COIMBATORE: Madras High Court Judge N Anand Venkatesh on Saturday called for a stronger and more credible arbitration framework in India, stating that an efficient dispute resolution system is essential for sustaining domestic and international business confidence.
He was addressing an awareness conference on Arbitration and Mediation organised by the Indian Chamber of Commerce and Industry (ICCI), Coimbatore, along with the Chamber Arbitration and Mediation Centre (CAMC).
Justice Venkatesh said India's civil litigation system, particularly in commercial matters, has reached a stage where delays and pendency have made it an unattractive option for businesses.
Arbitration, which was originally conceived as an alternative, has now become the most practical mechanism for resolving commercial disputes, provided it functions in its true spirit.
The judge observed that while Indian law supports arbitration, there is a deep resistance to the finality of arbitral awards. "The spirit of arbitration is still missing," he remarked, noting that parties often focus on delaying enforcement rather than resolving disputes.
Explaining the fundamentals, Justice Venkatesh said arbitration is essentially an agreement between parties to appoint a private adjudicator, and once that choice is made, court intervention must be minimal. He highlighted the importance of recent amendments to the Arbitration and Conciliation Act, particularly Section 17, which empowers arbitral tribunals to grant interim relief. This, he said, has significantly reduced the burden on courts and prevented years of delay at the pre-arbitration stage.
The judge strongly cautioned against poorly drafted agreements, describing the widespread practice of "cut-copy-paste" drafting as a major reason for arbitration failures. Vague or contradictory clauses, he said, often result in disputes never reaching arbitration at all. "Clarity in drafting is not optional; it is fundamental," he emphasised.
Justice Venkatesh also underlined the need to include mediation and negotiation as preliminary steps before arbitration. Many commercial disputes, he noted, involve limited areas of disagreement and can be resolved without entering prolonged adversarial proceedings.
On institutional arbitration, he said it offers clear advantages such as transparency, predictability of costs, and quality control. Institutions, however, must exercise caution while empanelling arbitrators. "One dishonest arbitrator is enough to damage the reputation of an institution," he warned, stressing that integrity and domain expertise are more important than reputation or seniority.
Concluding his address, Justice Venkatesh said delays, high costs, and lack of confidence in the system continue to discourage investors from choosing India as a dispute resolution hub.
Strengthening institutional arbitration, respecting timelines, and returning to basic principles are crucial if India is to emerge as a trusted centre for commercial dispute resolution.
ICCI Coimbatore President Rajesh B Lund, Senior Advocate R Vidhya Shankar, CAMC Chairman Dr K Annamalai, Senior Chartered Accountant PR Vittel and various other dignitaries were present at the event.