Courts should not unduly interfere in arbitration proceedings: Supreme Court Justice BR Gavai

Courts in India should not unduly interfere in arbitration proceedings and must ideally play the role of an intermediary if such proceedings reach the Court, Supreme Court judge Justice BR Gavai recently said..To preserve the efficiency of India's arbitration ecosystem, it is necessary to limit judicial intervention in arbitral proceedings and ensure the strict enforcement of arbitration agreements and awards, Justice Gavai added..Justice Gavai pointed out that over the years the judiciary has always taken a pro-arbitration stance. He said that it is highly recommended that courts continue to minimise undue interference in arbitral proceedings. “As a member of the judiciary, I say this with a strong sense of duty and responsibility: the courts must continue to take initiative and preventing undue interference is highly recommended. The courts should play the role of an intermediary by providing interim relief prior to or, in certain cases, during the establishment of the arbitral tribunal,” Justice Gavai remarked..Justice Gavai was giving the keynote speech at a conference organised by the Indian Council of Arbitration on the topic 'Arbitration as a catalyst for economic growth' on December 16..In his address, Justice Gavai said that commercial arbitration plays an important role in facilitating international trade and investment in India. Economic development and settlement of commercial disputes enjoy a symbiotic relationship, he explained.“Economic development, cross-border flow of capital, and the settlement of related commercial disputes have historically enjoyed a symbiotic relationship; and does commercial arbitration have an important role to play in the facilitation of international trade and investment in India? The answer is yes," he said..He added that the discussions taking place during the conference should not be confined to legal reforms on the procedural aspects of international arbitration.“They must also address the opportunities and challenges that India, and other emerging economies, face in order to cement their place in the global arbitration community. Considerations such as developing a diverse and specialized bar and bench for international arbitration and adapting to evolving technological needs are prominent among these," Justice Gavai opined..He proceeded to suggest some pointers for effective arbitrations in India, some food for thought for the legislature and judiciary. These included the following. The need to minimise the scope of intervention by judges, from the pre-reference phase to the stage of contesting an award.A strict adherence to deadlines for finishing arbitral processes is required.Ensuring the execution of arbitral awards is imperative.Party autonomy must be respected.The number of grounds necessary to challenge the arbitral award should be limited and specified.Stays on arbitral awards should be an exception, not a norm.Recognition for emergency awards should be thought over.The need to promote institutional arbitration and arbitration institutes. Panelists and experts can help increase the credibility of the process.Training sessions and conferences should be held to teach arbitration skills to all young professionals..Chief Justice of the Bombay High Court, Justice Devendra Kumar Upadhyaya also spoke at the event. Chief Justice Upadhyay noted that capital investments could only be filled within the country by inviting private capital investors from both domestic and foreign jurisdictions. He added that there is a need to accommodate and regulate the inflow of private foreign investments into India. “It has become imperative to facilitate, regulate and accommodate in flow of such foreign investments within the sanctity of our pre-existing legal framework in a manner that benefits the party involved therein. The need of the hour is that our statutory mechanism is ready to tackles varied disputes that arise in the wake of such transactional reach,” the Chief Justice said..He added that it was important to provide a forum solely established for dealing with disputes between private investors. He further noted that arbitration can help in providing a flexible remedy to address such disputes. “It is important to provide a statutory mechanism which is inclusive in nature and provides a forum that is solely established for the purpose of governing and dealing with matters pertaining to disputes arising between private investors of domestic and foreign origin. Economic growth, capital investment and social progress suffer when disputes or conflicts occur. Arbitration acts as a catalyst that would expedite the process of efficient dispute resolution without having to go through the lengthy and tiresome route of general litigation - thereby bypassing the original remedial course. Arbitration can be tailored to provide the desired flexibility," the judge said.