The establishment of a Permanent Court of Arbitration (PCA) office in India is likely to encourage more international parties to select India as a venue for arbitration, remarked Supreme Court Justice Surya Kant on Sunday.
On May 13, the Indian government and PCA jointly announced the opening of a PCA office at VK Krishna Menon Bhawan in New Delhi. The PCA, an intergovernmental arbitration body based in The Hague, Netherlands, is known for resolving international disputes involving states or private entities.
Justice Kant highlighted that this move represents a significant shift in India’s efforts to become a global hub for international arbitration. He noted, “The opening of a PCA office in India signals a major advancement in our journey towards becoming a center for international arbitration. This development reinforces India’s reputation as a favored destination for dispute resolution. With the PCA’s presence, India is expected to attract more international parties to choose it as an arbitration seat due to the organization’s credibility and expertise.”
He further explained that this initiative would not only enhance India’s appeal as an international arbitration venue but would also make the process more accessible to Indian businesses and individuals. By having a PCA office locally, parties can benefit from its services without facing high logistical and financial burdens.
“This isn’t just about drawing in foreign parties; it’s about making arbitration more accessible to our own businesses and individuals. They won’t have to deal with complex logistical challenges or bear heavy costs to use PCA’s services. Having a PCA office in India allows us to benefit from their expertise and resources on our own soil,” said Justice Kant.
He shared these remarks during the closing ceremony of the ‘Conference on International Arbitration and the Rule of Law,’ which was organized to mark the Supreme Court of India’s 75th anniversary and the 125th anniversary of the PCA.
Justice Kant also acknowledged that arbitration is increasingly becoming the preferred method for dispute resolution in India, supported by infrastructural developments such as the creation of the Arbitration Bar of India (ABI). He commended India’s commitment to international arbitration, noting that it was one of the first ten countries to sign the New York Convention and one of only six Asian countries to sign the Geneva Convention.
However, Justice Kant cautioned against viewing arbitration as a new concept in India, pointing to the country’s long history of arbitration, with references found in ancient legal traditions.
Additionally, he mentioned that the PCA’s presence in India will contribute to capacity building by offering training programs for arbitrators, legal counsel, and other stakeholders. These initiatives, he said, will help strengthen India’s domestic arbitration framework and enable the country to provide world-class arbitration services.
Justice Kant concluded by stressing the importance of continued cooperation between international and domestic arbitration bodies. This collaboration, he emphasized, is essential to maintaining arbitration’s effectiveness as a fast, cost-efficient, and accessible method of dispute resolution.
(With inputs from agency)
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