CJI Surya Kant flags non-constitution of Arbitration Council of India six years after passage of law

Chief Justice of India (CJI) Surya Kant on Saturday flagged the continued non-constitution of the Arbitration Council of India (ACI) six years after parliament provided for its establishment.

He said the gap between announcement of law and its implementation has created a credibility deficit that India could not legislate its way out of.

"If our ambition is to become a preferred seat, this gap between announcement and implementation is precisely the credibility deficit we cannot legislate our way out of," he said.

The CJI was delivering the inaugural address at the Indian Institute of Arbitration and Mediation’s (IIAM) Silver Jubilee ADR Summit on “Reimagining ADR: Innovation, Technology & the Future of Justice” in Delhi.

Speaking about India’s arbitration reforms, CJI Kant noted that the ACI was created under the Arbitration and Conciliation (Amendment) Act of 2019 to grade arbitral institutions and accredit arbitrators. However, six years later, it has still not been constituted.

He also noted that the Draft Arbitration and Conciliation (Amendment) Bill, released for public consultation in October 2024 on the recommendations of the Viswanathan Committee, remains pending.

He expressed hope that a revised version of the bill would now be introduced in Parliament.

CJI Kant pointed out that Indian parties were the third-largest foreign users of the Singapore International Arbitration Centre in both 2024 and 2025.

He clarified that this was not a criticism of Singapore’s institutions. The real question was what it would take for Indian companies to choose Mumbai or Delhi as arbitration seats with the same confidence they currently reserve for Singapore, he stated.

"Singapore’s arbitration success took decades of consistent institutional practice, not a single legislative moment. What we can usefully borrow is not any one country’s statute, but its discipline in implementation," CJI said.

Turning to mediation, CJI Kant said its future in India depends on the professionalisation of mediator training and accreditation, greater willingness among businesses to include mediation clauses in commercial agreements and India’s ratification of the Singapore Convention on Mediation.

On artificial intelligence (AI) in dispute resolution, CJI Kant said it should remain an assistive tool rather than replace human decision-making.

“Artificial Intelligence may triage a dispute, organise evidence, or draft a first translation, but the moment it begins to weigh one party’s equities against another’s, it has stopped assisting and started deciding, and no algorithm has yet earned the ability or authority to do that quietly," he cautioned.

CJI Kant concluded by saying that arbitration, mediation and digital dispute resolution must ultimately build public trust by ensuring fair, timely and enforceable justice outside the traditional courtroom.