From Panchayats to Global Standards: The Legal and Jurisprudential Transformation of Arbitration in India

This article traces the historical evolution and contemporary transformation of arbitration in India, from its origins in informal community dispute resolution mechanisms such as panchayats to its present status as a codified, internationally aligned system under the Arbitration and Conciliation Act, 1996. Anchored in the UNCITRAL Model Law, India's arbitration framework has undergone significant legislative reforms in 2015, 2019, 2021, and through the 2024 Draft Bill, with the goal of reducing judicial intervention, promoting institutional arbitration, and enhancing procedural efficiency. The paper critically examines the jurisprudential development of arbitrability through landmark decisions, notably the Booz Allen and Vidya Drolia cases, which have provided clarity on the scope and limits of disputes suitable for arbitration. While India has made substantial progress in positioning itself as a global arbitration hub, challenges such as enforcement delays, judicial interference, under utilisation of institutional arbitration, and legislative ambiguities persist. The analysis highlights both the achievements and the gaps in India's arbitration regime, underscoring the need for consistent judicial support, institutional strengthening, and stakeholder awareness to realise its aspiration of becoming a leading seat for international arbitration.