Chief Justice of India emphasises mediation for commercial dispute resolution

Chief Justice of India NV Ramana

The Chief Justice of India said arbitration is best-suited to resolve commercial disputes in a globalised world.

"Trust in the globalised world can only be built by creating institutions with a strong emphasis on the rule of law," CJI NV Ramana said.

The CJI added, "Compromise is the best and cheapest lawyer."

Speaking at the fourth edition of the international conference on 'Arbitration in the era of globalisation' in Dubai, Justice Ramana said, "Private mediations, which take place at the pre-litigation stage, are also becoming more prevalent in the country. Most arbitration clauses in commercial contracts have a multi-tiered approach, where the first attempt to resolve the dispute between parties is through mediation or negotiation."

The CJI emphasised the Indian judicial system was investor-friendly and the rule of law and arbitration don’t conflict one another.

"Both arbitration and judicial adjudication aim to serve the same goal -- the pursuit of justice. The Indian courts are known for their pro-arbitration stance. The courts assist and support arbitration, and leave the substantive part of adjudication to the arbitral tribunal itself," he said.

"Modern arbitration law in India can be traced back to 18th and 19th century –  laws such as the Bengal Regulation Act and Madras Regulation Act where parties to the dispute could submit themselves before an arbitrator. For the first time in 1940, we had a pan-India arbitration Act," Justice Ramana added.

To make the arbitral process more effective and to bring it on par with international law, the Arbitration and Conciliation Act of 1996 was amended in 2015, 2019, and 2021, he said.

Justice Ramana stated that the Indian judiciary treats all people equally and fairly, and that everyone must have faith in its ultimate independence.

"Whenerever I travel, I am often asked how investor-friendly the Indian judicial system is. My answer is always the same: You can trust the Indian judiciary for its absolute independence and its inherent constitutional strength to treat all parties equally and equitably," the CJI said.

He believed that providing a stable and effective framework for dispute resolution is one of the most effective methods to attract international investment.

"The legislature, executive and the judiciary of India at all levels are committed to improving the arbitration landscape and the ease of doing business in the country. The Commercial Courts Act enacted by the Indian Parliament led to further streamlining and speedy dispensation of justice in commercial matters," the CJI said.

(Inputs from agencies)