Arbitration Clause Clarity: Imprecise Drafting Invalidates Dispute Resolution Mechanism Under Article 20 Concession Agreements

SC held that Article 20 in the Concession Agreements does not constitute a valid arbitration agreement. The Court critically analyzed the drafting ambiguity in arbitration clauses and emphasized the need for precise legal drafting. The judgment set aside two High Court judgments and upheld one, while clarifying that parties retain alternative legal remedies. The Court strongly cautioned legal practitioners against deliberately creating ambiguous dispute resolution mechanisms and suggested potential punitive measures for intentionally misleading arbitration clauses. The decision underscores the judiciary's commitment to efficient dispute resolution and professional legal standards. .....

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