Chief Justice of India Surya Kant on Monday urged India to “seriously reflect” on why it remains a less preferred seat for international arbitration. He said this was the case despite legislative changes and several judicial interventions aimed at strengthening arbitration in India.
He made the remarks while inaugurating the new building of the Gujarat High Court Arbitration Centre. He also addressed the inaugural session of a two-day conference titled “Institutional Arbitration at Crossroads: Challenges and Way Forward.”
The CJI noted that India’s arbitration regime has evolved over time. Yet, many international arbitration disputes involving Indian parties still move to foreign jurisdictions.
“Our international arbitration disputes have their preferred destinations outside India,” he said. He added that the key issue is whether Indian arbitral institutions command enough confidence to become a preferred forum. “The question we must confront is not whether arbitration is viable; it is whether our institutions inspire sufficient trust to become the most preferred choice,” he stated.
Trust is the central challenge
CJI Surya Kant described trust as the core challenge for institutional arbitration in India. He said arbitration can work well only when users trust the process.
He pointed to three factors that shape confidence: neutral arbitrator appointments, procedural integrity, and enforceable awards. He also said institutions must earn trust through consistent performance. Statutes alone cannot create credibility.
Transparent practices, reliable timelines, and steady standards matter, he added. Institutions should assess whether they have earned that confidence. They should also identify steps needed to improve.
Institutional arbitration remains limited in India
The Chief Justice said institutional arbitration occupies a smaller space than it should. He linked this to the large number of commercial disputes in the country.
Many parties still choose ad hoc arbitration or court litigation. He said institutions need to show clear value to change that trend.
He called for stronger institutional capacity. This includes better infrastructure, credible panels of arbitrators, effective case management, and stronger administrative support.
Training and professional administration needed
CJI Surya Kant stressed the need for structured training of arbitrators. He also called for professional arbitral administrators.
He cautioned that India may create more institutions faster than it improves quality. Without investment in training and administration, credibility may not rise at the same pace.
Reforms help, but cannot do the entire job
The CJI acknowledged that amendments to the Arbitration and Conciliation Act and judicial decisions have strengthened arbitration. He said reforms have supported party autonomy and neutrality in appointments. They have also encouraged minimal court interference.
However, he said reforms alone will not make India a global hub. Institutions must match global standards and meet the expectations of parties choosing arbitration as a faster alternative.
Infrastructure signals credibility
The Chief Justice said the new Gujarat High Court Arbitration Centre building reflects the importance of infrastructure. He said both physical and digital facilities strengthen trust.
A dedicated arbitration facility signals professionalism, he noted. It can also reassure parties about confidentiality and procedural rigour.
He referred to the Centre’s redesigned website and newsletter. He said secure online filing, virtual hearings, and real-time access to information have become essential features of modern arbitration systems.
CJI Surya Kant expressed hope that the new facility and conference deliberations will strengthen institutional arbitration in India. He said they can help build a more trusted dispute-resolution framework.
