"The time has come for India to take the lead in fostering a culture of international arbitration."
— Retired Chief Justice D.Y. Chandrachud
The inefficiency of the conventional judicial system in handling numerous cases is a big call for ADR mechanisms. Among the mechanisms, arbitration has emerged to be an efficient method of handling commercial disputes since it is fast, efficient, and enforceable.1. It has been recognized internationally as a helpful tool in ensuring a pro-business environment, promoting foreign investments, and making doing business easier.
This move has continually been undertaken in respect of becoming a hub for international arbitration. Indeed, the Arbitration and Conciliation Act of 1996, further amended in the shape of the 2021 Amendment Act, is intended to align India's arbitration structure with the UNCITRAL Model Law and align it with international standards, thus streamlining arbitration procedures, reducing judicial intervention, and cultivating an arbitration-friendly ecosystem.2
One landmark event in India's arbitration landscape was the "Arbitration Bar of India (ABI) inauguration on May 11, 2024, at Bharat Mandapam, New Delhi". The ABI marks an essential step toward building robust national arbitration practices.3. It would be a meaningful initiative to achieve professional skills through training and support, encourage expertise in procedural management, and make arbitration proceedings dependable. Through efforts to address concerns such as delays, enforcement problems, and consistency in arbitral awards, ABI aims to rebuild confidence among all stakeholders in domestic and international arbitration. For instance, the ABI reflects India's transition from diffidence to confidence in arbitration. It marks a paradigm shift from a system historically averse to embracing arbitration to one that is an active facilitator of an arbitration-friendly environment. With a robust institutional framework, skilled arbitrators, and a commitment to best practices, India is likely to emerge as a preferred seat for international arbitration.4
The Current Landscape: Where Does India Stand:
Arbitration is not something new to India; it has been prevalent since the Vedic period. Disputes were referred to arbitral bodies like 'Sreni, Puga & Kula' or a small group of wise men or communities known as 'Panchayat.'5 The privy council recognized it in the case of Vytla Sitanna v. Marivada Viranna.6 The current Arbitration Law was first codified in 1899 based on the English Arbitration Act, then codified in Schedule II of CPC, 1908. Thereafter, The Arbitration (Protocol & Convention) Act of 1937 & Foreign Awards (Recognition & Enforcement) Act were enacted to deal with Foreign Awards, & The Arbitration Act of 1940 to deal with domestic arbitration.7 Lastly, the Arbitration & Conciliation Act of 1966 was enacted, repealing all the previous statutes.
The Arbitration & Conciliation (Amendment) Bill 2003 was introduced based on the '176th Report of the Law Commission' recommendations. However, due to a large number of amendments, it was withdrawn. Further, The Arbitration & Conciliation (Amendment) Act was amended in 2015, which brought positive changes with the aim to organize & accelerate the arbitration procedure. To make India an arbitration-friendly jurisdiction and keep pace with international jurisdiction, amendments were brought again in 2019. In 2021 also, the Arbitration & Conciliation Act of 1966 was amended to expand the provisions as well as laws for conciliation. Finally, the Govt of India proposed a new set of amendments in 2024; the draft bill of the same is still under public consultation.8
The arbitration landscape in India has been through sensational transformation over the years. It was once recognized as having excess judicial intervention, but now it is a more friendly jurisdiction offering quicker access to dispute resolution.9 This can be attributed to two modern discourses. One is the shift of mindset among corporations, considering it an expensive and complicated procedure, and the second is considering it as an opportunity to fuel economic growth.10
Despite the advancements, several hurdles remain, including the need for a proper framework & personnel to transition from ad-hoc Arbitration to Institutional Arbitration, delayed processes & enforcement challenges, exclusion of public procurement disputes, digital transformation & literacy among practitioners.11 While the need for improvement is obvious, the expert committee led by law Secretary DR T K Vishwanathan on reform in arbitration law in India has suggested pragmatic changes in the legal environment of arbitration.12
India has been progressing towards becoming a significant location for arbitration & trying to compete with established centers like the Singapore International Arbitration Center & London Court of International Arbitration.13. While India has been making substantial progress, the absence of a reliable body or institution of arbitration is one of the significant challenges.
