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The Arbitration & Conciliation (Amendment) Act, 2015 placed keeping in mind the rapidly increasing globalization in India and as a developing country, India needs to match the need of the world by making foreign business to facilitate this business ADR is important to resolve the dispute and is proved to be a fast track Justice mechanism but when it comes to the general practice inside the country between the citizens of India ADR lacks the trust of the common people. ADR indeed provides a different and more personalized platform for the settlement of the issue but it lacks some of the basic elements for which the act was made at first instance like the main purpose of the act was to minimize court intervention, provide fast track justice, become a less time and cost consuming process but in reality, the act is not fulfilling its basic objectives, taking into consideration the framework of arbitration, The development of arbitration law, how the monumental system of checks and balances under a sort of “privatization” and personalized process evolved in India is explored, including how the current arbitration system in India is still plagued with numerous faults and shortcomings, since the practice of alternate dispute resolution has not developed in an exemplary way as being a quick-witted and economical system for resolution of commercial disputes, in this paper.

Therefore, various measures could be taken for the growth of arbitration. This article not only tracks down the history of how this practice rose in our nation, it argues the problems in the implementation of the act contributed immensely to the failure of the Arbitration & Conciliation Act, 2015 in achieving its objectives and the lucrative ways of filling up those loopholes via different measures like creating awareness, through technological advancement, etc. There are other numerous issues also covered such as the ground realities as well our take on how A. It could be used to benefit Arbitration and other resolution mechanisms, we have also covered why the process of these resolution mechanisms are important in the first place.


The rise that is significant in the economic growth of countries over the last few years has been along with a considerable upsurge in how many commercial disputes can also arise. In India too, fast globalization regarding the economy plus the enhancement that is resulting in competition has increased commercial disputes.

During the same time, the price of commercial growth, modernization, and improvement of socio-economic circumstances has, in most cases, outpaced the price of the development of dispute resolution mechanisms. Increased workloads have not only overburdened courts but also led to a blatant error slowing down the adjudication process, which is inevitably cataclysmic for our system. As a result, alternative dispute resolution mechanisms (ADR), including arbitration, have become more essential for companies running in India and also those doing business with Indian companies.

Being a part of a developing country and modernizing world we see how speed matters in different aspects of life and we understand the need of providing a medium for fast-track justice so as the Indian legislation but the need for applicability of these laws into practical situations brings out the loopholes in the system, but we believe that if a problem is recognized Actions could be taken to fill up these loopholes and makeup pathway to the ultimate goal which is to provide a channel for fast track dispute resolution without actually burdening the courts but as serious as the original system where parties involved could resolve their dispute in a lot more harmonious way and interests could be protected for the future business propositions as well. Through this article, we aim at recognizing the loopholes in the Process of fast-track justice: arbitration and providing our halves to fill up these holes.


Arbitration as a concept is not new to the Indian legal system and we can see the instances even before the advent of the Arbitration and conciliation act, of 1996. In the arbitration and conciliation act, 2015, Section 2(1) (a) of the Act provides for Arbitration as any arbitration to be acceptable arbitration core requirements of accepted arbitration are:

  • Must be an arbitration agreement.
  • Must be a dispute
  • Reference to a neutral independent party for its determination
  • The award must be binding

Any kind of arbitration is allowed in and it doesn't need to be administered by a permanent orbital institution it could be statutory arbitration, Ad Hoc arbitration, or institutional arbitration.

In UNICITRAL model law Article 2(a) defines arbitration similarly to the act, the object is to give freedom to the parties to resolve disputes through any type of arbitration.

Pre-British period

Arbitration has quite a history in India. In ancient times, people often voluntarily submitted their disputes to a group of people in the community, called the panchayat, for a resolution that was both just and binding.

Modern arbitration law in India originated out of the Bengal Regulations in 1772, Bengal Regulations provided for guidance with a court to arbitration, with all the consent of the ongoing parties whether it be in lawsuits for accounts, partnership deeds, and breach of agreement, amongst others.

Until 1996, the law of arbitration governing India consisted primarily of three statutes:

  1. The 1937 Arbitration (Protocol and Convention) Act,
  2. The 1940 Indian Arbitration Act, and
  3. The 1961 Foreign Awards (Recognition and Enforcement) Act.

The 1940 Act was what the law states as general arbitration in India across the lines of the English Arbitration Act of 1934, and both 1937, as well as the 1961 Acts, were designed to Enforce Foreign Arbitral Awards (the 1961 Act applied the New York Convention of 1958).

