The Cost Barrier Paradox: An Empirical Analysis Of Arbitration Accessibility In India
- IJLLR Journal
- Oct 5
- 1 min read
Isha Priya, KIIT School of Law
A Critical Examination of Justice Sudhanshu Dhulia's Observation on Arbitration as 'Rich Man's Litigation'
ABSTRACT
This empirical study examines the cost barriers in arbitration proceedings in India, directly responding to Supreme Court Justice Sudhanshu Dhulia's critique that "arbitration is a rich man's litigation." Through comprehensive analysis of arbitration costs, institutional fee structures, and comparative data with traditional litigation, this research investigates whether India's arbitration framework perpetuates economic inequality in access to justice. The study analyzes data from the Fourth Schedule of the Arbitration and Conciliation Act 2015, institutional arbitration centers, and court proceedings to assess the financial accessibility of arbitration across different economic strata. Findings reveal significant cost disparities between arbitration and litigation, with international commercial arbitration costs averaging $2.6 million compared to Indian court litigation costs of approximately $50,000. The research identifies institutional reforms, fee restructuring, and third-party funding as potential solutions to democratize arbitration access. The study concludes that while arbitration offers procedural advantages, current cost structures do create barriers that limit access primarily to affluent parties, validating Justice Dhulia's concerns about arbitration's elitist character.
Keywords: Arbitration, Access to Justice, Cost Barriers, Economic Inequality, Dispute Resolution, Legal Accessibility, India, Institutional Reform.
