On Friday, in the 4th Arbitration in India Conclave 2025, organised by the Indian Dispute Resolution Centre (IDRC), Justice Manmohan of the Supreme Court delivered a candid address emphasising the judiciary’s duty to strengthen, not stifle, the growth of arbitration as an effective alternative dispute resolution mechanism.
Justice Manmohan, in the presence of Law Minister Arjun Ram Meghwal, made a pointed appeal to revisit a recent policy decision restricting the scope of arbitration. “The courts must support arbitration, rather than acting as a barrier to arbitration,” he remarked, urging institutional and governmental alignment in advancing the country’s arbitration ecosystem.
Justice Manmohan drew attention to a circular issued by the Ministry of Finance, which provides that disputes valued above Rs.10 crore will not be referred to arbitration. Expressing concern, he said, “One issue I would like to flag, because the law minister is here, and that I do it as a person who believed and who believes in arbitration, is a new circular that the Ministry of Finance has issued, that above Rs 10 crore, no dispute will go for arbitration. Really, I would request the minister to re-examine it.”
Legal experts present at the conclave viewed his remarks as a timely reminder that restrictive thresholds may inadvertently discourage confidence in arbitration, particularly in commercial disputes involving the public sector.
Justice Manmohan also emphasised the need to phase out ad hoc arbitration, describing it as a temporary measure that no longer serves the evolving demands of India’s dispute resolution landscape. “There should be a legislation to prohibit ad hoc arbitration for some time,” he suggested, adding that institutional arbitration offers the structure, transparency, and efficiency required for modern dispute management.
Highlighting the role of professional institutions, he noted, “It is very, very important and a very significant step towards the resolution of disputes in an expeditious and fair manner.”
He lauded Divyansh H. Rathi, Advocate and Secretary of the IDRC, for his contribution to strengthening institutional arbitration in India, and concluded with a call for broader collaboration, stating, “We need many more institutions like the IDRC to ensure that the promise of accessible and timely justice for all becomes not just an aspiration but a reality.”
The Indian Dispute Resolution Centre, a not-for-profit institutional arbitration centre established by the Indian Dispute Resolution Council, is registered with the Ministry of Commerce and NITI Aayog, and empanelled with the Union Ministry of Law and Justice. It provides both online and offline dispute resolution facilities through arbitration and mediation.
According to Rathi, IDRC’s services are already being utilised by leading institutions such as the National Skill Development Corporation, HDFC Bank, and Axis Bank, among others, reflecting its growing relevance in India’s commercial dispute resolution space.
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