"Time to Build Strong Culture of Commercial Arbitration": CJI Chandrachud

"Time to Build Strong Culture of Commercial Arbitration"

- CJI Chandrachud

Chief Justice of India DY Chandrachud emphasized the need for India to develop a robust culture of commercial arbitration. Delivering his address at the Supreme Court of the United Kingdom on Thursday evening, CJI Chandrachud highlighted the evolution of arbitration from a supplementary dispute resolution mechanism to a primary choice for commercial entities worldwide. He stressed that setting up effective arbitration institutions can significantly boost its practice in the Global South.

Evolution and Importance of Commercial Arbitration

Chief Justice Chandrachud noted that arbitration has evolved significantly, becoming the primary dispute resolution mechanism for commercial entities globally. "I firmly believe that now is the time for countries such as India to step up to the occasion to create and promote a culture of commercial arbitration. The robust institutionalization of arbitration will further the culture of arbitration in the Global South," said CJI Chandrachud. He delivered his speech in the presence of Lord Reed, President of the Supreme Court of the United Kingdom, and other esteemed judges.

Building Strong Arbitration Institutions

In recent years, India has established institutions like the India International Arbitration Centre and Mumbai and Delhi International Arbitration Centers. These institutions are witnessing a steady flow of arbitration matters. However, CJI Chandrachud pointed out that the mere creation of institutions is insufficient. "We have to ensure that these new institutions are not controlled by a self-perpetuating clique. These institutions must be based on the foundation of robust professionalism and the ability to generate consistent arbitral processes," he said. Transparency and accountability are crucial values that should also govern arbitration, similar to conventional courts.

Promoting Diversity in Arbitration

CJI Chandrachud called for greater diversity in arbitration, both in terms of gender and representation from the Global South. "The plea for bringing greater diversity in the world of arbitration is based on the firm belief that bringing a diversity of viewpoint to the world of arbitration, whether in terms of gender or from the Global South will make for a broad-based process," he added. This diversity is essential for making the arbitration process more inclusive and representative of different perspectives.

The Role of International Commercial Arbitration

CJI Chandrachud emphasized that international commercial arbitration is a blend of various legal cultures and practices. "Although the core of arbitration law could be traced to the traditions of common law and civil law, it is infused with new legal ideas and innovations every day," he noted. Courts in the Global South, including the Supreme Court of India, are making efforts to make arbitration law more efficiency-oriented by drawing from comparative law and looking beyond borders.

India's Vital Role in the Future of Arbitration

India is poised to play a significant role in the future of commercial arbitration. The creation of the Arbitration Bar of India is a step towards involving more individuals from the Global South as counsel and commercial arbitrators. "The future of arbitration is already here. It is now our responsibility to live up to the emerging challenges," said CJI Chandrachud.

Conclusion

CJI Chandrachud's address underscores the importance of commercial arbitration in the modern era. By establishing strong institutions, promoting diversity, and incorporating global best practices, India can significantly enhance its role in the world of arbitration. This development will not only benefit the country's legal and business environment but also contribute to the global arbitration landscape.