{"id":395392,"date":"2026-09-05T20:30:32","date_gmt":"2026-09-05T15:00:32","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=395392"},"modified":"2026-09-05T20:24:03","modified_gmt":"2026-09-05T14:54:03","slug":"justice-l-nageswara-rao-ghac-arbitration-week-2026","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/09\/05\/justice-l-nageswara-rao-ghac-arbitration-week-2026\/","title":{"rendered":"Justice L. Nageswara Rao calls for stronger institutional arbitration, greater efficiency and capacity building at GHAC Arbitration Week 2026"},"content":{"rendered":"
\n

The GHAC Arbitration Week 2026<\/span><\/a>, organised around the theme “Building Gujarat’s Institutional Arbitration Ecosystem,”<\/span> brings together members of the judiciary, senior legal professionals, arbitration practitioners and other stakeholders to deliberate on the evolving landscape of arbitration in India. The event provides a platform for discussions on strengthening institutional arbitration, improving efficiency and predictability in arbitral proceedings, and enhancing India’s position as a preferred arbitration destination.<\/p>\n

\"\"<\/p>\n

As part of the programme, Justice L. Nageswara Rao<\/span>, former Judge of the Supreme Court of India, delivered a guest address reflecting on the journey of arbitration law in India and the reforms needed to build a more effective and robust arbitration ecosystem.<\/p>\n

Drawing on his experience as a lawyer, Supreme Court judge and arbitrator, Justice Rao examined the challenges confronting arbitration at different stages, from the appointment of arbitrators and conduct of proceedings to challenges to awards, enforcement and the development of institutional arbitration.<\/p>\n

\"\"<\/p>\n

Addressing delays at the appointment stage<\/h3>\n

Beginning with the appointment of arbitrators under Section 11 of the Arbitration and Conciliation Act, 1996, Justice Rao highlighted the absence of a specific statutory outer limit for approaching courts for the appointment of an arbitrator. Referring to the Supreme Court’s observations in B & T AG<\/span> v. Union of India<\/span>, (2024) 5 SCC 358, he noted that the application of Article 137 of the Limitation Act could effectively permit a party to approach the court within a three-year period.<\/p>\n

He observed that such a long window sits uneasily with the objective of arbitration as a speedy dispute-resolution mechanism. In this context, he referred to the recommendation of the T.K. Viswanathan Committee for prescribing a 60-day period for approaching the court for appointment of an arbitrator.<\/p>\n

Justice Rao also drew attention to delays in the disposal of Section 11 applications before High Courts. Recalling instances where such applications had remained pending for years, he suggested that greater institutional attention should be given to their timely disposal. He pointed to the experience of the Bombay High Court, where a dedicated approach to dealing with such applications had resulted in their disposal within a relatively short period.<\/p>\n

A diverse pool of arbitrators<\/h3>\n

Justice Rao then turned to the continuing debate over the appointment of retired judges as arbitrators. While acknowledging that retired judges bring adjudicatory experience, legal knowledge and impartiality to arbitral proceedings, he emphasised that judges should not constitute the only pool of arbitrators.<\/p>\n

He called for greater participation by experienced lawyers, arbitration practitioners and technical experts. Lawyers with 10—15 years of relevant experience and substantial exposure to arbitration, he observed, could be encouraged to develop arbitration practices and eventually serve as arbitrators.<\/p>\n

He also stressed the need for greater gender diversity in arbitral appointments, noting that women practitioners with expertise in commercial law should receive greater consideration.<\/p>\n

According to Justice Rao, the objective should be to develop a broad and capable pool comprising retired judges, legal professionals and experts from specialised fields.<\/p>\n

Independence and impartiality of party-appointed arbitrators<\/h3>\n

Justice Rao also examined the question of independence and impartiality of party-appointed arbitrators. He emphasised that every arbitrator, irrespective of who appoints them, must remain impartial and independent.<\/p>\n

Referring to international developments and institutional rules, he noted that party nomination should not translate into an obligation of allegiance to the appointing party. Once appointed, an arbitrator becomes a member of the arbitral tribunal and must approach the dispute with an open mind.<\/p>\n

