In Brief
In this landmark Constitution Bench reference, the Supreme Court examined the validity of arbitration clauses allowing one party to unilaterally appoint arbitrators or restrict the other party's choice to a curated panel. The majority held that the principle of equal treatment under the Arbitration Act applies at the appointment stage, and unilateral appointment clauses violate this principle and Article 14. However, the Court allowed prospective application to three-member tribunals only. Two dissenting judges disagreed with importing constitutional principles into arbitration law, preferring a case-by-case examination based on contract law and public policy considerations regarding the tribunal's independence.
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