India In Dire Need Of Arbitration Reforms, Says Calcutta High Court

A single-judge bench of Justice Shekhar Saraf observed that India is a country with increasing infrastructural needs, and with such growing demand, there is a significant rise in commercial disputes arising out of the contracts that form the bedrock of these projects.

Although arbitration is envisaged to be free of the redundancies, inefficiencies, and delays that plague India's litigation system, the court pointed out that the arbitration process in India is struggling to keep up in the backdrop of the increasing involvement of courts at every stage of the process.

This not only impacts the viability of arbitration as a dispute-resolution mechanism but also demotes the country's standing as a business-friendly destination in a globalised world, according to the court.

It was underscored that DVC tried to evade the arbitral award on each possible avenue.

While the court said that a party cannot be barred from raising any particular ground, it emphasised that there should be a shift in the tendency of parties challenging an arbitral award.

A final award should not be interfered with by the courts unless there is severe infirmity or patent illegality involved, it said.