Supreme Court Invalidates Unilateral Arbitrator Appointments in Public Contracts on Friday

The Supreme Court of India has ruled that clauses allowing public sector undertakings (PSUs) to unilaterally appoint arbitrators in disputes with private contractors are invalid. This decision, made on Friday, curbs the power of PSUs in public-private contracts and aims to ensure fair arbitration processes. The ruling was made in response to multiple cases, including Lifeforce Cryobank Sciences Inc vs. Cryoviva Biotech Pvt. Ltd. (Arbitration Petition No. 15/2018) and Ramkrishna Medical College Hospital & Research Centre vs. State of Madhya Pradesh (Civil Appeal No.______ of 2024).