Chief Justice of India (CJI) Surya Kant on Saturday said that present-day arbitration is starting to look like the very court process it was meant to replace, flagging delays in awards and proceedings extending into multi-day hearings and heavy documentation.
“We now see multi-day hearings. We see heavy document production modelled on common law discovery. We see competing experts on every point. And we see awards that take years, not months…Arbitration is starting to look like the very court process it was meant to replace,” he said.
He produced the latest data by the International Chamber of Commerce (ICC) to illustrate the long delays in arbitral disputes that take an average of 26 months to reach a final award. The London Court of International Arbitration’s (LCIA) figures show a median of 20 months. “By the standards of our conventional courts, these numbers are not shocking. But they are a long way from the speed arbitration once promised”.
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While admitting that the foundations of International Arbitration remain sound, he said that over time, layers of procedure have obscured the efficiency and flexibility for which he suggested tribunals manage proceedings with discipline, set realistic schedules at the outset, and ensure they are followed.
Speaking on the topic, “International Arbitration: Navigating New Realities and Stress-testing the Fundamentals at the Annual India Conference of the Singapore International Arbitration Centre (SIAC) in Delhi, CJI Kant highlighted four areas of concern. These include, besides a strong case management, balanced transparency, sensible use of technology, and, restraint from the courts when asked to enforce arbitral awards.
He said courts must resist the urge to second-guess arbitrators as it poses a real risk of inconsistency, the very thing that undermines predictability between parties in arbitration proceedings. “As arbitration begins to confront disputes involving digital assets and other AI-driven technologies, that distinctly human role will become even more important”.
