A Bench of Justices Abhay S Oka and Pankaj Mithal even observed that observed in appropriate proceedings it would have to examine whether arbitration has been cost-effective in India.
It expressed ‘serious concerns’ in this regard, stating,
“Case after case, we find that the arbitral proceedings have become synonymous with very bulky pleadings and evidence and very long, time consuming submissions, leading to very lengthy awards. Moreover, there is a tendency to rely upon a large number of precedents, relevant or irrelevant. The result of all this is that we have very long hearings before the Courts in Sections 34 and 37 [Arbitration and Conciliation Act] proceeding,” the Court said.
Appeals against arbitral awards are being contested like they are appeals under Section 96 of the Code of Civil Procedure with innumerable grounds cited that waste judicial time, the top court lamented.
“The time of our Courts is precious, considering the huge pendency. This is happening in a large number of cases. All this makes the arbitral procedure inefficient and unfair. It is high time that the members of the Bar show restraint by incorporating only legally permissible grounds … Everyone associated with the arbitral proceedings must remember that brevity will make the arbitral proceedings and the proceedings under Sections 34 and 37 more effective,” the Bench underlined.
Hence, it urged all stakeholders to introspect so to avoid delays and ensure arbitration is cost effective..
“Arbitration must become a tool for expeditious, effective, and cost effective dispute resolution,” the Court emphasised.
Source: Barandbench
