Recent Developments in India Related International Arbitration 2025 - 2026 Roundup

1. Introduction: India's Arbitration Landscape in 2025-2026

The period of 2025-2026 has witnessed significant dynamism in the field of international arbitration as it relates to India. With a robust economy, increasing cross-border trade, and a proactive judiciary, India has cemented its position as a key hub for international commercial arbitration. This roundup provides a comprehensive analysis of the recent developments, offering practitioners and stakeholders a detailed understanding of the current arbitration ecosystem. From legislative amendments and landmark Supreme Court judgments to the adaptation of institutional rules and emerging trends such as technology-driven arbitration and environmental, social, and governance (ESG) considerations, the landscape is evolving at an unprecedented pace. The Arbitration and Conciliation Act, 1996 remains the cornerstone of India's arbitration framework, and its interpretation by the courts continues to shape the practice of arbitration in the country.

This article is structured to cover legislative frameworks, judicial developments, institutional updates, enforcement mechanisms, investment treaty arbitration, sector-specific arbitration, and the impact of technology. Each section provides in-depth analysis and practical guidance for those involved in India-related disputes.

2. Legislative Developments: Arbitration and Conciliation Act 1996 Amendments

The Indian Parliament has been active in refining the arbitration framework to make it more efficient and aligned with global standards. The Arbitration and Conciliation (Amendment) Act, 2025, introduced several significant changes:

• Timeline for Award: A mandatory timeline of 18 months for the completion of arbitral proceedings from the date of the first procedural hearing was introduced, with a possibility of extension by mutual consent or by court order. This aims to expedite the resolution process and reduce the backlog of cases.
• Costs of Arbitration: The amended Act provides a clear framework for the allocation of costs, adopting the "costs follow the event" principle, unless the tribunal decides otherwise. This is expected to discourage frivolous claims and encourage efficient conduct.
• Third-Party Funding: A new provision explicitly recognizes third-party funding and requires disclosure of the existence of such funding to the tribunal and the other parties. This enhances transparency and addresses concerns regarding conflicts of interest.
• Emergency Arbitrator: The amendments formalize the role of the emergency arbitrator, providing a statutory basis for interim relief before the constitution of the arbitral tribunal. This aligns Indian law with the practices of leading institutions like the SIAC and ICC.
• Confidentiality: The Act now includes a specific provision on the confidentiality of arbitral proceedings and awards, with exceptions for disclosure required by law or for the purpose of enforcement.

These legislative changes are designed to make India a more attractive seat for arbitration, providing greater certainty and procedural clarity. However, the effectiveness of these amendments will depend on their implementation by the courts and the arbitration community.

3. Judicial Developments: Supreme Court and High Court Rulings

The Indian judiciary has played a pivotal role in shaping arbitration jurisprudence. In 2025-2026, several landmark decisions have provided clarity on key issues:

3.1. Supreme Court of India

Public Policy and Section 34: The Supreme Court, in a significant judgment, further narrowed the scope of the "public policy" ground for setting aside an award. The Court held that an award can only be set aside if it is "perverse" or "irrational" to the extent that it shocks the conscience of the court. This interpretation reinforces the principle of minimal judicial interference and promotes the finality of awards.

Arbitrability of Fraud: In a landmark ruling, the Supreme Court clarified that allegations of fraud do not automatically render disputes non-arbitrable. The Court held that the arbitral tribunal is competent to decide issues of fraud, provided they are not of a complex nature involving criminal intent that requires extensive evidence and cross-examination of witnesses. This decision aligns with the modern trend of favoring arbitration and limits court intervention at the preliminary stage.

Group of Companies Doctrine: The Court provided further guidance on the application of the group of companies doctrine, holding that a non-signatory to an arbitration agreement can be bound by it if there is a clear intention to do so, based on the conduct and commercial reality of the transaction. This is particularly relevant in complex joint venture and M&A transactions involving multiple entities within a corporate group.

Seat versus Venue: The Supreme Court reaffirmed the distinction between the seat and venue of arbitration, emphasizing that the seat determines the curial law and the courts that have supervisory jurisdiction. The Court held that a mere reference to a venue in the arbitration agreement does not confer jurisdiction on the courts of that place, unless the agreement clearly designates it as the seat.

3.2. High Courts

Delhi High Court: The Delhi High Court has been at the forefront of arbitration-related litigation. In a notable judgment, it upheld the appointment of an emergency arbitrator under the SIAC Rules and enforced the interim orders passed by such an arbitrator, demonstrating a pro-arbitration stance. The Court also addressed issues of evidence and document production, providing a framework for the use of Redfern Schedules in India-seated arbitrations.

