Arbitration
Arbitration in India is governed by the Arbitration and Conciliation Act, 1996, which incorporates principles from the UNCITRAL Model Law and aims to provide an efficient alternative to litigation. The Act covers both domestic and international commercial arbitration, with provisions for the enforcement of foreign arbitral awards under international treaties such as the New York Convention.
The arbitration process in India has evolved significantly due to legislative reforms and judicial interpretations. The 2015 and 2019 amendments to the Arbitration Act introduced measures to streamline proceedings, such as time limits for the conclusion of arbitrations, greater reliance on institutional arbitration, and the establishment of the Arbitration Council of India for standardizing practices.
Despite its advantages, such as confidentiality, party autonomy, and expertise of arbitrators, arbitration in India faces challenges, including procedural delays and high costs in complex disputes. Efforts to promote institutional arbitration are ongoing, with bodies like the Indian Council of Arbitration (ICA) and the Mumbai Centre for International Arbitration (MCIA) gaining prominence.
Recent judicial decisions have further clarified aspects of the arbitration process, particularly regarding the limited scope for courts to interfere in arbitral awards, except in cases of public policy violations or procedural irregularities. Arbitration is widely used in sectors like construction, infrastructure, and international trade, reflecting its growing role in resolving commercial disputes in India.
