Harnessing Arbitration And ADR In Evolving Legal Landscapes: Balancing Regulatory Constraints And Party Autonomy In Insolvency And Tax Disputes
- IJLLR Journal
- May 26
- 1 min read
Somya Tyagi, LL.M., Gujarat National Law University, Silvassa Campus
ABSTRACT
The traditional litigation system in India faces specific issues concerning the backlog of cases, accompanied by delay in the disposal of cases, which hence constitute an increased stress on alternative dispute resolution mechanisms like arbitration and mediation. This article examines the trend of growing instrumentalization of ADR in India concerning its use within the fields of insolvency and tax disputes, which reflects an essential contradiction between the regulatory frameworks set to protect public and economic interests on one hand and the autonomy of disputing parties in selecting the dispute resolution process on the other hand.
The article further traces the legislative and judicial developments that promote ADR in the Indian arena, including "the Arbitration and Conciliation Act, Commercial Courts Act, and Mediation Act, 2023". It discusses the challenges and opportunities around ADR within the framework of the Insolvency and Bankruptcy Code (IBC), looking at the interplay between the IBC's moratorium and arbitration and the proposed framework for mediation in insolvency.
The article thus studies traditional procedures followed in India concerning tax dispute resolution and the prospects of encompassing arbitration and mediation, considering their superseded status for arguing, just because of their sovereign essence. Further, the article goes through case studies and expert opinions in examining the regulatory conditions of state control versus party autonomy about the jurisdictional tussle in insolvency and tax issues. It unveils some advantages and disadvantages in instrumentalizing ADR in these changing times, with recommendations for the future trajectory.
Keywords: ADR, Insolvency, Tax Disputes, Regulatory Tussle, Union Budget 2025, Dispute Resolution, Corporate Insolvency Resolution Process, Tax Litigation, Online Dispute Resolution.
