India Will Become The Arbitration Hub
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Law Minister Arjun Ram Meghwal said institutional arbitration aligns with Indian culture and must be encouraged. He added, “India would soon become a leading hub for such arbitration,” highlighting the country’s growing role in global dispute resolution systems.
Law Minister Arjun Ram Meghwal emphasized the importance of institutional arbitration during a conference on the subject, highlighting that it is a vital aspect of Indian culture.
His comments came after ONGC Chairman Arun Kumar Singh called for arbitration proceedings to be timely rather than “timeless.”
Meghwal stated that organizations should be adaptable, ready to be both flexible and rigid as circumstances require, ensuring their interests are protected while contributing to nation-building.
He encouraged officials to embrace risk and avoid conventional paths to safeguard their organizations’ financial interests.
He expressed concern that although arbitration is rooted in Indian tradition, its practice has been “disturbed” over time, allowing other nations to become centers for international arbitration.
Meghwal expressed hope that India would soon become a leading hub for such arbitration.
In his remarks, ONGC Chairman Singh highlighted that “time is money,” stressing the need for a more efficient arbitration process. He asserted that resolving commercial disputes promptly is essential for a thriving business environment. Singh also argued for a shift toward making arbitration “more corporate and less legal.”
He identified three primary causes of disputes, overly cautious executives who avoid responsibility, vendors who underbid and then fail to deliver, and inflexible contracts that complicate task completion.
Law Secretary Anju Rathi Rana noted that the government is actively working to streamline arbitration and mediation processes. She mentioned a recent directive from the Department of Legal Affairs aimed at minimizing judicial interventions and promoting institutional arbitration over ad hoc methods.
Justice (retd) Hemant Gupta, chairman of the India International Arbitration Centre, pointed out that a change in mindset is necessary for parties to prefer institutional arbitration over ad hoc arrangements. He urged individuals to recognize the advantages of institutional arbitration in resolving commercial disputes.
