In a significant address at the Gujarat High Court Arbitration Centre (GHAC) Arbitration Week held in GIFT City, Senior Advocate Darius Khambata emphasized the necessity for Indian courts to refrain from revisiting arbitration disputes on their merits. This step, he argued, is crucial for India to emerge as a preferred seat for international arbitration. The event took place on September 5, focusing on the theme of ‘Rules of Private International Law in International Commercial Arbitration.’
Non-Interference by Courts
Khambata articulated the importance of non-interference by judiciary entities, highlighting that respecting the decision of arbitral tribunals aligns with the justice sought by involved parties. He asserted, “In arbitration, the justice of the case requires that a court respect the decision of the parties that an arbitral tribunal decides, and not a judge.”
He advised that courts should promptly establish grounds for challenges rather than delving into re-evaluation of disputes. This, he believes, fosters a healthy judicial and legislative environment, essential for a successful arbitration seat.
Insights from Global Practices
Khambata also pointed to Singapore’s practice of ‘institutional humility’ as a model. He praised their continuous self-assessment and efforts to improve, stating, “With all its success, every single month and year the Singaporeans are thinking of how we can improve? Where have we gone wrong? Did we do it right? That is a quality that is a very rare one. That is an essential factor for a good seat.”
The session saw participation from eminent figures such as King’s Counsel Thomas Williams, Asian Institute of Alternative Dispute Resolution (AIADR) Founding President Datuk Professor Sundra Rajoo, and Clifford Chance Partner Nish Shetty. Moderated by Barrister Anirudh Krishnan, the discussion delved into various aspects of arbitration law and practice.
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Global Legislative Developments
Shetty noted a common oversight by commercial parties in drafting arbitration clauses during initial contract negotiations. Williams highlighted England’s Arbitration Act 2025, specifically Section 6A, which designates the law of the seat as the default governing law for arbitration agreements, thus eliminating the notion of implied choice. Rajoo added that Malaysia’s 2024 statutory amendment mirrors this approach to ensure commercial certainty.
Perspectives on Pro-Arbitration Jurisdictions
In a separate dialogue, former Singapore Court of Appeal Judge VK Rajah SC underscored the necessity for jurisdictions encouraging arbitration to rigorously examine challenged awards against international standards. He warned, “Appeals will ultimately, if the doors open too wide, lead to further delay,” noting that globally, only about 10 percent of set-aside applications are successful.
Rajah also advocated for India to establish its own Chartered Institute of Arbitrators to further solidify its position as a robust arbitration hub.
