India aspires to be arbitration hub through progressive framework, pro-enforcement courts: CJI

New Delhi, Jun 5 (PTI) Chief Justice of India B R Gavai on Thursday said India has continuously aspired to become a hub of international arbitration by building a progressive legislative framework, a pro-enforcement judiciary and robust institutional support.

In his keynote address on "Arbitrating Indo-UK Commercial Disputes" as part of the London International Disputes Week, the CJI said India and the United Kingdom shared a rich history, bound by a common legal heritage rooted in the principles of common law.

He referred to the July 2018 memorandum of understanding signed between India and the United Kingdom for cooperation in the area of law and justice and said it has enhanced the engagement between the two countries and paved the way for greater collaboration and exchange of expertise across areas including the rule of law, dispute resolution, training and legal services resolution.

"Speaking as the Chief Justice of India, I state that India has continuously aspired to become a hub of international arbitration by building a progressive legislative framework, a pro-enforcement judiciary and robust institutional support," he said.

CJI Gavai highlighted that this bond between India and the UK was further strengthened by the signing of a Free Trade deal between the two nations this year -- a step that would significantly enhance bilateral trade and economic cooperation.

"The United Kingdom, with its established reputation as a hub for commercial arbitration, and India, with its expanding economy and legal reforms, stand poised to deepen cooperation in this critical domain. By promoting dialogue, encouraging joint institutional initiatives, and building confidence among businesses and practitioners, we can create a seamless dispute resolution environment that benefits both jurisdictions," he said.

He added as any form of commercial activity, disputes were an inevitable part of the process but what truly mattered was not the existence of these disputes, but the capacity and commitment to efficiently resolve them.

"The manner in which we address and settle conflicts is what defines the strength and resilience of our commercial relationships," he said.

He said such a framework ensured that disagreements did not undermine trust or hinder progress and instead turned into an opportunity for constructive engagement, promoting long-term cooperation and stability in business interactions.

"One such mechanism is international commercial arbitration. In light of the expanding trade and investment flows between India and the UK, the need for an effective, reliable, cost efficient, and timely dispute resolution process has never been more pressing," the CJI said.

Referring to the statutes, CJI Gavai said the current legislations regarding arbitration in both India and the United Kingdom were enacted around the same time period with similar provisions focusing on party autonomy, choice of jurisdiction, independence of arbitrators, and finality of the arbitral awards.

"Both countries have a single legislation for arbitration that governs both international and domestic arbitration procedures. These legislations have been used by the parties and interpreted by the courts for more than two decades now," he said.

He, as a result, underscored the importance to learn from each other's experience and adopt the best possible practices to promote a business-friendly environment for both countries.

He said it wouldn't be an "overstatement" to say that for India to become a leading hub for international commercial arbitration, the international arbitration community must have access to high-quality, independent and impartial arbitrators, both as a matter of fact and of perception.

"As with India's potential to be an international arbitration hub, there is huge potential for Indian lawyers to become arbitrators that are in demand across the globe. However, this potential is, as yet, unrealised," the CJI pointed out.

Courts in India, he continued, have been making a conscious effort to ensure that for arbitral proceedings, the best candidates were chosen, keeping in mind the subject matter of the dispute, amount in dispute, arbitrator's expertise and availability and the requirements of the parties.

"Concluding this discourse on arbitrating Indo-UK commercial disputes, it can be said that the synergy between our two nations, rooted in a shared legal heritage and mutual economic interest, presents a unique opportunity to build a robust, efficient, and globally respected arbitration ecosystem," he said.

India's evolving arbitration framework, the CJI said, reflected a strong commitment to aligning with international best practices, promoting institutional arbitration and ensuring judicial support that was "facilitative" than being "interventionist".

The CJI referred to the decision of the Bar Council of India to notify rules for the registration and regulation of foreign lawyers and law firms in India, underlining its positive affect on the resolution of international commercial disputes. PTI MNL SJK MNL AMK AMK

Source: PTI