Securing Natural Justice in Arbitration Proceedings

Abstract

The legitimacy and integrity of any system that adjudicates the rights and duties of persons would be evaluated by reference to the standards required by the principles of natural justice. Arbitration is becoming more popular as a system of dispute resolution because of the exponential increase of cross-border transactions that are a feature of globalization. Now arbitrations take place in countries that lack a well-developed arbitration culture. Courts in some of these countries have yet to develop a coherent body of law that clarifies and gives effect to the principles of natural justice. Moreover, important values protected by natural justice principles can be compromised because of factors peculiar to arbitration. Judicial attitudes to arbitration and the fact that high value arbitrations are being conducted in places like Mongolia that are not traditional arbitration hubs make it highly desirable that a uniform and consistent interpretation of the principles of natural justice be developed by the courts. This would bring welcome clarity to an area of the law that is important but unclear because of judicial policy.