Need For Arbitration Bar Of India:
Indian judiciary is struggling to tackle a huge backlog, with over 5 Crore pending cases14. The lengthy court processes are usually frustrating to parties seeking a resolution. Arbitration is faster, but lacking a dedicated body to streamline this process has hindered its effectiveness. Further, lawyers often prioritize judicial matters over arbitration, leading it to be an after-court thing or just above weekends. They are unable to allocate sufficient time to the proceedings of arbitration.15
Arbitration used to be a code word for going out for lunch. However, in recent times, it is more & more becoming a niche field of expertise in the domain of law. With this, there is a need for proper standards of best practices & ethics; & strengthen the already existing arbitral institution mechanisms. This will also align with India's commitment to becoming a global arbitration hub. Hence, a dedicated bar specially designed to tackle such challenges will position India as the preferred seat for arbitration.
The eminent legal professionals have also expressed their views on establishing an arbitration bar. Mr Fai S. Nariman has pointed out that the lack of a special bar for arbitration is the reason that the arbitration law has failed to actualize.16 Justice Hima Kohli also stated in one of the events hosted by the International Arbitration & Mediation Center that a bar consisting of experts and lawyers who work with leading arbitral institutions will turn it into a central mode of dispute resolution.17 Further, the Attorney General of India, Sri R Venkataramani, in his speech at the launch of the Arbitration bar, stated, "Having a dedicated bar will be enormously influential in the institutionalization of arbitration in India."18. Additionally, a High-level Committee headed by retired Justice B. N. Srikrishna19 & Expert Committee headed by Law Sectary T.K. Vishwanathan20 also suggested setting up a specialized bar for arbitration.
The Road Ahead:
India is the fifth-largest economy in the world & a fast-growing economy and is envisioned to beat Japan & Germany and might become the third-largest. This will position India as a preferred choice for foreign investors & international businesses while increasing the need to opt for commercial arbitration for dispute settlement. Hence, ABI will increase the efficiency & effectiveness of the process of commercial arbitration by providing a set of experts in the field while progressing towards a global hub for arbitration.21
The purpose of the Arbitration Bar of India is to bring in unison lawyers practicing arbitration, enabling cooperation, sharing knowledge & skill development. It aims to reform the standard of arbitration practices & recommend necessary amendments. The growth of the Arbitration Bar of India will depend on its capacity to transform policy & impacting the future of arbitration in India.22
The bar has a vital role to play in the future of arbitration in India to fulfill its mandate better & enhance the legal landscape surrounding arbitration. Some measures include incorporating model arbitration clauses into government contracts to ensure uniformity across disputes; Conducting training sessions or workshops for enhancement of capabilities of arbitration; Developing a knowledge-sharing platform for professionals to exchange views & updates on the legislative changes; setting up independent review committees; encouraging fair settlement proposals; leveraging technology for developing digital platforms to manage cases, share documents, and communicate with the parties; engaging with established international arbitral institutions to get insight into their solving mechanism; internationalizediscussionanddialogueatthe arbitrationforumsandsharewiththerestoftheworldwhatIndiahasbeendoing, etc. These suggestions will help enable the ABI to have a successful outcome.
The ABI is an ongoing process in which discovery & learning occur on the expectations & needs of potential members. At the forefront should always be ensuring that people joining see value, show capability & deliver practical benefits. The challenge is how to sort through the plethora of ideas& not know which direction to take. Still being in the development phase, the initiative should be to constantly collect information & suggestions to help guide us in the right direction.
The president of the bar, Mr Gourab Banerji, is trying to reach out to stakeholders, hold events throughout different towns, & discuss with concerned parties to see what the vision entails more concretely. However, the process is not without struggles. This includes the question of whether the bar should be a closed hub for elite organizations & lawyers or, rather, expand & make it a more inclusive one. A balanced exclusivity v. accessibility model will determine long-term success. As it evolves, resolving these issues becomes essential for building an institution that supports its members & helps promote arbitration in India.
Establishing the Arbitration Bar of India is necessary and forms a significant part of India's efforts to become an arbitration hub globally. With arbitration growing in importance as a mode of dispute resolution, there was a need for a specialized institution that would promote and develop it further. Creating ABI would provide the necessary opportunities to bridge the existing gaps and offer structured support to budding arbitrators, thereby enhancing the overall quality of arbitration practice in the country.
