Now Reading: India’s arbitration promise hinges on institutions and better contracts
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India’s arbitration promise hinges on institutions and better contracts
India’s arbitration promise hinges on institutions and better contracts
India’s arbitration system faces criticism over rising costs, delays and uncertain outcomes, even as court pendency increases the need for alternatives. Bar and Bench reports that the Arbitration Council of India, created…
The Story in Brief
India’s arbitration system faces criticism over rising costs, delays and uncertain outcomes, even as court pendency increases the need for alternatives. Bar and Bench reports that the Arbitration Council of India, created by Parliament in 2019 to anchor institutional arbitration, remains unconstituted six years later. A pending Supreme Court case has also pointed to the lack of external oversight of trade-association arbitration rules.
The two articles argue that abandoning arbitration would be misguided. Its performance depends on stronger institutions, tested procedures and careful contract drafting. General counsel must tailor arbitration clauses to the transaction, including the seat, governing law, institution, language, arbitrator numbers and emergency relief. Singapore’s standing, the articles note, was built through decades of institutional practice, not a single statute.
The Indian Opinion
The loudest narratives are that arbitration in India is either a failed experiment or a quick substitute for courts. Neither is supported by the facts. Costs, delays and uneven quality are real, but so is the need for credible private dispute resolution. A notified Council alone will not recreate Singapore’s institutional trust, while boilerplate clauses can worsen disputes. The practical test is whether users see faster, predictable outcomes and whether institutions face common quality standards.
Sources (2): barandbench.com, barandbench.com (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
