No Dedicated Forum for Arbitrator Complaints: Justice BV Nagarathna Calls for Stronger Accountability in Arbitration

April 11, 2026 : Justice B V Nagarathna of the Supreme Court on Saturday pointed to a structural gap in India’s arbitration framework, noting the absence of a dedicated mechanism to address complaints against arbitrators. She observed that, at present, such grievances can only be raised before courts.

Speaking at the 5th edition of the Indian Council of Arbitration International Conference on “Arbitration in the Era of Globalisation: Legal Technology, Economic Development & Cross-Border Disputes,” Justice Nagarathna highlighted that courts are often reluctant to remove arbitrators accused of misconduct. This hesitation, she noted, stems in part from the fact that many arbitrators are former judges, including retired Chief Justices.

While instances of arbitrator removal remain rare, she stressed that the issue underscores the need to uphold high standards in arbitration and mediation. Alternative dispute resolution (ADR), she said, must maintain the same level of discipline and rigour as court proceedings, without any dilution of standards.

Justice Nagarathna also flagged concerns around trust in arbitration. Allegations of bias or misconduct, she warned, risk undermining confidence in the system. Despite this, replacing arbitrators continues to be a difficult process, reinforcing the need for stronger institutional safeguards and accountability mechanisms.

On dispute resolution strategy, she suggested that parties remain open to settlement even at advanced stages, including during challenges to arbitral awards under Section 34 of the Arbitration and Conciliation Act, 1996. She advocated for an integrated approach combining arbitration, mediation, and negotiation.

Senior advocate Pinky Anand also addressed the conference, raising concerns about the escalating cost of dispute resolution. She pointed out that while government litigation expenditure over the past decade stood at around ₹400 crore, private companies spent nearly ₹62,000 crore on legal fees in a single financial year.

Referring to law firm revenues, she cited Trilegal as an example, noting its substantial growth between 2020 and 2025, with reported revenues of around ₹1,000 crore in 2024. While high earnings in the legal profession were not inherently problematic, she emphasised that the broader cost burden and opportunity costs for businesses remain significant concerns.

The panel also featured international arbitration experts including Sapna Jhangiani, Chong Yee Leong, Divyam Agarwal, and Sahil Narang. Discussions focused on emerging trends such as the growing use of mediation and hybrid dispute resolution mechanisms in cross-border commercial disputes, particularly in an increasingly globalised and technology-driven environment.