Arbitration, once swift alternative to litigation, now plagued by delays: Justice Surya Kant

PTI

New Delhi, Updated At : 03:01 AM Sep 22, 2025 IST

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Supreme Court judge Justice Surya Kant on Sunday flagged the issue of delay in arbitration, saying what was once conceived as a swift alternative to litigation has now become a victim of protected timelines and excessive adjournments.

Justice Kant, who also raised the issue of quality and consistency in arbitral awards, said with India aspiring to become a preferred global seat, the expectation is not merely that awards will survive judicial scrutiny, but that they must reflect a standard of reasoning and fairness that commands respect globally.

As the chief guest, Justice Kant was delivering a valedictory address at the closing session of the third edition of Delhi Arbitration Weekend jointly organised by the Supreme Court, Delhi High Court and Delhi International Arbitration Centre.

"Even as our jurisprudence has matured, contemporary challenges remain, the first of which, to my mind, is the delay. Arbitration was originally conceived as a swift alternative to litigation.

"It is now, however, a victim of protected timelines and excessive adjournments, often frustrating that very promise. If speed is the soul of arbitration, delay threatens to cripple it entirely," Justice Kant said.

The solution for this, he said, lies not only in stricter adjudicatory time tables but also in adopting institutional practices such as model procedural rules that parties would have to adhere to.

The solutions include case management conferences and tighter control of adjournments, he said.

"When we consider these issues and challenges, we must understand that these are not insurmountable obstacles, but reminders of the discipline required to safeguard arbitral integrity," Justice Kant said.

The apex court judge further said arbitration, which was once a niche mechanism, has today become the backbone of commercial dispute resolution.

Although arbitration promises efficiency, expertise and finality, its legitimacy rests upon two essential pillars - independence and integrity.

"While independence ensures freedom from influence, integrity assures fairness, transparency and the confidence of the parties. Without these pillars, arbitration is reduced to a hollow ritual, and it is here that the judiciary assumes its quiet but vital role," Justice Kant said.

He said the Indian courts have gone an extra mile by enriching and deepening the meaning of provisions of the arbitration law.

The judge said the Supreme Court affirmed that the independence and impartiality of the arbitrator are hallmarks of any arbitration proceedings and that even the perception of bias is sufficient to erode confidence in the arbitral process.

"Over time, the Supreme Court has continued to raise the bar through decisive and apposite rulings holding that ineligible arbitrators would not only be disqualified from acting by themselves, but would also be disqualified from nominating another arbitrator, or that an interested party could not unilaterally appoint the arbitrator," Justice Kant emphasised.

He said party autonomy remains the backbone of the arbitral process in India, designed to give parties the widest possible freedom to shape procedures that reflect their needs and commercial realities.

Justice Kant said arbitrators undoubtedly enjoy wide autonomy and the courts should respect it, but when fairness and impartiality are imperilled, judicial oversight becomes indispensable. Even at the post-award stage, courts assume their role only as guardians of credibility, he added.

"This calibrated approach reflects not only an evolving maturity within our jurisprudence, but also India's aspiration to align with the global consensus on arbitration, which is minimal judicial intervention, anchored by a commitment to independence and credibility.

"In fact, when we turn to comparative jurisprudence, it becomes clear that most leading arbitral jurisdictions have pursued the very same objective that India's jurisprudence has steadily embraced," he said.

Justice Kant said it is vital for arbitrators and the legal fraternity to pause and reflect on what arbitration truly stands for and the objective it is meant to achieve.

"Too often we approach it through the lens of conventional litigation, where every stage becomes an opportunity for litigation, where every stage becomes an opportunity for challenge and where delay is treated almost as a strategy.

"Legal practitioners, therefore, must resist that instinct and arbitrators too must guard against extending timelines, multiplying procedure hurdles, or postponing awards without compelling cause," he added.

Besides, several other judges of the high courts, Delhi High Court, Union Law Minister Arjun Meghwal and foreign delegates were also present in the programme.

Arbitration, once swift alternative to litigation, now plagued by delays: Justice Surya Kant

PTI

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