Vice President Calls for Arbitration Reform in India
In a compelling keynote address at the India International Arbitration Centre (IIAC) colloquium in New Delhi, Vice President Jagdeep Dhankhar emphasized the urgent need for reform in India’s arbitration process. He criticized the current system as an “additional burden” on the judicial framework and called for the inclusion of domain experts to enhance the effectiveness of arbitration. Dhankhar’s remarks highlight the necessity for a shift in perspective regarding arbitration, urging stakeholders to view it as a primary option rather than a mere alternative to litigation.
Critique of Current Arbitration Practices
During his address, Vice President Dhankhar expressed concern over the prevailing approach to arbitration in India, describing it as a “myopic view.” He argued that arbitration should not be seen merely as a form of adjudication but rather as a comprehensive process that requires specialized knowledge. “Arbitrators play as critical a role as members of the bar associated with the arbitral process,” he stated, pointing out that the current system is overly controlled by a select group of judicial figures. This, he noted, limits the potential of arbitration to resolve disputes effectively.
Dhankhar highlighted the importance of involving experts from various sectors, such as oceanography and aviation, in the arbitration process. He referenced a former Chief Justice’s observation that the arbitration field has become an “old boys’ club,” emphasizing that while retired judges add credibility, there is a pressing need for broader expertise to address sector-specific disputes.
The Role of Article 136 in Arbitration
The Vice President also addressed the implications of Article 136 of the Indian Constitution on the arbitration process. He criticized the expansive interpretation of this article, which allows the Supreme Court to intervene in various judicial matters. “Article 136 intervention was supposed to be a narrow-slit,” he remarked, noting that its broad application has negatively impacted the arbitration landscape. He urged legal professionals to consider the effects of such judicial interventions on micro and small enterprises that rely on a streamlined arbitration process.
Dhankhar’s comments reflect a growing concern among legal experts about the need for a more focused and efficient arbitration framework that can cater to the needs of businesses, particularly in the context of India’s economic growth.
Vision for India as a Global Dispute Resolution Hub
In his address, Dhankhar articulated a vision for India to emerge as a global center for dispute resolution. He pointed out that while other countries have developed robust arbitration infrastructures, India has yet to establish itself in the international arena. “What do they have which we do not?” he questioned, emphasizing that India’s cultural and infrastructural assets could support a thriving arbitration ecosystem.
He urged stakeholders to rethink the terminology used in dispute resolution, advocating for a shift from “dispute resolution” to “difference resolution.” This change, he argued, would foster a more amicable approach to resolving conflicts, encouraging partnerships rather than adversarial relationships. “Let us navigate, step by step, from alternative resolution to amicable resolution,” he stated, underscoring the importance of consensual agreements in commercial partnerships.
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