Retired judges control arbitration with a tight fist, need reform
- December 3, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Retired judges control arbitration with a tight fist, need reform
Subject: Polity
Section: Judiciary
Context: Retired judges are keeping country’s arbitration system in a tight grip
More about the news:
- Vice-President Jagdeep Dhankhar highlighted the dominating influence of retired judges in India’s arbitration space, echoing Chief Justice DY Chandrachud’s earlier remarks on the system resembling an “Old Boys’ club.”
- Dhankhar called for necessary reforms, including potential legislation, emphasizing the need to diversify arbitrator appointments.
- He commended CJI Chandrachud for speaking out against the dominance of retired judges, acknowledging the courage required to address the issue within his own fraternity.
- Dhankhar stressed the importance of a robust, fast, and effective arbitration system amid India’s explosive economic growth, emphasizing the role of institutional arbitration in ensuring fair and conclusive dispute resolution.
What is Arbitration.
- Arbitration is a form of alternative dispute resolution (ADR) where parties to a dispute agree to resolve their differences outside of a court system.
- In arbitration, a neutral third party, called an arbitrator, is appointed to hear the evidence presented by both parties and make a binding decision that resolves the dispute.
What are the Mechanism for Arbitration in India.
- Arbitration in India is regulated by the Arbitration and Conciliation Act, 1996.
- The Act draws inspiration from the 1985 UNCITRAL Model Law on International Commercial Arbitration and the UNCITRAL Arbitration Rules 1976.
- Legislative Amendment (2015):
- In 2015, the Arbitration and Conciliation (Amendment) Act was enacted to enhance the arbitration process in India.
- Objectives included expediting contract enforcement, facilitating the recovery of monetary claims, reducing court case pendency, and accelerating dispute resolution through arbitration.
- New Delhi International Arbitration Centre (NDIAC):
- Established in 2019 under the provisions of the NDIAC Act, 2019.
- Aims to improve the management of arbitration in India by promoting institutional arbitration.
- Provides state-of-the-art infrastructure for arbitration proceedings.
- International Centre for Alternative Dispute Resolution (ICADR):
- Founded in 1995 to promote and develop alternative dispute resolution (ADR) facilities and techniques.
- Focuses on facilitating early dispute resolution and reducing the backlog of cases in the courts.
What are the Types of Arbitration in India.
- There are two types of arbitration in India: Ad-hoc arbitration and Institutional arbitration.
- Ad-hoc Arbitration
- It is a process where a tribunal conducts arbitration using either pre-agreed rules or tribunal-laid rules, in the absence of any agreement between the parties.
- Institutional Arbitration
- Institutional arbitration refers to the administration of arbitration by an institution in accordance with its rules of procedure.
- The institution provides appointment of arbitrators, case management services including oversight of the arbitral process, venues for holding hearings, etc.