The Importance of Choosing the Right Arbitrator in Arbitration Proceedings
Arbitration as an Alternative Dispute Resolution Mechanism
Arbitration is widely recognized as an effective alternative dispute resolution mechanism. It operates as a self-contained adjudication process, and the selection of the right arbitrator can significantly mitigate potential disputes or procedural inefficiencies.
Insights from the Chief Justice of India
The Chief Justice of India (CJI), Sanjiv Khanna, recently underscored the critical role arbitrators play in ensuring the success of arbitration proceedings. Speaking at a forum, the CJI emphasized that having an informed and experienced arbitrator minimizes the chances of prolonged conflicts and ensures an equitable outcome for all parties involved.
In a pointed statement, he recalled the evolution of arbitration in India:
“When we joined the bar, we all participated in arbitration. Back then, even senior advocates rarely engaged in arbitration. At that time, the largest arbitration cases involved sectors like railways and construction, where disputes were often handled internally.”
This evolution reflects the growing complexity of arbitration proceedings and the necessity for choosing arbitrators with a strong understanding of the legal framework and industry-specific nuances.
Why Does the Choice of Arbitrator Matter?
- Expertise in Subject Matter: Arbitrators well-versed in the subject matter ensure faster resolutions and better quality awards.
- Impartiality and Neutrality: An unbiased arbitrator prevents allegations of favoritism, strengthening the legitimacy of the process.
- Efficiency: Experienced arbitrators manage proceedings efficiently, avoiding unnecessary delays or procedural hurdles.
Arbitration Challenges in India
The CJI’s remarks come at a time when arbitration in India is growing but continues to face challenges such as delays, high costs, and questions regarding impartiality. He also stressed the importance of improving institutional arbitration mechanisms to address these concerns.
Related Developments
Separately, the Supreme Court criticized the Centre and the Municipal Corporation of Delhi (MCD) for their lack of effort in managing untreated solid waste. Highlighting the dire situation, the Court warned of halting new constructions in Delhi unless immediate corrective measures are undertaken. This remark reflects the judiciary’s increasing involvement in ensuring accountability across various governance and administrative domains.
Conclusion
Arbitration offers an efficient, cost-effective alternative to litigation. However, its success hinges on selecting the right arbitrator—one who combines expertise, impartiality, and the ability to handle disputes efficiently. With the judiciary advocating for stronger institutional frameworks and accountability, the future of arbitration in India appears promising.
