration framework has matured, many disputes involving Indian parties are still resolved in foreign jurisdictions.

He said the key issue is not the viability of arbitration in India but whether domestic institutions command enough trust to become the preferred dispute resolution forums.

Trust, he noted, depends on confidence in neutral arbitrator appointments, procedural integrity and enforceability of awards, which can only be built through consistent and transparent institutional practices over time.

The Chief Justice said arbitration institutions in India must assess whether they have earned sufficient confidence and take steps to strengthen their credibility.

He noted that institutional arbitration still occupies a limited space, with many commercial disputes continuing through ad hoc arbitration or court litigation due to the perceived lack of value offered by institutions.

The Chief Justice emphasised the need for capacity building in arbitration institutions, highlighting the importance of expanding infrastructure, empanelled arbitrators, efficient case management systems and strong administrative support.

He said arbitration must be treated as a specialised discipline requiring legal expertise, professional management and an understanding of cross-border commercial realities.

He also stressed the need for systematic training of arbitrators and professional arbitral administrators, cautioning that a rapid rise in institutions without quality improvements could weaken confidence in the system.

Describing institutional arbitration in India as being“at the crossroads,” he urged benchmarking against global standards to meet expectations for faster and more efficient dispute resolution.

The Chief Justice noted that amendments to the Arbitration and Conciliation Act, 1996 and several judicial rulings have strengthened party autonomy, neutrality in arbitrator appointments and limited judicial intervention. However, he emphasised that legislative reforms alone are insufficient to make India a leading arbitration hub.

He also inaugurated the new facility of the Gujarat High Court Arbitration Centre, noting that modern physical and digital infrastructure is vital for strengthening institutional credibility and ensuring disputes are handled with professionalism, procedural rigour and confidentiality.

The Chief Justice also highlighted the role of digital systems in modern arbitration, noting the launch of the centre's redesigned website and newsletter.

He said secure online filing, virtual hearings and real-time information access are now essential features of contemporary arbitration, expressing hope that the new facility and conference discussions would strengthen India's institutional arbitration framework and build greater trust in the dispute resolution ecosystem.

In this context, FISME has recommended adopting institutional arbitration through bodies such as the India International Arbitration Centre and other approved ODR platforms to minimize delays. The Government of India has already directed its ministries and PSUs to follow this approach and has advised States to implement similar measures.

(KNN Bureau)

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