Unilateral Option To Terminate Arbitration Agreement Does Not Render It Illegal: Bombay High Court

Bombay High Court ruled that a unilateral option to terminate an arbitration agreement does not render it illegal. The court upheld the validity of an arbitration clause that granted one party the right to unilaterally terminate the agreement under specific conditions. This decision clarifies the contractual freedom of parties to include such termination clauses in arbitration agreements and reinforces the court's limited intervention in freely negotiated commercial contracts, even if they contain seemingly imbalanced options.