Chief Justice of India Surya Kant has said that India must “seriously reflect” on why it continues to remain a less preferred seat for international arbitration, despite multiple reforms aimed at strengthening the framework.
He made these remarks while inaugurating the Gujarat High Court Arbitration Centre and addressing a conference titled “Institutional Arbitration at Crossroads: Challenges and Way Forward.”
Trust as the Core Challenge
CJI Surya Kant emphasised that institutional trust is the foundation of effective arbitration.
He noted that arbitration works only when parties have confidence in:
- Neutrality of arbitrators
- Transparency in procedures
- Enforceability of awards
???? “The question is not whether arbitration is viable, but whether our institutions inspire sufficient trust,” he observed.
India’s Arbitration Still Moving Abroad
Despite legal and judicial reforms, the Chief Justice pointed out that:
- Many international arbitration disputes involving Indian parties are still resolved outside India
- This reflects a gap in global confidence in Indian arbitral institutions
Institutional Arbitration Has Limited Presence
CJI Surya Kant observed that institutional arbitration in India:
- Occupies a smaller space than expected
- Is often replaced by:
- Ad hoc arbitration
- Traditional litigation
He stressed that institutions must demonstrate clear value addition to gain wider adoption.
Need for Capacity Building
To strengthen arbitration in India, the Chief Justice highlighted the need for:
- Better infrastructure
- Strong panels of arbitrators
- Efficient case management systems
- Professional administrative support
He also emphasised that arbitration must be treated as a specialised discipline, requiring both legal and managerial expertise.
Training and Professional Development
CJI Surya Kant called for:
- Structured training of arbitrators
- Development of skilled arbitral administrators
He warned that simply increasing the number of institutions without improving quality could weaken the system.
Reforms Alone Are Not Enough
While acknowledging reforms to the Arbitration and Conciliation Act, the Chief Justice stated:
- Legal changes have improved:
- Party autonomy
- Neutrality in appointments
- Reduced judicial intervention
???? However, laws alone cannot build credibility without consistent institutional performance.
Infrastructure as a Signal of Credibility
Referring to the Gujarat High Court Arbitration Centre, he said:
- Modern infrastructure boosts confidence
- Digital systems like:
- Online filing
- Virtual hearings
- Real-time updates
…are now essential features of arbitration.
Conclusion
Describing the current stage as a “crossroads,” CJI Surya Kant urged India to:
- Align with global arbitration standards
- Build trust through consistent practices
- Strengthen institutional capacity
He expressed hope that the new arbitration centre and ongoing discussions will help India emerge as a preferred global arbitration hub.
