Speaking at the fourth edition of the international conference on "arbitration in the era of globalisation" in Dubai, CJI Ramana said Indian courts are known for their pro-arbitration stance.
"Rule of law and arbitration are not in conflict with one another. Both arbitration and judicial adjudication aim to serve the same goal--the pursuit of justice. The Indian courts are known for their pro-arbitration stance. Courts in India assist and support arbitration, and leave the substantive part of adjudication to the Arbitral Tribunal itself," said the CJI.
He added, "A crucial component of attracting investors is providing a stable and efficacious mechanism for redressal of disputes. The legislature, executive, and the judiciary of India at all levels, are committed to improving the arbitration landscape and the ease of doing business in the country. The Commercial Courts Act enacted by the Indian Parliament led to further streamlining and speedy dispensation of justice in commercial matters."
CJI also said that the Indian judiciary can be trusted for its absolute independence and its inherent constitutional strength to treat all parties equally and equitably.
"Arbitration is the best-suited dispute resolution mechanism for the globalized world. International Arbitration is party-driven, has procedural flexibility, and involves domain experts. Further, arbitration is a time-bound mechanism structured to deliver immediate relief," said CJI Ramana.
On the aspect of uniformity and stability in the dispute resolution process, CJI Ramana said that parties should be confident that an award rendered by a tribunal in one nation will be executable in another, without any hassle.
CJI said, "To meet this goal, nations around the world have attempted to create effective structural mechanisms. Efforts were made to ensure that arbitration becomes a popular mode of dispute resolution. To increase the faith of parties on the arbitration framework of a nation, adequate statutory backing regarding enforcement of awards is necessary. Interim measures of protection are also important."
"It might be relevant to mention that, when it comes to the enforcement of foreign decrees, different countries follow different procedures for recognition and enforcement of the same. India and the United Arab Emirates have entered into a reciprocal arrangement in 2020 to opt for automatic enforcement of foreign decrees by Courts of either countries. This is a special procedure meant only for decrees from specified reciprocating countries which form a part of the Schedule of recognized countries under Section 44A of the Code of Civil Procedure in India. Apart from the United Arab Emirates, India has entered into similar understandings with United Kingdom, Singapore, Bangladesh, Malaysia, Trinidad and Tobago, New Zealand, and Hong Kong, among others," he added.
CJI Ramana said that promoting a culture of arbitration is not a simple task and having a pro-arbitration jurisprudence and policy is not enough and some innovative steps must be taken in this regard.
The CJI said several international dispute resolution institutions are being established across India to provide the commercial world with a speedy and effective resolution of their disputes.
He further said that another form of dispute resolution is mediation, which is increasingly gaining prominence in the international commercial sphere.
"Private mediations, which take place at the pre-litigation stage, are also becoming more prevalent in the country. Most arbitration clauses in commercial contracts have a multi-tiered approach, where the first attempt to resolve the dispute between parties is through mediation or negotiation," CJI said while addressing the gathering.
( With inputs from ANI )
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