The federal government of India enacted the Arbitration and Conciliation Act, 1996 (the 1996 Act) as an effort to modernize and galvanize the outdated Act of the ’40s.

The 1996 Act is a statute based solely on the lines of the UNCITRAL Model Law. This Act repealed all three statutes which were previously in power. Its primary function was to encourage arbitration as an economic mechanism that quick the settlement of commercial disputes. The 1996 Act covers both domestic arbitration and international commercial arbitration.

British period

Before 1996, the arbitration legislation associated with the country was governed by a 1940 Act. This Act was mostly premised on mistrust of the arbitral process, and gave numerous opportunities to litigants to approach the court for intervention. Coupled with a slow judicial system this led to delays in making arbitrations effective. A comment telling the working of the old Act is available in a judgment from 1981 where in the judge (Justice DA Desai) in anguish remarked: “the way in that your proceedings under the (1940) Act are conducted and without an exception challenged in Courts, has made lawyers laugh and legal philosophers weep …”

British regulations and acts are in consolation with the system of arbitration as a part of the legal system running parallel to the judicial system.

In the Bengal regulation of 1772, it was stated in one of the clauses that in case of all disputed cases it shall be recommended to the parties to submit their decision of cause to arbitration which will provide an award which shall become a decree of the court.

Likewise, regulations of 1781, 1787, 1799, 1793, etc. focused on similar principles.

  • Like the current situation, the major causes of arbitration were related to civil suits as in the British period.
  • The 7th Bombay Presidency regulation of 1827 is governed by arbitration law.

The Arbitration Act, 1940, managed just domestic arbitration. Under the 1940 Act, intervention associated with the court was needed in all the three stages of arbitration, i.e. 

  1. Before the guide of the dispute to your arbitral tribunal, 
  2. In the duration associated with proceedings before the arbitral tribunal, 
  3. And after the honor was passed by the arbitral tribunal.

Before an arbitral tribunal, court intervention was needed to set the arbitration proceedings in motion. The existence of an agreement and a dispute had been necessary to be shown as a prerequisite. The intervention of the court was necessary for the extension of time for making an honor through the course of the proceedings. Finally, before the award could be enforced, it ended up being required to be made the rule of the court.

As the 1940 Act was perceived to be a piece good in its real operation and execution by all the concerned - parties, arbitrators, lawyers, and the courts, it proved to be ineffective and had been widely discerned to have become outdated.

The Arbitration and Conciliation Act, 1996

India enacted its brand-new Arbitration Act in line with the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration as well as the Arbitration Rules of the United Nations Commission on International Trade Law 1976 . The Statement of items and Reasons to the Act made no bones associated with the inefficiency of the legislation that is old. It claimed that the same had ‘become outdated’ and there was must have an Act ‘more responsive to demands’ this is certainly modern.

It added: ‘Our economic reforms may well not be fully effective if legislation coping with the settlement of both domestic and intercontinental commercial conflicts remains out of tune.’ The supervisory role of the process of law into the arbitral process and ‘to provide that every last arbitral honor is implemented in the every as it had been a decree of the Court’ amongst the primary goals regarding the new Act (set out in the Statement of Objects and Reasons) tend to “minimize the supervisory role of courts in the arbitral process”.

There is a combined influence of a pre-British period and British period in India in the arbitration system and traces of it can be seen, it also acts like Indian contract act section 28 recognizes two exceptions as the agreement in restraint of legal proceedings

  1. Agreement that is referred to arbitration in dispute which arises between the parties
  2. Agreement to refer to arbitration for dispute that had already arrived in the parties
  • In Specific Relief Act, 1978 Section 21 referred to arbitration.
  • Specific Relief Act 1878 Section 21 arbitration is allowed.
  • CPC 1908 has a complete second schedule referring to the arbitration act.
  • Act of IX of 1899 Indian arbitration act to recognize our agreements of arbitration allowed present as well as future dispute to arbitration.
  • Act of 1940 Indian arbitration act repeal 1899 act had too much Court intervention.
  • Arbitration and conciliation act 1996, this act is majorly used for business disputes along with other disputes as the Industrial revolution has changed to the position of the economy and to adhere to the changes this act was brought into force.

