New Delhi, Feb 8 (IANS): Chief Justice of India Sharad Arvind Bobde on Saturday asserted that there is huge ignorance about the arbitration system in India and pressed for the need for formation of arbitration bars.

Arbitration is a technique to resolve disputes outside the court, by referring them to a neutral party for a binding decision.

"Arbitration plays an essential role in the global infrastructure of international trade, commerce and investment. Presence of arbitration bars is imperative. There is, however, ignorance about arbitration and only few people resort to it," CJI Bobde.

The Chief Justice said that institutional arbitration has met with "little success in India".

Citing Justice B.N. Srikrishna committee report, Justice Bobde said that the lack of credible arbitral institutions, governmental support, specialist arbitration bars, misconception about institutional arbitration and judicial attitude are the reasons why it has not been able to set foot in the country.

"A robust arbitration bar is critical to the development of institutional arbitration in India as it would ensure availability and accessibility of the practitioner with knowledge and experience in the field," he added.

He said that artificial intelligence could provide immense benefit for arbitration process and its users.

"AI-based analytics systems could be used to predict cost, duration and possible resolution, including proposing range of settlements based on analysis of previous arbitration of similar size and complexities," CJI Bobde said.

He further rued that arbitration system is replicating the judicial system.

"Arbitration was meant to be a simple process which it has ceased to be. It is not supposed to mirror litigation," he said.