Batting for stronger institutional arbitration in India, Supreme Court judge Justice Manmohan on Friday said that courts must act as facilitators, not barriers, in the arbitration process. He also urged the government to reconsider a recent Finance Ministry decision restricting arbitration for disputes above ₹10 crore.
Speaking at the ‘Fourth Arbitration in India Conclave 2025’ organised by the Indian Dispute Resolution Centre (IDRC), Justice Manmohan said, “Courts must support arbitration, rather than acting as a barrier to arbitration.”
Referring to the circular issued by the Ministry of Finance, he observed, “One issue I would like to flag, because the law minister is here… is a new circular that the Ministry of Finance has issued, that above ₹10 crore, no dispute will go for arbitration. Really, I would request the minister to re-examine it. I don’t blame the view or the stand that the government has taken.”
The judge also called for a legislative push to strengthen institutional arbitration, suggesting that ad hoc arbitration be prohibited “for some time” to streamline dispute resolution. “Institutional arbitration is very, very important and a very significant step towards the resolution of disputes in an expeditious and fair manner,” he emphasised.
Justice Manmohan lauded Divyansh H Rathi, advocate and Secretary of IDRC, for his efforts in promoting structured dispute resolution mechanisms. “We need many more institutions like the IDRC to ensure that the promise of accessible and timely justice for all becomes not just an aspiration but a reality,” he said.
Union Law Minister Arjun Ram Meghwal also addressed the event, which brought together leading jurists, policy experts, and practitioners in the field of arbitration.
Speaking about the institution, Rathi explained that the Indian Dispute Resolution Centre is a not-for-profit institutional arbitration body established by the Indian Dispute Resolution Council, registered with the Union Ministry of Commerce and NITI Aayog, and empanelled with the Union Ministry of Law and Justice.
“It provides a state-of-the-art institutional environment for the online and offline resolution of disputes through arbitration and mediation,” Rathi said, adding that its services are being used by organisations such as National Skill Development Corporation, HDFC Bank, and Axis Bank.