UNICITRAL, International UN Commission on international trade and law . This law is trying to bring International uniform for trade and law, come with rules of on uniformity for international business also how the dispute shall be resolved. Conciliation is added to the act because UNICITRAL asked to incorporate arbitration laws are made based on model laws played an influential role.

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We could see the instances of Arbitration in Article 39(a) of the Constitution and repeated not given a direct area has a mechanism should be adopted responsibility is on the state equal opportunity shall be provided to add her just estate cancer uniformity providing free Legal Aid suitable legislation schemes or in any other way the opportunities of for securing justice are not denied to any situation because of economic or other disabilities article 21 interpretation by the speedy trial case Khatoon vs. State of Bihar SC 1960 then in Section 89 Civil Procedure Code expressly provides for ADR mechanism legal services authority act 1937. Section 20 clause 1 of Lok Adalat discouraged to speedy and global discourse to speedy justice and along with Indian situation, General Assembly adopted model Law to ensure uniformity and all our country should due consideration on this model law should look up to the countries who are making their own ADR law because it knows the demand and what is needed in international law.

The object of the arbitration and conciliation act 1996 minimizes the judicial intervention expeditious disposal or not to prolong the preceding purpose a settlement of a fast at a faster rate created coherent and model Framework speedy settlement of commercial is pulled along with domestic ADR it also deals with international commercial.


The Civil Court usually adjudicates any dispute between the parties under the 1908 code of civil procedure (usually 2 or more). The number of litigations before these courts has increased over time, making the litigation more diverse and complex. Under India's Constitution, the Parliament may adopt specialist statutes for the establishment of specialized courts/agents for effective dispute resolution between the parties. The Parliament may adopt specialized statutes.

For example - NCLT (National Company Law Tribunal), CAT (Central Administrative Tribunal), NGT (National Green Tribunal), etc., these tribunals are set up to adjudicate a certain set of disputes which are arising out from specific statutes.


In India, the culture continues to be perhaps not quality that is “dispute way of arbitration". The Arbitrators (in most cases judges that are retired and so the followers helping arbitrators also, typically consume numerous matters in courts and numerous arbitrations, whether in connection with the day this is same usually. Oftentimes it is seen that the timelines emerge these arbitrations by the Act also because of the arbitral this can tend that is certainly presiding be taken lightly, especially because of the parties as well as times also because of the arbitrators. That is genuine non-compliance of timelines in some arbitration procedures, it was seen that there surely is no result. The situation is notably numerous in arbitration this is certainly international whether institutional or ad-hoc. This is domestic the specific legislative function of being a tool for speedy and pocket-friendly (alternative) dispute resolution process or, perhaps not in this article, we supply an issue whether an arbitration? Are the process that is commercial of that are municipal much better option being a great deal more efficient and value-efficient than domestic arbitration in India?

Alternate dispute quality strategy is progressively recognized in many different aspects of legislation and organization places both at the National and International levels. Its varying strategies will help the gatherings with deciding their disputes at their particular terms in an exceeding style that is tiny is pricey also quickly. Alternate dispute resolution methods are notwithstanding the entire process of legislation in personality. Alternative dispute resolution methods are ready to be satisfied, under law, by arrangement in the middle of your gatherings. Alternative dispute redressal strategies are utilized in some classifications of disputes, principally respectful, organization, technical, and household clashes. Thinking about various reports, it’s found that alternative dispute redressal strategies provide the arrangement this is certainly best regarding organization conflicts. The purpose of other dispute redressal revered during the Indian Constitution's introduction itself, which limits that is continuing "to secure to all or any of the citizens of India, justice-social, monetary and political-liberty, equality, and fraternity".

The Supreme Court stated this phrase linked to the concern should be tended to, a free of charge and framework that is proficient is certainly appropriate one of many fundamental frameworks of the constitution… it is our Constitutional commitment to make certain that the overabundance of instances is proclaimed and endeavors are made to build the elimination of circumstances. The broad range of rounds tend to be characterized as alternate dispute redressal measure frequently, dispute resolution measure that is replacement the settling through Court processes tend to be referenced as alternate quality this is certainly dispute.