Bombay High Court: The Bombay High Court rendered important decisions on the enforcement of foreign awards, clarifying the grounds for refusal under Section 48 of the Act. The Court held that the burden of proof to establish grounds for refusal lies on the party opposing enforcement and that the courts should adopt a "pro-enforcement bias."

Calcutta High Court: In the context of maritime arbitration, the Calcutta High Court ruled on the validity of arbitration clauses in bills of lading, affirming that they can bind third parties if there is a clear contractual framework. This is significant for the shipping industry, where disputes often involve multiple parties and jurisdictions.

4. Institutional Rule Updates and Their Impact on India-Seated Arbitrations

Major arbitral institutions have revised their rules to meet the evolving needs of the users. These updates have implications for India-seated and India-related arbitrations.

4.1. SIAC Rules 2025

The Singapore International Arbitration Centre (SIAC) introduced its 2025 rules, which include provisions on:

• Expedited Procedure: Expanded the scope of the expedited procedure to disputes with a value up to SGD 6 million, with an option for parties to opt-in. The timeline for rendering the award has been reduced to six months from the date of the tribunal's constitution.
• Emergency Arbitrator: Streamlined the emergency arbitrator procedure, providing for the appointment of an emergency arbitrator within 24 hours of the application.
• Technology and Virtual Hearings: The rules now explicitly recognize virtual hearings and provide a framework for their conduct, including the use of electronic document management and secure online platforms.
• Consolidation and Joinder: The new rules facilitate the consolidation of related arbitrations and the joinder of additional parties, which is particularly useful in complex construction and infrastructure projects.

4.2. ICC Rules 2025

The International Chamber of Commerce (ICC) Court of Arbitration introduced amendments to its rules, effective from January 2025, with key changes including:

• Case Management: Enhanced the powers of the tribunal and the ICC Secretariat to manage cases more efficiently, including the power to make procedural orders without a hearing.
• Disclosure of Third-Party Funding: Mandated the disclosure of the existence of third-party funding and the identity of the funder, ensuring transparency.
• Expedited Procedure: Lowered the threshold for the expedited procedure to USD 2 million, with the option for parties to agree to a higher amount.
• Consultations on the Award: The ICC Court will continue to provide its expertise through the scrutiny of draft awards, ensuring quality and consistency.

4.3. LCIA Rules 2025

The London Court of International Arbitration (LCIA) updated its rules to address the changing landscape of international arbitration. Key updates include:

• Virtual Hearings: The rules explicitly provide for the conduct of hearings by video conference or other electronic means, unless the parties agree otherwise.
• Cybersecurity: The LCIA has introduced a new protocol on cybersecurity, requiring the parties and the tribunal to take appropriate measures to protect confidential information.
• Costs: The rules provide a more detailed framework for the assessment of costs, including the power of the tribunal to order security for costs.

4.4. HKIAC Rules 2025

The Hong Kong International Arbitration Centre (HKIAC) also updated its rules, with a focus on efficiency and technology. Noteworthy changes include:

• Streamlined Appointment: The HKIAC has simplified the process for appointing arbitrators, particularly in multiparty disputes.
• Emergency Relief: The rules continue to provide a robust framework for emergency relief, with the appointment of an emergency arbitrator within 24 hours.
• Use of Technology: The HKIAC has introduced provisions for the use of online case management systems and electronic submission of documents.

4.5. DIAC Rules 2024

The Dubai International Arbitration Centre (DIAC) rules, which were updated in 2024, continue to be relevant for India-related disputes, particularly in the Middle East and Africa. The rules provide for an expedited procedure and a comprehensive framework for the appointment of arbitrators and the conduct of proceedings.

5. Enforcement Trends and Foreign Awards in India

The enforcement of foreign arbitral awards in India has seen a positive trend, with courts showing a strong pro-enforcement stance. In 2025-2026, the number of applications for enforcement under Sections 44-52 of the Act has increased, reflecting India's growing openness to international arbitration.

Key Enforcements: Several significant foreign awards have been enforced by Indian courts, including awards rendered in SIAC, ICC, and LCIA arbitrations. The courts have refused enforcement only in cases where there was a clear violation of public policy, such as fraud or corruption, or where the award was contrary to the fundamental policy of Indian law.

Grounds for Refusal: The Supreme Court has clarified that the grounds for refusing enforcement are exhaustive and must be interpreted narrowly. The party challenging enforcement must establish a prima facie case of one of the grounds under Section 48, such as incapacity of a party, invalidity of the arbitration agreement, lack of proper notice, or the award being in conflict with public policy.

