India has undertaken a significant overhaul in its approach to dispute resolution, driven by the vision of fostering an efficient, less adversarial legal system. The Central Government has been implementing crucial policy and legislative interventions to prioritize alternative dispute resolution mechanisms, such as arbitration and mediation. These steps aim to establish a streamlined, effective framework for resolving disputes, reducing dependency on conventional litigation, and promoting fair, timely resolutions.
At the core of this transformation is the Arbitration and Conciliation Act of 1996, which has been progressively amended in 2015, 2019, and 2020. These amendments have been designed to ensure the timely conclusion of arbitration proceedings, neutrality in arbitrators’ selection, minimal judicial interference in the arbitral process, and the seamless enforcement of arbitral awards. By incorporating best global practices into the law, the government has laid the groundwork for institutional arbitration in India, creating an ecosystem where arbitral institutions can thrive and solidify India’s reputation as a global hub for arbitration.
The Commercial Courts Act, 2015, underwent critical amendments in 2018 to introduce the Pre-Institution Mediation and Settlement mechanism. This initiative mandates disputing parties to explore mediation before approaching the court in commercial disputes without urgent interim relief. This legislative provision is designed to offer parties a formal platform to settle disputes amicably through mediation, reducing judicial workload and encouraging collaborative resolutions.
Further advancing India’s arbitration infrastructure, the enactment of the India International Arbitration Centre Act of 2019 heralded the establishment of the India International Arbitration Centre. This autonomous institution, declared an entity of national importance, facilitates impartial resolution of commercial disputes through institutional arbitration. The Centre, envisioned as a world-class body, offers a neutral dispute resolution platform that inspires confidence among domestic and international parties alike. In 2023, the Centre notified regulations governing the conduct of domestic and international arbitrations, ensuring efficient and time-bound processes. It has also empaneled reputed arbitrators to strengthen its chamber of arbitration, catering to both domestic and international dispute resolution demands.
Adding to the government’s progressive strides, the Mediation Act of 2023 has introduced a standalone legislative framework for mediation practices. It aims to institutionalize mediation and promote a culture of out-of-court settlements. This legislation is expected to catalyze the growth of mediation as a preferred dispute resolution method, fostering amicable agreements across varied sectors.
The India International Arbitration Centre has also been committed to imparting comprehensive training in alternative dispute resolution methods, including arbitration, mediation, and conciliation. Through seminars, conferences, and training programs, the Centre actively builds capacity among professionals and stakeholders, ensuring that the ecosystem remains robust and future-ready.
These developments, as outlined by the Minister of State for Law and Justice, represent India’s focused efforts to modernize its dispute resolution processes. By prioritizing ADR mechanisms, the government reinforces its commitment to providing accessible, effective, and equitable justice, paving the way for a streamlined legal landscape capable of addressing challenges in an increasingly complex world. The advancement of these mechanisms signals India’s emergence as a leader in promoting harmonious, efficient, and innovative approaches to dispute resolution, setting a benchmark for other nations to follow.
