NEW DELHI, June 9: Chief Justice of India (CJI) Surya Kant has stressed the growing importance of mediation in commercial dispute resolution, saying it is no longer merely an alternative mechanism but an essential tool for achieving timely, amicable and lasting settlements.
Delivering a lecture at the Supreme Court of the United Kingdom on Monday, the CJI observed that international arbitration is increasingly facing procedural complexities that undermine its original purpose of providing a faster and more efficient alternative to litigation.
Speaking on “Mediation, Arbitration and the Courts: Converging Trends in the Indian and English Approaches in Commercial Dispute Resolution,” Justice Kant called for a shift in the way corporations and legal systems approach disputes.
“The primary question for a modern corporation should no longer be where to litigate, but rather how to resolve,” he said, adding that courts and alternative dispute resolution mechanisms should be viewed as complementary rather than competing systems.
Highlighting the role of traditional courts, the CJI said they remain the ultimate guardians of legal standards and constitutional accountability, while mediation provides the flexibility needed to maintain commercial harmony and resolve conflicts efficiently.
Justice Kant noted that arbitration had emerged globally as a response to the limitations of conventional court proceedings, particularly in matters involving technical complexity, speed, party autonomy and cross-border commerce. In India, he said, the Arbitration and Conciliation Act, 1996 and subsequent judicial interpretations have fostered a pro-arbitration environment.
However, he pointed out that arbitration is increasingly burdened by litigation over issues such as the validity of arbitration agreements, appointment of arbitrators, jurisdictional questions and challenges to arbitral awards. These disputes often result in prolonged court proceedings, delaying the resolution process.
The CJI said similar challenges are being experienced across jurisdictions worldwide, including in the United Kingdom, where arbitration-related litigation has become a growing concern.
Against this backdrop, he described mediation as the “authentic frontier of commercial agility,” capable of delivering faster and more collaborative outcomes.
Referring to recent developments in India, Justice Kant highlighted the enactment of the Mediation Act, 2023, which grants mediation an independent and robust legal framework. The law mandates pre-litigation mediation in many commercial disputes and recognises online mediation, enabling parties from different jurisdictions to settle disputes without extensive procedural requirements.
The CJI also noted that the Supreme Court has been actively promoting mediation in sectors such as insurance and motor accident compensation claims to reduce litigation and facilitate quicker settlements.
“These developments reflect a growing recognition that mediation is no longer an alternative, but an essential instrument for achieving timely, amicable and lasting resolution,” he said.
Justice Kant concluded by emphasising that mediation, arbitration and courts should work together to create a more efficient and responsive system of commercial justice. (Agencies)
