Time for India to promote a culture of commercial arbitration: CJI DY Chandrachud

The time has come for countries like India to promote a culture of commercial arbitration, observed Chief Justice of India (CJI) DY Chandrachud on Thursday while speaking at London. .In a speech delivered at the United Kingdom Supreme Court, CJI Chandrachud added that the institutionalization of arbitration will help develop such a culture."I firmly believe that now is the time for countries such as India to step up to the occasion to create and promote a culture of commercial arbitration. The robust institutionalization of arbitration will further the culture of arbitration in the Global South," the CJI said. .CJI Chandrachud delivered his speech in the presence of the President of the Supreme Court of the United Kingdom, Lord Reed; Deputy President, Lord Hodge and other judges of the UK Supreme Court.Senior Advocate Gourab Banerji was also present, and gave the concluding remarks at the event..CJI Chandrachud's speech focused on the theme, Law and Practice of commercial arbitration: Shared understandings and developments in the UK and India.In India, efforts to institutionalize arbitration are now in progress with the emergence of arbitration centres such as the India International Arbitration Centre. But the mere creation of institutions is not sufficient. It must be ensured that these new institutions are not controlled by a "self-perpetrating clique", CJI Chandrachud stressed. "These institutions must be based on the foundation of robust professionalism and the ability to generate consistent arbitral processes. Transparency and accountability, values by which the work of conventional courts is assessed and critiqued, cannot be alien to the world of arbitration ... The substitution of courts should not result in the creation of opaque structures," he added.He called for more diversity in the world of arbitration, whether in terms of gender or in terms of having more representatives from the Global South, to make it a broad-based process..Future of arbitration already here: CJI ChandrachudCJI Chandrachud went on to comment on the rise of arbitration as the preferred method of dispute resolution. "Arbitration is no longer an 'alternative.' It is in fact the preferred method of seeking commercial justice ... The future of arbitration is already here. It is now our responsibility to live up to the emerging challenges," he saidHe added that efforts should be made to promote the autonomy of parties in arbitration and minimise the scope of interference by courts.Among other concerns, the CJI also called for streamlining jurisprudence on who are necessary parties to arbitration proceedings. This is critical for the future of arbitration, he said.On this aspect, Justice Chandrachud observed that there was some divergence in global opinion on whether to follow the "group of companies" doctrine in deciding whether non-signatories to an arbitration agreement could also be made parties to arbitration based on facts and circumstances. English courts have rejected the application of this doctrine, which was evolved by courts and tribunals in France, he noted. After recounting the Indian Supreme Court's decision to accept the application of the "group of companies" doctrine to arbitration, CJI Chandrachud added,"If arbitration has to be efficient by reducing delay, the law must ensure that the adjudication of substantive legal rights of all parties, including non-signatories who are intricately connected to the underlying contract, is achieved within the fold of arbitration. This will preclude satellite litigation by non-signatories and allow arbitration to maintain its credibility in the face of domestic legal systems.".CJI Chandrachud had gone to the United Kingdom earlier this week, with the Supreme Court of India remaining on summer break till July. While in London, he also spoke on the “Role of courts in humanising law" in an event organised by the Oxford Union Society, University of Oxford on Tuesday (June 4). The same event saw the CJI express that he has never faced political pressure from any government in his 24 years as a judge.