Seeking to dismiss the perception that Indian courts overly interfere in arbitral awards, Chief Justice of India T S Thakur today said some of the "path-breaking pronouncements" by the judiciary have helped the country emerge as an arbitration-friendly destination.
Citing orders in cases like Balco, he said the objective is to have "best arbitration facilities, quick disposal of arbitration proceedings that are cost-effective, competent, non-partisan and neutral". This can be achieved especially with effective enforcement of arbitral awards, he added.
"There is, in some quarters, a perception that courts in this country interfere with arbitral awards more than courts in other jurisdictions do. I take this opportunity to point out that this perception should no longer persist in view of some path-breaking pronouncements towards making India an arbitration-friendly destination," he said.
Speaking at a conference on arbitration, Thakur said globally, adjudication of disputes by way of arbitration is acquiring rapid acceptance in view of overworked courts.
India being the fastest growing economy cannot remain unaffected from contractual disputes, he said.
"Such disputes call for quick redressal by affordable and adjudicatory mechanism. Considerable efforts are being made to project India as global arbitration hub," he noted.
The Chief Justice further said that notwithstanding legal infrastructure, there are areas of concerns that need to be addressed.
To buttress his point, he cited verdicts in the Balco case where multiple and multi-party agreement, non-signatories to agreement were referred. It had widespread implications for foreign investors and parties.
Disclaimer: No Business Standard Journalist was involved in creation of this content
