Justice B V Nagarathna Highlights Challenges in India's Arbitration System
Courts reluctant to remove arbitrators who are former judges: Justice B V Nagarathna
The Indian Express
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Justice B V Nagarathna of the Supreme Court of India addressed concerns regarding the reluctance of courts to remove arbitrators, many of whom are retired judges, during an international conference. She emphasized the need for institutional safeguards and legislative improvements to enhance the credibility of alternative dispute resolution mechanisms like arbitration and mediation.
- 01Courts are hesitant to remove arbitrators accused of misconduct due to their status as former judges.
- 02Justice Nagarathna called for institutional safeguards to address bias in arbitration.
- 03She highlighted practical issues such as enforceability, delays, and rising costs in arbitration.
- 04The Mediation Act, 2023, needs active implementation to be effective.
- 05Hybrid models like 'Med-Arb' can help streamline dispute resolution processes.
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During an international conference organized by the Indian Council of Arbitration at the Delhi High Court, Justice B V Nagarathna raised critical issues within India's alternative dispute resolution (ADR) framework. She noted that courts are often reluctant to remove arbitrators, particularly retired judges, accused of misconduct, which raises concerns about bias. Justice Nagarathna emphasized the importance of maintaining high standards in ADR, stating that it should not be seen as a secondary option but as an essential part of a modern justice system. She pointed out significant challenges, including enforceability of arbitration awards, delays, and growing mistrust in arbitrators. The enactment of the Mediation Act, 2023, was described as a positive step, but she criticized its lack of active implementation, as many provisions remain unnotified and the Mediation Council of India is yet to be established. To improve efficiency, she advocated for hybrid dispute resolution models like 'Med-Arb' that combine mediation and arbitration, allowing parties to seek amicable resolutions while retaining the option for binding decisions. Justice Nagarathna concluded by stressing the need for arbitrators with sector-specific expertise to enhance India's standing as a global arbitration hub.
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The effectiveness of arbitration and mediation in India will directly affect businesses and individuals seeking resolution for disputes, potentially leading to faster and more reliable outcomes.
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