At the 5th International Conference of the Indian Council of Arbitration, Supreme Court Justice BV Nagarathna highlighted a critical gap in India’s Alternative Dispute Resolution (ADR) framework: the lack of a specialized body to handle complaints against arbitrators.
The “Judicial Wariness” Problem
Justice Nagarathna pointed out that courts are often hesitant to remove arbitrators even when faced with allegations of bias or misconduct. This reluctance stems largely from the professional background of the arbitrators themselves.
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Elite Pool: Many arbitrators are former Judges or Chief Justices.
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The Conflict: Their high-standing former positions make courts “wary” of questioning their integrity or replacing them during active proceedings.
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The Solution: The judge advocated for a dedicated forum to examine such complaints, ensuring that high standards of fairness are maintained without solely relying on overstretched courts.
The ADR Spectrum: Beyond Formalities
The judge emphasized that ADR should not be viewed as a single method, but as a spectrum of approaches—including arbitration, mediation, and negotiation—that work together to provide context-sensitive solutions.
Key Challenges Identified:
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Implementation Gaps: Many provisions of the Mediation Act, 2023, remain unnotified.
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Institutional Delays: The Mediation Council of India has yet to be constituted, forcing a reliance on fragmented state-level centers.
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Systemic Hurdles: Rising costs, enforcement issues, and a “continuing adversarial mindset” among lawyers and parties threaten the credibility of the process.
A Call for Higher Standards
Justice Nagarathna reminded practitioners that while ADR is an alternative to litigation, it is equal to adjudication in its responsibility.
“The standards of the arbitrators and mediators must be very high… there can never be any reflection of a bias.”
She concluded by urging for a “mature legal system” where these mechanisms are not treated as mere formalities, but as robust tools defined by efficiency, fairness, and finality.
