Udai Singh and Apoorva Tapas talk about the future of arbitration in India by introducing a self corrective nature of arbitration process.
Abstract
Institutional arbitration posits a more secure environment for arbitration than that conducted on an ad hoc basis. The reputation of these institutions is gradually built up through sustained standards of integrity and can be tarnished by a single incident of favouritism/unfairness. While no institution (including the judiciary) is infallible, it would be pragmatic to trust arbitral institutions given the self-corrective and testing nature of the arbitration process, in which the onus of quality rests on the institution. With institutional arbitration being much more effective and dependable in practice, the overambitious invasion by the judiciary to take absolute control in the appointment of
arbitrators has given a blow to the institutional arbitration. This needs to be urgently redressed and an attempt is made to delve into factors which place institutional arbitration at a higher pedestal.