Delay And Cost Effectiveness In Arbitration: What The Supreme Court Said

Introduction

The Hon'ble Supreme Court in the case of Bombay Slum Development Corporation Private Limited Vs. Samir Narain Bhojwani¹ has made relevant observations as to whether arbitration has been cost effective in India. The Court expressed serious concerns regarding the current trend in conduct of arbitration proceedings and the time and cost issues arising from the same. The observations were made by the Apex Court while deciding upon cross-appeals made by the parties against the order dated 07.07.2023 ("impugned judgement") passed by the division bench of the Bombay High Court (hereinafter referred to as "High Court") in proceedings under Section 37of the Arbitration & Conciliation Act, 1996 (hereinafter referred to as "Act"). The judgment was delivered by a division bench of the Hon'ble Supreme Court comprising of Justice Abhay S. Oka and Justice Pankaj Mithal on 08.07.2024.