These methods generally contain an outsider. The outsider can be an individual who is nonpartisan, gifted or a friend who is certainly skilled either assists the gatherings during strife or dispute to attain in quality by arrangement. The choice dispute resolution system because of the method that is extremely can help to save and improve specific and company connections that may preferably be harmed by the period this is ill-disposed. It is also adaptable in light in connection with reality happens it makes it possible for the gatherings to decide on techniques, which will be in line with the concept of the dispute and therefore the ongoing business setting in which. The unit of ADR may well be a push to contour a good and alternative plan that is practical to our normal construction as being lawful. It is a very improved plan of action of directing value. You can find distinctive ADR practices, as an example, Arbitration, Conciliation, Mediation, And Negotiation, court-included ADR, and overview jury fundamental.

These strategies have been made on coherent outlines to the USA, United Kingdom, France, Canada, China, Japan, South Africa, Australia, and Singapore. ADR has established such as an enhancement this is certainly great these nations and possesses perhaps not recently reduced cost and time taken for the high quality of contentions, yet additionally in giving a breeding ground that is agreeable as a less formal as well as much less puzzling discussion for different types of contentions.

The Arbitration Act, 1940 (An Act to unite and alter the statutory law identifying with Arbitration) wasn't rewarding what's needed of either the remote or worldwide criteria of deciding conflicts. Tremendous deferrals and judge mediation have frustrated the purpose of this as discernment for being a true roadway for quick quality of conflicts. The Court is incomparable in a couple of circumstances as well as on known as an understanding of the necessity to alter the legislation. This is certainly a system that cannot be borne because of the procedure for law alone, an alternate Dispute Resolution construction should be gotten to the gatherings of Chief Justices, Chief Ministers, and Law Ministers of the many States had been selected that because of the bodyweight. Exchange and business likewise demanded alterations being intense the 1940 Act. The Legislature of India figured it fundamental to present another technique and gathering for deciding intercontinental and private disputes.

Thusly The Arbitration and Conciliation Act, 1996 appeared. Regulations related to Arbitration and Conciliation are proportionate to the moved nations. Conciliation was given affirmation that is statutory a method for settlement associated with the appropriate concerns with regards to this demonstration. The demonstration of this is that it certainly is a new means of ability that unbiased professionals have to pay tiny heed for their nationality. This establishment made sure among worldwide nations who interested to put assets into India or even to aim for provided endeavors, globally speculation, the move of development, and unknown coordinated efforts. The power of the fact is that it is undeniably useful and stops the abuse of the process of the court. It is seen that the parties tend to be affected snappier significantly as well as less costly through ADR.


During the newly introduced Commercial Courts Act, a pre-litigation mediation is required, which means that the parties need to remain across each other to sort their issues out and work out with the help of a 3rd person inside a non-binding process or a binding one. The schedule for this pre-litigation mediation is 90 days. It has been unearthed that some conflicts are now actually resolved through this process. Where the recommended pre-litigation mediation fails, the parties can start a claim praying for the interim immediate relief combined with the primary relief desired in a common claim petition. However, the same just isn't possible underneath the method offered under the Arbitration and Conciliation Act, in case a tribunal is not constituted.

Although arbitration is known to be a less expensive device for the settlement of disputes, there is an issue this is certainly developing India that arbitration has changed into a costly affair due to the high charge for the arbitrators and liberal adjournments. This can be especially true for advertising hoc arbitrations. Arbitration is more economical than litigation as long as the true wide range of arbitration procedures is bound. The prevalent process the arbitrators is as uses - at the first hearing, the claimant is directed to register his claim statement and papers in help thereof; at the 2nd hearing, the opposing parties tend to be directed to lodge their particular answer and papers; at the third hearing, the claimant files their rejoinder. At every one of those phases, you can find frequently a minimum of two or three adjournments. Occasionally, programs for interim directions will also be recorded by either party, which increases the number of arbitration sittings for determining such programs that are interim. The occasion is certainly considering any question of jurisdiction does not usually arise through to the arbitral tribunal has released at least six adjournments.

Further, following the particular parties in the dispute file their pleadings such as the claims and defense, a situation for summary judgment could be made away and last sales may be passed if the court seems that the defines raised are frivolous. If such court is regarding the viewpoint that the purchase of summary wisdom is not made additionally the defense is somewhat tenable, events might be directed to proceed to research, susceptible to the deposit of the monies or perhaps a safety deposited utilizing the judge. This is especially soothing to the individual starting the outcome since the money so deposited could be withdrawn if ultimately, they succeed in being litigant.

