ICC urges Guwahati HC to be designated as commercial court for faster resolution of arbitration appeals

In a significant move to expedite commercial dispute resolutions, the Indian Chamber of Commerce through its Chairman for Assam and Meghalaya, Sarat Kumar Jain, has formally requested the Ministry of Law and Justice to designate the Guwahati High Court as a Commercial Court under Section 34 of the Arbitration and Conciliation Act, 1996.

A letter to this effect was submitted today to the Union Minister of Law and Justice, Arjun Ram Meghwal, highlighting the pressing need to improve the speed and efficiency of commercial arbitration appeals in Assam.
The ICC has emphasised the importance of this request in the context of ongoing delays in the resolution of appeals under Section 34, which governs the setting aside of arbitral awards. Currently, while High Courts in metropolitan cities such as Kolkata, Delhi, Mumbai, and Chennai handle appeal as Commercial Courts, in Assam, such appeals are directed to the District and Sessions Courts. These courts, burdened with civil cases, often face delays in hearing commercial disputes, undermining the Arbitration Act’s intent to provide speedy justice.



ICC stated that district and Sessions Courts in Assam are overloaded with civil cases, which delays the resolution of commercial disputes. District-level judges often face transfers every 18-24 months, which causes further delays as new judges need time to familiarize themselves with ongoing cases. Additionally, there has been hesitation among District Judges to overturn awards made by retired High Court judges. Commercial disputes often involve complex legal and financial matters. The letter highlights that District-level judicial officers may lack the specialized expertise required to efficiently handle such high-stakes disputes, further justifying the need for appeals to be heard by High Court judges.Arbitration is designed to provide a faster alternative to litigation. The current situation in Assam, however, contradicts this objective, as commercial disputes are often delayed due to the backlog of cases in lower courts.

The ICC has proposed that the Guwahati High Court be designated as a commercial court for hearing Section 34 appeals. This would help ensure a faster resolution of commercial disputes, leveraging the experience and expertise of High Court judges in handling complex arbitration cases.