Unilateral Arbitration Clause in India: A Grey Area
![handle is hein.journals/ijlmhs12 and id is 811 raw text is: International Journal of Law) Management & Humanities
Unilateral Arbitration Clause in India:
A Grey Area
ANUBHAV SINHAI
ABSTRACT
Arbitration clause is the essence of any arbitration agreement, as it provides for the
arrangement and the process for conducting arbitration, sometimes arbitration clauses
might confer more power to one of the parties to the agreement, in terms of appointment
ofarbitrator, initiating arbitration, choosing the seat or the venue for the arbitration, etc.
Thus, it is important to decide, whether such clauses are valid or not.
Ergo, this article aims at providing a clarity regarding the validity of such Unilateral
Arbitration Clauses in the Indian legal system. The author will additionally be
analysing the judgements of various High Courts and shall be discussing its relevance in
the status quo.
I. INTRODUCTION
Since the advent of globalisation and industrialisation in India, the need for an efficient
Alternative Dispute Resolution (ADR) mechanism has been pivotal. In the status quo, Foreign
investors and MNCs highly rely on the efficiency of such ADR mechanism of country in which
they invest, because an efficient mechanism paves the way for speedy relief.
The Arbitration and Conciliation act 1996 (Arbitration act), has been subjected to plethora of
amendments and Judicial rulings since its inception to make it free from the egregious jangles
of red tapism and obnoxious delays.
Thus, to achieve the abovementioned feats, it is important to give parties the necessary
autonomy and the freedom to choose upon the desired arrangements coupled with free consent
of both the parties.
When parties to a contract have a dispute resolution clause (or an arbitration clause), in usual
discourse both the parties have the right to initiate arbitration by the virtue of Section 8 of the
Arbitration act appoint an arbitrator in accordance with Section 11 of the arbitration act. This
type of clause is termed a symmetric arbitration clause.
1 Author is a student at ILS Law College, Pune, India.
© 2021. International Journal of Law Management & Humanities [ISSN 2581-5369]
777
[Vol. 4 Iss 4; 777]](ViewImageLocal?handle=hein.journals/ijlmhs12&div=76&collection=&method=preview&ext=.png&size=3)
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Unilateral Arbitration Clause in India: A Grey Area
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