The process of law has also begun to convene case administration hearings the place where a fixed, disciplined, and well-followed schedule, subject to hefty charges, is drafted to the commercial situation for every phase that is possible. Therefore, if this is just used, there is adjudication that is expeditious disposal of instances. Besides this, a litigant does not have to approach two community forums that are different from the purposes of summoning (calling) witnesses for evidentiary depositions, unlike in arbitrations.

More, unlike the entire process of arbitration, neither does the litigant have to fund the expense of location nor does he have to pay an additional stamp responsibility of 0.1% associated with the worth of the order that is final.


Lack of awareness

While India is on the way to modernization, it is still a developing country. In other words, most people are ignorant of Arbitration and still have more confidence in courts than in alternative dispute resolution. It is very difficult for Indians to believe in someone other than a judge because the courts are overburdened with cases that are also inherently arbitral and ADR can bring justice immediately. As arbitration is a kind of dispute settlement and institutionalized arbitration is entirely a new, structured way of arbitration that does not trust the person. Thus, institutional arbitration is a major hurdle to cross.


The 2015 amendment Act addresses and resolves many of the problems associated with arbitrators, but one of the problems remains to be resolved. With a view to the arbitration DNA strand, a speedy resolution is one of the features. The documents submitted are not so aggressive but respectful. Since the majority of arbitrators are either retired judges of the Supreme Court of India or the High Court of a particular State, sometimes the arbitration tends to follow the conventional Court format to provide documents, patterns of procedure to be followed, etc. that might hinder the arbitration's effectiveness.


True, it seems to be expensive to distribute costs for institutional arbitration, but compare them to ad-hoc arbitration and it is comparatively handy. Many arbitration agencies charge extremely reasonably high fees and institutional arbitration helps to avoid procedural disputes.


Institutional arbitration is a misconception because arbitral bodies rule to deprive the parties of the exclusive autonomy of proceedings. However, in the world, the majority of arbitral institutions have tried to balance institutionalization with the autonomy of the party. You only exclude from the sphere of party autonomy those issues which address the legality and integrity of procedures.

Government Support

This is one of the reasons why India has a weak institutional framework for arbitration. The general conditions of contracts used by the government and public sector undertakings often contain arbitration clauses, but these clauses usually do not expressly provide for institutional Arbitration. The Law Commission of India recommended that chambers be established with their own rules by trade and trade bodies.

Lack of legislation

The Arbitration and Conciliation Act, 1996, is the only parent act governing arbitration in India. The quantum of an arbitral award is the same as that of a decree from a Court but due to the lack of legislative infrastructure, most people are still not ready for risk or a leap of faith in large-scale business-related matters. Rather than just having guidelines from various forums like the Indian Arbitration Forum, Indian Council of Arbitration, etc. These guidelines must be enacted by law.

The most effective amendment of the parent act was witnessed in the year 2015, the applicability of the Act was solely dependent on one date i.e. 23rd October 2015. The most difficult section to interpret in the literature in Section 26 of the 2015 Act on the applicability of this act is because it is the different and connected procedure of both the Court and the arbitration. This section also applies to court proceedings. The question was: The act applies to Court proceedings concerning Arbitral proceedings if it passes the criteria for the applicability of that act which is 23rd October 2015 .

Now, without innovating the agreement mutually by the parties, it is impliedly expressed that the arbitral award must be given within 12 months (this time limit is a part of the 2015 Act).To overcome this confusion Section 87 was introduced in the 2019 Amendment Act which reversed the judgment of BCCI v. Kochi cricket case but later the Supreme Court struck down Section 87 of the 2019 Amendment Act. Because of this havoc, people fear to take up Arbitration to resolve the disputes. There are too many guidelines and rules that can be followed, sometimes complicating simple arbitration.

Court interference in Arbitral proceedings

The Arbitration and Conciliation Act (amended 2015) often minimizes the interference of court i.e. the court can only step into the dispute when the parties ask for it, no court is entitled to take Suo moto cognizance only on application by one of the parties in dispute. So that Courts could interfere when the dispute is related to the appointment of arbitrators (Section 11), enforcement of Arbitration Agreement/ Clause (Section 8), challenges for disqualification of an Arbitrator (Section 12), Challenges procedure (Section 13), Interim relief (Section 9), setting aside an award(Section 34), Appeal(Section 36), Injunction to the execution of an Award (Section 36). Due to these interferences by the court Arbitration is increasing the burden of the Courts. Hence, defying the purpose of Arbitration in the first place .


