The Economic Times: Courts, govt, and the curious case of weakening arbitration softly

In a country where the wheels of justice turn slower than how ancient philosophers had imagined, private parties doing business found refuge in arbitration. The Supreme Court constitution bench's judgment in the 'Gayatri Balasamy vs ISG Novasoft Technologies' case last month, is the latest in a long list of recent moves by the apex court and GoI that raise concerns over whether arbitration is truly as effective as a refuge.

Commercial disputes in courts can take years to resolve. Arbitration between commercial parties has been used to sidestep judicial inefficiencies. It typically leads to faster resolutions, reducing prolonged legal costs and business disruptions. It also offers a single-tier process with limited avenues for appeal. These features provide finality and certainty.

The judiciary isn't alone to blame. GoI, too, is playing a part in weakening arbitration and reducing stakeholders' confidence in the system.