Page 28 - Banking Finance April 2023

LEGAL UPDATE

The SC had held that to maintain pros- tions given by a committee to improve even a single rupee even as other de-
ecution under section 141 (offence by the bill have been considered. He partments suffered cuts in budgetary
companies) "arraigning of a company added that when the "draft bill comes allocations.
as an accused is imperative". The HC out, it will be wonderful".
“The government takes the SC very
noted that the SC laid down that
Underlining the importance of arbitra- seriously. We made a detailed project
cheque bouncing "offence under sec-
tion in India, Rijiju said a strong robust report on Rs 7,000 crore budgetary
tion 138 of NI Act is capable of being
arbitration must have the backing of estimate for e-courts and judicial
committed only by the drawer of the
the executive and the judiciary. "Cur- infrastructural needs. The government
cheque".
rently, the majority of arbitrations in sanctioned the entire amount and
India are ad hoc. If India has to become
didn’t cut a single rupee from what we
Rijiju, SC Judge Kaul point a global hub of arbitration, we have to
demanded. Other departments suf-
to significance of artificial follow international practice since ad fered budgetary cuts,” said the CJI,
hoc arbitration becomes susceptible to who was heading the bench compris-
intelligence in arbitration
judicial intervention," he added.
ing Justices Sanjay Kishan Kaul and PS
Union law minister Kiren Rijiju and Su-
Rijiju added all arbitration centres Narasimha.
preme Court judge, Justice Sanjay
were complementary to each other
Kishan Kaul, underscored the signifi- His remark came during a hearing on
and healthy competition was needed
cance of artificial intelligence (AI) in the a petition filed by SC Bar Association
to scale up India on the global map and
field of arbitration. seeking a direction to the Union gov-
there was no place for conflict be-
ernment for considering a proposal for
Rijiju said that AI could be used to as-
tween the centres.
acquisition of land and buildings in SC’s
sist arbitrators in drafting awards and
Justice Kaul said that institutional ar- vicinity to create chamber space for
identifying trends. The government
bitration had seen a positive landscape thousands of advocates.
was capable of enhancing digital capa-
in India. "The Mediation Bill which will
bility and developing a strong arbitra-
When SCBA president Vikas Singh
see the light of the day this year is also
tion ecosystem, he said, adding: "The raised the acute need of chambers for
geared towards institutionalising this
aim is to encourage arbitration for
its members, many of whom are wait-
system.
smaller, contractual disputes, espe-
ing for it for decades, similar claims
cially where parties are small or me- The Supreme Court has been very slow
were made by SC Advocates on Record
dium-scale business owners." in interfering with the awards passed
Association (SCAoRA), women advo-
Justice Kaul said that to explore the by the arbitrators. Parties must learn cates and Bar Council of India, creat-
possibility of using AI, the Supreme to accept the awards and unfortu-
ing a cacophony.
court has formed an AI committee to nately the public sector more so re-
“Lawyers are part of the institution. If
look into the possibility of using it. "For quires this and there is no need to carry
the SC passes judicial orders, it will give
arbitration, AI can be used for selec- the battle forward," he added.
rise to a disquiet that judicial powers
tive expert arbitrators. However, AI
are being used to further its own inter-
tools must be used carefully because
CJI: Govt takes SC seri-
est. Trust the court to take up lawyers’
they come with risks of due process
ously, sensitive to infra needs with the government on admin-
rights and public policy violation," he
cautioned. istrative side,” the bench said.
demands
The duo was speaking at the conclud- CJI DY Chandrachud on Friday said that The CJI said, “We can’t bulldoze the
ing session of the Delhi Arbitration the Union government takes the Su- government with our administrative
week organised by the Delhi Interna- needs. The tradition is to engage on
preme Court very seriously and has
tional Arbitration Centre.
acceded to its Rs 7,000 crore demand administrative side. We will engage
Speaking on the upcoming Mediation for e-courts project and judicial with the government about the infra-
Bill, Rijiju said that the valuable sugges- infrastructural needs without cutting structure needs of advocates.”
24 | 2023 | APRIL | BANKING FINANCE