Reforms to align Indian laws with UNCITRAL Model Law ongoing: Senior Advocate Gourab Banerji

During a recent lecture at Queen Mary University of London, Senior Advocate Gourab Banerji highlighted the divergent approaches adopted by India and the United Kingdom (UK) with regard to the United Nations Commission on International Trade Law (UNCITRAL) Model Law on international commercial arbitration..The UNCITRAL Model Law, established in 1985, has gained global recognition as a benchmark for arbitration laws, with more than 120 jurisdictions incorporating its principles.Banerji highlighted that India directly integrated the Model Law into its Arbitration and Conciliation Act of 1996, aligning its domestic legislation closely with international standards..The UK, in contrast, made a deliberate decision not to incorporate the Model Law into the UK Arbitration Act of 1996, resulting in a more substantial level of court supervision over arbitration proceedings, he said.However, he highlighted that over time, UK courts have gradually recognized the Model Law's significance and have started to harmonize their laws with its principles..Banerji pointed out that recently, the UK Law Commission recommended reforms to bring the UK Act more in line with the Model Law, with a particular focus on areas related to confidentiality and arbitrator disclosure.He went on to discuss how India extended the Model Law's application to domestic arbitration, but certain modifications led to unforeseen consequences like the decisions of the Supreme Court in Bhatia International v, Bulk Trading SA and Venture Global Engg v. Satyam Computer Services.In Bhatia International, the Supreme Court ruled that the Arbitration and Conciliation Act applies to international commercial arbitration held outside India.In Satyam Computers, the apex court ruled that previously concealed facts could be cited to set aside an arbitral award..He mentioned that ongoing reforms in India are now aimed at realigning the law with the Model Law's core principles, including limiting court intervention in arbitrator appointments and reviews, which he said was a crucial step toward achieving greater party autonomy.Banerji highlighted that both India and the UK are deeply engaged in ongoing debates about finding the right balance between party autonomy and court supervision within the realm of arbitration. Despite the differences in their initial approaches, the core principles of the Model Law, such as separability and Kompetenz-Kompetenz, have significantly influenced their respective arbitration laws, the senior lawyer said.