One area of great concern in the Indian arbitration landscape is the lack of a well-defined career path for arbitrators. Unlike litigation, where professional development is relatively structured, there does not seem to be a defined trajectory for those who make this activity their full-time profession. While lawyers transition into arbitration, no formal or standard process exists whereby a person becomes an arbitrator. ABI is then in a good position to provide for accreditation using a formal mechanism so that individuals can take specialized examinations and receive degrees or certifications in arbitration. With a clear eligibility criteria and structured training programs, ABI can ensure that arbitration professionals are adequately equipped with the requisite knowledge and practice skills.
However, the journey towards the firm establishment of arbitration principles is not free from many challenges. Setting up an ABI is a progressive development that involves thinking carefully about stakeholder expectations, strategic planning and sustained efforts as well to establish awareness. The initiative needs to involve practitioners, industry leaders and policymakers for its objectives to become aligned with the needs of the arbitration community. The influx of ideas and perspectives needs to be funneled into a coherent vision that attracts members, but it also sustains long-term engagement.
Another critical aspect is whether ABI should be an exclusive body of some set of organizations or a more inclusive body that encourages participation at larger sections of the bar. While exclusivity may provide high standards, inclusiveness will create wider acceptance of arbitration as a mechanism for dispute resolution. Balancing these approaches correctly is what would determine whether ABI is effective in shaping India's arbitration scene.
ABI willinfuse the culture oftrust, credibility, and
professionalismintoarbitration practice.
Theknowledge-buildingprocessthroughan arbitration
journal,conferences, andtraining programs will be important to the
acquisition of skills. Moreover,
byestablishingitsofficeinmultiplecities andliaisingwiththeregional
arbitration centers,itcouldensure that arbitration expertise
isdispersedbeyondmetropolitan
citiestomanyotherpartsofthecountry.
The formation of ABIandthe introductionof these
strategicstepswillenhance India's institutional
arbitrationstructure. Byprovidingqualityhuman capital andan
environment of professional excellence, ABI willsignificantly
contribute to India's international recognition as
aglobalarbitration hub. Thisshiftfrom uncertainty to confidence is
notonlyaspirational butalsoa necessary evolution for India's
legal and business ecosystem. Withpersistentefforts, the
Arbitration Bar of India canredefine the country's dispute
resolution landscapeandensurethatarbitration practicebecomes
efficient, reliable, and globally competitive.
Footnotes
1 "Trupti Shetty, 'Arbitration Bar of India: A New Era of Dispute Resolution' (VIA Mediation & Arbitration Center) < https://viamediationcentre.org/readnews/MTc2Ng==/Arbitration-Bar-of-India-A-New-Era-for-Dispute-Resolution > accessed 10 December 2024"
2 "'Indian Business Law Journal, 'Arbitration Bar Launch' (Law Asia, 11 May 2024) < https://law.asia/arbitration-bar launch/#:~:text=Emphasising%20arbitration%20as%20a%20cornerstone,inaugural%20president%20of%20the%20ABI > accessed 11 December 2024"
3 ibid
4 "Sumit Chatterjee, 'India's Arbitration landscape evolves, but needs reforms' (Deccan Herald, 12 June 2024) < https://www.deccanherald.com/opinion/indias-arbitration-landscape-evolves-but-needs-reforms-3062717. > accessed on 11 December 2024"
5 "'What is History of Arbitration in India' (IDRC) < https://heidrc.com/content/adr-faqs/what-is-history-of-arbitration-in-india > accessed 12 December 2025"
