Role Of Indian Courts In Facilitating International Commercial Arbitration: A Critical Evaluation

Abstract

This article offers a critical assessment of the function of Indian courts in the facilitation of International Commercial Arbitration (ICA). The article commences by examining the historical development of arbitration in India, with a particular emphasis on the transformation that was facilitated by the Arbitration and Conciliation Act of 1996, which aligns India's arbitration framework with international standards. The article examines key features of the Act, recent amendments, and significant judicial precedents that have shaped the arbitration landscape in India. Despite the robust legal framework, the article identifies several challenges in the role of Indian courts in ICA, such as excessive judicial intervention, inconsistency in judicial decisions, delays in judicial processes, and contentious interpretations of public policy. The lack of specialized arbitration benches and the underutilization of institutional arbitration further complicate the effective facilitation of ICA. The article highlights opportunities for enhancing the role of Indian courts, including promoting judicial training and awareness, streamlining judicial processes, encouraging institutional arbitration, and strengthening arbitration infrastructure. A comparative analysis with global arbitration hubs like Singapore, Hong Kong, and the United Kingdom provides insights into best practices that can be adopted in India. Case studies of landmark judgments, such as Bharat Aluminium Co. v. Kaiser Aluminium Technical Services Inc. (BALCO) and ONCO Ltd. v. Western Geco International Ltd., demonstrate the evolving judicial attitude towards. arbitration. The article concludes with recommendations for legislative reforms, establishing specialized arbitration benches, promoting institutional support, enhancing judicial training, streamlining judicial processes, and investing in arbitration infrastructure. By addressing these challenges and leveraging the identified opportunities, Indian courts can play a pivotal role in positioning India as a premier destination for international arbitration, fostering a conducive environment for international trade and investment.