Indian courts have moved away from interventionist tendencies in arbitration: CJI BR Gavai at DAW 2025

Inaugurating the Delhi Arbitration Weekend (DAW) 2025, Chief Justice of India (CJI) BR Gavai declared that India is “at a tipping point” in its arbitration journey, stressing that robust institutions and a supportive judiciary are essential for the country to emerge as a trusted global hub.

The inaugural session, hosted jointly by the Supreme Court of India, the Delhi High Court and the Delhi International Arbitration Centre (DIAC), brought together judges and practitioners from across various jurisdictions. Delhi High Court Chief Justice Devendra Kumar Upadhyaya High Court of Australia Chief Justice Stephen Gageler AC were also present.

In his address, CJI Gavai said,

"Without credible institutions and vigilant courts, arbitration risks either becoming captive to power or collapsing under mistrust...India’s arbitration framework must rest on institutions that inspire confidence and a judiciary that lends legitimacy to the process."

CJI Gavai noted the distinctive character of DAW, describing it as “perhaps the only arbitration gathering hosted by the judiciary of a country.” He emphasised that it has quickly evolved into a global platform for dialogue and collaboration.

Tracing arbitration’s origins, CJI Gavai linked the modern practice to community traditions.

“Arbitration is an age-old instinct of resolving disputes by entrusting a neutral third party rather than letting conflict fester,” he said, citing Indian village panchayats, medieval European guilds, African tribal systems and Aboriginal practices.

While global conventions such as the New York Convention of 1958 and the UNCITRAL Model Law of 1985 provided the framework, CJI Gavai noted that their success depended on how national courts and institutions implemented them.

He highlighted how India has invested in arbitral infrastructure, legislation and judicial support in recent years.

“At the heart of this change lies the growing recognition that strong institutions are the true catalysts of arbitral reform,” he said, noting that Indian institutions had begun to alter global perceptions of India as a seat of arbitration.

He pointed to DIAC’s performance - 915 cases disposed of and more than 15,000 hearings conducted in 2024 - as evidence of growing credibility. CJI Gavai drew comparisons with the Australian Centre for International Commercial Arbitration, observing that credibility is built “not overnight, but through consistent effort and transparency”.

CJI Gavai also lauded the Arbitration Bar of India, which is developing protocols on ethics, construction disputes, treaty arbitration, diversity and responsible use of technology. These initiatives, he said, demonstrated that arbitration professionals were themselves shaping the reform agenda.

Courts, he underlined, were central to arbitration’s evolution. He cited landmark rulings:

• CORE v. ECI SPIC SMO MCML (2024), where a Constitution Bench struck down unilateral appointment clauses.

• Gayatri Balasamy v. ISG Novasoft (2025), where the Supreme Court held that courts can modify arbitral awards.

• Avitel Post Studioz v. HSBC (2024), where enforcement of foreign awards was limited to rare cases of bias.

“These rulings strengthen faith domestically and internationally, signalling that Indian courts have moved away from interventionist tendencies,” CJI Gavai said, adding:

“Judicial restraint is not a sign of abdication, but of maturity and strength."

Even as he painted an optimistic picture, CJI Gavai acknowledged challenges: ensuring access for MSMEs, addressing high arbitrator fees and procedural expenses, and preventing speculative claims.

“The very parties who most need quick and affordable remedies are driven away from arbitration due to the associated expense. By streamlining processes and managing costs, we can unlock the full benefits and potential of arbitration,” he said.

In his remarks, Chief Justice Upadhyaya stressed the importance of openness to global practices while recognising India’s unique challenges.

“Unless we expose ourselves to better ideas and practices, we will not evolve. We always find arbitration at inherent conflict with the civil procedure of the country. It is only with deliberation we can find the way ahead to such inherent conflicts.”

On technology, he struck a note of caution.

“The task of adjudicating disputes cannot be relegated to artificial intelligence since at the heart of human mind lies the idea of justice.”

He also highlighted the importance of the seat in arbitration.

“Seat gives legitimacy to arbitration. It assures the parties that awards will be enforced and implemented.”

Justice Gageler spoke at length about how arbitration functions in Australia and how the courts view challenges to an arbitral award. He also took the audience through the evolution of arbitration law.

The inaugural session also witnessed the launch of the Delhi Arbitration Review, a flagship publication aimed at providing practitioners with insights, case analyses and institutional updates. Its release was positioned as a key knowledge-building initiative to strengthen Delhi’s place on the global arbitration map.