6 Vytla Sitanna v Marivada Viranna [1934] AIR 105 (PC).
7 "'Arbitration in India: A Story of Growth and Opportunity' (Cyril Amarchand Mangaldas, 2019) < https://www.cyrilshroff.com/wp-content/uploads/2019/06/Arbitration-in-India-%E2%80%93-A-Story-of-Growth-and-Opportunity.pdf > accessed 14 December 2025"
8 "Keeping up with the Times: The Government of India Proposes New Arbitration Law Reforms' (White & Case, 18 November 2024) < https://www.whitecase.com/insight-alert/keeping-times-government-india-proposes-new-arbitration-law-reforms > accessed 15 December 2024"
9 "Rahul Pandey & Rahul Saraswat, 'India's Arbitration Reform: Enhancing neutrality & global standing' (Money Control, 8 August 2024) < https://www.moneycontrol.com/news/opinion/indias-arbitration-reform-enhancing-neutrality-and-global-standing-12790434.html > accessed 15 December 2024"
10 "Akshat Khetan, 'Indian Arbitration System on Path to Global Recognition & Economic Growth' (Live Law, 24 January 2024) < https://www.livelaw.in/law-firms/law-firm-articles-/indian-arbitration-system-global-recognition-economic-growth-247524 > accessed 16 December 2024"
11 "Rishabh Gandhi, "Indian Arbitration Law in 2024: Key Reforms, Landmark Judgements, & Emerging Challenges' (SCC Online, 14 January 2025) < https://www.scconline.com/blog/post/2025/01/14/indian-arbitration-laws-in-2024-key-reforms-landmark-judgments-and-emerging-challenges/ > accessed on 18 January 2025"
12 "Sumit Chatterjee, 'India's Arbitration landscape evolves, but needs reforms' (Deccan Herald, 12 June 2024) < https://www.deccanherald.com/opinion/indias-arbitration-landscape-evolves-but-needs-reforms-3062717. > accessed on 20 December 2024"
13 "Tanya Prasad, 'India's Road to Becoming an Arbitration Hub: A Comparative Analysis with Singapore and London' (Aisa Law Portal, 19 December 2024) < https://asialawportal.com/indias-road-to-becoming-an-arbitration-hub-a-comparative-analysis-with-singapore-and-london/ > accessed on 2 January 2025"
14 "Trupti Shetty, 'Arbitration Bar of India: A New Era of Dispute Resolution' (VIA Mediation & Arbitration Center) < https://viamediationcentre.org/readnews/MTc2Ng==/Arbitration-Bar-of-India-A-New-Era-for-Dispute-Resolution > accessed 30 December 2024"
15 "Aryaman Setia, 'Arbitration Bar of India: Revolutionizing Institutional Arbitration in India' (The Arbitration Workshop, 27 July 2024) < https://www.thearbitrationworkshop.com/post/arbitration-bar-of-india-revolutionizing-institutional-arbitration-in-india > accessed on 30 December 2024"
16 "Fali Nariman, 'Ten Steps to Salvage Arbitration in India: The First LGIA-India Arbitration Lecture' (2011) 27 Arbitration International 115"
17 "'Growing prominence of institutional arbitration indicates necessity of a specialized Bar: SC Judge Hima Kolhi' (Legal World, 8 October 2023) legal.economictimes.indiatimes.com/news/litigation/growing-prominence-of-institutional-arbitration-indicates-necessity-of-a-specialised-bar-sc-judge-hima-kohli/104266324 accessed on 10 January 2025"
18 "Bhumika Indulia, 'Establishment of Arbitration Bar aligns with the vision to position India as a premier destination for Arbitration; says Dr S. Jaishankar at ABI Launch' (SCC Online, 13 May 2024) < https://www.scconline.com/blog/post/2024/05/13/arbitrate-in-india-dr-s-jaishankar-at-the-inauguration-of-the-arbitration-bar-of-india/ > accessed on 12 January 2025"
19 "Justice B.N. Srikrishna Committee,'Report of the High-Level Committee to Review the Institutionalisation of Arbitration Mechanism in India'(Ministry of Law and Justice, 2024).
20 T.K. Vishwanathan Committee,'Report on the Review of Arbitration Mechanism in India'(Ministry of Law and Justice, 2024)."
21 "'Q&A: "There is a Mindset Shift in the Attitude and Approach Towards Arbitration"' (Legal Business Online, 4 July 2024) < https://www.legalbusinessonline.com/features/qa-%E2%80%98there-mindset-shift-attitude-and-approach-towards-arbitration%E2%80%99- > accessed 15 January 2025."
22 "Rishabh Gandhi, "Indian Arbitration Law in 2024: Key Reforms, Landmark Judgements, & Emerging Challenges' (SCC Online, 14 January 2025) < https://www.scconline.com/blog/post/2025/01/14/indian-arbitration-laws-in-2024-key-reforms-landmark-judgments-and-emerging-challenges/ > accessed on 18 January 2025"
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