  • Creating Awareness
    Among the people is the first and foremost need of the fast track justice, if we want to create a better position for arbitration in India knowledge and awareness are critical. The aim must be to promote arbitration and, consequently, to prevent private players from rushing before courts without resorting to relevant contractual arbitration provisions. When people do not know their rights, they can never seek justice. Keeping this in mind, we need to create awareness about arbitration, its needs, and its importance.
    Awareness related to Arbitration can be achieved if we split the awareness program in different ways like through seminars, campaigns, informative advertisements, or by making a portal for verified information related to arbitration available for the general public with easy excess.
  • Proper legislative infrastructure
    The introduction of proper laws is also a requirement in such scenarios. Arbitration laws are required to be amended regularly and are crucial if our goal is to improve the conditions of the arbitration in India and be useful for the whole population of India.
  • Minimum Court Intervention
    The intervention of courts shall be kept to a minimum in arbitration proceedings. Because of such interventions, arbitration is the result of those who opt for arbitration rather than the plea to a court. Sometimes people think it's better to first come to the court. Not only the intervention during arbitral proceedings should be kept in check, but also the intervention upon conclusion of the proceedings. That means that the arbitral award under section 34 of the Arbitration Act 1996 must be challenged in a limited manner.


Technological changes have always played a job that is a must to all facets of life so concerning legal Development that has taken place in the duration of the time. From writing instances into the file to saving the info on the computer, from the announcement of result list to the online availability of date of next hearing, interference and effect of technology are seen everywhere in the legal industry. The same is the instance with arbitration technology is employed in various spheres of arbitration where it includes advantages like work efficiency, effectiveness regarding the work, and convenience it provides while completion of the work. It increases the efficiency by decreasing the expense of the ongoing work, one does not need to travel all the way to meet one other party as they could perform the same through video call. Similarly, in the case of documents, information can online be stored rather than handling huge heaps of documents within the form of instance files. This not only makes arbitration effective and efficient but convenient also by assisting simple option of the documents by storing them inside a digital record .

Even though there is a different issue that arises because of IT but it is nearly impossible to neglect the advantages it has to supply which will help in the growth of the legal field or the arbitration sphere. An answer is that by every problem mounted on it. For any nagging issue of viruses, you will find antiviruses that can be set up to detect those viruses and eliminate them through the device. Copy of each document shall be developed such that it can be utilized if work that is originally deleted due to some program failure within the computer. Together with all of these solution, there is Information Technology Act, 2000 under which issues related to fraudulence, internet theft, or impersonation are dealt with.

Technology is the gift that is enchanting the field of law and arbitration the one thing we have to discover is to put this into use in a justifiable way to make certain that we could have the maximum benefit out of it.

Could AI be the next big thing in arbitration technology?

We have seen the recent advancements of technology taking us further into the realm of the unknown and unexpected, yet the precision and the accuracy these technologies can capture are worth much more than that of a human. But is it enough? Let us look at some of the justification that can be given to it.

Amplification of the Process

The way easiest of utilizing an AI would be at the initial stage associated with a session. The machine might answer questions and target doubts as to how an ADR procedure would proceed. A robotic device can repeat similar material numerous times without growing impatient.

