To promote arbitration, it is important to send the message that rule of law is respected: Justice Surya Kant

Supreme Court judge Justice Surya Kant on Tuesday said that the rule of law and independent judiciary are extremely important for growth of arbitration and investments in rising economies like India..Justice Kant was speaking at the Asian International Arbitration Centre (AIAC) in Malaysia when he made the remark in response to a question posed by Justice Dato' Mary Lim Thiam Suan of the Federal Court of Malaysia on the Indian government’s recent efforts to promote and reform arbitration jurisdiction in India. “In addition to the economic growth of a nation, I firmly believe that how you are rated in the enforcement of rule of law, the value of democracy, the constitutionalism … I think all these factors are also extremely important,” Justice Kant said..The top court judge added that the country as a whole has to create an atmosphere that sends a message to the international community that rule of law is duly respected and there is equality for each and everyone. “And along with rule of law, you have an independent judiciary in the country. I think that these are also the very important factors which along with the growing economy will matter a lot in promoting arbitration, in promoting alternative dispute resolutions and of course in inviting the investments and the rise of the business or startups in your country,” he said further..Besides Justice Kant and Justice Suan, arbitration experts Tan Sri Dato’ Cecil WM Abraham and Anil Xavier were also part of the event titled ‘Fireside Chat: Perspectives From The Bench and Bar on Arbitration in India & Malaysia’. Earlier, Justice Kant in his address on ‘Arbitration in Asia’ described commitment to enforcement of arbitral awards, conducive commercial environment and cost effectiveness as crucial for international arbitration. He stressed on the cost effectiveness in arbitration without which litigating public will not be attracted towards it. “The timely conclusion is of course one of the finest principles which encourages the arbitration, but at the cost effectiveness is also a very important factor,” he added..In this context, Justice Kant gave the example of a case from Haryana where despite spending of millions of rupees, it remained stuck before the Singapore International Arbitration Centre.The top court judge explained how he, as the then Advocate General of Haryana, chose to directly mediate with the German bank with which a State agency had the dispute and resolved it within 35 minutes.“Please keep in mind, I am not saying that mediation is more effective than arbitration. But what I am pointing out is that the cost of arbitration discouraged me to continue with the arbitration,” he clarified. Justice Kant also spoke about “the judicial consciousness of the Indian judiciary” to not interfere or have minimum interference in the process of arbitration proceedings and referred to some of the judgments delivered by the Supreme Court. .He also referred to practices in other countries like Singapore, Hong Kong and Malaysia. However, Justice Kant called for creating an environment that enables coordination among the arbitral institutions. “These are all doing good but maybe somewhere a joint coordination among all these institutions and having the minimum uniform standards and particularly a very simplified procedure along with a transparent duly notified list of expert arbitrators who are available from one jurisdiction to other. These are some of the issues which need to be coordinated among the institutions,” the Supreme Court judge said.Pertinently, Justice Kant said that growth of arbitration in Asia is inevitable. “The role played by the arbitral institution in Asian countries will be of significant value,” he added..During the Fireside Chat, Chairman of Asia Pacific Centre for Arbitration & Mediation (APCAM) Anil Xavier said countries like India or Malaysia may not be arbitration friendly like others but there is a potential for making them the best jurisdiction possible.“We are a huge country, both Malaysia and India, and with that jurisdiction and with that population and with that trained legal minds available, there is definitely, in the future, we would be the best … we could regain the hub of arbitration in these jurisdictions, so I would prefer to be here.”Another expert, Tan Sri Dato’ Cecil WM Abraham said that Malaysia is evolving as a seat for international arbitration and suggested that Malaysia should open the market to foreign lawyers. "We still have a lot to learn from Singapore, Hong Kong, and perhaps other jurisdictions. I am sorry to say that whether there are things that we can learn from India. I think there are some things we can learn from India but I am not so sure that we go all the way as far as India is concerned," he added..AIAC Director Datuk Sundra Rajoo and Executive Director of APCAM Iram Majid also spoke at the event.