Need more Commercial Courts to deal with Arbitration Cases: CJI Ramana at Conference on ‘Arbitrating Indo-UK Commercial Disputes’

Speaking to the gathering at Conference on ‘Arbitrating Indo-UK Commercial Disputes’ at Mansion House, London, the Chief Justice of India, NV Ramana highlighted the need to establish more commercial courts for dealing with arbitration cases and nominating experts in the field to be judges of those courts while maintaining minimal judicial interference.

CJI began his speech by highlighting the progress made by London in the field of arbitration and finance so far.

“London has been the financial hub of the world. Whether finance, insurance, stocks or trade, this port city is the gateway, where the east and west converge. Its ideal location situated between two time zones and the global appeal of the English language has boosted London’s dominance in the commercial world. Undeniably, other important aspects behind London’s consistent position are its progressive policies, the presence of the best of the legal minds and leading dispute resolution centres.”

Speaking of the commercial ties between Indian and UK and hinting at the possible collaboration of the Arbitration Institutions of both nations and further arbitral-investment, CJI Ramana cited the India-UK Free Trade Agreement and the huge flow of FDI between the two countries.

“Presently, India stands as the UK’s 12th largest trading partner. In 2020, the foreign direct investment (FDI) from the UK to India was 14.9 billion pounds. During the same period, FDI in the UK from India was 10.6 billion pounds. The recent India-UK Free Trade Agreement will pave a new path for future investments. It is projected that the FTA could strengthen the business relations between the two nations further.”

Adding to the same, he highlighted the concurrence of the legal systems of both the common law countries which give paramount importance to Rule of Law.

“Both the legal systems in India and the United Kingdom are known for giving paramount importance to the rule of law. Both the nations share a similar legal culture, where Courts are known and respected as independent institutions. Apart from this, the investors would be entering into a common familiar legal field as both nations follow the common law system. Laws on important issues are often convergent between both nations.”

He further emphasized on the need of modern Institutional Arbitration Centres across the progressive India for increasing efficiency, transparency and fairness which would pave way for trade and commerce.

“The presence of International Arbitration Centres will not only boost India’s global position as an investor friendly nation but also will facilitate the growth of a robust legal practice. It will provide a fresh avenue for young lawyers to indulge in the practice of International Commercial Law.”

Observing the recent trends in the ever-increasing ‘Shareholders and Merger and Acquisition Disputes’, CJI suggested the following for a robust system of dispute resolution:

1. “Establishment of more Commercial Courts for dealing with arbitration cases and nominating experts in the field to be Judges of those Courts.

2. The role of the Court in arbitration process must be supervisory. We should not cross the fine line between assistance and interference.

3. We need more such institutions. Institutional arbitration has to be encouraged and streamlined to provide for continuous hearings and expeditious awards.

4. The most important aspect for the success of arbitral proceedings is the efficiency and efficacy of its Award Enforcement Regime. This is especially true for a country like India, which is a hub for investment. One mechanism to improve enforcement that I have earlier suggested is to constitute a special authority by the State which could assess an investment contract prior to its execution...

5. Another suggestion is that the various institutional arbitration centres functioning across the world may consider forming a council or confederation...”

CJI finally addressed Shri Kiren Rijiju, the incumbent Minister of Law and Justice in India who was also present in the meeting and called for a possible legislative framework regarding the same.

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