Delhi HC Justice Tejas Karia Seeks Statutory Status for Emergency Arbitration to Ease Dockets

In a significant push for arbitration reform, Justice Tejas Karia of the Delhi High Court has called for the creation of a dedicated arbitration bench and the statutory recognition of emergency arbitration. Speaking at a recent legal forum, the judge emphasized that formal integration of emergency arbitration into the Arbitration and Conciliation Act, 1996, through a proposed Section 9A, would allow parties to secure interim relief within 14 days without burdening already overworked court dockets. This intervention comes at a time when Indian courts are grappling with mounting case backlogs, and arbitration is increasingly seen as a preferred alternative dispute resolution mechanism.

The Case for a Dedicated Arbitration Bench

Justice Karia’s remarks highlight a growing consensus among the judiciary that arbitration requires specialized handling. A dedicated arbitration bench at the Delhi High Court—one of India’s busiest commercial courts—would streamline the adjudication of arbitration-related applications, including those under Section 9 (interim measures) and Section 34 (setting aside awards). Currently, these matters are heard alongside regular civil suits, leading to delays that undermine the speed and efficiency that arbitration promises.

The judge argued that institutional arbitration is the only viable pathway for implementing emergency arbitration. “With the emergency arbitration concept, the only way it can be implemented is that it has to be institutional arbitration,” Justice Karia stated. This observation underscores the need for robust arbitral institutions that can appoint emergency arbitrators, administer proceedings, and ensure enforceability. Without a statutory backing, emergency arbitration remains largely contractual, dependent on the rules of specific institutions, and its outcomes may face challenges in court.

Proposed Section 9A: A Game-Changer for Interim Relief

The proposed Section 9A would create a statutory framework specifically for emergency arbitration, distinct from the existing Section 9 which allows parties to approach courts for interim measures before or during arbitration. Under Section 9, courts can take months to issue orders, especially when contested. In contrast, an emergency arbitrator—appointed within days under institutional rules—can pass interim orders within a fortnight.

Justice Karia noted that this statutory framework would enable parties to secure interim relief in under 14 days without clogging court dockets. This speed is critical in commercial disputes where assets may be dissipated, evidence may be lost, or urgent injunctions are needed to preserve the status quo. By diverting such applications from courts to emergency arbitrators, the judicial system would also be freed to focus on more complex or non-arbitrable matters.

Institutional Arbitration as the Backbone

The judge’s insistence on institutional arbitration reflects the current limitations of ad hoc arbitration. In ad hoc proceedings, parties must agree on the arbitrator, the procedure, and the timeline—a process that often breaks down when one party is uncooperative. Emergency arbitration, by its nature, requires a pre-existing institutional framework with standing panels of arbitrators, clear fee schedules, and administrative support.

India has several arbitral institutions, including the Delhi International Arbitration Centre (DIAC), the Mumbai Centre for International Arbitration (MCIA), and the Nani Palkhivala Arbitration Centre. However, the adoption of emergency arbitration remains low, partly because courts are still reluctant to enforce emergency arbitrator orders in the absence of explicit statutory recognition. A new Section 9A would remove this ambiguity, making such orders directly enforceable as if they were court orders.

Implications for Legal Practice

For lawyers and corporate counsel, the shift toward statutory emergency arbitration would alter litigation strategy significantly. Currently, many clients file Section 9 petitions as a tactical move to stall or pressure the opposing party. If emergency arbitration becomes the default route for urgent interim relief, parties will need to anticipate these proceedings from the moment a dispute arises. Arbitration clauses will likely evolve to specify the designated institution and the procedure for emergency arbitrator appointment.

Moreover, the creation of a dedicated arbitration bench at the Delhi High Court would bring predictability and expertise. Lawyers practicing in this area would benefit from judges who are well-versed in arbitration law, reducing inconsistent rulings and lengthy hearings. The bench could also supervise the enforcement of emergency arbitration awards, further strengthening the credibility of the process.

Challenges Ahead

Despite the clear benefits, implementing statutory emergency arbitration is not without hurdles. One concern is cost: institutional arbitration fees can be substantial, and smaller parties may find it prohibitive. Justice Karia’s proposal would need to ensure that the framework remains accessible, possibly by capping fees or providing for expedited procedures in low-value disputes.

Another challenge is the capacity of Indian arbitral institutions. Many are still developing their rules and rosters for emergency arbitration. The government and the judiciary would need to work together to incentivize institutions to build this capacity, perhaps by offering administrative support or fast-track training for emergency arbitrators.

Conclusion

Justice Tejas Karia’s call for a statutory framework for emergency arbitration and a dedicated bench represents a forward-looking vision for dispute resolution in India. By formalizing a process that can deliver interim relief in days rather than months, the legal system can enhance its attractiveness for domestic and international commercial parties. As the Delhi High Court takes the lead, other high courts may follow suit, paving the way for a uniform national approach. The legal community should watch closely as lawmakers and the judiciary move toward transforming this proposal into reality—a step that could redefine the landscape of arbitration in India.