Clause Empowering Contract Signatories To Resolve Disputes Does Not Constitute A Valid Arbitration Agreement Due To Lack Of Impartiality: Calcutta HC

The Calcutta High Court held that a clause empowering contract signatories to resolve disputes does not constitute a valid arbitration agreement due to a lack of impartiality. A valid arbitration agreement requires an independent and neutral mechanism for dispute resolution. A clause that vests the power to resolve disputes solely with the signatories themselves lacks the necessary element of impartiality required for a binding arbitration agreement. This ruling emphasizes the importance of a fair and unbiased dispute resolution process.