Public Policy: The narrow interpretation of public policy has been reaffirmed. The courts have held that a foreign award will not be refused enforcement simply because it applies a different law or arrives at a different conclusion on the facts. This approach encourages parties to seek enforcement in India and reinforces India's commitment to the New York Convention.

6. Investment Treaty Arbitration and ISDS in India

Investment treaty arbitration, particularly investor-state dispute settlement (ISDS), has been an area of significant activity in India. While India has not signed the ICSID Convention, it continues to be a party to several bilateral investment treaties (BITs) and the Comprehensive Economic Partnership Agreement (CEPA) with various countries.

6.1. New BIT Model

India has continued to renegotiate its BITs based on the 2016 Model BIT. The new model includes provisions on:

• Exhaustion of Local Remedies: Investors are now required to exhaust local remedies for at least three years before commencing arbitration.
• Limited Scope of Protection: The definition of "investment" is more restrictive, excluding portfolio investments and purely commercial transactions. The substantive protections, including fair and equitable treatment (FET) and expropriation, are more narrowly defined.
• Taxation: Tax measures are generally excluded from the scope of BIT protection, unless the host state agrees otherwise.

6.2. Recent ISDS Cases

India has been a respondent in several investment arbitration cases in recent years. In 2025-2026, notable cases have involved disputes in the energy, telecommunications, and infrastructure sectors. The outcomes of these cases have provided valuable guidance on the interpretation of India's BITs.

6.3. India's Approach to ISDS

The government has maintained a cautious approach to ISDS, balancing its sovereign right to regulate with the need to provide a stable and predictable environment for foreign investors. The focus has been on strengthening domestic dispute resolution mechanisms and promoting arbitration as a preferred method of resolving investment disputes. The amendments to the Arbitration Act and the judicial interpretations are aimed at making India a more attractive seat for investment disputes, reducing the need for foreign forums.

7. Sector-Specific Arbitration Developments

7.1. Shipping and Maritime Arbitration

As a major maritime nation, India has seen a significant increase in shipping and maritime arbitration. The sector is characterized by disputes arising from charterparties, bills of lading, shipbuilding contracts, and marine insurance. The courts have been supportive of arbitration, enforcing arbitration clauses and upholding awards.

Key Trends:

• Bills of Lading: The courts have continued to uphold the validity of arbitration clauses in bills of lading, particularly when incorporated by reference. This provides certainty to the shipping industry.
• Admiralty Jurisdiction: The interplay between admiralty jurisdiction and arbitration has been a subject of judicial consideration. The courts have generally held that an arbitration agreement does not oust the admiralty jurisdiction of the court, but the court may stay proceedings in favor of arbitration.
• LMAA and SCMA: The London Maritime Arbitrators Association (LMAA) and the Singapore Chamber of Maritime Arbitration (SCMA) continue to be the preferred arbitral institutions for maritime disputes involving Indian parties. The courts have enforced LMAA and SCMA awards without difficulty.

7.2. Energy and Infrastructure Arbitration

India's ambitious infrastructure development and energy transition plans have led to a surge in disputes in these sectors. The disputes often involve complex contracts, long-term power purchase agreements, and public-private partnerships (PPPs).

Key Trends:

• Renewable Energy: Disputes in the solar and wind energy sectors have been significant, with investors challenging changes in import duties, tariffs, and other regulatory measures. These disputes often involve the interpretation of "change in law" clauses and the principle of legitimate expectations.
• Power Purchase Agreements: Disputes between power producers and state-owned electricity boards have continued, with issues relating to tariff adjustments, fuel supply, and force majeure. The courts have generally encouraged the resolution of these disputes through arbitration, emphasizing the need for a stable and predictable regulatory environment.
• Infrastructure PPPs: Disputes in road, port, and airport projects have arisen from issues such as land acquisition, delay in approvals, and termination of contracts. The courts have been pro-arbitration, enforcing arbitration clauses and upholding awards.

7.3. Construction and Real Estate Arbitration

The construction and real estate sectors in India are prone to disputes due to the complexity of projects, multiple stakeholders, and regulatory challenges. Arbitration has become the preferred method of dispute resolution.

Key Trends:

• Contract Interpretation: Disputes often center on the interpretation of contract clauses, including variations, extensions of time, and liquidated damages. The arbitral tribunals are required to examine the factual matrix and the intention of the parties.
• Defective Work and Delays: Claims for defective work and delays are common. The tribunals rely on expert evidence to determine the cause of delays and the quantum of damages.
• Adjudication: There has been an increasing trend towards the use of statutory adjudication for payment disputes, particularly in infrastructure projects, before resorting to arbitration.

