Introduction
During the recent “Fourth Arbitration in India Conclave, 2025”, Justice Manmohan of the Supreme Court of India emphasised that the judiciary must embrace the concept of ‘courts supporting arbitration’ rather than acting as a roadblock to it. The judge urged the government to revisit a finance-ministry circular that restricts disputes over ₹10 crore from being arbitrated.
What Did the Judge Say about ‘Courts Supporting Arbitration’?
Addressing a gathering of legal professionals, Justice Manmohan stated that ‘courts supporting arbitration’ is not just a catch-phrase but a necessity for expeditious dispute resolution. He pointed out:
“The courts must support arbitration, rather than acting as a barrier to arbitration.”
He flagged the circular issued by the Ministry of Finance, which mandates that disputes above ₹10 crore should not go for arbitration, and urged its reconsideration to strengthen India’s ADR (alternative dispute resolution) ecosystem.
Why Courts are Supporting Arbitration
The Indian courts are supporting ADR system because:
- In arbitration, disputes are resolved faster and it is more flexible than traditional litigation procedures.
- If the courts take a helpful stance, businesses will be encouraged to settle disputes through arbitration. Through this process courts will be free from overburdening cases.
- Justice Manmohan said that institutional arbitration (rather than ad-hoc) must be developed and that courts play a key role in ensuring it flourishes.
Proposed Reforms under the Banner of ‘Courts Supporting Arbitration’
In line with his remarks, Justice Manmohan proposed:
- A legislative move to bar ad-hoc arbitration temporarily, thereby promoting institutional frameworks.
- Encouraging more institutions like the Indian Dispute Resolution Centre (IDRC) that offer dedicated online/offline arbitration chambers.
- Reconsider government rules that set blanket limits because they discourage arbitration and clash with the idea that courts should help, not hinder, arbitration.
Conclusion
Justice Manmohan speaks in favour of ‘courts supporting arbitration’. It is a timely reminder to the Indian Judiciary system that its role is not merely to judge but to enable efficient dispute resolution. As the vision for institutional arbitration takes shape, the character of India’s legal-commercial landscape may evolve significantly. In short: when courts support arbitration, justice becomes faster, more specialised and tuned to modern commercial needs.
About Author:
Ruchi Dalmia holds an LL.M. in Corporate Law and is building her career in the corporate legal field. She possesses strong skills in contract drafting, paralegal work, and legal research. Passionate about Corporate and Commercial Laws, she enjoys exploring how legal principles operate within real-world business contexts. Through her writing, Ruchi strives to make complex legal topics clear, practical, and accessible for readers.