Deciphering Arbitrability Of Diputes In Light Of Recent Judicial Pronouncements

Arbitration has evolved as a default mechanism for adjudicating commercial disputes in India. It allows the parties to exercise a substantial degree of autonomy by enabling them to appoint a neutral and flexible forum of adjudication. However, the arbitrability of subject matter of the disputes has always been a key consideration before the courts and arbitral tribunals. In absence of clear position under the Indian Arbitration and Conciliation Act, 1996 ("A&C Act"), the Supreme Court has time and again propounded several principles to determine whether a dispute is capable of adjudication/settlement through arbitration. It is imperative to gauge the arbitrability of disputes because the UNCITRAL Model law allows domestic courts to set aside an arbitral award if the subject matter of the dispute is perceived to be non-arbitrable under domestic law.¹