He also underlined the continuing obligation of arbitrators to make disclosures under Section 12, observing that failures in disclosure can have serious consequences, including challenges to awards and enforcement proceedings.<\/p>\n

At the same time, Justice Rao acknowledged the practical difficulties that can arise in three-member tribunals, particularly where party-appointed arbitrators appear to adopt positions perceived as favouring the party that nominated them. In his view, clearer adherence to the statutory standards of independence and impartiality is essential to address this uncertainty.<\/p>\n

Arbitration cannot replicate court proceedings<\/h3>\n

A significant part of Justice Rao’s address focused on the conduct of arbitral proceedings. He identified “due process paranoia” and the importation of court practices into arbitration as two factors contributing to delay.<\/p>\n

He cautioned arbitrators against repeatedly granting extensions and indulgences merely to ensure that every possible procedural opportunity is provided to the parties. While procedural fairness remains fundamental, he stressed that arbitration cannot achieve its purpose if proceedings are allowed to continue indefinitely.<\/p>\n

Justice Rao also spoke about what he described as “guerrilla tactics” adopted in some arbitrations, including delays in filing pleadings, extensive document requests, prolonged cross-examinations, frivolous applications and challenges to arbitrators at advanced stages of proceedings.<\/p>\n

He called for arbitrators to exercise greater control over proceedings and adhere more firmly to procedural timelines.<\/p>\n

He also noted the contrast between the conduct of counsel in domestic and international arbitrations, observing that the same lawyers may adopt a considerably more disciplined approach when appearing before international arbitral tribunals.<\/p>\n

Controlling costs and duration<\/h3>\n

Justice Rao emphasised that prolonged proceedings have consequences not only for efficiency but also for the cost of arbitration.<\/p>\n

He supported greater certainty around arbitral fees and suggested that lump-sum fee structures, with payment linked to the conclusion of proceedings as is commonly seen in institutional arbitration, could be considered more widely.<\/p>\n

The larger objective, he observed, should be to ensure that arbitrations do not become expensive, prolonged substitutes for litigation.<\/p>\n

The role of the arbitration bar<\/h3>\n

Justice Rao highlighted the important role that an organised arbitration bar can play in developing India’s arbitration culture.<\/p>\n

He called for continuous training of arbitrators and arbitration counsel, as well as greater efforts to familiarise practitioners with the distinctive nature of arbitral proceedings.<\/p>\n

He also noted the emergence of younger lawyers who are choosing to specialise exclusively in arbitration. Such developments, he suggested, should be encouraged as part of a broader effort to build long-term professional capacity.<\/p>\n

Limiting judicial intervention<\/h3>\n

Turning to judicial intervention, Justice Rao acknowledged that the approach of Indian courts towards arbitration has evolved considerably from the position under the earlier 1940 legislation.<\/p>\n

At the same time, he cautioned against attempts to approach courts during arbitral proceedings through repeated applications, including challenges relating to jurisdiction. He emphasised that judicial intervention should remain limited and that courts should ordinarily allow arbitral proceedings to run their course.<\/p>\n

On challenges to awards under Section 34, Justice Rao expressed concern that almost every arbitral award appears to face a challenge. He advocated a more restrained approach by parties and suggested that courts should impose exemplary costs where Section 34 proceedings are pursued without a sustainable basis.<\/p>\n

He also expressed reservations about introducing a further appellate layer on facts and law after a Section 34 decision, noting that an additional appeal could add years to the dispute-resolution process and undermine the objective of finality in arbitration.<\/p>\n

Enforcement of foreign awards<\/h3>\n

Justice Rao observed that concerns regarding delays in the enforcement of foreign awards in India should be viewed against the improvements that have taken place in recent years.<\/p>\n

While acknowledging that delays and instances of excessive scrutiny may still arise, he noted that Indian courts have increasingly recognised the need to avoid unnecessary interference with foreign awards and to respect the limited grounds available for refusing enforcement.<\/p>\n

One of the central messages of Justice Rao’s address was that India’s ambitions to become a leading international arbitration destination must begin with strengthening domestic arbitration.<\/p>\n

He referred to the significant volume of disputes in India and argued that improving the domestic arbitration experience would be critical to building confidence in the Indian dispute-resolution system.<\/p>\n

