'Litigation Costly, Tedious & Time-Consuming' : CJI Ramana Encourages Arbitration & Mediation

"It is having efficient administration for resolution of the dispute with technically expert members. There are clear rules. The quality of Arbitrators is excellent and everyone should participate. It'll be supervised by senior eminent people and we will shortly also include some more trustees in the Trust Board. This is the reason why we all should participate in this Arbitration movement to enable us to dissolve the dispute and strengthen the judiciary. This is not a centre where usually we'll decide International Arbitration only. It'll also decide Domestic Arbitration and dispute between local investors also," CJI NV Ramana said.

CJI NV Ramana was speaking at the occasion of a function organised at the residence of Chief justice of Telangana High Court Justice Hima Kohli where a Trust Deed was registered for the International Arbitration and Mediation Centre, Hyderabad.

The event was attended by Supreme Court judges Justice L Nageshwar Rao, Justice R Subhash Reddy, former Supreme Court judge Justice RV Raveendran, Chief Justice of Telangana High Court Justice Hima Kohli, Allola Indrakaran Reddy, Minister Forest and Environment and S & T, Endowments and Law and Taraka Rama Rao, Minister of MA & MD, Industries & Commerce, ITE & C.

CJI thanked the Chief Minister of Telangana K Chandrashekar Rao and Chief Justice of Telangana High Court Justice Hima Kohli and other officials who made his dream come true within a period of three months of him assuming the office of the Chief Justice of India. CJI, in his address, recalled proposing CJ Hima Kohli to set up an International Arbitration Centre at Hyderabad and that within no time the Chief Justice responded by sending a detailed letter indicating the need for setting up an International Arbitration Centre.

"In the month of June sometime, I came to Hyderabad after taking oath as Chief Justice of India. I mentioned to the Chief Justice as to why don't you consider the proposal of setting up an International Arbitration Centre at Hyderabad. Within no time he responded and sent a detailed letter indicating the need for an International Arbitration Centre on 30th June, 2021 and thereafter he sent his team of officers, Chief Secretary as well as Ms Rajesh Ranjan and Finance Secretary to Delhi and we had twice a meeting," CJI added.

While requesting the Government of Telangana to have an independent building for the institution, Chief Justice of India NV Ramana said that,

"Initially, in 2003, I was a judge of this Court and there was a function at NALSAR, and at that time Chandrababu Naidu was a Chief Minister. Justice B Sudarshan Reddy requested the govt of AP to give some 10 acres of land for setting up International Arbitration Centre. Justice VN Khare was the Chief Justice at that time and immediately the CM responded and he had given 10 acres of land next to NALSAR & 25 crores of money. Unfortunately, there was a problem in the system of judiciary, it couldn't be materialised. 10 acres of land is still with HC & now we're going very fast & I request the Govt of Telangana so at least we can have an independent building for this institution."

In his address, CJI also emphasised the fact that although the foreign investors in India were ready to invest but were afraid of litigation.

"All the Foreign Investors requested only one thing. They said that they were ready to invest but were afraid of litigation. How many years the litigation takes place in India, we don't know. We wre buying both properties and litigation, and they were very reluctant. At that time, the PM initiated a new law, Arbitration and Conciliation Act, 1996 came into force and thereafter momentum started for Arbitration, Conciliation. The reason is industries and investors don't want litigation but the ease of doing business. In case by any chance, they get themselves involved in litigation, they want it to be resolved easily, amicably and without any time lag so that their investment is saved," CJI said.

He also gave an example when in 2015, he along with Justice TS Thakur and Justice Dave represented India as delegates in Japan and Korea where the Industrialists had raised concerns about the long time involved in litigation and that they had assured them about the expeditious resolution of disputes due to Arbitration and Mediation.

"I'll give an example: in 2015, the Govt of India sent a delegation (Justice TS Thakur,me & Justice Dave) to Japan and Korea. We travelled extensively in both these countries and in almost 8 meetings we had meetings with industrialists. They said that your laws are good, everything is good but we're only concerned with how long your litigation takes. We're only concerned with this. We didn't have an answer to this but we ensured them because Arbitration and Mediation disputes are resolved expeditiously," CJI said.

Urging foreign investors and foreign people to come and participate in the International Mediation and Conciliation Centre, the CJI while listing down the benefits that the investors could derive from international mediation and conciliation in India said that,

"India is going to be very vibrant with huge potential for further growth. The important thing is that compared to the foreign currency, the amount that they will have to spend in this country is very less. So it is another very encouraging factor for the foreign investors and foreign people to come and participate in the International Mediation and Conciliation Centre".

In his address at the function, CJI also said that, "With our guidance and support, particularly the representatives of the Industry, I request you, please encourage this mediation and arbitration centre. It resolves the dispute & you need not go and spend time in Courts. Litigation is a very costly, tedious and more time-consuming thing. Also, I request the CJ of Telangana, Hima Kohli to request the media, particular Industrial Groups and their representations to participate in this meeting. They will understand the scope of this mediation and how they can use it."

Emphasising the need to participate in the Arbitration movement to enable resolving the dispute and strengthening the judiciary, the CJI gave an example of how families in India solve their majority disputes through mediation, negotiation and conciliation.

"It is not a new thing that we've invented. You know that in our Indian Culture we solve our majority and disputes through mediation, negotiation and conciliation. Even in our family, we negotiate with our children, wife and brothers. Mediation also takes place between friends and family members also," , CJI said while concluding his address.