Recalibrating Commercial Arbitration In India: Challenges, Reforms, And The Road Ahead
- IJLLR Journal
- Aug 8
- 1 min read
Advay Singh, BBA LLB (Hons), Jindal Global Law School, Sonipat, Haryana, India
ABSTRACT
India’s emergence as a preferred seat for commercial arbitration has been a legislative and judicial priority over the past two decades. The Arbitration and Conciliation Act, 1996— modelled on the UNCITRAL Model Law— was designed to reduce court interference and promote party autonomy. However, systemic inefficiencies continue to challenge the effectiveness of arbitration as a dispute resolution mechanism. This paper critically analyses the current commercial arbitration landscape in India, identifying key obstacles such as excessive judicial intervention under Sections 9, 11, 34, and 37; ambiguities in arbitration clauses; the overreliance on ad hoc proceedings; a shortage of accredited arbitrators; and the inconsistent enforcement of foreign awards due to broad interpretations of “public policy.”
Drawing from landmark Supreme Court decisions including SBP & Co. v. Patel Engineering Ltd. and ONGC v. Saw Pipes, the paper explores how judicial reasoning has both advanced and hindered arbitration’s growth. Comparative analysis with global practices, particularly institutional arbitration under SIAC and ICC, reveals gaps in procedural certainty and efficiency within India’s framework. The study concludes with recommendations focused on institutional reform, arbitrator accreditation, and clarity in statutory interpretation to enhance India’s global competitiveness as an arbitration-friendly jurisdiction.
