Arbitration has emerged as the only effective dispute resolution mechanism for commercial disputes, said Justice N. Anand Venkatesh, a judge of the Madras High Court.
Addressing an information session on ‘Arbitration and Mediation’ organized by the Indian Chamber of Commerce and Industry Coimbatore and the Chamber’s Center for Arbitration and Mediation in Coimbatore on Saturday, he said that settling civil disputes, especially commercial disputes, through ordinary litigation was time-consuming and no longer the preferred mode of dispute resolution.
Arbitration began as an alternative dispute mechanism. However, over time it has evolved as the only dispute resolution mechanism for commercial disputes, other than mediation. Business investments, whether domestic or international, will only become more efficient and viable if a system is in place to resolve disputes in a reasonable time.
Arbitration is a system where two parties agree to appoint a private judge and resolve the dispute with minimal court intervention. Referees in this system can also be people who have specialized knowledge of a technical subject.
He urged businesses to pay attention to the basics when drafting contracts. There should be a clause where negotiation and mediation are mentioned as a prerequisite to arbitration. The arbitration clause should contain all the essentials.
Companies entering into agreements with overseas entities should clearly state the language of the court and the laws that will govern the parties and the agreement.
“The concept of arbitration in places like Coimbatore, Karur or Thoothukudi, unknown. It needs a change in mindset,” he said.
Justice Anand Venkatesh also explained the advantages of institutional arbitration as institutions appoint only people of integrity and honesty as arbitrators. “Honesty and integrity are key to the success of arbitration,” he said.
The Chamber Arbitration and Mediation Center has an online dispute resolution mechanism where the entire arbitration process takes place virtually.
Published – 03 Jan 2026 21:30 IST
