India needs robust arbitration ecosystem to get investor-friendly tag, says CJI NV Ramana

amazon, india needs robust arbitration ecosystem to get investor-friendly tag, says cji nv ramana
CJI NV Ramana. (File photo)

CJI NV Ramana said India needs a robust arbitration ecosystem to get an investor-friendly tag. He was speaking at a conference on arbitrating Indo-UK commercial disputes in London.

“India is said to be one of the fastest-growing economies. In trade and business, as in any human relationship, differences of opinions and conflicts are bound to occur. To achieve the title of an investor-friendly destination, India needed to establish and strengthen an efficacious mechanism to address these issues and ensure that business continues to operate without much hassle. This is where alternate dispute resolution, and particularly arbitration plays a significant role,” said the CJI.

CJI Ramana also compared the legal systems of India and the UK and said, “Both the legal systems in India and the United Kingdom are known for giving paramount importance to the rule of law. Both nations share a similar legal culture, where courts are known and respected as independent institutions.”

Stressing the importance of arbitration, the CJI said, “Arbitration is the best-suited dispute resolution mechanism for the commercial world. It is an effective alternative to traditional litigation and is regulated primarily by the terms previously agreed upon by the parties themselves. The process is consensual and confidential and the result is binding. The parties have the freedom to choose not only the procedure and the laws that govern their transaction, but also have the freedom to choose their own arbitrators and domain experts.”

Giving his suggestions, the CJI said, “There is a need for the establishment of more commercial courts for dealing with arbitration cases and nominating experts in the field to be judges of those courts. Also, the role of the court in the arbitration process must be supervisory. We should not cross the fine line between assistance and interference.”


Union Minister of Law and Justice, Kiren Rijiju, said, “To keep pace with current developments in the arbitration space and to enable arbitration as a viable dispute resolution mechanism, the Indian arbitration law has undergone significant amendments in the years 2015, 2019 and 2021. “

He said the government is soon going to establish a world-class arbitration institute in New Delhi.

Citing the case of the Amazon-Future dispute, the law minister said, “Indian courts have on several occasions highlighted the importance of ADR and their pro-arbitration stand. The Indian judiciary is playing a pivotal role in promoting ADR mechanisms, particularly arbitration and mediation.”

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