Abstract
This article examines the recent developments proposed in the arbitration law of India and critically analysis and discusses about the new provisions added specifically emergency arbitration and ODR and critically examined it and compares with foreign practice. Highlighting the challenges, such as absence of definition of ODR, timeline for appointment of emergency arbitrator, non-consideration of AI. Through comparative foreign practices, the study suggests to adopt the best global standards. The article provides for the solution and recommends a framework which is clear, easily accessible.It emphasizeson timely government actions and implementation on the Arbitration and Conciliation (Amendment) Draft Bill, 2024.
Keywords: emergency arbitration, stricter timeline, ODR, technology, AI, economic.
Introduction
It is a widely known fact that the current Judicial System in India is very expensive and is of time-consuming nature. The long delays in litigation have destroyed the faith of the common people in the judicial process that lead to a lack of confidence in the traditional courts.[1]Owing to these structural limitations, Alternative dispute resolution is defined as a way or method through which parties can resolve their issues without litigation. It is a method, which aims rapidity, confidentiality and flexibility. As court backlogs, escalating litigation costs, and prolonged delays continue to burden litigants, several states have started exploring Alternative Dispute Resolution (ADR) mechanisms. It provides a way for disputing parties to come to a settlement with the assistance of a neutral third party. ADR can be used for a wide range of matters, including industrial, family disputes, civil, commercial, where negotiation between disputing parties may be challenging or unsuccessful. In ADR, the neutral third-party acts as an arbitrator to guide the parties to communicate effectively, discuss their differences, and work together to find a mutually agreeable solution.
Theoretical framework of ADR in India
The constitutional foundation for ADR in India lies in Article 39A of the Constitution, which directs the State to ensure equal access to justice and provide free legal aid.[2] Moreover, Section 89 of the Code of Civil Procedure, 1908, formally recognises various ADR methods, including arbitration, conciliation, mediation, and judicial settlements such as Lok Adalat’s.
Currently, the arbitration ecosphere of India is under a transformation through which there is a shift of focus on speed, accessibility, and global alignment. On June 12, 2023, Arbitration Law’s Expert Committee was set up under Honourable chairman Dr. T.K. Vishwanathan to evaluate the arbitration law in India as well as to formulate reforms to the Arbitration and Conciliation Act, 1996. The report of the committee was submitted on February 7, 2024, which suggested multiple amendments. Many of those have still not been implemented but can prove to be positively affecting arbitration. Further, the government of India also released a draft bill for invitation of public comments on the amendments on October 18, 2024.Emergency arbitration provisions was one of the most anticipated inclusions, as well as those of technology, rigid timelines for addressing urgent disputes and reduction in delays. These proposed changes displayed a growth in recognition of the fact that effective ADR should progress to meet the requirements of modern commerce and trade. Since litigation has become increasingly difficult to comply with, the amendments proved to be a proactive move to fortify India’s position as a competitive hub for arbitration.
[1] Pinki Krishnarao Churad, ‘Alternative Dispute Resolution: Types, Benefits and Drawback’ [2024] 7(3) International Journal of Law Management & Humanities 951 <https://ijlmh.com/wp-content/uploads/Alternative-Dispute-Resolution-Types-Benefits-and-Drawback.pdf> accessed 28 February 2026.
[2]Wex, ‘Alternative Dispute Resolution’ (Legal Information Institute, 1 March 2025) <https://www.law.cornell.edu/wex/alternative_dispute_resolution> accessed 20 February 2026