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India's infrastructure sector, spanning power, roads, metro systems, ports, and dams, is facing increasing disputes. A Supreme Court judge stressed that resolving disputes only at the end delays projects, and stage-wise resolution through institutional arbitration is more effective. He highlighted the need for better contract drafting, technical expertise, and structured case management. The Attorney General called for dedicated construction-sector legislation. A white paper launched at the conference recommends adopting global best practices and technology-driven systems to enhance clarity, predictability, and efficiency in dispute resolution.
A senior Supreme Court judge has highlighted the urgent need for more robust arbitral institutions to support India's rapidly expanding infrastructure sector. Speaking at the 5th Biennial International Conference on Construction Law and Arbitration, organized by the Society of Construction Law, the judge said that construction projects such as roads, metro systems, power plants, ports, and dams involve specialised legal and technical challenges. He explained that disputes are inevitable in such projects, and while some are genuine, others may be 'creative.' He emphasized that leaving disputes unresolved until the end can stall projects, and resolving them at each stage is more effective. Advertisement
The judge urged the adoption of institutional arbitration for construction-related disputes. He pointed out that the existing arbitration system faces delays and high costs, but institutional arbitration - supported by technical experts, systematic record-keeping, and structured case management - can improve efficiency. He also stressed the importance of better contract drafting, suggesting that agreements should include all relevant laws and terms in a single, coherent document to reduce overlaps and prevent problematic clauses.
At the conference, the Attorney General of India also called for dedicated legislation for the construction sector, noting that current legal frameworks remain fragmented. He encouraged law schools to play a greater role in shaping future construction law and regulatory systems, helping build expertise for a more effective dispute resolution ecosystem.
A judge from the Delhi High Court added that as infrastructure projects become more complex and move faster, dispute resolution needs to become specialised, data-driven, and tech-enabled. He suggested that future arbitration could shift from adversarial litigation toward collaborative, early-resolution approaches. This, he said, could not only speed up dispute resolution but also strengthen India's position as a hub for infrastructure arbitration.
The conference also saw the launch of a white paper prepared in collaboration with a leading legal firm and the Society of Construction Law, titled 'Delay and Disruption under the Global Frameworks: A Framework for Structured Construction Dispute Resolution in India.' The paper recommends adopting international best practices, better program management, and technology-driven evidence systems to ensure clarity, consistency, and predictability in construction dispute resolution. It emphasizes that structured frameworks can reduce delays, manage costs, and improve investor confidence in India's infrastructure projects.
Source PTI
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