Courts should be last resort, explore Arbitration, Mediation and Conciliation first: CJI Ramana cites 'Mahabharta' to Business Community

As pendency of cases continues to rise, Chief Justice of India NV Ramana on Saturday advised litigants, particularly businessmen, to treat litigation as the last resort—only after exploring alternate dispute resolution (ADR) mechanisms such as arbitration, mediation and conciliation to resolve their disputes.

“My advice, after participating in the legal profession for over 40 years in different capacities, is that you must keep the option of going to Courts as a last resort. Use this last resort only after exploring the option of ADR- arbitration, mediation and conciliation. Arbitration and mediation are efforts at restoring a relationship,” the CJI said while addressing the ‘Stakeholders’ Conclave’ at the International Arbitration and Mediation Centre, Hyderabad.

Citing various reasons for opting for mediation or arbitration over traditional litigation, he said there were several benefits of ADR—fewer delays, less expensive, greater party choice, more control, more comfortable and amicable environment for the parties.

Justice Ramana wondered if anyone could even imagine a world without conflicts.

“A prudent person tries to find ways to resolve the same amicably. Conflicts have a human face and it helps to be humane in our approach to resolve the same. One must have the foresight to look beyond the conflict,” the CJI noted.

Citing an example from the Mahabharata, Justice Ramana said Lord Krishna had attempted to mediate the dispute between the Pandavas and Kauravas and the failure of mediation led to disastrous consequences.

“But in a business, you cannot lose money, honour or your reputation. You cannot sacrifice the interests of business or industry. In such a situation also, you can think of an easy way of settling disputes without wasting much time or money, or losing your peace of mind. You can find a better way for further growth and improvement,” he said, advising businessmen to use the ADR mechanism before rushing to courts.

Despite the presence of some arbitration centres in the country, Indian parties entering into an international arbitration agreement often opt for an arbitration centre outside India incurring huge expenses, the CJI said.

“The setting up of this International Arbitration and Mediation Centre in Hyderabad will change this trend in India. This Centre is being established with the best infrastructure and the empanelling of internationally acclaimed arbitrators and mediators”, he said.

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