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Top court judge notes role of arbitration for resolution of disputes

By, New Delhi
Sep 16, 2024 04:50 AM IST

The judge highlighted that India is positioning itself as a hub of international commercial arbitration.

Supreme Court judge, justice Surya Kant, on Sunday emphasised the growing importance of arbitration as a key mechanism for dispute resolution in an increasingly interconnected world.

Justice Surya Kant (HT PHOTO)
Justice Surya Kant (HT PHOTO)

In his valedictory address at the “Conference on International Arbitration and the Rule of Law”, the judge highlighted that India is positioning itself as a hub of international commercial arbitration as he stressed the importance of collaboration between international and domestic arbitration bodies to uphold the rule of law and ensure that arbitration remains a fair, cost-effective and accessible means of dispute resolution.

Organised by the Supreme Court of India, this conference marked the 75th anniversary of the apex court and coincided with the 125th anniversary of the Permanent Court of Arbitration (PCA). Justice Kant hailed this collaboration as a momentous occasion and pointed to India’s expanding role in global arbitration.

Justice Kant opened his address by underlining the global prominence of the PCA, founded in 1899, calling it “the oldest surviving institution for international dispute resolution”. He highlighted that over a century of the PCA’s work in fostering “trust, dialogue, and fairness” has made it a cornerstone of peaceful dispute resolution worldwide. The judge acknowledged the PCA’s contribution in resolving a wide spectrum of international disputes, noting that its legacy of facilitating peaceful resolutions among nations, businesses and individuals remains unparalleled.

“It has become more than just an institution; it is a symbol of hope, where conflicts that may otherwise spiral into crisis are brought to the table for reasoned discussion and resolution,” remarked the judge, stressing the PCA’s pivotal role in maintaining peace through arbitration.

Reflecting on India’s growing stature in the international legal landscape, justice Kant referred to the increasing number of arbitration cases worldwide and acknowledged the presence of four Indian retired judges on the PCA’s panel, which highlights India’s growing involvement in this domain.

“India’s commitment to international arbitration has always been beyond doubt, reflected by the fact that we were among the six Asian countries to sign the Geneva Convention and one of the ten original signatories to the New York Convention,” he noted. This historical context, the judge said, signifies India’s long-standing engagement with global arbitration practices.

Justice Kant discussed India’s domestic commitment to arbitration, which is evidenced by recent institutional developments, including the establishment of the Arbitration Bar of India. He lauded these steps as transformative, marking India’s journey towards becoming a global hub for arbitration. The judge was particularly optimistic about the opening of a PCA office in India, which he believes will “attract international parties and also make arbitration more accessible to domestic businesses and individuals.”

This move, he said, will not only boost India’s credibility in the global arbitration community but will also empower local stakeholders by reducing logistical hurdles and costs associated with international arbitration. “No longer will they have to navigate complex logistical hurdles and incur significant costs to access PCA’s services. With a local office, we can tap into PCA’s expertise and resources right here in India,” he pointed out.

Justice Kant also mentioned how the PCA’s presence in India would help build capacity in the country’s arbitration ecosystem by fostering training programs and development initiatives for arbitrators, counsels, and other stakeholders. This, he said, would ultimately strengthen India’s infrastructure for dispute resolution, making it more “robust and efficient”.

Justice Kant concluded his address with a hopeful outlook for the future of arbitration in India. He envisioned India emerging as a leading global arbitration centre, driven by consistent efforts from stakeholders to build a world-class dispute resolution mechanism.

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