Unilateral Appointment Clause Of Arbitrator Hinders Equal Participation Of Parties In Appointment Process: Patna High Court

The Patna High Court recently ruled that a unilateral clause for appointing an arbitrator by one party undermines the equal participation of both parties in the arbitration process. The court held that such provisions, if they allow one party to unilaterally choose an arbitrator, hinder the impartiality and fairness of the proceedings. This decision emphasized the need for an equitable process in arbitration, ensuring that both parties have an equal say in the appointment of the arbitrator. The court directed that a more balanced approach be adopted, highlighting the importance of fairness in resolving disputes through arbitration. This judgment is a significant step in enhancing transparency and fairness in arbitration agreements, reinforcing the principle of equal participation.