Justice Nagarathna Emphasizes Role of Arbitration and Mediation in Modern Justice System
In New Delhi, Supreme Court judge Justice BV Nagarathna highlighted the significant role of arbitration and mediation during her speech at the International Conference on ‘Arbitration in the Era of Globalisation,’ organized by the Indian Council of Arbitration.
Justice Nagarathna emphasized that arbitration and mediation should not just be seen as alternatives to traditional court processes but as vital parts of a contemporary justice system. She pointed out that in today’s complex world, disputes often involve legal, social, and commercial elements that may require voluntary solutions rather than court rulings.
She noted a shift from traditional methods of resolving disputes towards alternative dispute resolution (ADR) methods like arbitration and mediation. Justice Nagarathna stated that arbitration has become the preferred solution for international business disputes, highlighting its benefits, such as providing neutral grounds, flexibility in process, confidentiality, and allowing parties to have more control over the outcome.
She explained that international arbitration is backed by the New York Convention, which ensures that arbitration rulings are recognized and enforceable in over 170 countries. Justice Nagarathna also spoke about investment arbitration under bilateral treaties that protect foreign investors against unfair actions by host nations, emphasizing the treaties’ role in ensuring fair treatment and neutral dispute resolution.
She pointed out that many disputes in fields like infrastructure and technology often need arbitrators with specialized knowledge, stressing the need for developing such expertise in India to enhance the country’s reputation as an arbitration hub.
On the topic of mediation, Justice Nagarathna conveyed its unique approach to resolving disputes by encouraging communication and cooperation between parties, which can lead to mutually satisfactory agreements. Mediation proves particularly effective in situations like family issues or long-term business relationships, where preserving connections is essential.
While discussing the Mediation Act of 2023, she acknowledged its importance in formalizing mediation in India but noted that full implementation is still lacking. She urged that better coordination between mediation centers, legal service authorities, and training institutions is necessary to ensure effective execution.
Justice Nagarathna also highlighted the importance of pre-litigation mediation, encouraging closer collaboration among various entities to make mediation a more integrated part of the dispute resolution process.
She shared that nations like Singapore have successfully set up mediation frameworks, suggesting that India can benefit from similar institutions that combine arbitration and mediation expertise. Justice Nagarathna reiterated that negotiation remains the cornerstone of conflict resolution and often prevents disputes from escalating into more formal processes.
In conclusion, she stressed that a mature legal system must include a variety of complementary dispute resolution methods to effectively address diverse conflicts.
