India Arbitration Mimics Courts, Justice Warns of Delays, Costs

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AuthorAarav Shah|Published at:
India Arbitration Mimics Courts, Justice Warns of Delays, Costs
Overview

Supreme Court Justice Manmohan warns that arbitration in India is becoming like traditional court cases. This trend defeats arbitration's goal of being a faster, cheaper way to resolve disputes, leading to higher costs and longer waits for businesses.

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Arbitration Losing Speed and Affordability

Supreme Court Justice Manmohan has raised serious concerns about arbitration in India. He stated that the arbitration system, which was created to be a fast and inexpensive alternative to court cases, is now acting just like court proceedings.

Justice Manmohan questioned why arbitration had become a replica of court processes. He explained that arbitration, intended to be informal and cheap, has lost its edge. He pointed out examples like formally marking documents even when their validity isn't disputed, which removes the process's intended flexibility and cost savings.

Push for Mediation and Simpler Justice

Justice Manmohan made these remarks at the Legal Conclave & Awards Ceremony 2026, organized by the Society of Indian Law Firms (SILF) and the Society of Legal Professionals (SLP). He emphasized that identifying issues is crucial for improvement, not blame. The need for more input from academia and global legal discussions was also highlighted, noting that legal systems worldwide face similar challenges, including the use of technology.

During the event, Additional Solicitor General Chetan Sharma acknowledged India's major backlog of cases. He supported using more mediation and other agreements to solve disputes. Lalit Bhasin, Chairman of the Conclave and President of SILF, agreed, noting the rising costs of arbitration and the importance of making justice more accessible and affordable for everyone.

Technology's Role in Legal Resolution

Justice Manmohan also discussed how effective mediation can be, especially in complex family disputes where settling one issue can prevent multiple separate cases. He advised that technology should help, but humans must retain final decision-making power. This suggests a careful approach to integrating AI and automation in law, ensuring technology supports rather than replaces essential human oversight.

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