Level Playing Field Required In Arbitration Between Large Corporations & Small Businesses : CJI BR Gavai

Speaking at the Delhi Arbitration Weekend 3.0, Chief Justice of India BR Gavai recently emphasised that in order for the arbitration to truly become a tool for commercial efficiency, there needs to be a level playing field between larger corporations and small businesses. He stressed the implementation of legislative and policy initiatives that can offer benefits to all stakeholders involved so that a level playing field is maintained. 

"While we have made significant strides in establishing ourselves as a prominent commercial and legal destination, there is still room for growth.One area that requires attention is ensuring a level playing field in arbitration between larger corporations and smaller businesses, particularly micro, small, and medium enterprises. Although legislative and policy initiatives have been promising and commendable, it is essential to expedite their implementation and benefits to all stakeholders. By doing so, we can unlock the full potential of arbitration as a tool for commercial efficiency, rather than letting it become a source of prolonged disputes." 

CJI Gavai also remarked that in India, we need to address the question of cost and accessibility, as although arbitration is designed to be faster and less procedurally onerous than litigation, parties are driven away from it due to the associated expenses. 

"We are also working hard to confront the question of cost and accessibility and leading by example rather than catching up to the rest of the world. Arbitration is designed to be faster and less procedurally onerous than litigation. While arbitration holds great promise, there's an opportunity to bridge the gap between its potential and the current experience. By addressing challenges like arbitrator fees, procedural expenses, and timelines, we can make arbitration more efficient and accessible for all parties.

This creates a paradox where the very parties who most need quick and affordable remedies are driven away from arbitration due to the associated expense. Therefore, by streamlining processes and managing costs, we can unlock the full benefits and potential of Arbitration, for companies and individuals alike."

The Delhi Arbitration Weekend also witnessed the presence of Justice Stephen Gageler, Chief Justice of the Australian High Court and Justice Devendra Kumar Upadhyaya, Chief Justice of Delhi High Court. 

In his address, CJI highlighted the need for judicial restraint in arbitration matters, stressing that minimal court interference strengthens confidence in the arbitral process. Drawing a comparison with other jurisdictions, the CJI noted that courts in Australia, Singapore, and the United Kingdom have consciously adopted a model of predictability and restraint, which has allowed arbitration to flourish.

"Judicial restraint is not a sign of abdication, but of maturity and strength," he observed, underlining that India too is moving towards this approach.

At the same time, the CJI acknowledged the paradox that India faces: a significant volume of arbitration-related litigation continues to reach the courts. This, he said, is not necessarily due to a lack of faith in arbitration but rather because litigants trust the judiciary to intervene when necessary.

At the same time, CJI expressed optimism about India's evolving arbitration framework.

"Today, I believe we are at a tipping point, one that is decisively tipping in the right direction. We can confidently say that India is maturing and  developing into a leading arbitration jurisdiction on the global centre stage. With our unwavering determination, we are striving to establish ourselves as a preferred global arbitration hub, by pushing boundaries and exceeding expectations."

While concluding, CJI reminded that the arbitration is not just a legal mechanism; it is a trust-building exercise, a cornerstone of commercial certainty, and a bridge between cultures and economies.