In this context, he suggested reducing the number of judicial layers and forums through which arbitration-related disputes must pass. Among his proposals was the creation of specialised benches in High Courts to deal with Section 34 proceedings, instead of leaving such matters to prolonged adjudication at different levels.<\/p>\n

He also reiterated the importance of dedicated judicial benches for commercial matters, observing that delays in commercial litigation and arbitration-related proceedings can send the wrong signal to businesses and investors.<\/p>\n

Building capacity through institutions<\/h3>\n

Justice Rao repeatedly returned to the theme of capacity building. He emphasised that the development of a strong arbitration ecosystem would require sustained investment in arbitrators, counsel and arbitral institutions.<\/p>\n

He called upon arbitration institutions and bar associations to take the lead in organising structured training programmes, including practical training in drafting pleadings and conducting arbitrations.<\/p>\n

He also highlighted the importance of developing a sizeable pool of skilled arbitrators and full-time arbitration counsel, rather than relying predominantly on a relatively small group of established practitioners and retired judges.<\/p>\n

Moving from ad hoc to institutional arbitration<\/h3>\n

The transition from ad hoc to institutional arbitration formed a significant part of Justice Rao’s concluding observations.<\/p>\n

While acknowledging the continued prevalence of ad hoc arbitration in India, he stressed the need to promote institutional mechanisms and build greater confidence in arbitral institutions.<\/p>\n

According to Justice Rao, the principal challenge facing institutions is not merely the existence of institutional frameworks, but trust and confidence among users of arbitration.<\/p>\n

He observed that corporate general counsel and law firms play a critical role in determining which arbitral institutions are selected in commercial contracts. The continued preference for established international institutions, he suggested, reflects the confidence that users have in their rules, panels, administration and procedures.<\/p>\n

For Indian institutions to attract greater use, Justice Rao called for sustained engagement with general counsel, law firms and other stakeholders to understand what users expect from an arbitral institution and where institutional processes can be strengthened.<\/p>\n

He identified factors such as institutional rules, the quality and diversity of arbitral panels, administrative personnel and effective oversight of proceedings as important elements in building institutional credibility.<\/p>\n

A long-term vision for Indian arbitration<\/h3>\n

Concluding his address, Justice Rao urged stakeholders to adopt a long-term perspective on arbitration reform.<\/p>\n

Rather than focusing only on what can be achieved over the next three or four years, he encouraged institutions, courts, lawyers and arbitrators to think 20 or 30 years ahead.<\/p>\n

Drawing on the example of long-term planning in other sectors, he emphasised that the arbitration ecosystem too requires sustained planning and institution-building.<\/p>\n

The future, he said, should see a larger pool of professionally trained arbitrators, a strong community of full-time arbitration counsel, credible arbitral institutions and greater confidence in India as a dispute-resolution destination.<\/p>\n

His address ultimately underscored that strengthening Indian arbitration is not the responsibility of any single stakeholder. Courts, arbitrators, counsel, bar associations, institutions and users of arbitration must collectively contribute to building a system that is efficient, credible, diverse and capable of meeting the demands of India’s growing economy.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Justice L. Nageswara Rao, former Judge of the Supreme Court of India, highlighted key areas for strengthening India’s arbitration framework at GHAC Arbitration Week 2026, emphasising greater efficiency, institutional arbitration, procedural discipline, capacity building and timely resolution of disputes. He also underscored the need for a diverse and independent pool of arbitrators and a long-term vision to establish India as a leading arbitration destination.<\/p>\n","protected":false},"author":67512,"featured_media":395395,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[107244,97664,113816],"tags":[41950,54333,64640,76224,29855,37235,113111,42856,44329,46963,114055],"class_list":["post-395392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-domestic","category-events-collaborations","category-ghac-arbitration-week","tag-arbitral-proceedings","tag-arbitration-ecosystem","tag-arbitration-in-india","tag-arbitration-reforms","tag-capacity-building","tag-dispute-resolution","tag-ghac-arbitration-week-2026","tag-indian-arbitration","tag-institutional-arbitration","tag-justice-l-nageswara-rao","tag-justice-nageswara-rao"],"yoast_head":"\nJustice L. 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