Bhayana Builders Pvt Ltd vs Oriental Structural Engineers Pvt Ltd

The Supreme Court examined the validity of an arbitration clause where the sole arbitrator was nominated by the Managing Director of one party. The Court analyzed whether such a clause, which grants unilateral appointment power to a party's Managing Director, complies with the Arbitration and Conciliation Act, 1996. The Court upheld the enforceability of the arbitration agreement, emphasizing the importance of the arbitration clause's clarity and fairness. The appeal was dismissed, affirming the High Court's order rejecting the petition to terminate the arbitrator's mandate.