Justice Rajesh Bindal highlighted the lack of data on arbitration in India as a major obstacle to effective policy-making, calling for better record-keeping by arbitral institutions. He also emphasized the need for reduced judicial interference in arbitration awards and suggested creating a separate arbitration bar for specialized legal practices.
New Delhi: Supreme Court judge Justice Rajesh Bindal emphasized a significant gap in data collection on arbitration in India, calling it a “major roadblock” to forming effective arbitration policies. Speaking at the First Supreme Court Advocates on Record Internal Legal Conference in Goa on October 19-20, Justice Bindal pointed out that without accurate data, it’s difficult to plan and implement successful policies.
“We do not have data about arbitration that is going on in India at the moment. We cannot have policies unless we have data,”
he said, stressing the importance of proper record-keeping by arbitral institutions. Currently, there is no responsibility on these institutions to maintain or report arbitration data. “There is no responsibility on the institution to maintain data as well,” he added.
Justice Bindal further argued that judicial interference at the execution of awards should be minimized, proposing that institutions, rather than courts, appoint arbitrators. “A clause can also be thought of that an arbitrator will be appointed by the institution only,” he suggested, drawing a parallel with Singapore’s Arbitration Act, where in cases of default, the matter goes directly to the institution.
To strengthen arbitration practices in India, Justice Bindal also recommended creating a “separate arbitration bar”. He highlighted the need for specialized legal professionals, saying, “There also needs to be a separate arbitration bar.” This would follow the model used by tribunals and High Court bars, which have evolved to have their own dedicated legal teams.
Justice Bindal noted that with statutory or financial support for arbitration institutions, India could attract significant international litigation. He pointed out that improving arbitration practices would enhance India’s position as a global hub for arbitration, encouraging more international cases to be handled domestically.
In conclusion, Justice Bindal stressed that effective data management, reduced judicial interference, and the establishment of a dedicated arbitration bar are essential for India to improve its arbitration landscape and tap into international litigation opportunities.
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