No forum to deal with arbitrators' misdeeds: SC judge

NEW DELHI: Supreme Court judge Justice B V Nagarathna on Saturday said that arbitration and mediation had become integral parts of a modern and responsive justice system and should not be viewed merely as alternatives to traditional litigation. She, however, highlighted the absence of a forum to deal with complaints against arbitrators who, in most cases, are retired judges courts are reluctant to remove.

"There is no forum as such where a misconduct of an arbitrator is complained against except before a court. And courts are very wary of changing arbitrators because many of the arbitrators are former judges, Chief Justices," she said.

She underscored that the trust of litigants in arbitration proceedings was a must to make them successful and allegations of bias or misconduct could undermine confidence in the system.

Speaking at the International Conference on 'Arbitration in the Era of Globalisation' organised by Indian Council of Arbitration in the national capital, Justice Nagarathna said there had been a discernible shift from traditional modes of dispute resolution towards alternative mechanisms such as mediation and arbitration.

"Disputes are not only about legal questions, but also social, commercial and relational questions that may require more voluntary solutions than a court adjudication. Arbitration and mediation, therefore, are not merely alternatives to litigation, but integral components of a modern and responsive justice system," she said.

Justice Nagarathna said arbitration had emerged as the most preferred method for resolving cross-border commercial disputes because of advantages such as neutral forums, procedural flexibility, confidentiality and party autonomy.