The Supreme Court ruled that PSUs cannot unilaterally appoint arbitrators in disputes, a move aimed at ensuring fairness and equality in arbitration
The court found unilateral appointments by PSUs violated Article 14 of the Constitution, which guarantees equal protection under the law for all parties
The ruling requires PSUs to revise contracts, removing the asymmetry that often disadvantaged private partners in PPP projects
The decision could push PSUs towards institutional arbitration, enhancing fairness and potentially boosting private sector participation in infra projects
Ruling aligns with ongoing efforts to streamline arbitration in India, complementing proposals by the expert committee led by T K Vishwanath earlier this year
Ensuring fair arbitration practices may help India advance its goal of becoming a preferred hub for international arbitration, attracting foreign investment