The Conundrum Of Arbitrability In India: Navigating The Divide Between Public Policy And Party Autonomy
- IJLLR Journal
- Jun 18
- 1 min read
Shubhang Gomasta & Dr. Aakash Gupta, Amity School of Law, Amity University, Gwalior
ABSTRACT
Arbitration has been a favored method for resolving disputes in India, especially due to globalization and the rising number of cross-border economic transactions. Its assurances of flexibility, confidentiality, expediency, and party autonomy render it a viable alternative to conventional litigation. The efficacy of arbitration is largely contingent upon the extent of arbitrability, which determines whether a dispute is amenable to resolution via arbitration. In India, this term has remained unclear, influenced more by developing judicial interpretations than by legislative clarity. This article examines the parameters of arbitrability under Indian law, outlining the evolution of this doctrine via landmark rulings including Booz Allen, Ayyasamy, Vidya Drolia, and N.N. Global. It assesses the fluctuation of courts between a pro-arbitration position and an interventionist approach, frequently referencing issues pertaining to public policy and rights in rem. The inconsistent enforcement of the public policy exemption and procedural minutiae, such as the stamping of agreements, frequently obstruct arbitration at the outset. Utilizing comparative analyses from arbitration-friendly jurisdictions including Singapore, the United Kingdom, and France, the study advocates for a redefinition of arbitrability that curtails court overreach and strengthens party autonomy. In conclusion, the article presents doctrinal and legislative proposals to align India’s arbitration structure with international standards, facilitating engagement with global entities while preserving protections against process exploitation.
Keywords: Arbitrability, Arbitration in India, Public Policy, Party Autonomy, Vidya Drolia, N.N. Global Case, Judicial Intervention, Rights in Rem, Arbitration and Conciliation Act, Cross-border Dispute Resolution
