Justice Sundaresan Explores the Role of Courts in Modifying Arbitral Awards at India ADR Week 2024
At the India ADR Week 2024, Justice Somasekhar Sundaresan of the Bombay High Court addressed the contentious issue of whether courts should have the authority to modify arbitral awards. He cautioned that such a practice could undermine the very essence of arbitration.
“If we allow courts to modify awards, we risk opening the floodgates to extensive appellate review,” he warned, highlighting the potential dilution of arbitration’s intended finality and efficiency. Justice Sundaresan emphasized the need for the legal community to reflect on the value they deliver to stakeholders, particularly as businesses weigh arbitration against traditional litigation options.
Speaking at the session organized by the Mumbai Centre for International Arbitration, he proposed enhancing the credibility of the arbitration process through a robust institutional framework. While maintaining party autonomy in selecting dispute resolution methods, he suggested that established institutions could oversee the appointment of arbitrators, a practice he noted has proven successful in sports arbitration.
Justice Sundaresan further stressed the importance of self-regulation within the arbitration community, asserting that “the arbitration community cannot be a weekend bar.” He called for a strong regulatory framework to ensure accountability among arbitrators, stating, “For the markets to trust the institution, it must exude credibility.”
In closing, he urged active engagement in discussions regarding arbitration rules and legislative reforms, remarking, “We get the laws we deserve.” He encouraged legal professionals to consider the broader implications of their advice, asking, “Every time you advise your clients to challenge an award, what externalities are we creating?” This call to reflection aims to foster a more accountable and effective arbitration landscape in India.
(With inputs from agency)
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