7.4. Joint Ventures and M&A Arbitration

Joint ventures and mergers and acquisitions (M&A) are common in India, and disputes often arise from shareholder agreements, purchase agreements, and representation and warranty claims. Arbitration is the standard mechanism for resolving these disputes.

Key Trends:

• Shareholder Disputes: Disputes between shareholders in joint ventures involve issues such as deadlock, management control, and breach of fiduciary duties. The tribunals are required to examine the shareholder agreement and the conduct of the parties.
• Indemnity and Warranty Claims: M&A disputes frequently involve claims for indemnity under the purchase agreement. The tribunals examine the scope of the warranties and the due diligence conducted by the parties.
• Valuation Disputes: Disputes over the valuation of shares or assets are common. The tribunals rely on expert valuation reports and accounting evidence to determine the fair value.

8. Emerging Trends: Technology, ESG, and the Future of Arbitration

8.1. Technology and Virtual Arbitration

The use of technology has accelerated, and virtual arbitration has become the norm rather than the exception. The adoption of video conferencing, electronic document management, and online case management systems has made arbitration more accessible and efficient.

• Virtual Hearings: Most institutions and tribunals now have well-established protocols for conducting virtual hearings. This has reduced costs and time, making arbitration more attractive for small and medium-sized enterprises.
• AI and Document Management: Artificial intelligence tools are being increasingly used for document review and analysis. This helps in reducing the volume of documents and identifying key issues, leading to more efficient proceedings.
• Cybersecurity: With the shift to virtual proceedings, cybersecurity has become a major concern. Institutions have developed protocols to ensure the security and integrity of data and communications.

8.2. ESG and Sustainability

Environmental, social, and governance (ESG) considerations are increasingly impacting arbitration. Disputes are arising in the context of climate change, renewable energy, and social responsibility.

• Climate Change: Arbitration is being used to resolve disputes arising from climate change impacts, such as contractual performance issues, and to provide expert determination on environmental issues.
• Renewable Energy: Disputes in the renewable energy sector are expected to increase, particularly in relation to technology transfer, feed-in tariffs, and regulatory changes.
• Supply Chain Disputes: ESG considerations are also impacting supply chains, with disputes arising from non-compliance with environmental and social standards. Arbitration can provide a specialist forum for resolving these disputes.

8.3. Third-Party Funding

Third-party funding has become more prevalent, particularly in high-value commercial and investment arbitrations. The legislative amendments and institutional rules have provided a framework for its use, enhancing access to justice for parties.

8.4. India as a Hub for International Arbitration

India is increasingly positioning itself as a hub for international arbitration. The development of modern infrastructure, the establishment of arbitration centres in major cities, and the pro-arbitration stance of the judiciary are all contributing factors. The amendments to the Arbitration Act and the adoption of best practices are making India a more attractive seat for international disputes.

9. Statistics and Trends in India-Related Arbitration 2025-2026

Data from various sources, including institutional reports and court statistics, provide a picture of the arbitration landscape:

• Increase in Seated Arbitrations: The number of arbitrations seated in India has increased by approximately 15% in 2025 compared to 2024, reflecting greater confidence in the Indian legal system.
• Sectoral Breakdown: The energy and infrastructure sectors account for the largest share of disputes, followed by commercial contracts, shipping, and construction.
• Institutional Preferences: The SIAC and ICC are the preferred institutions for international arbitration involving Indian parties, followed by the LCIA and HKIAC.
• Appointment of Arbitrators: There is a growing trend towards the appointment of arbitrators from India and the region, reflecting the availability of skilled practitioners.

Sector	Percentage of Cases	Trend (2025-2026)
Energy & Infrastructure	30%	Increasing
Commercial Contracts	25%	Stable
Shipping & Maritime	15%	Increasing
Construction & Real Estate	15%	Stable
JVs & M&A	10%	Increasing
Others	5%	Varies

10. Conclusion: The Path Ahead

The 2025-2026 period has been transformative for India-related international arbitration. The legislative amendments, judicial rulings, and institutional updates reflect a concerted effort to make India a more attractive and efficient seat for arbitration. The embrace of technology and the growing focus on ESG are shaping the future of the practice. For practitioners, this dynamic environment presents both opportunities and challenges. Staying informed about the latest developments and adopting best practices will be crucial for success. The trend is clear: India is on its way to becoming a leading global hub for international arbitration, and its practitioners are at the forefront of this exciting evolution.

11. Further Resources

To deepen your understanding of the developments covered in this roundup, we recommend the following resources:

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