Arbitration Update: Unilateral Appointment Of Arbitrators

Overview:

In a recent judgment by the Hon'ble Supreme Court of India concerning the Central Organisation for Railway Electrification (CORE) versus M/s ECI SPIC SMO MCML (JV), the Court addressed critical issues surrounding the independence and impartiality of arbitral tribunals under the Arbitration and Conciliation Act, 1996 ("Arbitration Act"). This decision is significant as it reaffirms the principles of party autonomy while ensuring that such autonomy does not compromise the essential standards of impartiality in arbitration proceedings.

Brief background of the case:

The instant case had arisen out of several appeals which highlighted concerns pertaining to appointment of arbitrators, particularly in public-private contracts. The Law Commission of India had previously emphasized that while parties have the autonomy to choose their arbitrators, this should not override the principles of impartiality and independence, especially during the formation of an