Justice Manmohan of the Supreme Court said, “Courts must support arbitration, not act as a barrier,” while urging Law Minister Arjun Ram Meghwal at the IDRC Conclave 2025 to reconsider the Finance Ministry’s directive restricting arbitration in disputes above Rs 10 crore.
Justice Manmohan of the Supreme Court has advocated for a more effective alternative dispute resolution mechanism, emphasizing that courts should facilitate arbitration rather than hinder it.
During his address at the Indian Dispute Resolution Centre’s (IDRC) ‘Fourth Arbitration in India Conclave, 2025,’ he urged Law Minister Arjun Ram Meghwal to revisit a finance ministry directive that prevents disputes exceeding Rs 10 crore from being settled through arbitration.
He stated,
“The courts must support arbitration, rather than acting as a barrier to arbitration,”
He expressed concern over a recent circular from the Ministry of Finance and requested the minister to reconsider this policy.
Justice Manmohan added,
“I don’t blame the view or the stand that the government has taken,”
He also called for legislation to temporarily ban ad hoc arbitration, highlighting the significance of institutional arbitration in achieving fair and swift dispute resolution. He praised Divyansh H Rathi, an advocate and Secretary of IDRC, for his contributions to the field of arbitration.
He remarked,
“In conclusion, I would like to only say that we need many more institutions like the IDRC to ensure that the promise of accessible and timely justice for all becomes not just an aspiration but a reality,”
The law minister also participated in the event, while Rathi detailed the IDRC’s role, stating,
“Indian Dispute Resolution Centre is a not-for-profit institutional arbitration centre established by the ‘Indian Dispute Resolution Council’ and is registered with the Union Ministry of Commerce and NITI Aayog and is empanelled with the Union Ministry of Law and Justice. It provides a state-of-the-art institutional environment for the online and offline resolution of disputes through arbitration and mediation.”
He noted that various organizations, including the National Skill Development Corporation, HDFC Bank, and Axis Bank, utilize its services.