Entry for foreign law firms will promote India as destination for international commercial arbitration: CJI BR Gavai

Chief Justice of India (CJI) BR Gavai said on Thursday that the entry of foreign law firms will promote India as a viable destination for international commercial arbitration. .He said that the rules notified by the Bar Council of India (BCI) would also ensure that the rights of Indian legal professionals are not compromised. "The Bar Council of India further clarified that foreign lawyers may participate in international commercial arbitration conducted in India, provided such arbitration involves foreign or international law, thereby promoting India as a viable destination for international arbitration without compromising the rights of Indian legal professionals," he said. .He opined that the BCI's decision will provide a pathway to introduce global best practices in the Indian arbitration ecosystem." [It] will be effective in increasing the overall quality of arbitration in India," he said..CJI Gavai was speaking at the International Conference on Arbitrating Indo-UK Disputes, organised by the Indian Council of Arbitration (ICA) in London.He was joined by Lord Michael Briggs of the UK Supreme Court and India’s Minister of State for Law and Justice (independent charge), Arjun Ram Meghwal. The session was also attended by Indian Ambassador to the UK, Vikram Doraiswami, Dr NG Khaitan, President of ICA and Senior Partner at Khaitan and Co., Arun Chawla, ICA Director General and Karishma Vora, Barrister at 39 Essex Chambers, London and Member of the ICA International Advisory Committee..In his speech, the CJI said that along with India’s potential to be an international arbitration hub, there is an opportunity for Indian lawyers to become arbitrators as well. This potential is unrealised, he said. Further, he highlighted that the UK, with its established reputation as a hub for commercial arbitration, and India, with its expanding economy and legal reforms, stand poised to deepen their cooperation in the critical domain of dispute resolution. "By promoting dialogue, encouraging joint institutional initiatives, and building confidence among businesses and practitioners, we can create a seamless dispute resolution environment that benefits both jurisdictions," he said. .Meghwal said that India and the UK are enjoying one of the strongest phases in their bilateral relations, and the recent signing of the free trade agreement (FTA) between the two nations marks a historical milestone. He underscored that the two countries can set high standards for the way disputes are resolved. “By working together, they can build a framework which is fair and transparent and inspires business confidence on both sides.".Meanwhile, Lord Briggs said that courts and arbitral tribunals are not competing institutions, but mutually supportive ones. “Commercial arbitration proceedings not only respect party autonomy but also ease the burden on courts…Meanwhile, the effectiveness and enforceability of arbitration as a dispute resolution mechanism ultimately depends on it being sanctioned and enforced and, where appropriate, being regulated by the national courts,” he said. Lord Briggs added that while the relationship between the two institutions requires fine-tuning, that is being done by the legislature and the judiciary. He referred to the Constitution Bench judgment of the Indian Supreme Court in Gayatri Balasamy v. ISG Novasoft Technologies Limited to highlight how this fine-tuning is being achieved. “[As per the judgement] arbitration awards could be modified to sever the invalid part of the award or to correct an error on the face of the record, modify post award interest or, but with great caution, under Section [Article] 142 of the Indian Constitution even to do complete justice in the case at hand,” he said.