Need dedicated courts, trained judges to ensure speedy resolution of arbitration disputes: Justice L Nageswara Rao

While speaking at the inaugural event of the fourth edition of the international conference on Arbitration in the Era of Globalisation, the Supreme Court's Justice L Nageswara Rao stressed on the need to establish dedicated courts to expeditiously deal with arbitration disputes..Justice Rao was speaking on the topic of Challenges in Cross Border Disputes: Way Forward, when he opined that setting up dedicated courts with trained judges even at the lower rungs and High Court levels would ensure speedy and effective resolution of arbitration disputes."I am of the personal opinion, even at the domestic arbitration level, there should be dedicated courts at the lower rung as well as High Courts for commercial matters to ensure speedy resolution at the supervisory stage. You also need trained judges. You would see that judges handling various subjects would find it a little difficult to understand a dispute arising out of arbitration. They would treat it as another matter coming from litigation," Justice Rao said..Justice Rao added that he has seen that even applications for appointment of arbitrators have been pending in High Courts for long periods.The judge pointed out that with the growth of business and globalisation of economies, especially in India, commerce has increased multi-fold. A necessary corollary of any growth is dispute. "Dispute resolution will also follow suit. Which is the best way of resolving cross-border disputes. At the study conducted in 2021, more than 90 per cent respondents have preferred international commercial arbitration," he said. He recalled that India was not seen as a pro-arbitration country for a long time. However, nowadays, arbitration has been getting a boost from all corners, he noted."A long time back, I attended an arbitration conference in Sydney. During the course of discussions, what not to do in arbitration was with reference to India. But times have changed. Even the dispensation at the executive and parliamentary regime has taken note of the fact that arbitration has to be strengthened for various reasons.".Moving on to the supervision of courts over arbitration matters and enforceability of international awards in India, Justice Rao said that in the past, there was unwarranted interference by the courts, which led to undue delays."Even before the Arbitration and Conciliation Act,1996, by a judgment of the Supreme Court, it was said that so far as enforcement of foreign awards are concerned, courts would interfere only on extraordinary grounds. It was said that you need something more than a violation of law to oppose enforcement of a foreign award...it has been made very clear that enforcement of awards, as when sought for, should not interfere with matters on merits," he explained..While admitting that there are still several challenges ahead, Justice Rao concluded his address on a hopeful note, speaking of the pro-arbitration attitude that has been adopted by courts across the country, which might make the judiciary more efficient and India more investor-friendly."The recent trend, you would see that the Court has been very supportive of arbitration being a very effective method of ADR. Which not only takes the burden of courts which can spend their valuable time deciding other matters, but also provides an incentive to investors coming to the country and to help businessmen find a faster way.".Arbitration is the best dispute resolution mechanism for the globalised world: CJI NV Ramana