CURRENT AFFAIRS | 13 APRIL 2026
CLAT GK + LEGAL REASONING & ADR LAW
What Happened: Justice Nagarathna Flags Judicial Reluctance in Arbitrator Removal
Supreme Court Justice B.V. Nagarathna has raised significant concerns about the functioning of India’s Alternative Dispute Resolution (ADR) ecosystem, specifically flagging that Indian courts are reluctant to remove arbitrators who are retired judges, even when they display bias or misconduct. Speaking at an international conference organized by the Indian Council of Arbitration at the Delhi High Court, Justice Nagarathna highlighted deep structural challenges in India’s arbitration framework that undermine its effectiveness as a dispute resolution mechanism.
Justice Nagarathna pointed out that the deference shown to former judges serving as arbitrators creates an environment where accountability is compromised. When parties raise legitimate concerns about impartiality or misconduct, courts hesitate to act because the arbitrator in question is a retired judge — creating an informal hierarchy within the arbitration system that contradicts the very principles of fairness and equality that ADR is meant to uphold. This is particularly problematic under Sections 12 and 13 of the Arbitration and Conciliation Act, 1996, which lay down specific grounds for challenging and removing arbitrators.
The Justice also criticized the slow pace of ADR reform in India, noting two critical gaps: first, the provisions of the Mediation Act 2023 have not yet been notified, rendering the legislation effectively inoperative despite being passed by Parliament; second, the Arbitration Council of India — envisaged under the 2019 Amendment to the Arbitration Act to serve as a regulatory body for arbitration — has not yet been constituted. She called for treating ADR not as a secondary or inferior mode of justice delivery but as a primary dispute resolution mechanism, emphasizing the need to address questions of quality of awards, persistent delays, and rising costs in arbitration proceedings.
Constitutional & Legal Framework
- Article 14 (Equality Before Law): Guarantees equality before law and equal protection of laws. The reluctance to challenge ex-judge arbitrators creates an unequal standard of accountability, potentially violating this fundamental right.
- Article 21 (Right to Speedy Justice): The Supreme Court in Hussainara Khatoon v. State of Bihar (1979) read the right to speedy trial into Article 21. ADR mechanisms are meant to further this right by providing faster dispute resolution outside traditional courts.
- Arbitration and Conciliation Act, 1996: Section 12 mandates arbitrators to disclose circumstances likely to give rise to justifiable doubts about their impartiality. Section 13 lays down the challenge procedure — a party may challenge an arbitrator within 15 days of becoming aware of grounds for challenge. The Fifth and Seventh Schedules (added by 2015 Amendment) list specific disqualifying relationships.
- Mediation Act, 2023: Passed to institutionalize mediation in India. Provides for court-annexed and private mediation, community mediation, and online mediation. Creates the Mediation Council of India as the regulatory body. However, key provisions remain unnotified.
- Legal Services Authorities Act, 1987: Established NALSA (National Legal Services Authority) to organize Lok Adalats — the most successful form of ADR in India in terms of case disposal.
- Article 39A (DPSP): Directs the State to ensure that the operation of the legal system promotes justice on a basis of equal opportunity and provides free legal aid.
Why This Matters for CLAT
ADR is one of the most frequently tested topics in CLAT Legal Reasoning. This development provides multiple exam-relevant angles:
- ADR Mechanisms: CLAT regularly tests knowledge of four primary ADR mechanisms — Arbitration, Mediation, Conciliation, and Lok Adalats. Understanding their statutory basis, key differences, and when each is appropriate is essential.
- Arbitration Act Deep Dive: Sections 12 and 13 (challenge of arbitrators), Section 34 (setting aside awards), Section 36 (enforcement), and Section 11 (appointment) are high-yield topics. The distinction between institutional arbitration and ad-hoc arbitration is also tested.
- Judicial Independence & Accountability: This topic connects to broader questions about the independence of tribunals, the principle of nemo judex in causa sua (no one should be a judge in their own cause), and natural justice — all CLAT favourites.
- New Legislation Awareness: The Mediation Act 2023 is a new law that CLAT may test. Key features include mandatory pre-litigation mediation (with exceptions), settlement agreements having the force of a court decree, and confidentiality provisions.
- Access to Justice: The fundamental tension between formal court systems and ADR mechanisms — which one better serves the constitutional promise of access to justice under Articles 14, 21, and 39A — is a sophisticated legal reasoning question.
Key Facts at a Glance
| Speaker | Justice B.V. Nagarathna, Supreme Court of India |
| Event | International conference by Indian Council of Arbitration at Delhi HC |
| Key Concern | Courts reluctant to remove arbitrators who are ex-judges |
| Arbitration Act | Arbitration and Conciliation Act, 1996 (Sec 12 & 13) |
| Mediation Act | Passed in 2023 — provisions not yet notified |
| Arbitration Council | Envisaged under 2019 Amendment — not yet constituted |
| NALSA | National Legal Services Authority — organizes Lok Adalats |
| ADR Forms | Arbitration, Mediation, Conciliation, Lok Adalat |
| Constitutional Basis | Articles 14, 21, 39A |
Mnemonic: ARBITER
- A — Arbitration Act 1996 (Sec 12, 13 — challenge procedure)
- R — Reluctance of courts to remove ex-judge arbitrators
- B — Bias and misconduct must be disclosed (Sec 12)
- I — Institutional arbitration needed (not just ad-hoc)
- T — Tribunal independence — nemo judex in causa sua
- E — Equality before law (Art. 14) applies to all
- R — Reform needed — Mediation Act 2023 unnotified, ACI not constituted
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