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Corporate Law | Arbitral Award by Unilaterally Appointed Arbitrator Unenforceable: Delhi HC
3 Nov 2026, 9:30 pm IST · Xecute.finance News Desk
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The Delhi High Court ruled that any arbitral award issued by an arbitrator appointed unilaterally by one party remains unenforceable under the law. This judgment reinforces the requirement for neutral and independent dispute resolution mechanisms in commercial agreements.
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Arbitral Award by Unilaterally Appointed Arbitrator Unenforceable: Delhi HC Independent and impartial dispute resolution serves as the cornerstone of effective commercial arbitration, preventing conflicts of interest that could compromise adjudicative fairness.
When a single party holds the exclusive power to select the arbitrator without mutual consent, the foundational integrity of the proceeding is undermined. Legal practitioners and corporate advisers must review existing commercial contracts to ensure neutral appointment mechanisms are established.
Monitor upcoming judicial clarifications on dispute resolution and advise corporate clients to amend unilateral clauses promptly.
Source: taxguru.in
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