Supreme Court Deprecates 'Deliberate, Ambiguous' Drafting Of Arbitration Clauses; Calls For Suo Motu Action In Malafide Cases

The Supreme Court has expressed strong criticism regarding poorly drafted arbitration clauses that frequently lead to unnecessary and protracted litigation. The apex court urged high courts to take suo motu (on their own motion) action to address the issue of ambiguous and inadequate arbitration agreements. The court emphasized the critical importance of ensuring that arbitration clauses are drafted with precision and clarity, clearly outlining the scope, procedure, and other essential terms for dispute resolution, in order to minimize future legal challenges and streamline the arbitration process.