  • Time Effective
    One of the objectives of ADR would be to save yourself time in contrast to litigation. Nonetheless, lawyers in many cases are burdened with never-ending documents and research work, that is become finished in a real time frame that is short. An AI can systematize data research and analysis and therefore, lessen the responsibility on the individual
  • Cost-Effective
    Although the preliminary cost would be huge, after the AI becomes functional it might be a much cheaper alternative to traditional quality that is human-based.
  • Drafting
    Arbitrators fork out a lot of the time drafting standard chapters of arbitration honors, such for instance – the parties, procedural history, the clause of arbitration, regulating law, party’s jobs, together with the price of arbitration. This work of drafting sections could be handed down to AI machines thus, freeing the Arbitrator for lots more tasks that are imaginative saving them time and charges of the events.
  • No Scope for Bias Or
    The resolutions provided by a system that is AI not to be suffering from individual weaknesses such as partiality, unfairness, irrationality or perhaps having a negative day or being tired. Additionally, protects other human inclinations, such as counting on the initial bit of information received or being impacted by the surroundings that are outside the other situations the arbitrator handled.
  • No Conflict Of Interest
    Where robots are assigned in the place of people's arbitrators, there would be no grounds for contesting the arbitrators on grounds of partiality or even a conflict of interest.
  • No Scope for Mistakes
    You can find opportunities that individual Arbitrators can make errors in understanding, interpretation, documentation, collection of authority, choice-making, etc. Using Intelligence that is artificial at stages or in different jobs can help in eliminating the inadequacies in the process of arbitration.
  • Outcome Forecast
    Artificial Intelligence might be used for a choice of the arbitrators which can be appropriate to forecast the outcome in line with the information provided, the documents presented, together with the arbitrator’s reasoning. It is also used to foretell what is the outcome of the dispute is true of litigation, the damages, while the many solutions that are likely, hence urging the parties to resolve their disputes through inexpensive ADR just rather than litigation.
  • Immediate Award Creation
    Parties will often have to wait for the decree regarding the award after it's passed. AI permits an award to immediately have been complied. AI may also offer reminders to your party that can be involved authorities at regular intervals for the decree associated with an award.
  • Detecting Lies
    Given that people may not be capable of always grasp the psychology, body language of some other person, an AI is guided to examine heartbeat, hypertension, eye motions, etc. Therefore, it may be utilized as being a lie detector during the proceedings and would help advance the ends of justice.
  • Access to Justice
    The practice of Artificial Intelligence will cause transparency within the rules, more dependable and fast available information that is the appropriate time, and cost-effectiveness. The technology will assist in tackling the difficulties legitimacy that is surrounding affordability and will thus, greatly enhance the use of justice.


Going through this article we have understood that, while there has been a great upsurge in the number of legal disputes resulting in commercial businesses what has also increased is the number of cases that are being referred to alternative dispute resolution. Since they are a way of lessening the burden upon the judiciary system, it is remarkable. While that may be true, Alternate dispute resolution mechanism is still far from perfect since we are part of a developing country there are still a lot of improvements that can be made in the Fast track justice mechanism as well as a lot of loopholes that must be resolved, there must be both quality as well as quantity of cases that are being resolved. Being a concept introduced to India from the pre-British period evolving through the ages there are still a lot of improvements that can be made to it. The need for arbitration is imperative because as days go by the number of cases mounting upon the judiciary are also humongous. The ground reality of arbitration as a practical measure for resolving disputes is not all that great there is still a lot of positive outcomes that we have seen, thousands and thousands of cases have been resolved through arbitration, conciliation, mediation, or any other type of alternate dispute mechanism. Think of all the time, effort, and money it has saved in the process. Being a process that runs parallel to the justice system of commercial courts it not only acts in the favour of the parties in dispute but also helps the government track cases as economically feasible and in an efficient manner. What we must get rid of are hindrances to arbitration which include lack of awareness, extreme costs, low Government support, and lack of legislation as well as excessive court interference in arbitral proceedings.

There are ways to solve this, however, including spreading awareness as well as introducing proper legislative infrastructures with minimum court intervention. The arbitration may be an old process as it may, but this is the 21st century and it is all about technology. The technology could be the next big thing in arbitration for online dispute resolution which further decreases costs and increases efficiency. It can be further enhanced by artificial intelligence which could be a big innovation in the field of arbitration technology, where it would amplify the process, it would be time effective as well as cost-effective and since it is a robotic measure there is no conflict for error, conflict of mistakes as well as lies. The opinions are mixed but one thing is for sure alternate dispute resolution has brought a lot of improvements to the way cases are handled in a commercial capacity and with great advancements in technology and legislation it can reach even higher ground and help form a better society.


  1. Madhusudan Saharay, “Arbitration & Conciliation with Alternative dispute Resolution, 2nd Edition (Universal law Publishing Co. Pvt. Ltd., 2011)
  2. Avtar Singh, “Law of Arbitration and Conciliation” 11th Edition 2007, EBC Publication
  3. All India Arbitration Law Reporter.
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  5. (last visited on 4th June 2021).

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  7. Id.

  8. Palash Taiang & Moonmoon Nanda, Commercial Courts Or Arbitration: An Unpopular Opinion On Why Opt For Commercial Civil Courts Over Domestic Arbitrations In India, (last visited on 3rd June 2021).

  9. BCCI V. Kochi cricket (2018) 6 SCC 287.

  10. Id.

  11. Kartikeya Awasthi, Low Success Of Institutional Arbitration In India (last visited on 2nd June 2021

  12. Use of modern technology in arbitration: evolution through necessity, (last visited on 31st May 2021).

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