Delay and Litigation Cost: Major Roadblocks in Arbitration Process

The evolution of arbitration law in India was spurred by the need to address the inefficiencies of traditional court systems in resolving commercial disputes. The Arbitration and Conciliation Act, 1996, aimed to expedite dispute resolution by establishing ad-hoc tribunals composed of specialists. Amendments in 2015, particularly the introduction of Section 29A mandating a one-year timeline for Arbitral Awards and changes to Section 36 eliminating the 'automatic stay' regime, further bolstered the pro-arbitration stance. \r

\r

The Supreme Court's intervention in minimizing court interference at various arbitration stages, along with High Courts' alignment, facilitated the implementation of arbitral awards. However, challenges persist, notably delays in arbitration proceedings, highlighted by prolonged pendency of Section 11 petitions and post-award stages. \r

\r

Addressing these issues requires streamlining the appointment of arbitrators, enforcing statutory timeframes for adjudication, and reevaluating the cost implications of setting aside arbitral awards. As arbitration gains prominence, fostering an environment conducive to ease of doing business demands comprehensive reforms.