India’s Arbitration Bar Poised to Set Global Standards, Says Attorney General R.Venkat Ramani

(Judicial Quest News Network)

Attorney General of India, R.Venkat Ramani, delivered a compelling address on Friday, envisioning a pivotal role for India in shaping the future of global arbitration. He emphasized that the Indian Arbitration Bar is poised to set international benchmarks and could become a trendsetter for the arbitration community worldwide.

In his speech, the Attorney General highlighted the growing need for more arbitration centres across the globe to foster the development of arbitration as an effective dispute resolution mechanism. He underscored the significance of establishing a global, organized arbitration bar, which he believes could profoundly influence the practice of arbitration. “India can lead the way,” said Ramani, stressing that an organized, internationally recognized arbitration bar is essential for advancing arbitration on the world stage.

The Attorney General was speaking at an event hosted by JSA Law Firm, which marked the visit of the leadership of the International Court of Arbitration of the International Chamber of Commerce (ICC). The discussion centred on the theme “Institutional Arbitration in India: What Does the Future Hold?” Ramani’s speech also addressed the future of India’s arbitration landscape, emphasizing its growing significance in the global arena.

White Paper on India’s Role in Global Arbitration

One of the key announcements during the event was the Attorney General’s unveiling of a white paper that is currently in development, which will detail India’s potential contribution to the global arbitration ecosystem. The white paper is expected to be published in February 2025 and will serve as a comprehensive outline of India’s strengths and offerings in the field of arbitration. Ramani expressed optimism that the document will provide crucial insights into how India can position itself as a key player in the global arbitration market.

Ramani also called for more dialogue among legal practitioners, urging them to come together and discuss how India can advance the cause of arbitration both domestically and internationally. “In a couple of months, we will bring forward this white paper, which will highlight what India can contribute to the global arbitration landscape,” he said.

A Global Shift Toward Institutional Arbitration

The Attorney General’s address was followed by an insightful panel discussion, moderated by Amar Gupta, Partner at JSA. The panel included Claudia Solomon, President of the ICC International Court of Arbitration; Senior Advocate Naresh Arora; VP Legal Operations’ ATC; and Swee Yen Koh, Senior Counsel and Partner at Wong Partnership.

During the discussion, Claudia Solomon highlighted the ICC’s strong focus on India, noting that it is a priority market due to the size and dynamism of the Indian economy. Solomon pointed out that the ICC is actively engaged in facilitating arbitration within India, underscoring the country’s importance in the global arbitration landscape. She also emphasized that ICC arbitration is the preferred mechanism even when both parties are Indian, a testament to the growing recognition of institutional arbitration in India.

On the topic of the Arbitration and Conciliation Act of 1996, senior advocate Naresh Arora spoke about the lack of special recognition for institutional arbitration under the current framework. He noted that the Act does not yet offer any differential treatment for institutional arbitration, despite widespread recognition of its advantages. Institutional arbitration provides clarity regarding arbitrators, costs, and timelines, making it a more efficient and reliable mechanism compared to ad hoc arbitration.

Arora pointed to legacy issues in India, where institutional arbitration is often perceived as more expensive and offering less party autonomy than ad hoc arbitration. However, he acknowledged that a draft bill released by the government in October has begun to address these concerns by recognizing the significant role of institutions in arbitration and even proposing amendments to accommodate emergency arbitration.

Refining India’s Arbitration Framework

Although the draft bill marks a step forward, Arora and other panellists noted that it still requires further refinement, especially concerning proposed amendments to Section 9, which deals with the recognition of emergency arbitration. Arora cautioned that while some provisions in the draft bill are promising, others need careful review to ensure they align with the best practices of international arbitration.

Swee Yen Koh and Naresh Arora also spoke about the financial advantages of institutional arbitration, explaining how it can lead to quicker, more cost-effective resolutions compared to ad hoc arbitration. The panel agreed that institutional arbitration’s structured rules and the oversight provided by institutions offer a level of certainty and efficiency that ad hoc processes often lack.

Judicial Perspectives on Arbitration

Former Supreme Court judges, Justice (Retd.) AK Sikri and Justice (Retd.) Ajay Rastogi, also contributed their perspectives during the event. Justice Sikri remarked on the increasing frequency of Section 11 petitions, where courts are called upon to appoint arbitrators due to disagreements between parties over the composition of arbitral tribunals. He stressed that the constitution of an arbitral tribunal in ad hoc arbitration can often cause delays, whereas institutional arbitration provides a much more streamlined process.

Justice Rastogi echoed this sentiment, pointing out that institutional arbitration offers several advantages, including better-defined procedures, cost efficiency, and quicker resolution of disputes. However, he also suggested that there should be a cap on the number of arbitrations an arbitrator can handle at any given time to ensure greater efficiency.

Justice Rastogi also called for the establishment of a government oversight committee to monitor decisions made by officials who settle disputes, potentially reducing the reliance on litigation and arbitration for certain types of cases.

A Historic Moment for ICC

The event concluded with a historic moment when Attorney General Venkat Ramani acknowledged Claudia Solomon, the first woman to hold the office of President of the ICC International Court of Arbitration in its 100-year history. Her leadership marks a significant milestone for the organization and highlights the growing diversity and inclusivity within the global arbitration community.

As India looks to strengthen its position as a leader in arbitration, the vision outlined by Attorney General Ramani, alongside the growing recognition of institutional arbitration, sets the stage for India to become a key player in the global arbitration landscape.