NEW DELHI, Jun 9: Chief Justice of India Surya Kant has advocated greater reliance on mediation for commercial dispute resolution, saying the mechanism offers a more efficient and durable path to settling conflicts at a time when arbitration is becoming increasingly entangled in procedural complications.
Delivering a lecture at the Supreme Court of the United Kingdom on Monday, Justice Kant said businesses should prioritise finding effective solutions to disputes rather than focusing solely on the forum where they are contested.
Addressing the theme “Mediation, Arbitration and the Courts: Converging Trends in the Indian and English Approaches in Commercial Dispute Resolution,” he stressed that mediation and the judiciary complement each other and should not be viewed as competing systems.
The Chief Justice noted that arbitration gained prominence globally as an alternative to traditional litigation because of its promise of speed, flexibility and party autonomy. However, he observed that arbitral proceedings are increasingly facing legal challenges at multiple stages, often resulting in prolonged disputes.
He pointed out that issues related to arbitration agreements, appointment of arbitrators, jurisdictional questions and challenges to awards frequently lead parties back to courts, reducing the efficiency the process was originally intended to deliver. Similar concerns, he said, are emerging in several jurisdictions, including the United Kingdom.
Against this backdrop, Justice Kant described mediation as the next major evolution in dispute settlement, capable of delivering quicker and more collaborative outcomes for businesses engaged in domestic and cross-border commerce.
Highlighting India’s recent reforms, he said the Mediation Act, 2023 has established a comprehensive framework that encourages parties to explore settlement before initiating commercial litigation. The legislation also recognises online mediation, making dispute resolution more accessible across jurisdictions.
The Supreme Court has also promoted mediation in areas such as insurance and motor accident compensation matters, helping reduce litigation and facilitate consensual settlements, he added.
Justice Kant said the growing acceptance of mediation reflects a broader shift in legal thinking, where negotiated settlements are increasingly viewed as an integral component of modern commercial justice rather than merely an alternative to court proceedings.