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Arbitration Reforms: Specialist Courts, Mediation Act 2023, and Trust Deficit - Expert Analysis on India's ADR Future

PolityHIGH
Target:UPSC GS-IIMPSCSSC GAPrelims MediumMains HighStatic GK Link
23 Mar 2026
~2 min
Source: Indian Express
Key Data:Mediation Act, 2023Draft Arbitration and Conciliation (Amendment) Bill, 2024Gayatri Balasamy v. ISG Novasoft (2025)4 to 6 years
Bodies:Supreme CourtArbitration Bar of IndiaPermanent Court of Arbitration (PCA)Mediation Council of IndiaIndia International Arbitration Centre (IIAC)Mumbai Centre for International Arbitration (MCIA)Delhi International Arbitration Centre (DIAC)
Practice MCQs from today's news ▸
What This Article Covers

1.CJI Surya Kant identified a persistent 'trust deficit' as a major impediment to India becoming a premier destination for international commercial arbitration.

2.Senior Advocate Gourab Banerji argues for a 'specialist judicial architecture' and the operationalisation of the Mediation Act 2023 as key reforms over further legislative changes.

3.The article provides a strategic roadmap for India's ADR ecosystem, touching on arbitrator quality, institutional vs. ad-hoc arbitration, and the impact of technology and 'Arb-Med-Arb' protocols.

The Big Picture
Prelims · MediumMains · High

Despite legislative reforms, India's ambition to be a global arbitration hub faces a critical 'trust deficit' due to procedural delays and judicial intervention. Senior Advocate Gourab Banerji argues the solution lies in creating specialist arbitration courts and effectively implementing the Mediation Act 2023, rather than further statutory tinkering.

Exam Lens

Quick Exam Facts From News

Key SC Judgment CitedGayatri Balasamy v. ISG Novasoft (2025 Constitution Bench)
Recent Arbitration Law AmendmentDraft Arbitration and Conciliation (Amendment) Bill, 2024
Key Mediation LegislationMediation Act, 2023
Average Arbitration Duration4 to 6 years (invocation to enforcement)

1-Minute Revision

  • ›Key SC Judgment Cited: Gayatri Balasamy v. ISG Novasoft (2025 Constitution Bench)
  • ›Recent Arbitration Law Amendment: Draft Arbitration and Conciliation (Amendment) Bill, 2024
  • ›Target this Legal Point: Mediation Act, 2023 and its provision for pre-litigation mediation.
  • ›Target this Nodal Body: The proposed Mediation Council of India (MCI) for standardizing mediator accreditation.
  • ›Target this Reform: The recommendation for specialist Arbitration Divisions in High Courts by the 2023 Expert Committee.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Mediation Act, 2023, which aims to standardise mediation practice in India, envisages the establishment of which regulatory body?

Q2Statement-basedHard

Consider the following statements regarding the challenges and reforms in India's arbitration ecosystem as discussed in the article:

1. The Chief Justice of India, Surya Kant, has identified procedural efficiency and finality as the central issues causing the 'trust deficit' in arbitration.

2. The Draft Arbitration and Conciliation (Amendment) Bill, 2024, proposes statutory recognition for emergency arbitrators.

3. The Gayatri Balasamy v. ISG Novasoft case was a Constitution Bench decision that recognized a broad appellate power for courts to modify arbitral awards under Section 34.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to Gourab Banerji, what is the average duration, from invocation to enforcement, that an arbitration case typically takes in India?

Q4Application/ImpactMedium

What is presented as the primary reason for the continued dominance of ad-hoc arbitration over institutional arbitration in India, as per the insights in the article?

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