Editorial 1: The real Indian arbitrator needs to stand up

Context

The focus in Indian arbitration discussions often misses the crucial need to build a class of elite arbitrators.

Introduction

India’s economic growth has naturally sparked many discussions about the potential of Indian arbitration to play a major role in this expansion.
As domestic and cross-border commerce increase, commercial disputes have become unavoidable. The Indian court system remains overloaded and ill-equipped to handle such disputes, which are often time-sensitive, technical, and involve high-value claims. As a result, commercial arbitration, especially through specialised arbitral institutions, is seen as an attractive alternative.
 

Rethinking Indian Arbitration: Are We Overlooking the Role of Arbitrators?

• However, a key question arises: is the Indian arbitration ecosystem truly meeting the expectations of its growing popularity?
• Is India genuinely on its way to becoming a global arbitration hub?
  • While much attention is given to legislative reforms and reducing judicial interference, the most critical players — the arbitrators — often escape close examination.

The subject of human capital

• The success of any legal system depends not just on its rules and structure, but also on the strength of its human capital.
• In Indian arbitration, this human capital includes arbitration lawyers, but more crucially, the arbitrators who act as decision-makers.
• The credibility and legitimacy of Indian arbitration mainly rest on two factors:
  • the efficient management of arbitration proceedings, and
  • the quality of the final arbitral awards.
• In both these areas, arbitrators play a key role.
• While lawyers assist during the proceedings, it is the arbitrators who:
  • shape the procedure,
  • fix timelines,
  • settle procedural disputes, and
  • impose penalties when necessary.
• The arbitral awards they deliver can be challenged in courts, either in India or internationally, making their decisions extremely important.
• Therefore, the Indian arbitrator stands at the very core of the country's arbitration ecosystem.

An exclusion

• Conversations around Indian arbitration rarely stress the need to build elite arbitrators.
• There are many efforts to strengthen the arbitration bar (lawyers), but little focus on the arbitration bench(arbitrators themselves).
• This gap is unfortunate.

Recent Concern Raised

Reasons for the Exclusion

• Traditional Thinking:
  • In India, elite arbitrators are often assumed to be retired Supreme Court or High Court judges.
• Appointment Practices:
  • Courts, litigants, lawyers, and arbitral institutions prefer former judges for high-value disputes.
• Assumption:
  • It is assumed that judicial experience automatically means better arbitration outcomes.

Reality Check

What Needs to Change

• Judicial experience alone is not enough to make an effective arbitrator.
• A good arbitrator must be:
  • Legally proficient.
  • A strong manager of the arbitration process.
  • Flexible and innovative, moving beyond rigid court-style procedures.
  • Skilled in using international best practices.
• Soft-skills are essential:
  • Arbitrators often work with colleagues from different countries and cultures.
  • They must deliberate, negotiate, and convince other arbitrators.
  • Special training is needed to build these skills.
• Writing an arbitral award is different from writing a court judgment:
  • Requires detailed review of documents, expert testimonies, and financial analysis to determine damages.

The improvements needed

• The ecosystem of Indian arbitration needs at least two key improvements.
• First, the pool of Indian arbitrators must be diversified to include candidates specialising in arbitration.
  • It should not be limited to advocates and retired judicial officers.
  • It should also welcome trained experts from various fields, who can offer a range of nuanced perspectivesin decision-making.
• Second, every candidate, regardless of their background, must complete a rigorous training and accreditation process.
  • This can involve specialised certificate courses, workshops organised by arbitral institutions, or membership in professional arbitration associations.

Conclusion

The goal is not just to upskill, but also to build a culture where arbitration is no longer seen as a neglected sibling of court litigation. Only then can a truly elite Indian arbitrator emerge and take their rightful place in the global arbitration community.