Udai Singh and Apoorva Tapas talks about the future of arbitration in India by introducing a self corrective nature of arbitration process.
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 selfcorrective 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.