CJI Calls for Strengthening Arbitration to Address Judicial Backlog and Global Credibility

Updated 13 Jul 2026

Contents4

Hindustan Times - India · 13 Jul 2026 · 2 min read
Prelims · Polity Mains · GS2 Governance High relevance

CJI Surya Kant emphasized the urgent need to strengthen India's arbitration framework to reduce the 50 million pending cases and enhance India's position as a global arbitration hub, citing gaps in legislative intent and implementation.

Key points

Arbitration Council of India (ACI): Despite being established through the 2019 amendments to the Arbitration and Conciliation Act, the ACI remains non-functional, undermining India's arbitration credibility.

Draft Arbitration and Conciliation (Amendment) Bill: Proposed reforms include reducing judicial intervention, recognizing emergency arbitration, and streamlining timelines, based on recommendations by the TK Viswanathan Committee.

Judicial Backlog: With over 50 million pending cases, CJI highlighted arbitration, mediation, and online dispute resolution as critical complements to the conventional judicial system.

Global Arbitration Hub: India aims to become a preferred arbitration seat but faces a 'credibility deficit' due to delayed implementation of reforms and reliance on foreign institutions like the Singapore International Arbitration Centre (SIAC).

Foreign Dependence: Indian parties are the third-largest users of SIAC, reflecting a lack of trust in domestic arbitration institutions.

[GS2-Governance] This connects to governance reforms as efficient arbitration can reduce judicial backlog and improve ease of doing business, aligning with India's economic goals.

[GS3-Economy] The reliance on foreign arbitration centers impacts India's economic sovereignty and highlights the need for robust domestic institutions to retain commercial disputes within the country.

Way Forward: India should expedite the constitution of the ACI, implement the Draft Arbitration Bill, and build institutional credibility through consistent practice and impartiality to attract global arbitration business.

Key terms

Arbitration Council of India (ACI)
A statutory body established under the 2019 amendments to the Arbitration and Conciliation Act, tasked with grading arbitration institutions and accrediting arbitrators. Its non-constitution reflects systemic delays in implementing critical judicial reforms.
Arbitration and Conciliation Act, 1996
The primary legislation governing arbitration in India, aimed at providing a legal framework for domestic and international arbitration. Recent amendments seek to reduce judicial intervention and enhance institutional arbitration.
Singapore International Arbitration Centre (SIAC)
A leading global arbitration institution based in Singapore, frequently used by Indian parties for resolving commercial disputes. Its popularity underscores India's lack of trusted domestic arbitration mechanisms.
TK Viswanathan Committee
An expert committee formed to recommend reforms to India's arbitration framework. Its suggestions form the basis of the Draft Arbitration and Conciliation (Amendment) Bill, focusing on procedural efficiency and institutional strengthening.

Practice question

Discuss the challenges and potential reforms needed to strengthen India's arbitration framework in addressing judicial backlog and enhancing its global credibility. (250 words, 15 marks)

GS2 15 marks 250 words Mains

Key terms to include: Arbitration Council of India (ACI) Singapore International Arbitration Centre (SIAC) TK Viswanathan Committee Arbitration and Conciliation Act, 1996 Judicial backlog Global arbitration hub Draft Arbitration and Conciliation (Amendment) Bill Economic sovereignty

Answer framework

Introduction

Briefly introduce the current state of arbitration in India, mentioning the high number of pending cases and the need for a robust arbitration framework to complement the judicial system.

Challenges in India's Arbitration Framework

Non-functional Arbitration Council of India (ACI) despite 2019 amendments.

Reliance on foreign arbitration centers like SIAC due to lack of trust in domestic institutions.

Delayed implementation of reforms such as the Draft Arbitration and Conciliation (Amendment) Bill.

Judicial intervention and procedural inefficiencies leading to delays.

Impact on Judicial Backlog and Global Credibility

Over 50 million pending cases highlight the need for alternative dispute resolution mechanisms.

Credibility deficit in domestic arbitration institutions affects India's position as a global arbitration hub.

Economic sovereignty concerns due to reliance on foreign arbitration centers.

Potential Reforms

Expedite the constitution and operationalization of the ACI.

Implement the Draft Arbitration Bill to reduce judicial intervention and recognize emergency arbitration.

Build institutional credibility through consistent practice, impartiality, and transparency.

Promote mediation and online dispute resolution as complementary mechanisms.

Conclusion

Emphasize the need for a multi-pronged approach to reform India's arbitration framework, ensuring it is efficient, credible, and globally competitive, thereby reducing judicial backlog and enhancing India's economic sovereignty.

Fact check

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