State-run firms in a bind as apex court clips powers to appoint arbitrators
1 month, 1 week ago

State-run firms in a bind as apex court clips powers to appoint arbitrators

Live Mint  

New Delhi: The Supreme Court's move to slash the powers of state-run companies to unilaterally appoint arbitrators on Chief Justice D. Y. Chandrachud's last day in office leaves the country's public sector units in a cloud of uncertainty. Following this amendment, parties began filing applications under Section 11 of the Arbitration and Conciliation Act, seeking to invalidate arbitration clauses where one party had unilateral control over the appointment of arbitrators. This was especially common in contracts involving public sector entities, where such clauses often gave one party, particularly government entities, the sole authority to appoint arbitrators. In April this year, the top court intervened in an arbitration case where a public entity, Delhi Metro Rail Corporation Ltd, was set to pay about ₹7,600 crore to a private entity, Delhi Airport Metro Express Pvt Ltd, finding judgements made by the High Court division benches to be a miscarriage of justice. Spotlight on mediation This may shift the out-of-court dispute resolution spotlight towards mediation, which the government has touted as a cost-effective method as compared to arbitration in the finance ministry's June advisory.

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History of this topic

Unilateral Arbitrator Appointment Clauses In Public-Private Contracts Invalid; Can't Compel Selection Of Arbitrators From PSU's Panels : Supreme Court
1 month, 2 weeks ago

Unilateral Arbitrator Appointment Clauses In Public-Private Contracts Invalid; Can't Compel Selection Of Arbitrators From PSU's Panels : Supreme Court

Live Law  

The Supreme Court on Friday ruled against clauses allowing Public Sector Undertakings to unilaterally appoint arbitrators to decide disputes with private contractors. The Constitution Bench held that while PSUs can maintain a panel of potential arbitrators, they cannot compel the other party to select its arbitrator from the panel.The Constitution Bench comprising Chief Justice. The Constitution Bench comprising Chief Justice …

Constitution bench reserves judgment in arbitration case
3 months, 3 weeks ago

Constitution bench reserves judgment in arbitration case

Hindustan Times  

New Delhi A Constitution bench of the Supreme Court on Friday reserved its judgment on the complex legal question of whether one party in an arbitration can unilaterally appoint a panel of arbitrators and require the other party to select arbitrators from that panel. During the proceedings, the bench highlighted the critical importance of maintaining integrity in arbitration, particularly in …

Need For Impartiality Standards To Arbitral Institutions
5 months, 2 weeks ago

Need For Impartiality Standards To Arbitral Institutions

Live Law  

Arbitration's popularity in dispute resolution stems from its efficiency and the freedom offered by its promise of party autonomy. This framework includes statutory grounds for challenging an Arbitrator's eligibility and Supreme Court rulings that extend this scrutiny to unilateral appointments made by a party to the arbitration agreement. Challenges Of Institutional Bias In Arbitration While a welcome step in the …

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