"Justice Tejas Karia urges shift to institutional arbitration to make India a global hub"

United News of India

7 days ago

New Delhi, July 26 (UNI) Underscoring the need to strengthen India's arbitration ecosystem, Justice Tejas Karia of the Delhi High Court emphasized the importance of institutional arbitration, structured training, and mindset shifts to transform India into a global arbitration hub.
Speaking at the Sadhna Ramachandran ADR Learning Series, organized by Maadhyam, Justice Karia highlighted the evolution of the Indian Arbitration and Conciliation Act and the country's growing commitment to effective dispute resolution.
'The Indian Arbitration Act has undergone significant amendments aimed at minimizing judicial intervention and accelerating dispute resolution. However, we still need to reduce the scope of interference with arbitral awards while ensuring timely enforcement,' Justice Karia said. 'Provisions have been incorporated to keep court involvement minimal, ensure procedural efficiency, and align the law with India's public policy objectives,' he added.
Justice Karia, who is currently serving on an Intellectual Property Rights (IPR) bench and is the youngest judge in the country, shared his experiences in handling arbitration even before his judicial appointment. He noted that while drafting an arbitral award is an art that demands precision and fairness, India still lacks adequately trained arbitrators.
'To make India a preferred seat for international arbitration, we must focus on capacity building. Arbitrators must be trained in writing reasoned awards and understanding the delicate balance between parties' interests and legal principles,' he emphasized.
Justice Karia also drew attention to Singapore's institutional arbitration model and stressed the need for India to move away from its ad hoc system.
Calling for legislative restraint, Justice Karia remarked, 'Continuous legislative amendments are not a sustainable solution. What we need is a change in mindset—where arbitration is seen as a credible, fast, and final mode of dispute resolution.'
Senior Advocate A.S. Chandhiok, President of Maadhyam, described the decade from 2015 to 2025 as a pivotal period in India's arbitration journey. 'The 2015 amendments to the Arbitration and Conciliation Act, 1996 marked the beginning of a new jurisprudential era. These reforms reflect India's aspiration to become a global arbitration destination,' he said.
Lauding Justice Karia's dynamic vision, Chandhiok added that his family legacy and youthful approach make him a key figure in India's legal reform narrative.
Other legal experts echoed similar sentiments. Senior Advocate J.P. Sengh, President-elect of Maadhyam, highlighted ongoing training initiatives for lawyers to better understand arbitration fundamentals, including the scope of 'public policy' under Section 34 of the Act. 'With targeted training, our legal professionals can become arbitration experts and help India emerge as a global arbitration powerhouse,' he said.
Senior Advocate Nakul Dewan pointed out that commercial stakeholders today prioritize practical dispute resolution mechanisms over procedural glamour.
'Arbitration law post-liberalisation serves both private and state interests. However, judicial oversight remains essential to ensure fairness and prevent arbitral overreach,' Dewan noted.
Experts such as Dr. Nidhi Gupta (NLU Delhi), Dr. Ashu Diman (VIPS), Prof. Harsh Manohar (Jindal Global Law School), and Senior Advocates Ritin Rai and Pragyan Pradip Sharma also addressed the gathering, stressing the need for continuous legal education and institutional strengthening.
The event was organized by Maadhyam, a voluntary organization engaged in promoting alternative dispute resolution (ADR) in India and abroad. With collaborations across jurisdictions, Maadhyam regularly conducts training programs, workshops, and seminars to enhance the quality of arbitration in commercial and cross-border disputes.
The Arbitration and Conciliation Act, 1996, based on the UNCITRAL Model Law, governs arbitration in India. Key amendments in 2015, 2019, and 2021 have sought to minimise court intervention (notably via Section 34), set strict timelines for award delivery, promote institutional arbitration through recognised arbitral institutions, establish the Arbitration Council of India (ACI) for accreditation and quality assurance, and enhance neutrality, transparency, and cost-effectiveness.
These reforms are part of India's broader strategy to become an attractive venue for both domestic and international commercial arbitration.
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