Supreme Court Justice Manmohan recently emphasized the growing importance of arbitration and mediation, calling them “sunrise areas” with significant potential, especially as courts face increasing case backlogs. His remarks came during a dinner reception held by the India Branch of the Chartered Institute of Arbitrators (CIArb) in honor of its President, Cesar Pereira. The event also saw the presence of Delhi High Court Justice Tejas Karia and CIArb India Chairman Nusrat Hassan, among others.
Arbitration and Mediation: The Future of Dispute Resolution
Justice Manmohan underscored the expanding scope of arbitration in India, noting its evolution beyond traditional domestic disputes to encompass international commercial arbitration and investor-State disputes under bilateral investment treaties. He remarked, “The new genres appearing on the horizon will have to be handled, in private settings, through arbitration and mediation processes.” He stressed the need for India to bolster its institutional arbitration capabilities and create a robust pool of trained arbitrators and mediators who are well-versed in international practices.
India’s Aspirations as an Arbitration Hub
Justice Tejas Karia highlighted that India’s ambition to become a preferred seat for international arbitration requires more than just legislative and judicial support. He stated, “The country must ensure that businesses and counsel worldwide associate India with fairness, efficiency, neutrality, and excellence.” Justice Karia added that the reputation of an arbitral seat is built on everyday professional conduct, including the manner of conducting hearings, courtesy shown by counsel, and clarity of awards.
CIArb’s Commitment to Professional Standards
CIArb President Cesar Pereira emphasized the institute’s commitment to high ethical standards for arbitrators, mediators, and adjudicators, asserting that their code of conduct is enforceable. “Our code of conduct is not merely aspirational, but it’s for real,” he asserted, noting the institute’s disciplinary mechanisms for breaches of professional conduct. Pereira also encouraged increased collaboration among CIArb branches and more participation by Indian professionals.
Building Capacity for Arbitration in India
Nusrat Hassan, CIArb India Chairman, highlighted the importance of capacity-building efforts in India to establish the country as an international arbitration hub. He pointed out that training, especially in drafting arbitral awards, could significantly enhance the quality and acceptability of these awards.
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Chairman Emeritus Lalit Bhasin noted the critical distinction between arbitrariness and arbitration, emphasizing that arbitration relies on neutral decision-makers to resolve disputes based on facts and law. He clarified that CIArb’s role is not to compete with arbitral institutions but to train and accredit arbitrators who can serve on these institutions’ panels.
