Apex court rules unilateral appointment of arbitrators breaches equal participation rights

The Supreme Court delivered a ruling establishing that one-sided or unilateral appointments of arbitrators infringe upon the fundamental right to equal participation in dispute resolution. The court emphasized that both parties must have an equal voice in selecting the tribunal. Arbitration relies on party autonomy and neutrality, where neither side should hold an unfair advantage in constituting the adjudicating panel.

Unilateral appointment mechanisms previously allowed dominant contracting parties to select favored arbitrators, but the legal position now mandates balanced and mutually agreed panels. Corporate legal advisors must review existing commercial contracts and dispute resolution clauses to remove unilateral appointment provisions.

Ensure all future agreements incorporate neutral mechanisms for constituting arbitral tribunals. Bottom line: balanced dispute clauses are essential to prevent legal challenges to arbitration awards.